1:25 م
Unknown
Flour Mills to invest US$1.25bn in expanding food & milling production
Nigeria’s largest flour miller, Flour Mills, which has a 60% market share, has announced plans to dramatically expand grain production and milling capacity in Nigeria in order to meet rising demand both from the domestic and regional market. Demand for pasta, bread and bread-based fast food is rising rapidly in Nigeria in line with the growth of the urban middle class, and consumption of flour could go much higher, currently averaging just 80g per person per day versus 200g in South Africa and 400g in Egypt. Flour Mills ” which has invested N25bn over the past seven years in expanding milling capacity ” has earmarked N200bn of investment in expanding food production and processing, with the aim of doubling flour milling capacity from 12,000 MT/day to 24,000 MT/day, which if achieved would make the company the world’s largest flour miller. The company is also investing in projects to produce maize, soybeans, cassava and sugar in Nigeria, and i s contemplating a move into the lucrative snack foods market. In line with government policy the company is promoting the inclusion of cassava flour in bread as a means of reducing costly imports of wheat (which is not commercially produced in Nigeria). The government has successfully trialled bread using 40% cassava flour and has given the country’s bakeries until 2015 to achieve this mix, starting with 10% in 2012. The government is also encouraging the switch to cassava by raising the import duty on wheat from 5% to 20% and on wheat flour from 35% to 100%.
Zambia to double maize reserves to 1m MT
Zambia has announced plans to double its strategic maize reserves from 500,000 MT to 1m MT in 2012 in an effort to secure sufficient domestic supplies and keep prices under control. The recent surge in international maize prices, caused by the devastating drought in the USA and disappointing output in the Black Sea region, has raised concerns across East and Southern Africa that there could be supply shortages and a surge in the cost of imports. Zambia, which had a disappointing maize harvest in 2011/12 of 2.8m MT, down from 3m MT the previous season, has traditionally exported its surplus production to the surrounding region and the country is currently the only member of COMESA and SADC to be running a maize surplus. However, even though stocks are ample and next season’s harvest is on track to recover to 3m MT, the government is taking a cautious approach. State purchases of maize are to be stepped up in July to October when domestic production peaks, with the aim of increasing stocks to 1m MT and keeping domestic prices around their current level of ZMK 65,000/50-kg bag, around a fifth cheaper than international prices. The government is also centralizing the issuance of export permits in an effort to clamp down on illegal exports, conscious that neighbouring countries have expressed interest in importing Zambian maize to meet their own deficits. However, there is some concern over whether the government’s existing silo capacity will be sufficient to store 1m MT of grain without it deteriorating, given that the country’s post harvest maize losses are currently among the highest in the region.
Côte d’Ivoire to boost rice production dramatically
The government of Côte d’Ivoire is hoping to turn the country from a major rice importer to a net rice exporter over the next four years as part of a wide-ranging programme to modernise and revitalise the agricultural sector. A total of US$3.9bn has been earmarked for agriculture in 2013-15, with projects to introduce improved seed varieties that require less fertiliser and that are drought- and pest- resistant, improve irrigation and expand warehousing capacity and transport links to the coast. A key target will be to increase rice production from its current level of around 700,000 MT per year to 900,000 MT this year and 1.5m MT in 2013, a level at which domestic demand could be satisfied without the need for imports (estimated at 1.1m MT in 2012). From 2015 the country could even consider exporting rice to the sub-region, a role it played successfully in the 1970s. Already half a dozen agro-industrial companies are bidding for rice cultivation projects with Côte d’Ivoire’s Office national de développement de la riziculture (ONDR), led by France’s Mimran which plans a plantation along the Bandama River, between Tiassalé and Grand-Lahou, producing 1m MT per year.
Grains price outlook
Grain prices were steady throughout August, following the surge in wheat and maize prices in July. Maize prices fluctuated throughout the month, ending it 1.7% down at
US$319.3/MT, as did wheat prices which ended the month 4.2% lower at US$359.9/MT. However, both grains have retained the dramatic gains they have made this year (wheat 25.1% and maize 17.9%), reflecting concern over the availability of grain supplies are the drought in the USA. In contrast rice prices rose modestly, gaining 1% to end the month at US$598/MT. Looking forward, strong Asian and African demand will keep rice prices above their long-term average, especially as India may not export as much rice as previously anticipated. The outlook for maize and wheat prices is bullish, reflecting the ongoing impact of the drought in the USA on the grain crop which will further drive down global stocks of both grains from their already low levels.
Nigeria’s largest flour miller, Flour Mills, which has a 60% market share, has announced plans to dramatically expand grain production and milling capacity in Nigeria in order to meet rising demand both from the domestic and regional market. Demand for pasta, bread and bread-based fast food is rising rapidly in Nigeria in line with the growth of the urban middle class, and consumption of flour could go much higher, currently averaging just 80g per person per day versus 200g in South Africa and 400g in Egypt. Flour Mills ” which has invested N25bn over the past seven years in expanding milling capacity ” has earmarked N200bn of investment in expanding food production and processing, with the aim of doubling flour milling capacity from 12,000 MT/day to 24,000 MT/day, which if achieved would make the company the world’s largest flour miller. The company is also investing in projects to produce maize, soybeans, cassava and sugar in Nigeria, and i s contemplating a move into the lucrative snack foods market. In line with government policy the company is promoting the inclusion of cassava flour in bread as a means of reducing costly imports of wheat (which is not commercially produced in Nigeria). The government has successfully trialled bread using 40% cassava flour and has given the country’s bakeries until 2015 to achieve this mix, starting with 10% in 2012. The government is also encouraging the switch to cassava by raising the import duty on wheat from 5% to 20% and on wheat flour from 35% to 100%.
Zambia to double maize reserves to 1m MT
Zambia has announced plans to double its strategic maize reserves from 500,000 MT to 1m MT in 2012 in an effort to secure sufficient domestic supplies and keep prices under control. The recent surge in international maize prices, caused by the devastating drought in the USA and disappointing output in the Black Sea region, has raised concerns across East and Southern Africa that there could be supply shortages and a surge in the cost of imports. Zambia, which had a disappointing maize harvest in 2011/12 of 2.8m MT, down from 3m MT the previous season, has traditionally exported its surplus production to the surrounding region and the country is currently the only member of COMESA and SADC to be running a maize surplus. However, even though stocks are ample and next season’s harvest is on track to recover to 3m MT, the government is taking a cautious approach. State purchases of maize are to be stepped up in July to October when domestic production peaks, with the aim of increasing stocks to 1m MT and keeping domestic prices around their current level of ZMK 65,000/50-kg bag, around a fifth cheaper than international prices. The government is also centralizing the issuance of export permits in an effort to clamp down on illegal exports, conscious that neighbouring countries have expressed interest in importing Zambian maize to meet their own deficits. However, there is some concern over whether the government’s existing silo capacity will be sufficient to store 1m MT of grain without it deteriorating, given that the country’s post harvest maize losses are currently among the highest in the region.
Côte d’Ivoire to boost rice production dramatically
The government of Côte d’Ivoire is hoping to turn the country from a major rice importer to a net rice exporter over the next four years as part of a wide-ranging programme to modernise and revitalise the agricultural sector. A total of US$3.9bn has been earmarked for agriculture in 2013-15, with projects to introduce improved seed varieties that require less fertiliser and that are drought- and pest- resistant, improve irrigation and expand warehousing capacity and transport links to the coast. A key target will be to increase rice production from its current level of around 700,000 MT per year to 900,000 MT this year and 1.5m MT in 2013, a level at which domestic demand could be satisfied without the need for imports (estimated at 1.1m MT in 2012). From 2015 the country could even consider exporting rice to the sub-region, a role it played successfully in the 1970s. Already half a dozen agro-industrial companies are bidding for rice cultivation projects with Côte d’Ivoire’s Office national de développement de la riziculture (ONDR), led by France’s Mimran which plans a plantation along the Bandama River, between Tiassalé and Grand-Lahou, producing 1m MT per year.
Grains price outlook
Grain prices were steady throughout August, following the surge in wheat and maize prices in July. Maize prices fluctuated throughout the month, ending it 1.7% down at
US$319.3/MT, as did wheat prices which ended the month 4.2% lower at US$359.9/MT. However, both grains have retained the dramatic gains they have made this year (wheat 25.1% and maize 17.9%), reflecting concern over the availability of grain supplies are the drought in the USA. In contrast rice prices rose modestly, gaining 1% to end the month at US$598/MT. Looking forward, strong Asian and African demand will keep rice prices above their long-term average, especially as India may not export as much rice as previously anticipated. The outlook for maize and wheat prices is bullish, reflecting the ongoing impact of the drought in the USA on the grain crop which will further drive down global stocks of both grains from their already low levels.
0 التعليقات:
إرسال تعليق