Wewak abattoir to get a new lease of life

Tuesday February 16th 2021

Wariman Abattoir and Cattle Ranch in Wewak, East Sepik, is set to be a multi-million kina business with support of Government, says  Livestock Development Corporation (LDC) Managing-Director Terry Koim.

He said this following the signing of a memorandum-of-understanding (MoU) last week (February 11th 2021) with East Sepik Provincial Administrator, Dr Clement Malau, on behalf of the East Sepik Provincial Administration (ESPA) in Wewak.

The MoU paves the way for the rehabilitation of the abattoir and its associated assets.

LDC closed down the operations there in early 1990s.

This new partnership will underpin the rehabilitation work to commence in stages to bring the abattoir up to operational status once again.

“It will cost about K10 million to deliver a state-of-the-art facility at Wariman to process meat for both local consumption and for export to the South East Asian market,”  Mr Koim said.

“The National Government has already allocated K1 million from the agriculture intervention funds towards the project.

” The ESPA and WDDA, as local government authorities, are given the first right of refusal to take ownership of the abattoir when it is commercialised.

” The LDC management has already concluded negotiations with local landowners to discuss spin-off benefits such as employment and contract labour.

” LDC has also mobilised resources to the site, including the purchase of a new Toyota LandCruiser.

“It will send key staff to be on site to oversee the rehabilitation programme, which is set to commence early next month.

” The abattoir, once revived, is expected to bring in an estimated annual turnover of K30 to K50 million.”

Mr. Koim said there was ongoing dialogue with cattle producers which would see cattle being procured and slaughtered at the abattoir, while LDC raised its own herd for both slaughtering and breeding purposes on the Sepik Plains.

He said this would contribute to import replacement of boxed beef cuts, which PNG pays more than K350 million, on average, annually.

“Once in operation, the abattoir is also estimated to create up to 500 jobs for locals from cattle handling to slaughtering, meat processing, marketing and logistics among others,” Mr. Koim said.

Dr. Malau said the abattoir rehabilitation project was in line with the East Sepik Provincial Government’s overall development master plan, which also captured livestock production.

Mr. Koim said said LDC was duty bound to take stock of all its assets across PNG, including the Wariman Abattoir, as directed by Prime Minister Hon. James Marape and Minister for Agriculture and Livestock Hon. John Simon.

He called on all concerned stakeholders to work with LDC for the common good.

In Phase One, the project will require LDC, ESPA and the Wewak District Development Authority DDA (WDDA) to take back the property from illegal settlers, and rehabilitate it to ensure it becomes fully functional. 

In Phase Two, these parties will  invite other interested investors to partner with them to set up a joint-venture company in order to operationalise the abattoir on commercial terms under a memorandum-of-agreement (MoA) as provided for in the MoU.

Any funding made available by ESPA and WDDA during the rehabilitation phase will be considered as part of their equity contribution as shareholders of the JV company that will run the abattoir.

Mr. Koim said the rationale behind this type of new arrangement was to ensure sustainability and progress in providing “an affordable, consistent, accessible and reliable supply of fresh meat cuts for citizens” .

“Right now, important State assets such as abattoirs are solely owned by LDC, and the constant LDC management changes have led to the demise of both LDC and its assets over the years since its inception in 1983,” he said.

“This state of affairs is the result of the Minister for Agriculture and Livestock, by position, being trustee shareholder as provided for in the company’s constitution.

“He appoints the managing director and the LDC board.

” However this arrangement for Wariman will allow the operations to continue beyond any interference, as ownership of the business will be vested with different shareholders while the ownership of the land and other key assets will remain would under LDC.

” Other provincial governments, namely East New Britain and Eastern Highlands, have also expressed interest to roll out similar programmes with LDC in their provinces.”

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