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NMC REVENUE UP BY 13%

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MBABANE – The National Maize Corporation (NMC) has managed to meet and exceed its revenue target to reach E239.3 million before the end of the current financial year 2023/24.

According to an annual report by the Ministry of Agriculture, the government parastatal had set a target to increase its revenue by 5 per cent (E211.4 million) across all NMC brands (white maize, Sihlobo rice, Umngani Rice, Umndeni beans).  The baseline was set at E133.4 million. The parastatal ended up exceeding the target and increased its revenue by 13 per cent to reach E239.3 million. NMC reported that its white maize market share grew by 10 per cent in the 2023/24 financial year based on an aggressive market share growth plan. There were no reported challenges in that regard, though the organisation would like to increase buffer stock on white maize. In order to increase buffer stock, NMC needs to ensure that it has enough stock to meet the demand of millers and beyond. To increase revenue, NMC also needs to procure white maize when the price is favourable, and then sell at a price that will increase profitability.

Regulation

The organisation reported that the legal gazette regulation of white maize affects revenue when demand is high, price increases and results in low margins from white maize. The white maize target was set at 37 154 MT and the organisation managed to beat the target and realised 38 567 MT. There were no reported challenges in the current year though the organisation would like to increase buffer stock on white maize. In terms of beans production, dry beans market share dropped from current the 5 per cent in 2023/24. The target was to reach 188 metric tonnes (MT) but due to shortages of beans in the Southern Africa Development Community (SADC), the target could not be met as only 121 MT was realised.

Scarcity

The scarcity of beans in the region caused an increase in sourcing prices which resulted in stiff competition in the market for NMC bean products. In the upcoming financial year, NMC aims to source from affordable suppliers of beans in an attempt to reduce the selling price for beans. The organisation also aims to reduce production costs for beans. In terms of rice supply, the organisation missed its target of 1 261 MT and reached 562 MT thus depicting a drop of 55 per cent.

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