Namibia: Wheat floor price unchanged

The Namibian Agronomic Board (NAB) has maintained the floor price for B1 wheat grain at N$6 972,82 per tonne until 28 November.

NAB chief executive Fidelis Mwazi issued a notice on Wednesday, saying the B1 wheat price should be determined based on a combination of the South African Futures Exchange spot price and deep sea formulas.

“This is designed to protect producers against the rising cost of storage before delivery to the millers who may have limited storage facilities,” he said.

Mwazi said the five-year average floor price of N$6 972,82 per tonne for the 2023/24 marketing season is higher than the calculated fortnight weighted average floor price for the previous two weeks, which ranged from 1 to 14 November.

“Therefore the give-year average floor price (mill door 5) of N$6 972,82 per tonne (inclusive of the producer levy) will be the floor price applicable for B1 wheat grain purchased/paid for during the period 15 to 28 November, 2023,” the NAB chief said.

Mwazi also said the NAB producer levy of 1,4% (N$97,62 per tonne), calculated based on the five-year average floor price must be deducted by the processors from the floor price and paid over to the board.

He also assured producers the board would continue monitoring the wheat fortnight weighted average floor price for the next two weeks and notify the sector accordingly, should this price be higher than the five-year average floor price.

Tags: price, wheat, millers, floor, Namibia, B1 wheat, grain