MAIZE PRICES AFFECT DAIRY INDUSTRY – Malawi News Online

Spiking maize prices could affect the dairy sector, as the sector has low milk prices, making the latter ingredient available while the former is expensive to purchase. In Thyolo, for instance, prices of maize husks have gone up by 75% to K7 000 per 50 kilograms (kg) bag from an average of K4 000 while milk processors are buying a liter of milk at K175.

Malawi Milk Producers Association national director Herbert Chagona told The Nation that due to lack of maize resources due to poor rainfall, some supplies from Mozambique are already on the market, while on the other hand, the milk products may be affected, as farmers are using maize husks as an alternative supplement.

A maize market report from the International Food Policy Research Institute (Ifpri) has shown that Maize prices dropped by 2% in March, but floods led to an unofficial price hike.

The report comes after analysts predicted a price drop due to bumper harvest, but changed their tone after Cyclone Idai destroyed various households maize stores and fields, therefore increasing demand of the staple food which was predicted to increase maize prices.

The report agrees with the effects of floods on the prices, as the Southern Region rose sharply during the second week of March, mainly due to the floods that hit parts of the region following the heavy rains caused by tropical Cyclone Idai.