Increased competition in the maize business could lead big maize brands such as White Star, Ace and Iwisa to also lower their pricings.
White star current sells at double the price of some of the maize brands in the market. On Monday, producer Pioneer Foods revealed in its annual results confirmed that sales have come under pressure due to increased competition in the sector
A cursory survey of current prices at Makro shows that there is now an almost R50 difference between different brands for a 12.5kg maize meal bag.
“White Star is currently trading at an unsustainable margin above other brands, and its price differential should narrow to only 10% above other brands in time, Felix Lombard, chief financial officer of Pioneer Foods, says. Inflationary pressures should increase prices in the category” stated news24
Picture from news24 website