Meatco suspends slaughter operations amid FMD crisis
Namibian beef exporter Meatco faces severe financial pressure and potential job cuts due to the suspension of international exports.
The Meat Corporation of Namibia (Meatco) has suspended slaughter operations because the ongoing Foot and Mouth Disease (FMD) outbreak has stopped international beef exports, which historically accounted for over 85% of its earnings. Interim Chief Executive Albertus Aochamub stated that local sales cannot replace the lost income, placing the company under severe fiscal pressure.
Meatco's monthly wage bill of N$15 million is now unsustainable, prompting management to consult with the Namibia Food and Allied Workers Union (Nafau) on cost-containment measures. These include possible temporary salary reductions, shorter working hours, and voluntary separation packages, subject to funding availability.
The company is also exploring a payment holiday with the Development Bank of Namibia and other financial relief. Should export restrictions persist, Meatco may consider organisational restructuring, workforce reductions, or temporarily placing operations under care and maintenance, while aiming to preserve the company as a going concern and protect jobs.
Why it mattersNearly 800 Meatco employees face potential salary reductions, shorter working hours, and retrenchments due to the FMD crisis impacting the company's export revenue.