By:Nghiinomenwa-vali Erastus
Staple food producer Namib Mills has announced that it will decrease prices on wheat flour, maize meal and instant maize porridge.
The company announced this in a statement released on Thursday, stating the decrease is in response to global wheat prices that went down, and increased maize supply.
Thus, halting the upward movement in the general price level of wheat flour and maize meal in the country as observed by the Namibia Statistics Agency.
“Namib Mills hereby informs you that there will be a price decrease on various products effective, 26 June 2023,” the statement read.
Maize meal prices will decrease by 10%-14%, instant maize porridge by 7%; wheat flour price will go down by 10% while complete mix prices will decline by10%.
It said orders will be executed at the existing prices up to the close of business on Friday, 23 June 2023.
The food producer, which also doubles as grain processor, explained that a variety of factors have caused these price decreases.
First is the global wheat prices have declined in US dollar terms as the Black Sea grain corridor has been opened for the export of wheat.
Wheat production and the future production prospects out of the major wheat producing countries have increased, resulting in increased supply.
Namibia Mills added that there could be a deep decline in wheat grain, however, the country’s currency has weakened.
“The full benefit of the decrease in the international wheat price has been offset by the weakening of the Namibian dollar against the US dollar but the net effect still enables us to announce a decrease in our prices,” the company said.
As for the white maize prices, they have decreased due to an increase in the South African maize harvest estimates, resulting in projections that sufficient maize will be available in the region.
Global maize prices have also declined as yields in other maize producing areas of the world have improved resulting in increased supply projections.
As a result, Namib Mill will distribute its new price lists to reflect the global changes.
During the month of May 2023, annual inflation rate stood at 6.3% compared to 5.4% in May 2022.
The main contributors to the annual inflation rate of 6.3% in May 2023 were food and non-alcoholic beverages; and alcoholic beverages & tobacco.
Food and non-alcoholic beverages increased by 12.5% and contributed 2.4 percentage points to the overall CPI annual rate of 6.3%.
This was followed by alcoholic beverages & tobacco that increased by 7.5% and contributed 1.0 percentage points to the overall CPI annual rate for May 2023.
On a month-on-month basis, the inflation rate stood at 0.2% compared to 0.4% registered during the preceding month. Email: erastsus@thevllager.com.na