Monday, April 19, 2021
  • About Us
  • ImagiNATION
  • Adverts
  • Rate Card
  • Contact Us
The Nation Online
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home Business Business News

Maize shortage hits agro-processing firms

by Orama Chiphwanya
29/07/2016
in Business News, Front Page
3 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

The 12.4 percent maize deficit relative to last year has not only affected households, but also firms that use the staple grain as a raw material for their production purposes.

This year’s deficit has come on the back of another output shortage of about 30 percent last year due to the combined effects of floods and drought the country experienced.

RelatedHeadlines

OPC frustrates roads projects

Stop persecuting me—APM

MPs in funds abuse go free

Agro-processing firms largely depend on maize for their production
Agro-processing firms largely depend on maize for their production

Ministry of Agriculture, Irrigation and Water Development figures show that Malawi produced 2.4 million tonnes of maize this year and because of lower output, 6.5 million Malawians are staring hunger in the face.

As the maize shortage is becoming more evident, some agro processing firms say they are finding it tough to source the grain.

Universal Industries Limited, a local biscuit and confectionery maker, is struggling to source maize, which is one of the key raw materials for its biscuits and other products.

The firm’s food technologist Jean Pankuku, in response to an e-mailed questionnaire, said at the moment, their maize milling section has been affected, with output volume cut by almost half.

“This has negatively affected the business particularly on the Kamba Snacks, which contributes a significant percentage to  our total sales volume,” she said, explaining that currently they are buying maize from other manufactures which is pushing up the cost of buying maize grits for production.

“We normally buy maize from private traders as well as farmers but they have run out of stock from their reserves at the moment,” she said.

Pankuku said Universal Industries has also reduced by half the allocation of flour given to employees and their families, adding that the shortage of maize has also impacted on product pricing.

“This shortage has pushed up cost, but looking at our consumer base, we have had to absorb most of the additional cost which has resulted in loss of profit margins.

“The situation has left us with no choice but to resize the number of our employees to cut costs so that we remain in business. The high cost of production has also pushed down our profits due to failure to supply according to market demand,” she said.

The poultry and animal feed industry has also not been spared from the effects of maize shortage.

Poultry Association of Malawi (PAM) technical adviser Eric Chuma has warned that the price of chicken would likely go up as a consequence of the shortage of maize.

He said poultry producers who rely on grain as a component of feed will have to pass on the increase to consumer.

“The companies that depend on maize as a component in chicken feed will have no choice but to increase their prices to recoup the cost of production,” said Chuma in a questionnaire response.

However, opaque beer brewer Chibuku Products Limited (CPL), a subsidiary of SABMiller, which uses a combination maize and sorghum to manufacture its opaque beer, seemed to have prepared well in advance.

CPL operations director Gerald Bowler said while its production lines have not been directly affected as they had enough stocks in reserve, consumer spending power has been eroded and this has had a direct impact on sales.

“CPL sources maize from local suppliers and this is strategically planned to ensure we hold sufficient stocks for the buying season,” he said, but said their concern is the effect of the deficit this year.

Maize is an important crop to the country’s economy and, as part of food, contributes about 50.1 percent to the consumer price index (CPI), an aggregate basket for computing inflation.

This means that any slight movement in the price of maize either way has a bearing on inflation rate.

Already, due to the shortage of the staple grain on the market, year-on-year inflation rate as measured by CPI has risen by 1.1 percentage points to 22.6 percent in June 2016 from the previous month’s 21.5 percent, according to National Statistical Office (NSO).

NSO statement said food inflation, of which maize has a largest weight, went up to 27.7 percent in June from the previous month’s 25.7 percent.

Avatar
Orama Chiphwanya
Previous Post

48 more ex-OBM workers seek compensation

Next Post

Malawi coal industry under threat

Related Posts

Lilongwe Road | The Nation Online
National News

OPC frustrates roads projects

April 18, 2021
APM | The Nation Online
National News

Stop persecuting me—APM

April 17, 2021
At least 20 lawmakers in the last cohort of Parliament abused CDF funds
National News

MPs in funds abuse go free

April 17, 2021
Next Post
COAL SHIPMENTS | The Nation Online

Malawi coal industry under threat

Opinions and Columns

Big Man Wamkulu

Hot babe wants to trap me, should I ran?

April 18, 2021
Political Uncensored

Mighty mess!

April 18, 2021
My Thought

Chakwera’s indecisiveness will be his downfall

April 18, 2021
People’s Tribunal

Cut the crap, act on abuse forthwith

April 17, 2021
https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf https://www.mwnation.com/wp-content/uploads/2021/03/WFP-Afikepo-1-2.pdf

Trending Stories

  • Lilongwe Road | The Nation Online

    OPC frustrates roads projects

    0 shares
    Share 0 Tweet 0
  • Ministry defends ‘borrowing’ of Covid-19 funds

    0 shares
    Share 0 Tweet 0
  • Caroline Kautsire: English Professor at Bay State College in Boston

    0 shares
    Share 0 Tweet 0
  • Traders fall short of Maize export demand

    0 shares
    Share 0 Tweet 0
  • Chakwera’s indecisiveness will be his downfall

    0 shares
    Share 0 Tweet 0
  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2021 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.