2025/2026 ESTIMATED PRICE OF MEALIE MEAL CALCULATION:
By Sean E. Tembo
-FRA price for 50kg bag of maize = K340
-Estimated cost of transport, insurance, administration & storage (30%) = K102
-Estimated Landed cost of 50kg bag of maize at millers’ premises = (K340+K102) = K442
-Estimated amount of breakfast mealie meal that comes out of a 50kg bag of maize = 80% x 50kg = 40kg
-Estimated cost of milling (labour, overheads, packaging, distribution) (40%) = K177
-Estimated total cost to miller of 40kg breakfast mealie meal before profit mark-up = (K442+177) = K619
-Estimated profit mark-up by millers = 15% x K619 = K93
-Estimated selling price by miller for 40kg of breakfast mealie meal = (K619+K93) = K712
-Estimated selling price by miller for a 25kg bag of breakfast mealie meal = K712/40 x 25 = K445
-Estimated profit mark-up by retailers = 5% x K445 = K22
ESTIMATED SHELF SELLING PRICE FOR A 25KG BAG OF BREAKFAST MEALIE MEAL FOR THE 2025/2026 PERIOD = (K445+K22) = K467
Conclusion: With an FRA buying price of K340, the farmer makes a loss and the consumer cannot afford the mealie meal. In short, it’s a double tragedy.
The solution is to reduce the cost of farming inputs by producing all the fertilizer locally through a state parastatal like Nitrogen Chemicals of Zambia. Anyway, TILI TONSE 🤝 and the Future is SET ✌🏽
SET 03/06/2025
Tembo tell us how you will do it, better than what you’re condemning. It’s not enough to say what you’ve said without giving a solution. If you’re an armchair critic like most dull good for nothing politicians please keep quiet and sit down. Nobody needs your fake meali meal analysis .
Tembo go back to school and be taught economics. You don’t understand commerce. Just keep on dreaming about about taking over the defunct leadership from ECL. This Fake Wise man thinks that one 50kg of maize is equivalent to on bag of a 25kg of mealie meal. Bwana fake Wise man, the millers deal with tones of maize and when you compute the profits and turn over per day considering the population demand you will realize that millers won’t be on a loss, as you ignorantly think. And with this government strategy of only a smaller percentage of maize,it means millers will well positioned, for they also buy their maize from millers on cash basis. I am sure, you being a police officer by profession, you are supposed to understand what I mean. I ve given you a clue. Bravo to FRA and HH
Sean Tembo is now teaching us basic maths, what an ass. My baboon can do better with his eyes closed.
Little boys should keep their mouth shut in front of big boys.
Tembo go back to school and be taught economics. You don’t understand commerce. Just keep on dreaming about about taking over the defunct leadership from ECL. This Fake Wise man thinks that one 50kg of maize is equivalent to on bag of a 25kg of mealie meal. Bwana fake Wise man, the millers deal with tones of maize and when you compute the profits and turn over per day considering the population demand you will realize that millers won’t be on a loss, as you ignorantly think. And with this government strategy of only buying a smaller percentage of maize,it means millers will be well positioned, for they also buy their maize directly from farmers on cash basis. I am sure, you being a police officer by profession, you are supposed to understand what I mean. I ve given you a clue. Bravo to FRA and HH for the balanced deal. This Fake wise man was infact praying to hear of the reduction the floor price of maize so that he could take advantage to speak hypocritically against the government on behalf of the hard working farmers, who he expected to protest against the reduction of the price, had it been done. But his prayers were unfortunately not answering, hence soar grapes. And he has ended up coming up with commercial computation, which doesn’t know nor understand. Please seleniko fye mu space ba bombe ko. Remember you are the same fake who argued that increased CDF, social cash transfer, high numbers of recruited civil servants, reinstating of students meal allowances and Free education were impossible in Zambia . Please insoni ebuntu. Let economists continue revamping our economy. Put aside your pride and ignorance
” Estimated cost of transport, insurance, administration & storage (30%) = K102″
A 30 ton truck can carry 600 bags of 50kg .
Using Tembo’s logic, by adding 30% , the landed cost of this cargo will be:
(600×340) + 30% = 265,200. This figure of 265,000 would be transport+insurance+storage+administration.
I am not qualified in pricing, but I need someone to guide me.
Correction:
30% is 61,200