Small-scale maize millers will boost food security

3 Jun 2014

Maize millers can expect more competition with the planned roll-out of 24 micro mills as part of an initiative by the Department of Trade and Industry to improve food security and reduce the price of maize meal by up to 37%.

Small-scale maize millers will boost food security

It is envisaged that small mills will have the capacity to produce 1,000 tons of maize meal a month each, a combined 288,000 tons a year, accounting for 6% of the national maize meal production.

The Small Scale Milling project was launched last year by the department's Agro-processing Business Unit in collaboration with the Foundation for African Business and Consumer Services (Fabcos). Its aim is to curtail the rising price of SA's staple food - maize meal - by facilitating the entry of small-scale maize millers in rural areas and townships to the concentrated maize production industry.

The average wholesale price of 25kg of maize meal is R150, and even more in remote rural areas. A 2008 study by Trade and Industry Policy Strategies found that food prices were directly related to fuel costs. Maize grown in rural areas is transported to urban and peri-urban areas for milling before being transported back to rural consumers.

Fabcos treasurer-general Alan Campbell said this week that the organisation was aiming to deconcentrate the production and processing of maize meal to alleviate the effects of these adverse findings.

This had resulted in Fabcos approaching the department, culminating in a partnership also incorporating the Old Mutual Masisizane Fund to establish self-sustainable, competitive and employment-generating businesses in milling.

With a budget of R95m for the Northern Cape alone, the programme is in its finalisation process for roll-out in Droogfontein, near Kimberley, where the first lot of 30 millers will gain six months of commercial-level milling skills through a partnership with skilled millers.

Last year, the department launched the Isigayo mill, a compact mill designed by Buhle that will allow millers to concentrate harvesting, production and consumption in one place, reducing logistics costs.

The department draws on the success of the Kuvusa mill launched in Durban in December 2012.

Source: Business Day

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