Last Updated on Friday, 11 March 2022, 18:11 by Denis Chabrol
The National Milling Company (NAMILCO) on Friday said the price of flour has been increased by 15 percent.
The company says this is due to a steep increase in the price of wheat at a time of the war between Russia and Ukraine.
The company notes that the price of wheat has skyrocketed by 40 percent since February 15. NAMILCO says the costs of packaging, additives and fuel have also increased. “Consequently, we can no longer sustain our operations at our current flour price levels,” the company said.
The company says it will try to take advantage of wheat shipments to this part of the world in order to get lowest possible freight prices. “We will work at leveraging economies of scale available to us (e.g., through wheat vessel ownership) to mitigate some of the adverse impacts of freight logistics, market access and raw material supply,” NAMILCO added.
NAMILCO Guyana said it has not been spared the impact of these rising costs, and when forced to implement price increases last year, “we absorbed as many of these cost escalations as we could, only passing costs on to our customers where there were no other options.”