Montano on NFM cost-cut: ‘I told you so’
MINISTER of Legal Affairs, Danny Montano, said he was not surprised that National Flour Mills (NFM) had been able to cut the cost of flour by 20 percent in the face of competition from Nutrimix despite NFM previously justifying its high prices. Montano was speaking as the Minister responsible for Consumer Affairs at yesterday’s post-Cabinet media conference at Whitehall. Echoing NFM’s explanation that it has reviewed its internal inefficiencies, Montano said: "I have been saying for some time that NFM does not operate as efficiently as it could." He said NFM, had in the past, failed to use the commercial mechanism of "hedging" to combat price inflation when purchasing its raw materials. "This is something that National Flour Mills has not been doing and there were certainly opportunities for hedging." He alluded to the role of Nutrimix in forcing a price-cut by NFM. "Now that we have competition I think that we can hope for some more conservative pricing." Asked how to cut the costs of NFM’s other products, such as rice, Montano said he had certain proposals which he would soon bring to Cabinet and then publicly disclose.
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"Montano on NFM cost-cut: ‘I told you so’"