Millers cut production as maize shortage bites

A millers’ lobby has said its members have reduced production to 39 per cent of capacity as maize shortage intensifies, pushing up unit cost of production.

Chairman of the Cereal Millers Association (CMA) Nick Hutchinson said maize supply has remained unstable, causing flour prices to go up by about Sh15 in the past three months. Mr Hutchinson said members who currently hold just 500,000 bags, enough to last just for seven days, are banking on the new harvest from Tanzania.

Limited stocks

“The limited stocks coming in from Tanzania has helped to keep the prices of flour where they are, but in the event something happens and we don’t get that maize, then the cost will definitely go up,” said Mr Hutchinson.

The prices of a two-kilogramme packet of maize has been rising in the last two months, with all the major brands retailing at above Sh100, piling pressure to majority of households that rely on it as their staple food.