By Business A.M.
BUA Foods has informed distributors of its rice products that it would maintain prices of its BUA rice brand to support efforts at making the staple food more affordable for consumers in Nigeria.
The leading Food and Fast-moving consumer goods (FMCG)company, in a statement, said the decision to maintain prices is part of its commitment to the Nigerian agricultural sector and the economy, adding that it is underpinned by the strong sales potential from the company’s newly upgraded 200,000 tonnes per annum rice mill in Kano using locally sourced rice paddy. The company also attributed its little reliance on FX for rice production as a contributory factor for the development.
Business A.M gathered that before the BUA Foods business integration which saw its listing in 2022, Abdul Samad Rabiu, the BUA Group chairman,had stated that the company’s goal would be to focus areas where raw materials can be sourced locally across all its business areas including rice in order to promote food security in Nigeria and support the government in national development.
The company also noted that distributors were excited by the development and were confident 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.
The company stated that by prioritising local agricultural resources, it is not only supporting Nigerian farmers but also contributing to the nation’s self-sufficiency in rice and sugar production through backward integration.
“BUA Foods’ steadfast commitment to its vision has gained recognition and appreciation from stakeholders across the industry. The company’s efforts to bolster the Nigerian agricultural sector have garnered praise, positioning BUA Foods as a leader in the drive towards sustainable food production,” it stated.
The company also noted that its upgraded rice mill and parboiling plant will further enhance BUA Foods’ rice production capacity, enabling the company to meet the growing demand for its high-quality rice products whilst remaining committed to delivering excellence and ensuring that consumers have access to top-notch rice that is locally produced.
BUA Foods reiterated its commitment to continuously make significant strides in advancing the Nigerian rice industry,noting that the company remains focused on building strong relationships with farmers, empowering local communities, and contributing to the overall development of the nation’s agricultural landscape.