Briefing journalists during a tour of its Harare factory last Friday, managing director for the milling division, Chipo Nheta, said the decision by Minister Biti to restore import duty would result in increased demand and this could raise capacity utilisation by 15%.
Before the reinstatement of duty, Natfoods was operating one mill in Harare, but a second one is now active although they have maintained a single shift.
The Bulawayo operation, which had been closed due to low demand, has re-opened and is running two mills with two shifts of eight hours each.
“Natfoods have not increased prices of maize meal before and after duty. If you carry out a market survey you will discover it is a retailers' decision and has nothing to do with manufacturers,” said Nheta.
However, Natfoods said while it expected significant growth in demand for its Red Seal roller meal and Pearlenta refined meal due to the increase in the price of imported mealie-meal, the firm had no intention of hiking its prices.
The diversified food processor said that it could only consider price adjustment if there was an increase in the international price of maize.
Even after a 31% increase in the price of electricity, which is a US$5 000 monthly cost to its operations, it would not be tempted to review prices.
Natfoods also said it was more than capable of meeting increased demand for maize meal despite the fact it has to import 85% of the maize from Zambia and Malawi due to shortage of the commodity locally.
Listed on the Zimbabwe Stock Exchange, the firm has capacity to process 60 000 tonnes of maize a month and has storage capacity for 17 000 tonnes. However, the company is currently processing 9 500 tonnes a month.
Post published in: Business