Savanna Beef Processors, a producer-owned abattoir in Namibia, has suspended all slaughtering, cooling, deboning, and packing operations due to the country's foot-and-mouth disease (FMD) outbreak. The outbreak was reported on 23 September, just two weeks after Savanna had reached its maximum daily production capacity of 250 cattle. The company has 730 shareholders and over 500 Beef Value Chain Forum (BVCF) members.
The suspension of operations has put approximately 240 employees at risk, with those working on the slaughter, cooling, deboning, and packing floors placed on leave. A skeleton staff remains on site to maintain the facility and operate the remaining cooling systems. Savanna chairperson Mecki Schneider said the company was operating in survival mode, seeking alternative markets, negotiating financial support, and working towards restoring operations.
Savanna is marketing beef products held in chillers and freezers locally and has secured the release of containers already certified for export from the port of Walvis Bay. The company is in open negotiations with its financiers and banks to secure financial support. Schneider stated that Savanna had no external party to absorb its losses, requiring expenditure to be aligned with its financial position.
The company expects lower beef prices across the industry until access to the European Union (EU) and United Kingdom (UK) markets is restored. Savanna has identified three immediate priorities, including engaging international veterinary experts to support Namibia's efforts to regain its international veterinary status, restoring cattle deliveries to the abattoir, and securing alternative export markets.
The BVCF steering committee has unanimously approved N$500 000 as an industry contribution towards engaging an international expert. Agriculture minister Inge Zaamwani has instructed her team to approach the EU for support, while stakeholders consulted by Savanna have backed the appointment of an expert to assist Namibia in regaining its veterinary status.
Savanna's international marketing agent, GPS, has assessed alternative market opportunities. However, Schneider warned that securing new markets would take time because veterinary import requirements differ between countries. Namibia consumes about 30% of its annual beef production, raising concerns about pressure on the domestic market if export opportunities remain restricted.
Before the outbreak, Savanna had exported approximately 100 containers of beef to niche markets in the UK, EU, and Norway. The company obtained EU export certification on 7 April and began slaughtering cattle for export on 13 April. Schneider said slaughtering could resume on a limited scale by the end of November and potentially continue through December, subject to feasibility.
Key points
- Savanna Beef Processors faces a critical financial period due to the FMD outbreak.
- The company is seeking alternative markets and financial support to restore operations.
- The FMD outbreak has put approximately 240 jobs at risk.
