By Busari Kabirat
Ever since the major animal feed producers stopped the buying of grain foods like maize and sorghum nationwide, the prices of grain foods have drastically dropped.
This information was gathered on Sunday, as the major markets sale in places like Taraba, Plateau, Kaduna, Kano, and others dropped with more than 10% in prices of maize and sorghum.
Premier Feed Mills Ltd (PFM), which is a subsidiary of Flour Mills of Nigeria Plc, a major animal feed producer in Nigeria, had on Friday announced the immediate suspension of maize offtake over what it called “the current state of food insecurity in Nigeria and its impact on citizens.”
This was made known in a statement by the company which read: “As significant off-takers and processors of maize and sorghum, we can attest to maize and sorghum prices being artificially high at present, with ripple effects on prices of finished products like poultry and other livestock. In the course of our active private-public sector collaborations, we have been in constant consultations with the government to establish viable ways of managing the ongoing food crisis, especially as it pertains to maize and sorghum.
“In view of this, PFM will temporarily suspend its off-taking of maize and sorghum as we monitor the market environment. In the interim, we will continue our commitment to local content development, finding innovative ways of serving our customers’ with the products they love.”
Olam Nigeria, which is another company that supplies food, feed and other goods, had also taken a similar action by temporarily stopping the purchase of necessary grains like sorghum and maize immediately.
This also a statement from Olam which read in part: “As a major buyer and processor of food staples, we share the concerns around the high prices and supply chain disruptions affecting the availability of essential grains.
“In response to these challenges, we are actively collaborating with industry peers and government authorities to identify and implement strategic solutions to alleviate any additional stress on food availability.
“As part of our proactive approach, Olam Agri in Nigeria has decided to temporarily suspend the procurement of essential grains such as maize and sorghum immediately which will allow us to closely monitor market trends and adjust to market realities.”
The companies made it known that they do buy their raw materials like maize and sorghum from local Nigerian farmers, whereby providing employment opportunities for over 150,000 Nigerians.
As at when this report is being filed, maize price in Taraba has dropped from N58,000 to N42,000, and other markets in Kano, Kaduna, Plateau, Katsina and Gombe also sold the same.
