Bagful of cost rises could counteract lower maize price.

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Bagful of cost rises could counteract lower maize price.

The question by folks was whether the price decline had been passed on to the end-consumer. 

There are a number of reasons for the stickiness of maize meal prices. Farmers do not necessarily produce food products, but agricultural commodities. There is, therefore, a processing time lag between the farm gate and the retail level that includes costs such as labour, transport and processing.

This processing chain typically explains the delays in price transmission between agricultural commodity prices and the food products. Regarding maize meal, the lag could be three to six months.

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