Known for cutting Namibian beef for export and local consumption, Meatco - the country's leading meat processing company - is about to go under the knife itself. This week the government announced plans that will ultimately lead to the company ultimately becoming a cooperative type of arrangement to broaden participation and membership. The government plans to engage a consultant to finalise its plans of restructuring Meatco, the Ministry of Information and Broadcasting said this week.

At the moment, Meatco is governed by a Board of Directors that reports to the Minister of Agriculture, Water and Forestry. However, despite operating under an Act of Parliament to safeguard the interest of members, Meatco is not owned by the government and it cannot be described as a private company. Dividends from profits in a given year are shared by farmers whose animals were slaughtered during the financial year.
Uschi Ramakhutla, Corporate Communications Manager of Meatco, told the Economist this week that the current structure makes it difficult for the company to borrow money from financial institutions or go into partnerships with other investors.
In its statement, the information ministry said in order to expedite the matter, the Ministry of Agriculture, Water and Forestry and the National Planning Commission plan to use the procurement procedures of the Agricultural Bank of Namibia to engage a consultant to finalise  work on the ownership structure of Meatco within the next three to four months.
“The new structure of Meatco must ensure that Meatco, as an important player in the meat industry and contributing to the country’s economy, is managed on sound business principles to ensure that Namibia continues to market meat and meat products in domestic and external markets competitively,” the statement said.
The information ministry added that Meatco’s new business format must ensure that the company empowers emerging and communal farmers through the establishment of auction pens and marketing infrastructure in these areas.
The Namibia Agricultural Union president, Raimar von Hase, told the Economist that the current ownership status of Meatco is unclear.
“It is a welcome development. The meat producers will now have ownership in the company. They will have more say and get more involved,” he said.