Windhoek:The Meat Corporation of Namibia (Meatco) has announced the suspension of its slaughter operations, citing financial difficulties attributed to a lack of export income. The corporation is currently facing challenges with its monthly wage bill of approximately N$15 million for nearly 800 employees.

According to Namibia Press Agency, the suspension of international beef exports, in effect since September 23, 2026, due to a foot-and-mouth disease outbreak, has significantly impacted Meatco's financial standing. The company traditionally earns about 85 percent of its income from exports, and the prolonged closure of these markets has exacerbated its financial strain.

Meatco has indicated that the suspension will continue until financial and operational conditions allow for a sustainable resumption. Although no retrenchments have been announced, the company has acknowledged that workforce reductions might be necessary if the situation persists. The immediate challenge is maintaining sufficient cash flow to purchase livestock while ensuring the welfare of employees.

The situation is also affecting other export-oriented abattoirs in Namibia, threatening the sustainability of the broader livestock value chain. Meatco's management is in discussions with the Namibia Food and Allied Workers Union (NAFAU) about emergency cost-containment measures, including potential adjustments to pay and working conditions. Options like voluntary separation packages and financial relief measures are also under consideration.

Meatco has referenced Section 12(6) of the Labour Act, 2007, which allows for a reduction in working hours and pay under certain conditions. If the financial challenges continue, more extensive restructuring and workforce reductions may be necessary. All proposed measures are subject to consultation with NAFAU, the board of directors, and shareholders.