HomeNewsNFL rules out cooking oil production in 2012

NFL rules out cooking oil production in 2012

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National Foods Limited (NFL) has ruled out production of cooking oil next year due to a severe shortage of soyabean on the local market.

NFL group human resources and communications director Innocent Magaya said they required at least 50 000 metric tonnes to efficiently run their soyabean crushing plant.

“We require 50 000 metric tonnes per annum to operate our plant efficiently and the local soyabean crop was less than 50 000 metric tonnes last year.

Our main challenge is getting the raw material locally at the right volume and right price,” he said.
The company reopened its Bulawayo flour plant this year after it was mothballed last year.

The factory was opened after the company realised that the Harare factory was operating at full capacity.

Magaya said maize volumes had improved by 89% compared to last year.

“We will continue to invest in improving the operating efficiencies of our core manufacturing operations, namely maize and flour milling, stockfeeds , rice and salt down packing and we will be spending $5 million in 2012,” Magaya said.

He however said the company was facing power problems as the reliability of power supply has deteriorated over the years.

“We are looking at back-up options which will be expensive. Buying power in the market is steadily improving but our volumes are still 40% below the peak achieved in the late 90s.

“We will be spending $200 000 per month which translates to $2,4 million per year,” he said.

The group’s revenue increase by 31% to $226 million revenue for the four months to October this year and group volumes grew by 22% to 125 000 tonnes.

The company, which is now 37% owned by South African food manufacturer Tiger Brands, has divisions in Mutare, Harare, Beitbridge, Gweru and Masvingo.

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