NFM to absorb overhead prices, maintain flour price amid rising wheat costs

NATIONAL Flour Mills on Thursday assured the public it would continue to maintain local prices of flour despite the spikes in the demand for wheat, rice, soybean meal and corn.

In a release, NFM said it would continue to absorb increasing input costs to maintain the overall price of flour.

“We are continually working to improve productivity levels and operational efficiencies to absorb new material cost increases as much as possible, and will diligently monitor the global grain situation and evaluate our options to ensure we can continue to do so profitably.”

In March, NFM announced it raised the prices of its animal feed by up to 14 per cent, because of increasing global grain prices, which experienced a shock because of a high demand from China to recover from the damage done to its hog sector on 2018 and 2019 because of the African Swine Flu.

On Thursday, NFM said projections indicated that global consumption of wheat would reach an all-time high because of the demand for food and seeds. NFM also noted an increase in the demand for corn for animal feed and biofuels.

NFM added that rising shipping charges had also contributed to higher prices

“These factors have caused the cost of grain to rise sharply over the last four months. Prices for wheat yellow corn and soybean meal have increased by 26, 60 and 45 per cent respectively this year.”

NFM also rubbished rumours which suggested that it was closed for business.

A voice note circulating on social media suggested the same challenges to acquire materials led to NFM’s closure.

“I was privileged to some information that NFM would be closing down because of a shortage of wheat. That means a shortage of flour which means eventually Kiss and all the bakeries would be affected because they would not be able to produce anything.”

In a release debunking that rumour, NFM advised that people disregard the “erroneous” message.

“NFM is open from Monday to Friday and business hours remain the same.”