By Staff Reporter
NATIONAL Foods will continue to support local farmers through its contract farming schemes particularly the winter wheat contract in a bid to secure raw materials for its operations.
Most companies in the food manufacturing sector have embarked on contract farming schemes in bid to secure raw materials and in the wake of debilitating foreign currency shortages.
“Turning to wheat, whilst the local crop is currently being planted the early indications are for a much improved wheat harvest based on improved dam levels, better preparation and substantially reduced power outages.
The 2021 local wheat will be delivered in October/November, and wheat imports will be required until this point to supplement the remaining stock from the 2020 harvest.
National Foods will again support local wheat contract farming, with target plantings set at 5,300 hectares,” said the company in a trading update.
Meanwhile the company says its maize division has had a difficult year this has largely been due to the substantial volumes of maize meal imports from South Africa, particularly into the south of the country.
Volumes in the Flour division have grown by 46% on a year to date basis and demand has recovered in the category, assisted by support from the foreign currency auction.
Stock feed volumes increased by 27% driven by increased demand for protein products, notably in the poultry segment. The most recent quarter saw growth slowing as demand for beef feed declined on the back of improved pastures.
The company said it will source its maize requirement locally on the back of the good cropping season experienced in the country.
The country has enjoyed an excellent cropping season, with production of most key grain crops expected to significantly exceed the levels achieved in recent years. On the back of this harvest, National Foods expects to source all of its maize requirements locally over the coming 12 months.