Some relief ahead for 'poorest of poor' with mealie meal prices set to fall, says Premier | Business

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Premier says SA's 'poorest of the poor' could soon see relief, with the food group expecting a substantial fall in the shelf price of mealie meal in the next couple of months. | News24_Business

Food prices are likely to spike and reverse the forecast slowdown in food prices in 2023 if the current load shedding is sustained for a longer period. Photo: Getty Images

Speaking after the release of full-year results to end March 2023, Kobus Gertenbach, CEO of Premier - which owns brands such as Snowflake flour and Iwisa maize meal - said he believed there would be some relief for consumers in the next 30 to 60 days, with raw maize prices coming down substantially.Financial strain

Gertenbach told News24 that the company had factories in industrial areas that were exempt from load shedding such as Isando, near the OR Tambo International airport, and certain parts of Pretoria and Vereeniging. But in other areas such as Cape Town, it was experiencing full load shedding schedules.

It said"global inflationary impact" on raw materials had called for"proactive management of product price increases" in order to offset rising input costs. The increase in Millbake’s revenue was attributed to price growth of 24% and volume growth of 1%.The group's new mega-bakery in Pretoria reached full production levels, while it also bedded down the acquisition of a bakery in the Western Cape, expanding its footprint in that region.

 

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