BRINGING MEALIE-MEAL PRICES DOWN
To address the rising cost of living, Mr Hakainde Hichilema government announced a series of measures aimed at stabilising mealie-meal prices.
In a press briefing, Minister of Information and Media, Mr Cornelius Mweetwa, provided crucial insights into the government’s strategy to ensure the availability and affordability of essential food items.
Mr Mweetwa, who is also the chief government spokesperson, said starting early next week, Zambian citizens should expect adjustments in the cost of living, particularly concerning mealie-meal prices.
Minister Mweetwa emphasised that there is no shortage of maize and mealie-meal in Zambia.
He explained that the Zambia National Service (ZNS) will play a pivotal role. Starting next week as its produced mealie-meal will be available at ShopRite outlets nationwide.
“Breakfast mealie-meal will be priced at K230, with roller Meal at K190,” he disclosed.
“However, for those purchasing mealie-meal at ZNS outlets, the prices will be slightly reduced, with Breakfast mealie-meal priced at K220.”
Mweetwa said the reduced prices do not imply subsidies.
The government insists that it is rationalising prices while preserving a free-market economy.
He said the prices have been calculated based on the cost of production, ensuring fairness for both consumers and producers.
This does not make sense. How much is the monthly mealie meal demand countrywide? And how much is ZNS monthly production capacity of the national monthly demand?
What happens to private millers who have bought maize at commercial prices and have to apply market prices?
Issuing non thought through statements is just irritating citizens more.
ZNS plants are basically community miling plants and cannot sustain national demand.
And if it is true that FRA is going to buy maize from farmers at K320 for a 50 kilograms bag, how will they bring mealie meal prices down?
Fred M’membe
President of the Socialist Party
Learn to appreciate at least once. Does it mean HH has never done anything positive according to you. You criticize everything, the reason people view you differently. They would rather return pf to power, or vote for someone else, if Upnd fails than you. You behave like a devil himself.
Here is how I understood the statement by the minister,
1.ZNS will sell at minimum profit as they also grow their own maize that is how they have managed to reduce the price
2. ZNS has contracted other big millers with their own maize to meet the country demand.
3. Since ZNS is producing for local consumption with it’s contracted other millers, private millers can take advantage of the foreign market which buys higher. This when they will also start growing their own maize if they want to sell to the local market.
I liked the debate I watch by Chawama MP though a young MP she was debating with maturity and understanding. Such checks and balances are what we are looking for as electorates not just talking for the sake of. For once we expected you to appreciate government efforts. Are these comments because now the opposition has nothing to oppose on issues of UNGA. As electorates we are just watching and evaluating. I personally will keep this write up and compare with the outcome of the measures in due time. For now I think it’s just wise to thank government for the efforts.
To add on my previous post, STRATEGY is using your battles to win a war and tactics is measures you put in place to fight battles. If you don’t understand what they have done it’s reason you are different parties and they will take advantage of your IGNORANCE and lack of understanding of the measures they have put in place since you are in a battle field of ideas and strategies to win the electorates. It’s funny that you have confessed losing this war on UNGA because you don’t understand the measures at play but CONFUSED.
So you should have liked the Mealie Meal price to remain as high to give you Fodder for your daily Routine Criticisms about high cost of living? Kwena eee…… Personally, I have more respect for a Person who tries to find a Solution to a Problem than an impotent and pathological Arm Chair Critic
Despite Mr. Mmembe having so many academic qualifications, clearly mathematics was not his strong point. Just to help him understand, the K280 FRA purchase price is for the 50kg bag of maize which translate to K5.6/kg and when milled it produces about 40kg+/- on the other hand the K280 – K300 selling price is for a 25kg bag of mealie meal.
Clearly from this millers are not making any loss even if they sold a 25kg mealie meal bag at K220 which translate in to K8.8/kg.
Currently, millers are selling the commodity at about K11.2/kg – K12/kg by pricing it at K280 K300. From this one can see clearly that millers are making huge profits from the business and they would not make any loss even if they sold it at K200 per 25kg bag.
@Straight forward correct about the many qualifications which include being a chartered accountant. So maths, numbers, or pricing should not be a problem. The issue here is he’s just being a typical tin pot and just yaps anything negative at all times to gain what he thinks is political mileage. But wala ot wont work because people can see through him.
I am not sure he qualified as a Chartered Accountant, did he?
Good analysis Sir, but there are other Variable Costs other than price/kg of maize to arrive at Profit Margin (Sales less Variable costs=Profit Margin). We are not even talking about Fixed Overheads.
Yes of course I know there other costs involved but at K8.8/kg (K220/25kg) mentioned (which of course is not the current selling price for the commodity) it’s already over K57% margin which should be more than enough to cover those costs.
Besides, if the running costs for a business exceed 35% the cost of inputs, then there’s serious need to look them because that would make the products uncompetitive.
Most of us know that Mathematics was not his strong Subject in School, Records are there in School. Muntu wesu uyu we went to school together!!!!!
@Straight forward, further to show this tin pot what he’s pretending is not feasible amd using your numbers differently. Lets use he’s k350/50kg bag of maize and ZNS’ selling price of k220/25kg nag of breakfast.
50kg of maize = 40kg of breakfast;
40kg breakfast = 1 – 25kg and
0.6 – 15kg
Therefore 1bag@ k220 = k220 and
0.6bag@k220 = k132
Total for 40kg of breakfast = k352
I hope this tin pot and he’s yakumbuyo followers have it in their thick heads