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STOCKING UP: Rebecca David, an employee of Sing Chong Supermarket in Port of Spain, restocks shelves with Country Pride flour on Friday after Nutrimix announced a decrease in its flour products. – Angelo Marcelle
Nutrimix Flour Mills has reduced some of its flour prices between five and 17 per cent, a move that stakeholders believe will benefit households the most.
A release on Friday said, effective immediately, the prices of its Country Pride and Nutrimix Premium Grade two-kilogramme (kg) and ten-kg range of flour.
It said Country Pride two-kg and ten-kg Bakers flour were reduced by 17 per cent, two-kg All-Purpose by eight per cent and ten-kg by 13 per cent. Its Cake and Whole Wheat flour, two kg bags, were reduced by five per cent. Nutrimix Premium Grade flour, two-kg and ten-kg, were reduced by nine and ten per cent, respectively.
It said the price drop is due to several factors, including the global decrease in wheat prices and shipping costs, its improved internal systems and controls, and its initiatives to increase the efficiency of operations while reducing milling and processing costs.
“As a leading food manufacturer, we are committed to providing our customers with affordable and high-quality products. To this end, we regularly assess our raw material and shipping costs, as well as other expenses related to the production of our products,” the release said.
According to tradingeconomics.com, the current global price of wheat is US$6.50 per bushel (60 pounds).
The website said this is a nine-month high amid concerns regarding supply disruption have reappeared.
“Heavy flooding hit Rio Grande do Sul state in Brazil, a large wheat producer in early May and frosts in grain-growing regions in Russia led the country to declare a state of emergency,” the website said.
“However, there were improvements in the ratings for US winter wheat conditions as the El Nino weather pattern should fade out by June, alleviating some of the concerns, however, it could be replaced by the La Nina where temperature drops more than normal according to a government forecaster.”
The website said supply is projected to decline by 2.2 million tonnes in 2024/2025 and global consumption is expected to increase by two million tonnes.
According to Statista.com, shipping costs roughly US $2719 per 40-foot container. The exact figure can vary depending on shipping routes, weights and other factors.
In June 2022, Nutrimix increased prices on its flour products between ten and 33 per cent, citing the high global price of wheat brought on by Russia’s invasion of Ukraine.
This hike came days after National Flour Mills (NFM) raised its retail price by 28 per cent.
Nutrimix later reduced prices by nine per cent for Christmas that year, offering specials on its product, including a free ten-kg bag of flour for every ten bags purchased.
In July 2023, the company decreased the price of its two-kg and ten-kg flour products by ten and 13 per cent. A week later, NFM also dropped its prices by ten per cent for most of its retail brands.
After Nutrimix’s announcement, Newsday asked NFM chairman Nigel Romano if the state-owned company would follow suit. However, he said NFM has been decreasing its prices throughout the year.
When contacted, Minister of Trade and Industry Paula Gopee-Scoon said: “We are informed that there have been price improvements over time and these were not publicly advertised. NFM will explain.”
Supermarkets’ Association president Rajiv Diptee said this recent reduction would be welcomed by customers, especially on an item that is a key staple in households.
A range of Nutrimix flour products at a supermarket in Port of Spain. – Angelo Marcelle
“From looking at this, I think that the main beneficiary is going to be households, in particular, when you look at the sizes that have been targeted for reduction. In particular, when you look at the two-kg and ten-kg varieties, those are the ones that are more in use by the household.
“Of course, with your bakers and the doubles bakers, they tend to use the larger sizes. So I think that it’s good for the average household consumer,” he told Newsday.
Gopee-Scoon shared a similar belief and commended Nutrimix for passing on their savings to customers.
“We are pleased to see the price reductions by Nutrimix, which came as a result of efficiencies and the decreased cost of inputs. Credit must be given to Nutrimix for passing on these reductions to the consumer.
“Flour is a staple in every household and this would be welcomed news for all households,” she told Newsday via WhatsApp.
Diptee said customers will benefit from the new prices once Nutrimix formally communicates with groceries.
“Once these changes are notarised by Nutrimix Flour Mills to the supermarkets those prices should be effective immediately, once we receive the notarised change.
“Typically, what you’ll see is the reps coming to the stores and letting us know about the prices. Some of these stores may be carrying inventory held at the cost of previous stock.
“So we’ll be mindful about that as well and see what the company has to say in particular about reductions that are being passed on.”
With Nutrimix crediting its price reduction to a reduction in shipping costs, Diptee hoped other manufacturers and importers would reduce their prices as well.
“I think that this indication is something that we would look to, particularly with other suppliers and distributors, to see what trends can be extrapolated across the board.”
Data on Statista.com on the global container freight rate index from January 12, 2023, to April 18, 2024, showed that the price of shipping has been declining since February 1, 2024.
It showed that prices in January 2023 were US $2,132 per 40-foot container and fluctuated until January 25, 2024, when prices rocketed to US $3,964. It has since been declining, resting at US $2,719 by April 18.
