Observer Money spoke to Savanna Beef Processors’ chief executive officer, Ian Collard, about the growth of the company since its inception and future plans.
Collard started the job as chief executive officer of the company, starting on 13 January.
He is a qualified chartered accountant and has served on several boards, including the Namibian Grain Processors’ Association, Namibian Agronomic Board (NAB), and the Namibia Chamber of Commerce and Industry (NCCI). Savanna Beef has recently started producing beef at its facility in Okahandja.
In August, Savanna Beef completed its first trial slaughter at its new processing facility. The company has stated that once export certification is obtained, the company will export to Europe as per the terms and conditions of the marketing agreement.
Observer Money (OM): Savanna Beef recently processed its first beef at its facility; how much has been processed so far?
Ian Collard (IC): We have processed 61 head of cattle to date.
OM: What is the planned processing capacity going forward?
IC: The planned capacity will be 250 head of cattle per day, which will give Savanna Beef an annual capacity of 50 000 head of cattle.
OM: How much beef will be processed for the rest of the year?
IC: Our plan is that we will only slaughter enough cattle in order to get us European Union certification. This will be in the region of approximately 40 units per day.
OM: Do you plan to apply to export to places like Norway and the EU?
IC: We are planning to export to the EU and the UK in the beginning. According to government policy, we can only start exporting to Norway after five years of business or exporting product.
OM: How many workers are employed at the facility, and how much was spent to set up the facility?
IC: We plan to employ in the region of 220 people at full capacity. The total capital expenditure will end between N$430 and N$450 million, excluding working capital.
OM: Do you have plans to export to South Africa and other neighbouring countries?
IC: We do have plans to export to South Africa and neighbouring countries, but the most lucrative markets will, however, get an advantage as destinations.
OM: In terms of prices you pay the farmer, how does this compare to other meat producers?
IC: We will, or must, pay market-related prices to producers. If not, we will not have a business. Normally cattle prices are quite volatile with a lot of fluctuations, which make predictions difficult.
