Oct 2012 Financial News

NFM hints at flour price hike

Oct 17, 2012

Flour prices are currently "being reviewed" at National Flour Mills (NFM).

The company's acting chief executive officer Cheryl Edwards yesterday said that in the wake of rising international wheat and grain prices, flour prices were "under review".

"Flour is an area where we do have a lot of concern and it is being reviewed at this time," Edwards said in a telephone interview.

Edwards said international grain prices have already increased and now wheat prices were climbing. The food prices were fluctuating after a severe drought earlier in the year in the United States feed-belt triggered shortages in the US and affected that country's ability to export.

"We are paying attention and we are looking on with concern," she said.

Though Edwards said there was no timeline as to when an increase in flour prices would take place, she said the company was "trying its best to manage its cost".

"At this time, I cannot say what or when that could happen," she said.

Last week Monday, farmers were faced with an unannounced $10 hike in wholesale feed prices and have subsequently complained that the rising cost of feed was leading to farmers selling out their livestock to butchers.

"Yes feed prices were raised, but that was driven by the rise in the price of corn and soya over a period of time. We were able to hold out longer than competitors," Edwards said.

She said NFM held its initial price for over two months despite the increased international cost, but when they replenished with the new stocks, they were forced to increase the prices.

These increases came just two months after Food Production Minister Devant Maharaj sought to "allay all fears that the Government may not act in time to curtail the rise in food prices". In a media release then Maharaj had said there was" no need for citizens to worry about food prices escalating in the near future because of drought and other issues which may be affecting the US agro-economy".

When contacted for comment yesterday, Maharaj said NFM did not fall under his purview.


Source:
By Renuka Singh
Trinidad Express
Wednesday October 17, 2012

http://www.trinidadexpress.com/news/NFM_hints_at_flour_price_hike-174506781.html