National Flour Mills Ltd (NFM) will increase the wholesale price of flour by 33 per cent, with a suggested retail price increase of 28 per cent for consumers, beginning on Wednesday.
The announcement comes after NFM said it was able to secure sufficient wheat stocks to ensure TT has an adequate supply of flour for the rest of 2022, at a 49 per cent increase in cost.
NFM said it decision to limit the increase in the wholesale price of flour to 33 per cent to reduce losses in its flour division and ensure overall profitability.
CEO Ian Mitchell said this is the most turbulent period for wheat supply and food security in recent history, owing to the emerging crisis in eastern Europe and the decision by India and at least seven of the world’s wheat suppliers to curtail exports, meaning reduced availability for non-producing countries like TT.
“Flour is an important ingredient in our diets in Trinidad and Tobago and in response to the challenges that we are facing, we have been able to secure wheat to ensure a reliable supply of flour. However, the next few wheat shipments have been purchased at record high prices due to the crisis in Ukraine coupled with decisions by many exporting nations to halt the export of wheat.”
The said the company was continuing to try to improve its efficiency and manage the costs it can control.
He explained, “While we are acutely aware of the knock-on effect that an increase in the price of flour could have in the market, we must ensure that there is product available on the supermarket shelves. We must also ensure that we can generate enough positive cash flow and operating surplus to pay for these raw materials.”
The company said if wheat prices go down, it would be prepared to reduce flour prices.