meatco sustainable beef

© Bios Partners 2008

Namibian Beef

Steve Homer

www.natures-reserve.co.uk


Contents

• Namibia & Meatco – State of Industry in Africa – Basic data, production systems, what’s the

industry look like at a high level? – Global Market Overview– EU Beef Market Overview

• Natures Reserve Brand Development– How is the region trending in terms of sustainability– What are the big challenges that relate to sustainability issues

• What are next steps or initiatives to address beef sustainability in Namibia?


African Cattle Herds

• Africa has about 230,000,000 head of cattle, many of which are raised in traditional ways and serve partly as tokens of their owner's wealth.

• Most of the cattle are managed as mobile cattle by pastoralists and cannot be recognised as commercially farmed.

• Only Namibia and Botswana can export to the EU

• South Africa has about 14M Cattle as the most developed African nation but does not export to the EU due to disputed use of hormones.

• Ugandan herd has grown to 11.4 million, other countries like Ethiopia and Tanzania have large herds and are becoming regional commercial players. Angola and Nigeria are becoming larger consumers of beef.


Namibia fact file... 2M Cattle and 2M people

• Second least densely populated country in the world, approx size of Texas

• 50% of the population live below the international poverty line (US$1.25/day)

• 70% at the population are involved in cattle farming and agriculture

• 70% of Meatco cattle are sourced from larger, well organised commercial farmers

• The northern communal areas cannot export and are physically fenced off to livestock and wild animal migration.

• Over the last 10 years Meatco have invested in excess $150k in the Northern Communal Farming Areas of Namibia.

• Meatco, through the Meatco Foundation run many outreach and development projects for rural farming communities


Meatco cattle and factories …

• Meatco cattle are:

• Produced naturally in an open and healthy environment with no hormones or antibiotics allowed

• Fully traceable back to the supplying farm

• From selected, accredited farms

• Processed in Windhoek and Okahandja – both fully accredited and regularly audited to EFSIS and BRC standards

• Expertly chilled following slaughter with full pH testing

• Butchered to specific retail customer specification

Cattle on the Voigtland commercial farm

A Family in the northern community area


Is there a global market for African Beef ? …

• Global Beef demand continues to increase • 3 Companies control 20% of Global Beef Production• A large plant in S America can process 90,000 cattle per day• Meatco process 120,000 per year• Botswana process 150,000 per year

Source Rabobank

c.250K for Export


The Challenge facing African beef

• 67% of Brazil exports controlled by 2 companies (JBS / Marfrig)• 55% Uruguay / 28% Argentina exports controlled by same two

companies

Source Rabobank


EU & UK Market Trends

• EU Production in decline / Import requirement growing

• UK Production in decline

• Import requirement to reach 50% by 2015

2007 2008 2009 2010 2011 2012 2013

Prime Cattle 1171 1095 1053 1026 1010 994 980

Cull Cows 326 419 401 375 368 360 353

Total Cattle 1497 1514 1454 1401 1377 1354 1333

% TotalRequirement 62% 63% 60% 58% 57% 56% 55%

2007 2008 2009 2010 2011 2012 2013

Prime Cattle 1171 1095 1053 1026 1010 994 980

Cull Cows 326 419 401 375 368 360 353

Total Cattle 1497 1514 1454 1401 1377 1354 1333

% TotalRequirement 62% 63% 60% 58% 57% 56% 55%


Ethical Branding - “ Fair Beef ” Label

• Objective to establish “Good for Development” beef product

• Consult with expert partners such as WWF, Solidaridad & UTZ to gather best practice advice and

stakeholder input

• Develop a wider Southern Africa Farming platform from our small pilot

• “Sustainable Beef Development” Round Table – African voice !

• EU Retailer Support

• Looking for US support• Prove that Africa can be a safe,

responsible beef producer and exporter in the future ?


CSR DevelopmentEthical Branding - “ Fair Beef ” Label

• Farmers – Livelihood improvement

• Staff – fair treatment and welfare

• Community – trickle down of export benefits

• Environment – at least a neutral impact of farming

• Not for profit foundation – stakeholder involvement

• Donor development networking – attract partners - aid for trade


CSR & Certification Activities … Establish the base line

• Cooperation with stakeholders from the outset to manage outreach and maximise development projects

• Independent livelihood study of emerging farmers by the International Institute of Environment and Development research economist

• Independent (SGS) social labour rights audit of Windhoek plant

• Global Gap livestock trial audits on 3 farmers in preparation for certification and recognition of FANMEAT in 2012


John Vidal guardian.co.uk, Thursday 3 September 2009

“For the first time in generations there are cows on the streets of Nairobi as nomads like Isaac come to the suburbs with their herds to feed on the verges of roads”

If it is in the newspapers it must be true ...

“Earlier this year, more than 50 people died of cholera in Moyale. It is widely believed that it came from animals and humans sharing ever scarcer water”


Ethical brand extension …


EU Retailer Development

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