Nutrimix Flour Mills has reduced some of its flour prices between five and 17 per cent, a move that stakeholders believe will benefit households the most.
A release on Friday said, effective immediately, the prices of its Country Pride and Nutrimix Premium Grade two-kilogramme (kg) and ten-kg range of flour.
It said Country Pride two-kg and ten-kg Bakers flour were reduced by 17 per cent, two-kg All-Purpose by eight per cent and ten-kg by 13 per cent. Its Cake and Whole Wheat flour, two kg bags, were reduced by five per cent. Nutrimix Premium Grade flour, two-kg and ten-kg, were reduced by nine and ten per cent, respectively.
It said the price drop is due to several factors, including the global decrease in wheat prices and shipping costs, its improved internal systems and controls, and its initiatives to increase the efficiency of operations while reducing milling and processing costs.
"As a leading food manufacturer, we are committed to providing our customers with affordable and high-quality products. To this end, we regularly assess our raw material and shipping costs, as well as other expenses related to the production of our products," the release said.
According to tradingeconomics.com, the current global price of wheat is US$6.50 per bushel (60 pounds).
The website said this is a nine-month high amid concerns regarding supply disruption have reappeared.
"Heavy flooding hit Rio Grande do Sul state in Brazil, a large wheat producer in early May and frosts in grain-growing regions in Russia led the country to declare a state of emergency," the website said.
"However, there were improvements in the ratings for US winter wheat conditions as the El Nino weather pattern should fade out by June, alleviating some of the concerns, however, it could be replaced by the La Nina where temperature drops more than normal according to a government forecaster."
The website said supply is projected to decline by 2.2 million tonnes in 2024/2025 and global consumption is expected to increase by two million tonnes.
According to Statista.com, shipping costs roughly US $2719 per 40-foot container. The exact figure can vary depending on shipping routes, weights and other factors.
In June 2022, Nutrimix increased prices on its flour products between ten and 33 per cent, citing the high global price of wheat brought on by Russia's invasion of Ukraine.
This hike came days after National Flour Mills (NFM) raised its retail price by 28 per cent.
Nutrimix later reduced prices by nine per cent for Christmas that year, offering specials on its product, including a free ten-kg bag of flour for every ten bags purchased.
In July 2023, the company decreased the price of its two-kg and ten-kg flour products by ten and 13 per cent. A week later, NFM also dropped its prices by ten per cent for most of its retail brands.
After Nutrimix's announcement, Newsday asked NFM chairman Nigel Romano if the state-owned company would follow suit. However, he said NFM has been decreasing its prices throughout the year.
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