Northern Farmers Want Meatco Assurance

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By William Mbangula

ONDANGWA

The Mangetti Farmers Association (MFA) will not sign a cooperation agreement with Meatco if the meat export company does not play open cards with them.

The MFA Chairman Ismael Shailemo said this after he was approached for comment on the envisaged Meatco ownership restructuring currently under review.

MFA consists mainly of the communal farmers in the Mangetti area who represent the greatest number of cattle producers in the north. Close to 1,2 million cattle are in what is known as the Northern Communal Area (NCA) compared to the 750 000 south of the redline.

If such animals are utilized profitably, an income of between N$750 million and N$1 billion a year could be generated for the development of the region.
Shailemo revealed that his association was approached by Meatco through Elia Uaandja of the National Planning Commission (NPC) to become partners in a cooperative to be formed in the next two years.

Said Shailemo: “We have written back to them demanding to have their new and old constitutions in order to compare notes whether there is real change or not. This is because we are afraid that we may end up being part and parcel of something which will not benefit us but only certain people.

“As I am talking to you now, we have not yet received any response from them. For us it will not make sense to join them without proper information given to us.” Speaking at the prize handover ceremony here on October 30, Meatco Board Chairperson Arne Gressman confirmed that the ownership restructuring process is under way.

In terms of the arrangement, Cabinet approved the appointment of a consultant to define the mandate and ownership structure of Meatco.

The mandate and ownership structure would be based on set criteria which include, among others, the following: to define the mandate of Meatco and its ownership structure, the preferable option being a cooperative type of arrangement, to ensure that Meatco, as an important player in the meat industry is managed on sound business principles to ensure that Namibia continues to market meat competitively outside the country, and to ensure that Meatco empowers the emerging and communal farmers by putting up auction and marketing facilities in the areas concerned.

This should be followed by efforts to accrue maximum benefits from selling animals to Meatco and not only to the middle sellers.

The investigation should also ensure that Meatco’s profits are equitably distributed amongst Namibian farmers by making financial contributions to the Meat Industry Development Fund aimed at expanding the sector.

Such a fund should fully contribute to the national objectives of sustainable utilization of natural resources and growth with equity.

The restructuring process came about following the announcement by the Minister of Agriculture, Water and Forestry Dr Nicky Iyambo recently that the Government and the meat industry have realized the need for Meatco’s existence but under a new form of business principles.

Apparently, the meat corporation has been an entity not owned by anyone hence the need to make it one with a representative ownership structure with both commercial and communal farmers being owners thereof.

Cabinet directed that pending the Meatco Amendment Act, the board should co-opt five representatives from the communal areas north of the veterinary cordon fence.

During the handover ceremony that was called by Meatco to honour those communal farmers who have sold many cattle to its abattoirs in Oshakati and Katima Mulilo, four farmers were given prizes.

The first two winners, Elizabeth Nghihepa from Oshikoto Region and Samwel Seketa from the Kavango Region, received a bull each.

Runners-up Simon Mulunga Kanepolo from Oshana and Oiva Mahina from the Kavango Region were given cash prizes.

The prize-giving practice is one of Meatco’ s incentives to entice local communal farmers to sell their animals for slaughtering at its abattoirs.

The councillor of Onayena constituency Max Nekongo on behalf of the Governor of Oshikoto Penda ya Ndakolo also addressed the occasion. He reiterated the Government’s readiness to assist communal farmers in order to promote the advancement of the meat industry among all the farmers in the country.

Nekongo called for closer cooperation between Meatco and the communal farmers.