Eswatini Daily News

The National Maize Corporation (NMC) has reported a profit of E2.34 million, despite their projected E2.73 million loss

This information is contained in the Ministry of Finance Public Enterprises Unit (PEU) quarterly report for the three months ended September 30 last year.

While this figure represents a decline from the previous quarter’s E15.2 million profit, it marks a positive step for the corporation, which has- topically faced financial challenges.

ALSO READ: MP is top farmer at NMC Awards

The decline in profit was attributed to several factors, primarily the company’s larger maize purchases than sales during the harvesting season.

Additionally, the decrease in the Maize Producer Price from E5 400 to E4 566 has led to farmers being less inclined to sell their produce to NMC.

“The Maize Producer Price dropped to E4 566/tonne from E5 400 per tonne, as such, Farmers were reluctant to sell to NMC at the reduced price,” it states.

The corporation’s total income was E54.44 million, almost double the income recorded in the previous quarter valued at E23.62 million.

Total expenditure also increased sixfold during the period under review. It was reported at E52.1 million against E8.3 million in the previous quarter.

Despite these challenges, NMC’s financial performance is a commendable achievement, according to the report which notes the corporation’s recent endorsement of a memorandum of understanding (MoU) with the Industrial Development Corporation of Eswatini (IDCE).

NMC made major profits depsite their projected loss.

The MoU is seen as a strategic move to support local maize production. By providing farmers with access to financing, the MoU aims to boost domestic maize yields and reduce the country’s reliance on imports.

“The first quarter is usually the harvesting period for maize whereby NMC buys more maize than it sells, however, Millers also target to source their maize directly from fanners and this resulted in a decline in local maize received, as only 3779mt were received against a target of 5 415mt,” reads the report.

Extension support for contracted grain farmers continued to be provided to improve maize production with a total of 22 training courses covering 686 farmers.

Worth noting is that, according to its Vision, the National Maize Corporation (NMC) wants to be the farmer’s choice with the most competitive market for grains and cereals in the SADC region.

ALSO READ: Mavela Vilane appointed new NMC CEO

They believe they have started living the dream, although there is still a lot of work to do. In the last couple of years, they have seen a rise in commercial maize production by either companies or large-scale producers.

NMC has made it possible, especially through availing the maize combine harvester, that farmers to produce on vast areas of land without fear of lack of harvesting equipment.

The producer price they offer to farmers is one of the highest, if not, the highest in the region.

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