Following the decision by major animal feed producers to suspend the purchase of maize and sorghum across the country, the prices of the grains have dropped significantly across the states
Daily Trust gathered that by Sunday, major markets saw a more than 10% drop in the prices of maize and sorghum in Taraba, Plateau, Kaduna, Kano, and other states.
On Friday, Premier Feed Mills Ltd (PFM), a subsidiary of Flour Mills of Nigeria Plc, a major animal feed producer in Nigeria, announced the immediate suspension of maize offtake over what it called “the current state of food insecurity in Nigeria and its impact on citizens.”
“As significant off-takers and processors of maize and sorghum, we can attest to maize and sorghum prices being artificially high at present, with ripple effects on prices of finished products like poultry and other livestock. In the course of our active private-public sector collaborations, we have been in constant consultations with the government to establish viable ways of managing the ongoing food crisis, especially as it pertains to maize and sorghum.
“In 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 serving our customers’ with the products they love,” a statement by the company read in part.
Olam Nigeria, a company that supplies food, feed and other goods, has taken a similar action, temporarily stopping the purchase of necessary grains like sorghum and maize immediately.
“As a major buyer and processor of food staples, we share the concerns around the high prices and supply chain disruptions affecting the availability of essential grains.
“In response to these challenges, we are actively collaborating with industry peers and government authorities to identify and implement strategic solutions to alleviate any additional stress on food availability.
“As part of our proactive approach, Olam Agri in Nigeria has decided to temporarily suspend the procurement of essential grains such as maize and sorghum immediately which will allow us to closely monitor market trends and adjust to market realities,” a statement from Olam read in part.
The company maintained that it obtained its primary raw materials-maize and sorghum-from local Nigerian farmers, providing employment opportunities for over 150,000 Nigerians.
Daily Trust market monitor also noted that, as of yesterday, Sunday, the prices of grains have been dropping in the major producing states.
In Taraba, maize prices dropped from N58,000 to N42,000, and other markets in Kano, Kaduna, Plateau, Katsina and Gombe states are also responding to the situation. (DailyTrust)