STAFF WRITER
A severe drought has reduced the number of cattle available for slaughter, causing the Meat Corporation of Namibia (Meatco) to lose more than N$700 million in revenue.
Meatco’s audited financial results for the year ended 31 January 2026 show that revenue fell from N$1.865 billion to N$1.108 billion.
The number of cattle slaughtered from south of the Veterinary Cordon Fence also dropped by 53%, from 75,268 to 35,594 over 12 months.
Meatco said years of drought forced many farmers to reduce their herds. Farmers are now rebuilding their cattle numbers, leaving fewer animals available for slaughter.
Interim Chief Executive Officer Ambassador Albertus Aochamub said the financial results tell two important stories.
“The first is the impact of significantly lower cattle throughput on revenue. The second, and equally important, is how the Corporation responded. Despite processing 53% fewer cattle, Meatco remained profitable, generated positive cash flows, increased available cash, strengthened producers’ equity and continued reducing accumulated losses,” he said.
He said the company remains focused on improving its operations, keeping access to export markets, increasing efficiency and preparing for higher slaughter numbers as the national cattle herd recovers.
“These are clear indicators that the turnaround strategy is producing tangible results and that the Corporation is becoming financially stronger,” Aochamub said.
Despite slaughtering less than half the number of cattle compared to the previous year, Meatco made a profit after tax of N$40.5 million.
The company also generated N$73.5 million in operating cash, increased its cash reserves from N$86.2 million to N$128.3 million, raised producers’ equity from N$568.3 million to N$701.3 million, and reduced its accumulated losses by more than N$40 million.
Meatco said these results show that its turnaround strategy, tighter financial management and improved operations are strengthening the business.
Meatco chairperson Stephanie de Klerk said the results should be seen in the context of the livestock industry’s normal ups and downs.
“The financial year under review was characterised by exceptionally low cattle availability following the prolonged drought and national herd rebuilding. These were circumstances beyond the Corporation’s control and affected the entire livestock industry. Despite these conditions, Meatco remained profitable, strengthened its balance sheet and continued implementing the strategic reforms necessary to position the Corporation for long-term sustainability,” de Klerk said.
She said the board is encouraged by the progress made in strengthening the company’s finances while continuing to fulfil its national mandate.
Meatco will present its audited financial results to shareholders at its annual general meeting on 31 July 2026, where it will also discuss its turnaround strategy, governance and priorities for the coming financial year.
COMMENTS