By Neo Kolane
Lesotho Flour Mills is reminding Basotho farmers, big and small, to supply them with their wheat and maize grain and they will receive quick payment at South African Futures Exchange (SAFEX) trading pricing, plus a cash incentive.
Lesotho Flour Mills, situated in Maseru, is playing a key innovative role in giving impetus to local economic development by calling on Basotho farmers and encouraging them to supply their wheat and maize crops directly to their mill.
The chief executive officer of Lesotho Flour Mills Joao Gonçalve said that as a company they buy local and trade to stimulate the economy.
Gonçalve explained that all grades of wheat and maize from Basotho farmers are accepted by Lesotho Flour Mills, payments are processed as quickly as seven days after acceptance.
“The purchase price of these commodities is made in compliance with SAFEX, the agricultural trade price used for purchasing from South African commodity traders. SAFEX keeps prices standard and ensures that farmers do not get underpaid for their produce.
“Lesotho Flour Mills offers a purchase price based on SAFEX, quoted at close of business the day before, as well as a cash incentive, he said.
Lesotho Flour Mills wants to create awareness of this local economic stimulation cycle, meaning the seller (farmer), the manufacturer (the mill) and the consumer (households) all work together to bring prosperity and increase the standards of living for communities and ultimately, their quality of life.
“We have the right quality and quantity of wheat and maize in Lesotho so by buying and producing it locally, the money goes straight back into the pockets of the community, boosting local economic growth,” Gonçalves emphasized.
According to the Word Bank, agricultural development is one of the most powerful tools to end extreme poverty, boost shared prosperity and feed people.
It further states that in some developing countries, agriculture can account for more than 25 percent of the gross domestic product.
“In Lesotho, a large majority of the population in rural areas is engaged in subsistence farming and the cultivation of nutritious foods is key in an uncertain climate-changing world.
“Current food systems also threaten the health of people and the planet and generate unsustainable levels of pollution and waste.
“One third of food produced globally is either lost or wasted. Addressing food loss and waste is critical to improving food and nutrition security, as well as helping to meet climate goals and reduce stress on the environment.
“Risks associated with poor diets are also the leading cause of death worldwide. Millions of people are either not eating enough or eating the wrong types of food, resulting in a double burden of malnutrition that can lead to illnesses and health crises.
“Food insecurity can worsen diet quality and increase the risk of various forms of malnutrition, potentially leading to under nutrition as well as people being overweight and obese. An estimated 3 billion people in the world cannot afford a healthy diet,” the World Bank Report read.
According to The State of Food and Nutrition 2021 report between 720 and 811 million people went hungry in 2020, more than 10 percent of the world’s population.
However the impact of the war in Ukraine adds risk to global food security, with food prices likely to remain high for the foreseeable future.
