Cereal Millers Association (CMA) has confirmed that the ex-factory prices for maize meal have begun to change based on the availability of National Cereals and Produce Board (NCPB) maize being released to its members after the government retaliated its commitments to reduce the price of maize flour.
Members of the Cereal Millers Association are receiving a 60 percent share of the 750,000 bags being released by the Government, translating to 450,000 bags from National Cereals and Produce Board.
Some members started collecting maize on Saturday last week and will continue to do so from various locations around the country, for at least another 10 days. This process is dependent on the location of the pickup points relative to the mill location and the logistics associated with grain loading and transfer to mills.
“We expect that the retailers will pass on the change on ex-factory prices to the consumer. If this happens, we expect shelf prices to settle between 115 shillings to 125 shillings per 2kg packet,” said Nick Hutchinson, Chairman of Cereal Millers Association
CMA is, however, projecting that the maize being released now will only last members between 8-12 days, depending on market demand.
“Therefore, it is important to appreciate that once the Strategic Food Reserve intervention maize is milled, we will expect finished product prices to adjust to market prices for maize grain at the time. In the meantime, we are encouraging the Government to urgently pursue regional interventions to ensure that maize supply returns to normalcy,” said Hutchinson.