Namib Mills announces another increase in food prices

Namibia’s biggest food products manufacturer, Namib Mills, has announced that from the 1^st of September 2021 the prices of nearly all of their products will increase by 2% to 6%.

The price increase comes less than four months after the company announced price increases which came into effect on 12 April 2021.

In a document dated 29 July 2021, sent to Namib Mills’ customers, the current price increases were said to have been caused by various factors, such as the increase in fuel prices over the last nine months, the increase in the cost of electricity, and the increase of annual inflation.

“The hot and dry weather conditions in large parts of the high protein wheat producing areas resulted in expected wheat yields being 35% below prior year yields and 32% below the 5-year average wheat yield,” said the document signed by the company’s financial manager ST Ackermann.

“This has resulted in the cost of high protein wheat increasing significantly due to an expected supply shortage.”

The ocean shipping industry which is currently facing a shortage of shipping containers, leading to a massive spike in freight rates, also contributed to the price increases for wheat, pasta, bread and rice products.

The South African sugar industries is continuing to face serious challenges and in an effort to promote cane farming and business sustainability the South African Sugar Association has announced a 2.4% increase on sugar prices.

“Given the above, we therefore have no other option as to announce the following price increases on the following ranges: rice (by 4%), sugar (3%), mahangu (2%), polana pasta (6%), pasta king (2%), pasta homebrands (2%), la vita pasta (2%), wheat flour (3%), complete mix (3%), bread (3%), yeast (2%).

“Orders will be executed at the existing prices up to the close of business on Tuesday, 31 August 2021, while stocks last,” Ackermann said.

In April this year the prices had increased as follows: wheat flour (by 8%), complete mix (8%), bread (5%), pasta king (4%), rice (3%), pasta la vita (3%), mahangu (3%), pasta polana (2%).

In the photo: Some of Namib Mills’ premier products.