Nov 2009 Financial News

Nutrimix looking for THE RIGHT MIX

Nov 12, 2009

Nutrimix group vice president Ronnie Mohammed knows that he will need more than just market savvy to take away market share from state-owned National Flour Mills (NFM).

Muscling into NFM’s territory is not going to be easy.

Nutrimix, whose main business is the production of chicken and chicken parts has re-entered the flour market dominated by NFM.

“In the flour and grain market, our main competitor is a state-owned company (NFM) and for reasons which I will need more time to explain, it is always difficult to compete against a state-owned company,” said Nutrimix group vice president Ronnie Mohammed at the launch of the company’s “Premium Grade” brand flour at the company’s Point Lisas Industrial Estate mill.

The flour, which is packaged in two and ten kilograms sizes, and retails at $13.49 and $66.99 respectively carry the trademark Nutrimix brand which according to Mohammed was developed after a long period of intense research, development and blending.

According to a TruValu official, the new product was selling well and seemed to have been specially priced to ensure a quick turnover.

Addressing the formal launch ceremony, which included Trade Minister Mariano Browne and Legal Affairs Minister Peter Taylor, Mohammed noted that in spite of NFM’s presence, the company was able to grab a substantial share of the regional and extra regional market.

“We compete with regional and extra regional suppliers,” he said, adding the company’s plans are to bring larger quantities on the market. “Our presence in the local flour and poultry markets created an equilibrium which is working to the advantage of all parties, including consumers,” he told guests.

He pointed out that in early 2008, the company had temporarily closed it’s mill facilities to expand its operation to facilitate the construction of various silos to increase its grain storage capacity.

“Since then we have initiated many changes and have become known for our aggressive pursuit of quality and affordability of our product to consumers.” he said.

Mohammed added: “This has enabled us to not only offer chickens, feed and flour products that are better and more varied than what is currently available, we have also been able to keep our prices competitive and maintain our share of the market among a quality conscious consumer,” he said.

This, he said has been achieved in the face of subsidies and what he described as unfair practices that give significant advantages to imported items. Even so, he said Nutrimix continues to partner with the Government to keep food prices affordable.

He acknowledged that the new flour was an improvement on its flagship brand of “Country Pride” flour which was introduced on the market several years ago.

“Our mill is a state-of-the art one and so Nutrimix premium grade brand of flour is nothing less than a premium product manufactured to the highest standards,” he said.

“Our product, as conceptualised is a new one to the marketplace with many distinct advantages including a varied spectrum of usage as a flour,’ he added.

“We have once again been innovative and breaking new ground and much time and effort was spent on research, development, training and effective modification for our manufacturing operations,” he added. In early 2008, Nutrimix installed six additional storage silos to enable the company to store 45,000 metric tonnes of grain for a six- month period.

Meanwhile, Mohammed also took the opportunity to raise the issues of increasing freight costs, product dumping and foreign exchange shortages which he said were hampering manufactures. He spoke of a foreign exchange shortage which was not only having an impact on its business operations but could lead to a strain in relations with the company’s overseas creditors.

“It would be remiss of me if I were to close without raising the issue of foreign exchange shortages, and the impact this is having on our business operations, particularly with regard to the cost of imported product,” Mohammed said.

“It causes strained relationships with our creditors and the basic element of trust and reliability necessary for sustaining such relationships, it is our hope that the situation will be immediately addressed by the relevant authorities,” he added. The Nutrimix mill began production in 2004 and boasts a well-equipped laboratory and an experimental bakery.

To ensure the high quality of Nutrimix flour, the cleaning system features an array of indented cylinders, a scourer with an air-recycling aspirator, and the appropriate conditioning system with an automatic dampening feature, which according to the Buhler, the Swiss company which was given the mandate to supply and install the mill’s state-of-the-art equipment, facilitates the removal of all impurities from the different wheat varieties.

According to Buhler, four purifiers enable Nutrimix to produce top-grade flour from any variety of wheat while three ten-compartment plan sifters guarantee


Source:
Richardson Dhalai
Trinidad Newsday
Thursday, November 12 2009

http://www.newsday.co.tt/businessday/0,110758.html