Meatco quota allocation leads to increased producer prices

WINDHOEK: The Meat Corporation of Namibia (Meatco) says its increased Norway quota allocation has led to increased prices for producers.

Meatco increased its average producer price by N.dollars 3,62 per kilogramme this week, a massive jump from the previous week and one of the biggest weekly increases in the company’s history, Meatco’s Manager of Corporate Communication and Marketing, Mario Poolman said in a media statement issued on Wednesday.

He said this follows an increase of N.dollars 1,03 in the previous week.

Poolman said the increase was made possible by the increased Norway quota which was allocated to Meatco, as well as the prospect of increased returns from this market.

It follows a decision by Cabinet to allocate the Norway quota on a more proportional basis, subject to a predetermined set of requirements.

The Norway quota is divided up between Meatco, Witvlei Meat and Brukarros Meat Processors, with 1 200 tonnes allocated to Meatco.

Poolman said this has in total allowed Meatco to increase its average producer price by N.dollars 4,65 per kilogramme.

“The benefit of this price increase also extends to all producers, including those in the Northern Communal Areas. This is because of Meatco’s policy of paying the same producer prices, subject to the quality of animals, north and south of the Veterinary Cordon Fence,” he said.

Poolman noted that Meatco’s producer prices for this week (27 January to 02 February 2014) for A-grade animals is N.dollars 32,85; while the price for the AB grade is N.dollars 31,93; the price for B grade is N.dollars 31,93; and for C grade is N.dollars 30,45

“The biggest price increases were affected for B and C grade animals (N.dollars 4,35 and N.dollars 4,96 respectively over the last week alone), which is the category where the majority of slaughter oxen produced in Namibia fall,” he said.