NIGERIA – BUA Foods, a leading Food and Fast-moving consumer goods (FMCG) has informed distributors of its rice products that it would maintain prices of its BUA Rice to support efforts at making rice more affordable in Nigeria, Premium Times has reported.
Listed on the Nigerian Stock Exchange under the Food sector, BUA Foods PLC processes manufactures and distributes food products in five divisions including Sugar, Flour, Pasta, Rice, and Edible Oils.
According to a statement by the company, BUA’s move to maintain prices is due to the strong sales potential from the company’s newly upgraded 200,000tonnes per annum rice mill in Kano using locally sourced rice paddy.
Prior to the BUA Foods business integration which saw its listing in 2022, the BUA Group Chairman, Abdul Samad Rabiu, had stated that BUA’s goal would be to focus on areas where raw materials can be sourced locally across all its business.
He added that rice in particular would be included to promote food security in Nigeria and support the government in national development.
Rice is one of the most consumed staples in Nigeria with a consumption demand of 7 million metric annually and a per capita consumption of 32kg.
Over the years, however, the country has not been able to meet local needs since the current output stands at an average of 5MMT annually and relies on imports to offset the remaining deficit of 2MMT.
Under President Buhari’s administration, however, the government has been seeking measures to preserve foreign currencies following an economic slowdown by increasing local production.
According to BUA Foods, the company continues to make significant strides in advancing the Nigerian rice industry by remaining focused on building strong relationships with farmers, empowering local communities, and contributing to the overall development of the nation’s agricultural landscape.
By prioritizing local agricultural resources, BUA Foods is not only supporting Nigerian farmers but also contributing to the nation’s self-sufficiency in rice production through backward integration.
According to a key distributor in Kano, distributors were excited by this development and were sure that BUA Foods in its usual fashion would crash the rice prices further as it had consistently done with its other food products like flour, sugar, and pasta.
On its part, BUA Foods is optimistic that the upgraded rice mill and the parboiling plant will further enhance BUA Foods’ rice production capacity, enabling the company to meet the growing demand for its high-quality rice products.
Additionally, the company remarkably displayed a commitment to delivering excellence and ensuring that consumers have access to top-notch rice that is locally produced.
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