Meatco warns of a price drop

18 Oct 2016 17:10pm
WINDHOEK, 18 OCT (NAMPA) – The Meat Corporation of Namibia (Meatco) has warned producers of a significant drop in meat prices.
In its latest industry newsletter issued on Tuesday, the corporation noted that due to the situation at the Okapuka feedlot, Meatco would like to strongly caution producers of a significant price drop over the next two weeks.
“Meatco strives to keep the producer price as stable as possible in the interest of our producers but under the prevailing conditions, the corporation is under immense material pressure to uphold this objective. Should the feedlot remain closed in the coming two weeks, this situation will warrant a producer price drop of between N.dollars 5 and N.dollars 8.”
The warning came after the Directorate Veterinary Services (DVS) in the Ministry of Agriculture, Water and Forestry closed the Okapuka feedlot since 02 September 2016.
The DVS said the indefinite closure was in the interest of public health and to protect the meat industry after some cattle there tested positive twice for Zeranol in a period of one year.
Despite its positive effect on the growth of animals, naturally found Zeranol has negative effects on the health of humans such as the development of breast cancer, infertility, prostate cancer and hormonal imbalances when the meat is consumed. It is also banned in the EU, one of Meatco’s biggest meat importers.
Meatco said it is losing about N.dollars 5 million per week with the closure of that feedlot, adding they are not the only ones losing out on exports.
“Meatco is on record through the media and other platforms that the feedlot closure should not just be viewed as a matter limited to the Meatco business alone. This is an industry matter of national proportions as its ramifications will be felt right across the entire livestock and beef industry, and the Namibian economy at large.”