With the cost of wheat skyrocketing, the National Milling Company (NAMILCO) yesterday announced a 15% increase in the price of flour—a move the company says is required to ensure a continued supply on the market.
“The price of wheat today is 40% higher than it was on February 15, 2022, just 3 weeks ago. During this period, we have also seen increases in the cost of packaging, additives, and just recently, fuel. Consequently, we can no longer sustain our operations at our current Flour Price levels,” the company stated in press release on Friday.
NAMILCO explained that with the increased cost of production over the last year, it was forced to absorb many of the increases, only passing it on to customers where it was unavoidable.
“We will work at leveraging economies of scale available to us (e.g., through wheat vessel ownership) to mitigate some of the adverse impacts of freight logistics, market access and raw material supply,” the release added.
The flour producer assured that it will continue to adapt to changes with customers’ best interests remaining a priority while working to minimise disruptions to local food security, nutrition, and culture.
It also pointed out that despite the challenges and increase in prices, “our flour remains pound for pound a less costly alternative than other local provisions.”
The company explained that companies across the world, like Namilco, are experiencing unprecedented increases in the costs of raw materials, freight, packaging materials, energy, and other inputs.
Further, the events between Ukraine and Russia have only served to exacerbate the problem for manufacturers, the company added.
