Business Reporter
LOCAL agriculture needs to be more productive, so that the country is not dependent on other countries for agricultural raw materials and finished goods, National Foods chairman, Mr odd Moyo has said.

In his chairman's statement accompanying the company's annual financial results for the year ended June 30, 2012, Mr Moyo said world cereal prices had continued to rise.  There was also likely to be a period of grain shortage in the region. This would have a negative impact on consumers.
"Maize, wheat and soya bean prices are at record highs. The possible grain shortages reinforce the need for our local agriculture to be more productive, so that we are not dependent on other countries for raw agricultural materials and related finished goods," he said.
Mr Moyo said the introduction of duty on imported flour should see an increase in milling volumes at National Foods plants, which should reduce overall conversion costs.

"Grain millers continue to work with all stakeholders to maintain the delicate balance between the viability of the milling sector and impact on the consumer," Mr Moyo said.
He said the fact that National Foods' gross profit and average selling price had remained relatively stable reflected the increased volumes of maize meal the company was selling and the company's commitment to restraining price increases by channelling efficiency-generated savings partially towards price reductions.

Mr Moyo also said that the company had committed itself to purchasing local wheat at the same price as it paid for imported wheat, which should encourage farmers to plant more wheat next season.