Trouble as Another Nigerian Company Suspends Buying Maize, Sorghum Over Alarming Food Price Increase

• A Nigerian company has said it is temporarily pausing the purchase of maize and sorghum over high cost of living
• It, however, stated that it will continue to create viable growth opportunities for the country and create employment
• This development came after Olam Agri also temporarily suspended the purchase of maize and sorghum

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

A temporary suspension of the offtake of maize and sorghum has been announced by Flour Mills Nigeria Ltd through its subsidiary, Premier Feed Mills, due to the recent increase in the price of commodities.

It made this known in a statement on his X page, acknowledging the country's current state of food insecurity.

It stated:

Read also

FG moves to set prices of rice, yam, garri, other items as food crisis worsens

“As significant off-takers of maize and sorghum, we can attest to maize and sorghum prices being artificially high at present, with ripple effects on prices and finished products like poultry and other livestock.

In the course of our active private-public sector collaboration, we have been in constant consultation with government to establish viable ways of managing the ongoing food crisis especially as it pertains to maize and sorghum.

“In the 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 securing our customers’ needs with the products they love.”

The company claimed that over the years, it has purchased its primary raw materials, sorghum and maize, from regional maize farmers in Nigeria, helping to meet the nation's demand for animal protein and feed rations while creating jobs for over 150,000 Nigerian farmers.

Read also

Cement giants Dangote, BUA, Lafarge explain why prices won't drop below N7,000

It added that it will continue to create viable growth opportunities for the country while providing employment prospects for Nigerians.

Recall that Olam Agri temporarily suspended the purchase of maize and sorghum to allow it to monitor market trends, adjust to market realities and boost food security.

In a statement, the firm, which provides differentiated food, feed, and fibre products, said it recognises the challenges of food insecurity.

Food items no longer affordable

Legit.ng reported that there has been a notable surge in the prices of vital essential foods in Nigeria over the past few years.

This phenomenon took on added complexity following President Bola Tinubu's declaration of ending fuel subsidy payments during his inauguration on May 29, 2023.

The continuous rise in the costs of these staple foods, alongside other commodities, has reduced the buying capacity of Nigerians, as many find it challenging to meet their daily dietary needs.

Source: Legit.ng