Flour Mills Nig Ltd through its subsidiary Premier Feed Mills has announced the temporary suspension of the offtake of maize and sorghum over the increase in the commodities prices in recent times.
The company disclosed this in a public statement where it said the decision was premised on the artificially high prices of the commodity and its impact on food security across the country.
- It stated, “As significant off-takers of maize and sorghum, we can attest to maize and sorghum prices being artificially high at present, with ripple effects on prices and finished products like poultry and other livestock. In the course of our active private-public sector collaboration, we have been in constant consultation with government to establish viable ways of managing the ongoing food crisis especially as it pertains to maize and sorghum.
- “In the view of this, PFM will temporarily suspend its off taking of maize and sorghum as we monitor the market environment. In the interim, we will continue our commitment to local content development, finding innovative ways of securing our customers’ needs with the products they love.”
Backstory
PFM joins fellow industry behemoth Olam Nigeria Ltd to halt the offtake of grains such as maize and sorghum over the rising prices of the commodity which threatens food security across the country. In recent times, the cost of these items and the byproducts such as animal feeds have increased significantly.
- For example, the price of maize for example has increased by 79.23% year-on-year from N329.05 for 1kg in December 2022 to N589.75 by December 2023 according to the NBS food price survey for December 2023. The increase in the price of these commodities used in producing animal feeds significantly impacts the price of meat and eggs.
- The price of eggs for example has increased by 50.24% year-on-year from December 2022 to December 2023 while that of fish has jumped from N1,534.50 in December 2022 to N2,347.41 representing a 52.98% increase during the period.
- Nigeria, the nation grapples with a staggering food inflation rate that reached 35.41% in January, catapulting the prices of essential staple foods such as rice, maize, and other grains to unprecedented levels.
- In response to the escalating situation, the federal government has announced a strategic intervention aimed at mitigating the crisis. Authorities plan to release grains from the national reserve, a move designed to stabilize the market and drive down the soaring prices of these critical commodities.
Follow us for Breaking News and Market Intelligence.
