White maize producer price at N$6 680

THE Namibian Agronomic Board (NAB) has set N$6 680,19 per tonne as the floor price for white maize bought or delivered between 18 September and 1 October.

According to a notice from NAB chief executive Fidelis Mwazi addressed to white maize grain producers and millers in Namibia, the South African Futures Exchange(Safex)-fortnight weighted average price formula will be implemented should the calculated Safex spot price-weighted average for the previous fortnight period be higher than the staggered floor price.

This is in terms of the 2021 white maize marketing agreement.

According to the NAB, the rationale behind the potential floor price increase every two weeks is to cushion farmers and compensate them for storage costs.

This, however, does not result in an increase in food prices as the formula for implementing the increases is agreed to at the beginning of the year.

“The final Safex-fortnight weighted average price for the previous two weeks (2 to 15 September) of N$6 680,19 per tonne is higher than the staggered floor price of N$4 965 per tonne for the period 18 September to 1 October by N$1 715,19 per tonne.

“Therefore the Safex-fortnight weighted average price of N$6 680,19 per tonne will be the floor price applicable for white maize to be bought or delivered within the fortnight of 18 September to 1 October,” says Mwazi.

He says the NAB will continue monitoring the Safex-fortnight weighted average price for the upcoming two weeks and notify the industry accordingly, should this price be higher than the staggered floor price for the same period.

“Please take note that both the processor and producer levy of 1,4% should be calculated based on the subtotal Safex-fortnight weighted average price of N$6 448,06, and hence the producer levy to be deducted from the producer’s price by all processors is N$90,27 per tonne,” Mwazi says.
– email: matthew@namibian.com.na