The brand Some consumers are more brand sensitive than others. Consumers in South Africa tend to prefer and buy certain brands, depending on their available income, at specific times of the year. It is also the opinion of millers that consumers switch to a cheaper brand when maize meal prices increase. The type of maize meal — super or special Mainly two types of maize meal are sold in South Africa, namely super and special. I am also of the opinion that the lower end consumer tends to switch to special maize meal when maize meal prices increase.
Special maize meal has a higher extraction rate and therefore more product can be retrieved, which normally makes it cheaper. The packaging costs It would appear as if poorer consumers tend to move to bigger packages, either 10 kg or 12,5 kg — and even to a 25 kg package.
Transport and distribution costs The transport from the mill to the retail outlet also plays an imperative role. The further the distance from the mill, the higher is this part of the costs. The operational cost to mill maize The operational cost can differ from area to area. For example, the operational cost of a mill in an urban area will be much higher than that of a mill in the rural areas, due to factors such as municipal rates and different structures for electricity tariffs.
Machinery cost The capital cost to erect a maize mill can easily be R5 million for a mill with a capacity of a ton per hour. The price of maize The price of maize is probably one of the most determining factors of maize meal. Prices normally increase when shortage is expected in the market. It is also at this stage that maize millers start contracting for longer periods in advance — either on Safex, with producers or with maize storage owners.
Storage cost South Africa has a well-developed storage infrastructure. The cost to store maize differs from silo owner to silo owner. Alternative facilities also exist, like on-farm storage, silo bags and bunkers.
Hedging cost Millers explain that they need to hedge or either procure maize on contract basis to ensure they have enough stock for their clients. Therefore, there is a difference between the maize meal price and the maize price. When surpluses exist, the difference period is normally shorter compared to longer periods when shortage exists. Retailers and retail margins The South African retail system is highly concentrated and has been investigated by the South African competition authorities several times.
They normally come under crossfire from producers and from consumers. It is important to note that they contribute to the very well-developed food system of South Africa. The competition is tight and there are many barriers to entry in the market. Get Social Twitter Facebook. The Mill Stream. Contact Us Need to know where we are?
For contact details, directions and how to find us. Opening Hours We are open for collections direct from the mill, do feel free to pop down during office hours. If you make your way over to the office we will come out to see you. We are closed on weekends and Bank Holidays. Take control Log in to My Shipton Mill to manage your orders and your online experience.
Log in Forgotten password. Registration User name. Password confirm. Log Out. Search Looking for something? You can use our Word Search tool to search our site. Search Check all Articles Recipes, Blog posts, etc Homepage The Makings of Something Magnificent Our inspiration is to help our customers make something magnificent. Our Home Baking website aims to help you to find your inspiration. Considered by many to be the cassava cereal of choice to the people of Eastern Nigeria, this yellow garri is a classic.
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