Savanna Beef secures lucrative UK market contract

Savanna Beef has secured a lucrative contract with global food giant GPS Food Group.

This ensures a steady market for its products and provides valuable support for optimising production processes.

According to Savanna Beef chairperson Mecki Schneider, a sales and marketing agreement had been signed with GPS Food Group UK on 30 April.

The task team decided that the best choice was to engage a financially sound, globally recognised marketing organisation with extensive experience in marketing various cuts of meat at optimal prices.

“We will have direct feedback of each kg sold on price and final purchaser, and a short payment period is assured after the bill of lading. Demonstrating a marketing strategy and agreement with funders has been crucial in sourcing funds,” he says.

This comes as Savanna Beef secured a N$150-million loan in June to finance the construction of a state-of-the-art export abattoir.

The main EPC contract with Nexus is underway, with construction of the main building already commencing.

The project, valued at N$352 million, is expected to be completed by June 2025.

“Although some detailed design aspects are still being reviewed, the construction of the main building has commenced. For this project, it is not so much the building itself; it is more about the processes within that are challenges, as they need to adhere to the highest standards in terms of effectiveness, hygiene, product quality, cooling, optimal deboning, and effective dispatch of a vacuum-packed perishable product with long shelf life,” he says.

He explains that to support these operations, several additional infrastructure projects are in progress.

A water treatment and reclamation plant is being built by Aqua Services and Engineering at a cost of N$26,1 million.

The main power supply infrastructure, including backup generators, is being constructed by GS Fainsinger and Associates for N$21,8 million.

“Agreements have been reached with NamWater for additional water supply as well as with NamPower to supply the electricity required,” Schneider says.

To ensure fair and transparent distribution of quotas among shareholders, Schneider says a slaughter allocation system is being implemented.

A software expert is currently developing the necessary software to streamline this process and promote equitable participation.

GPS Food Group is a global manufacturing business based in the United Kingdom providing global procurement, supply chain management, and brand management services involving meat protein products. The company has a presence in 10 countries worldwide and markets in excess of 100 000 tonnes of meat products annually throughout the world. Their product range includes beef, lamb, pork, poultry, and meat protein ingredients.

– The Brief