Question

SECTION A is question is COMPULSORY and should be answered in the spaces provided. a) Namib Mills announced price increases for a number of products including maize meal, flour and pasta, effective for 14 November 2022. According to a company statement dated 11 October 2022 and issued by the company's financial manager ST Ackerman, there are a number of factors that caused the price increases. Name possible reasons why the price of maize might have increased.​

Answer 1

Possible reasons for the increase in the price of maize could include:

1. Supply and demand: If the supply of maize is lower than the demand, it can lead to price increases. Factors such as drought, pests, or diseases affecting maize crops can impact the supply and contribute to higher prices.
2. Fluctuations in input costs: Maize production involves various input costs such as labor, fertilizers, pesticides, and fuel. If the prices of these inputs increase, it can affect the overall cost of maize production, potentially leading to higher prices.
3. Market conditions: Changes in global or regional market conditions can influence maize prices. Factors such as changes in trade policies, import/export restrictions, or shifts in demand from other countries can impact the price of maize.
4. Exchange rates: If the local currency weakens against foreign currencies, it can increase the cost of importing maize, which may result in higher prices for consumers.
5. Policy changes: Changes in government policies related to agriculture, such as subsidies or regulations, can influence the price of maize. Adjustments in government support programs or trade policies can have direct or indirect effects on the cost of maize production and its subsequent pricing.

Step-by-step explanation:

These are just a few possible reasons for the increase in the price of maize. The actual reasons may vary depending on the specific circumstances and market dynamics in a particular region or country.