Meatco has been awarded the remainder of the 1 600 tonnes of the Norwegian beef quota which is a big achievement for the corporation that continues to strive albeit a tumultuous economic downturn. Meatco initially received 1 300, and subsequently another 229.5 tons.
The current allocation can be seen as a result of Meatco having been able to fulfil its Norway export quotas in previous years. This is essentially a clear acknowledgement by the corporation that the Norwegian market is a significant business relationship that Meatco will continue to nurture.
Norway gives Namibia a remarkably lucrative market and the hope is expressed that as many producers as possible will benefit by the utilisation of the market.
In 2018 we received 1300 tons and Brukkaros 300 tons, thus far they managed to use 70.5 tons and the remaining 229.50 tons was re-allocated to Meatco. So in total Meatco received 1529.50 tons of the Norway Quota for 2018.
By fulfilling the quota we have proven to the Norwegian authorities that we have the capacity and capability to fully utilise the allocated and additional quota in future. The importance of that market is known and has been described previous communication, its importance is not only key for Namibia but other member SACU states as well. SACU has tabled for an increased quota during the EFTA/SACU talks which at this stage is positive but we still wait for an official response.
According to acting Chief Financial Officer, Ilana Brown, the additional tonnage of the Norway quota now allocated to Meatco comes at a crucial time when the company needs to maximise the revenue of every kilogram exported.
“The financial benefit of this allocation is significant to Meatco’s revenue for the current financial period that ends 31 January 2019. Without a change in the raw material procured by Meatco currently, the Norway quota will be filled by re allocating product to Norway that was destined for other markets. This is necessary to maximise the GP% we get for our product and also to ensure that Namibia remains committed to Norway by fulfilling the allocation. The annual Norway quota generates significant foreign currency for the meat industry in Namibia, thus delivering less than the 1 600 tonnes is not an option. It remains critical in the success of Meatco to provide the Producer with access to lucrative markets to maximise the returns,” says Ilana Brown.
By continuously fulfilling the quota Meatco continues serving niche markets and placing the Natures Reserve product range onto shelves that will bring maximum yields for our valued producers.