Agronomic board sets new two-week wheat floor price

The Namibia Agronomic Board (NAB) has set the new floor price for B1 wheat grain at N$6 972,82 per tonne, inclusive of the producer levy for wheat purchased/paid for during the period 13 to 26 December 2023.

According to an agreement signed by NAB chief executive officer Fidelis Mwazi on 14 December 2023, addressed to wheat grain producers and millers in Namibia, the two-week review of the floor price is to protect producers against rising storage and handling costs as millers might have limited storage space for the grain.

Mwazi said section 2 of the 2022/23 wheat marketing agreement states that should the fortnight weighted average floor price (Safex spot price plus deep-sea) for the previous fortnight be higher than the five-year average floor price on 30 October 2022, then the new floor price formula for B1 wheat grain for the next two weeks shall be determined based on a combination of the Safex Spot price and deep sea formulas.

“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 (mill door price) for the previous two weeks (29 November to 12 December 2023) of N$6 851,45 per tonne by 5% or N$359 per tonne.

“Therefore, the five-year average floor price of N$6 972,82 per tonne will be the floor price applicable for B1 wheat grain for the period 13 to 26 December 2023,” said Mwazi.

He directed that 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 NAB.

Mwazi said the NAB will continue monitoring the wheat fortnight weighted average floor price for the next two weeks and notify the industry accordingly should this price be higher that the five-year average floor price.

– matthew@namibian.com.na