Construction of N$300m beef processing plant back on track

After a temporary setback caused by funding delays, construction at the N$300-million beef processing facility along the Windhoek-Okahandja highway has resumed.

This was confirmed by Siegfried Schneider, the chairperson of Beef Value Chain Forum and Savanna Beef Operations, in a statement on Monday.

He said Savanna Beef Operations experienced a delay in the release of the first requested loan draw-down from the N$150 million from the main lender, the Industrial Development Corporation (IDC) from South Africa, due to some legal challenges, which were beyond Savanna’s control.

Although he did not give the amount released from IDC, he said it was substantial and would enable the company to speed up the construction of the facility.

“Simultaneously, the detail design of the slaughter and deboning line was delayed as well as the ordering of equipment deferred.

“We thus agreed with the main contractor, Nexus, to extend the project for about two months into August 2025, in order for every party to attend to the outstanding matters,” Schneider said.

He, however, said over the last week, the first funds from the IDC were released to the company and special meetings on the detail design were successfully held in Johannesburg with the contractor and its engineering team, to address the construction backlog.

“The design and layout in the different production areas like slaughter line, offal, chillers, deboning hall and final product packing were finalised,” he said.

Schneider added that the general construction of the processing plant is progressing well with steel structure, walls, roofing, cladding and the outer insulation panels for the cooled areas having been completed.

“To reach the current stage in construction, we have utilised the N$200 million own equity raised from cattle producers and another N$80 million from other investors,” he said.

He further said with the IDC loan, orders for the refrigeration plant and major processing equipment with long lead times have been placed. This includes equipment to making products required for specific markets, he said.

Schneider said competition among slaughter houses in the beef sector was good for producers.

“There are enough cattle for slaughter in the country and all we need to do is to pay the farmers the right price and they will shift from producing weaners to producing slaughter cattle,” he said.

Schneider said one of the main tasks ahead for the company is to recruit qualified personnel to operate the facility efficiently within the next eight to 10 months.

He said Ian Collard had been appointed chief executive of the Savanna Beef Operations Group, starting on 13 January 2025.

A chartered accountant, Collard was the financial manager, commercial manager and managing director of Namib Mills, and for the last 10 years, he was the chief executive of the Namib Mills Group.

He has served on various boards and organisations, such as the Namibian Grain Processors’ Association, Namibian Agronomic Board, Namibian Employers Federation, Agricultural Trade Forum, Namibia Trade Forum and the Namibia Chamber of Commerce and Industry.

– email: matthew@namibian.com.na