27 Jan 2017 17:10pm
WINDHOEK, 27 JAN (NAMPA) Namib Mills has decreased prices on most of its products due to improved rainfall over the maize production areas in southern Africa.
The price reduction, which will be effected on 14 February 2016, will result in a 12 per cent decrease for maize meal, while baking flour and Meme Mahangu pearl millet will go down with 6 per cent, respectively.
Rice King will go down with 7 per cent.
Speaking at a media briefing here on Friday, Namib Mills Chief Executive Officer (CEO), Ian Collard said the decrease in their prices is also due to better crop estimates expected for southern Africa.
The decrease cannot be only attributed to good rainfall, but also on the strengthening of the Namibian dollar against the United States of America dollar, because the bulk of our raw materials used to produce products such as baking flour and Meme Mahangu are imported, said Collard.
He said the import of wheat does not apply to Namibia only, as most southern African countries are net importers of wheat.
However, the price of sugar remain the same due to Southern Africa Custom Union duties.
Collard said the weather has a big effect on maize, but not on other products such as sugar, rice and wheat.
Commenting on the worms affecting crop fields in Etunda Green Scheme Irrigation Project in the Omusati Region, Collard said he hopes the situation will be isolated so that it does not spread to other areas.
He, however, said the situation remains favourable in terms of the availability of maize.
Inflation stood at 7,30 per cent, according to the Bank of Namibias Namibia Consumer Price Index for December 2016.
The Trading Economics website showed that cost of food in Namibia increased 12.50 per cent in December of 2016 over the same month in the previous year. Food inflation in Namibia averaged 8.05 per cent from 2012 until 2016, reaching an all-time high of 12.50 per cent in December 2016 and a record low of 4.10 per cent in June 2015.