Mishma Chakanyuka, Staff Writer 
NATIONAL Foods (NatFoods), posted a three percent decline in overall volumes to 553 000 tonnes for the year ended June 30, 2023, owing to volume losses in the flour unit.
The diversified group said the losses were on the back of significantly higher global grain prices, which dampened consumption. This comes as commodity prices have spiked globally driven by the Russian and Ukrainian war. According to the group, this fed through to substantial price increases in its critical raw materials, most notably wheat.
The group is currently working on extending its biscuit portfolio beyond the current basic loose biscuit proposition to more specialised biscuits such as creams, with the new line being expected to be commissioned early in 2024.
“Volumes for the flour unit reduced by 12,3 percent compared to last year, driven largely by significant increases in the price of wheat. International wheat prices were at their peak in the first half of the year, resulting in higher flour prices and a consequent reduction in volumes by 19,6 percent for the period,” NatFoods chairman, Todd Moyo, said in a statement accompanying the financials.
He said biscuit volumes declined by 1,8 percent compared to last year, as the category was under pressure due to flour price increases and the challenges faced by modern trade.
The group is currently working on extending its biscuit portfolio beyond the current basic loose biscuit proposition to more specialised biscuits such as creams, with the new line being expected to be commissioned early in 2024.
Meanwhile, the volume-outcome in all the other units was, however, positive. Moyo said the group sees progressive recovery in volumes in the year ahead with global grain prices having reduced from the elevated levels seen at the onset of the Russia-Ukraine war.
During the period under review, volumes in the cereals unit grew by 47 percent year-on-year. The group commissioned the second phase of its breakfast cereal investment towards the end of the first half, resulting in the launch of a new range of breakfast cereals including corn flakes, bran flakes, wholegrain flakes and instant cereals.
“The market response to these new products has been encouraging, both in terms of quality and affordability, and we remain encouraged at the longer-term prospects for this unit,” Moyo said.
Regarding the installation of the new pasta line, the group says it is on track and is expected to be commissioned late this year.
“The line will be the only large-scale pasta line in the country and our objective is to meet growing local demand for pasta.
“This represents, in our view, the exciting localisation of a key value chain, from the growing of the wheat locally to the importation of pasta, which until now has mostly been imported,” Moyo said.
He said the group continues to keenly support contract farming of various cereal crops, principally maize, soya beans and wheat.
During the recently ended summer harvest, around 30 000 tonnes of maize and 7 000 tonnes of soya grown under the scheme were purchased and in terms of the current winter wheat crop, the PHI/A growth contracted farmers planted 6 500 hectares.
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