Manufacturing companies worldwide are experiencing unprecedented increases in the costs of raw materials, freight, packaging materials, energy, and other inputs. The media have kept us aware of the reasons for these increases with the latest events in Ukraine only serving to exacerbate the problem for manufacturers.
NAMILCO Guyana has not been spared the impact of these rising costs, and when forced to implement price increases last year, we absorbed as many of these cost escalations as we could, only passing costs on to our customers where there were no other options.
Over the past few days, however, the price of wheat has skyrocketed!
The price of wheat today is 40 % higher than it was on February 15, 2022, just 3 weeks ago. During this period, we have also seen increases in the cost of packaging, additives, and just recently, fuel. Consequently, we can no longer sustain our operations at our current Flour Price levels.
Regrettably, with immediate effect, we must increase prices by 15% to ensure the continued supply of these important commodities.
We will work at leveraging economies of scale available to us (e.g., through wheat vessel ownership) to mitigate some of the adverse impacts of freight logistics, market access and raw material supply.
Our customer’s best interest continues to be our priority as we work to minimize disruptions to our food security, nutrition, and culture. We are sure you will be heartened by the fact that even at the new prices, our flour remains pound for pound a less costly alternative than other local provisions.
Namilco thanks you for your continued loyalty as we work together to address these unprecedented challenges.
Management
National Milling Company of Guyana Inc.
More Than Just Flour