Meatco Pays N$28 Million Bonus to Producers

Meatco last week paid out a bonus of about N$28 million to producers who signed and honoured their delivery contracts with the company during the 201314 financial year. About 500 Namibian farmers will benefit from this bonus.

Nico Weck, Meatco’s chief financial officer, says the company will pay out a premium of N$1.20 per kilogramme, including tax, for all animals that were slaughtered under contracts during the 20132014 financial year under review. However, only producers who delivered at least 90% or more (up to 100% plus one load) on their contracts will be eligible for this payment.

“This means that if you undertook to deliver 100 animals, you should have delivered at least 90 animals to qualify for the bonus. For producers who exceeded the 100 mark and delivered more animals, a premium will be paid per kilogramme, up to 136 animals. No bonus will be paid for more than 136 animals delivered.”

Weck explains that this is because one load equals 36 animals, and the bonus is only payable up to 100% of the contract commitment, plus one load of animals.

The matter of bonus payments was discussed with producers during the course of the year, and was announced again at the Meatco annual general meeting (AGM) held in June.

Each producer will receive a slaughter statement in the mail on how hisher value was calculated.

“During the last financial year there was still some money left at the end of the period. We are using this money to pay out the bonus. During the course of the year we pay the maximum price possible to the producer. Since we’re trying to maximise producer returns, if there’s money left at the end of the year, we’d like to put that cash in our producer’s pockets,” he says.

Source : New Era