Friday, 21 December 2018

NATIONAL FOODS BAILED OUT

A leading flour processor has assured the market of stable supplies of the commodity after securing funds from the central bank for wheat procurement which has bolstered production capacity and averted shortages on the market. 


 The grain processor and miller National Foods had contemplated shutting down its mills in Harare and Bulawayo on the 5th of December citing delays in repatriating payments to foreign wheat suppliers, according to a letter addressed to stakeholders by the executive authorities at the firm. 
 The intervention by the central bank to allocate finances to unlock the wheat stock from the suppliers has guaranteed supplies of the flour commodity, at the same time avoiding closure of one of the longest serving flour millers in the country. 

 While the company is buoyant of enhanced capacity, depleting consumer spending is likely to impact on its profit outcomes next year. The agro-processing firm suffered a dip in its profits this year after it failed to raise prices in alignment with inflation trends in the country, according to its financial results for the year ended June 30, 2018.

 There are however, plans to expand on production capacity next year as the company projects strong growth in 2019. zbc  

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