The Zambia Consumers Association (ZACA) says claims by some millers that reducing mealie meal prices would mean they have to cut down on their work force is unfounded.
Speaking to ZANIS in an interview yesterday, ZACA Executive Director, Muyunda Ililonga, said millers have no reason to complain as they benefit the most from the maize produce each year.
Mr Ililonga stated that millers have for a long time now exploited farmers by making abnormal profits.
He held that it is unfair for any miller to present the above argument, saying farmers were the ones who had reason to complain about how much they benefit from the maize produce.
Mr Ililonga said it is unfortunate that farmers do not get much money from the maize when they are the ones who do the tedious work as compared to the millers.
He claimed that the current situation where millers make huge profits while farmers get very little will discourage young people who would want to venture into farming.
Mr Ililonga said no claims made by any miller as to why they cannot reduce mealie meal prices can be justified as those who seek reasons to do so are only acting on selfish ambitions.
Many millers countrywide have reduced mealie meal prices following President Sata’s directive that no one should trade a 25 kg bag of mealie meal at more than KR50 while others have been reluctant to effect the reduction.
ZANIS
It is up to the miller to do cost saving measures, he is a business man and not the politician to control his business.
Profit maximization is the aim of every profit making company. Labour is a cost to production. Every competent manager will cut labour cost if they are deemed high in order to retain profits. You can’t force a business to maintain a high labour force at the expense of profit. However, Companies have a social responsibility to protect jobs, but this can not be done at the expense of profit. So let business run as a business. Those millers that feel if they have to retrench workers in order to safeguard profits, let them go ahead. The cost structure is unique to every business. Thus, other millers might not find it necessary to reduce their labour.
Minimum wage hello!! If you ask people to increase salaries, expect them to increase prices!
Thats why you guys are under fives, instead of fighting for people you want them to be exploited by millers. How can they vote for you really when you are always against them?? And yet you call yourselves educated …shaaaaaa.
Truth Hates: Just shut up if you do not know anything about running a business.
It is true millers are making supper profits. The solution is to have many small millers around the country so that there is increased competition. The other is to offload the maize on to the consumers so that they gaya themselves. The millers are ehaving so coz they know that they are the only few in the industry.
Peace and Prosperity to Mother Zambia.
Hi, just wanted to say i liked this article.
thanks, nice post.