Nigeria is the number one importer of American wheat. Flour milling companies in Nigeria could face higher costs because of loss of output globally.
May 24 (Lagos) - Output of Wheat output in the USA, Russia and Australia is presently threatened by droughts withering wheat crops. There is a threat to the supply chain of wheat globally and this has caused the price of wheat to reach its highest point in almost a year.
More than enough wheat is produced in the world annually but a major chunk of it is destroyed intentionally (specially in the U.S) to prevent global wheat prices from crashing. In coutries like India, there is surplus wheat production but a lack of proper storage facilities means some percentage of it just rots in the warehouses. Nigeria is the number one importer of Whear from USA according to the website of United States Department of Agriculture.
Flour Milling companies in Nigeria like DANGFLOUR, FLOURMILL , HONYFLOUR etc. stand to witness increased cost and lower margins which will also reduce earning.
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