Agriculture Economist Edify Hamukale has attributed the nationwide drop in mealie meal prices to high maize supply due to the bumper harvest.

Dr Hamukale noted that the price drop follows a rebound in maize yields after the country recorded a bumper harvest this season.

In a statement made available to ZANIS, Dr Hamukale explained that the main driver is a supply-demand shift in maize supply which is currently higher than demand, and has shifted the supply curve to the right, thereby creating a surplus volume of maize on the local market.

He stated that the oversupply has given millers room to lower prices without hurting their profit margins.

“Consumers have already felt the impact at retail level. Prices for a 25kg bag of breakfast mealie meal have steadily fallen from an average of nearly K300 to between K220 and K230 across major brands, the reduction has been observed in most urban and peri-urban markets,” Dr Hamukale stated.

He pointed out that millers have responded to the new market forces by actively reducing the purchasing price they pay for raw maize with cheaper inputs they have been able to pass on lower retail prices to consumers, while maintaining their bottom line.