3 December 2012

South Africa: DTI to Launch Small-Scale Maize Mill

Pretoria — Trade and Industry Minister Rob Davies will this week launch the Kuvusa small-scale maize mill.

The mill, which will be launched in Durban on Thursday, forms part of the Industrial Policy Action Plan (IPAP) small-scale maize milling initiative which forms part of the dti's contribution to reduce the cost of maize-meal.

According to the dti, up to 37% of the consumer price of maize-meal is accounted for by transport and logistics costs. Maize is grown in rural areas and transported to urban and peri-urban areas for milling before being transported back to rural consumers.

"However, Kuvusa Mills - with support from the dti - has secured one of the first, market-leading small-scale maize mills capable of producing high-quality 'super' maize-meal, much loved by South African consumers," said the dti.

Maize-meal produced at these mills will be marketed at prices below prevailing market rates.

"In so doing Kuvusa and the dti will be introducing competition into a highly concentrated sector which has an unfortunate history of uncompetitive practices which have directly impacted on poor consumers' ability to feed themselves and their families."

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