01 Feb 2014 16:20pm
WINDHOEK, 01 FEB (NAMPA) - Meatco is in the process of re-aligning its livestock procurement approach through various schemes to provide both financial and technical assistance to producers.
The Meat Corporation of Namibia (Meatco)s Regional Procurement Manager, Koos Classens was quoted in the companys latest newsletter issued on Friday as saying that following last years devastating drought, many Namibian producers may find themselves with a massive task this year that of restocking their herds.
At the moment, Meatco is in the process of re-aligning its livestock procurement approach and through various schemes, can provide both financial and technical assistance to producers to enable them to continue farming optimally at this time. The herd restocking process is one that comes with many economic considerations for producers, he noted.
There are two ways in which producers can restock - either with their own cattle or through buying weaners. Both processes can be very costly, according to Classens.
One such scheme is the Meatco-Owned Cattle (MOC) scheme which concentrates on securing cattle through binding contracts with producers. He said the scheme is dedicated to adding value early in the chain.
There are two MOC products - Profit Share MOC and Contract Feeding.
Profit Share MOC is available for the intensive rearing system in semi-intensive and extensive field conditions. Contract Feeding is currently only available for the intensive rearing system of cattle in feedlots. With Contract Feeding, Meatco takes the purchase price risk while the producer only takes the rearing risk, or the value-addition risk.
Both contracts are aimed at assisting producers in managing their farming operations more successfully while reaping the benefits of their hard work through surplus pay-outs.
Classens advised producers to try and maintain their pasture/grazing in proportion to the number of cattle they own. He said there should be a balance between the number of cattle and the amount of available grazing.
The MOC initiative will allow Meatco to be more involved in the market in a broader spectrum, as the corporation will no longer only be in the slaughter business, but will be able to do more within the cattle industry, like host permit days for communal producers and buy on the hoof at auctions, he added.