NAB sets new white maize floor price

The Namibian Agronomic Board (NAB) has set the new floor price at N$5 719,85 per tonne for white maize delivered between 21 August and 3 September.

In a memorandum to producers and millers in Namibia dated 21 August, NAB chief executive officer Fidelis Mwazi said in terms of the white maize marketing agreement for 2023, should the calculated South African Futures Exchange (Safex) for the previous fortnight be higher than the staggered floor price, then the Safex-fortnight weighted average price formula shall be implemented.

“As per calculations, the final Safex-fortnight weighted average price for the previous two weeks of 4-17 August of N$5 295,63 per tonne is lower than the staggered floor price of N$5 719,85 per tonne for the period 21 August to 3 September by N$233,58 per tonne, therefore, the floor price is set at N$5 719,85 per tonne,” he said.

Mwazi told producers the NAB will continue to monitor the Safex-fortnight weighted average price for the next two weeks and notify the sector accordingly, should this price be lower than the Safex-fortnight weighted average floor price for the same period.

He further said the processor and producer levy of 1,4% should be calculated based on the subtotal of the staggered floor price of N$5 525,44, which excludes the import levy differential, and hence the producer levy to be deducted from the producer’s price by all processors is N$77,38 per tonne.

The NAB said the settling for the higher figure as the floor price is to compensate producers for storage costs.

The potential of an increase every two weeks is known at the beginning of the marketing season to cushion farmers for storage.

“It is agreed at the beginning of the marketing season, around May, that farmers will get increases in the price of maize every two weeks, and this is factored in when the shelf price of the final product is calculated,” said NAB agronomy market manager Loide Uahengo.

– email: matthew@namibian.com.na