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SAFEX
White maize floor producer floor price
1. The white maize price formula for the staggered floor price is based on a 5-year average of the SAFEX actual spot price, fully inflation adjusted, plus:
• A transport differential ex Bloemhof landed at a milling facility north or south of a median being Otjiwarongo, and;
• an 8 % GMO-fee premium
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Should the SAFEX spot price rise beyond the 5-year average, the following will be applicable:
2. A non-staggering floor price based on a fortnight weighted average of the SAFEX actual spot price, plus:
• A transport differential ex Douglas landed at a milling facility north or south of a median being Otjiwarongo, and;
• an 8 % GMO-fee premium
In Namibia, white maize is grown exclusively as a staple food and is planted under both irrigation and rain fed conditions.
Wheat producer floor price
The floor price for wheat is determined by the following principles as agreed upon by way of a signed marketing agreement between millers and producers:
The formulae are:
Formula A:
A 5-year average, of the actual SAFEX spot price, inflation adjusted, plus:
• 30 % import parity ex Upington landed in Windhoek and,
• 70 % of the average wheat price for Hard Red Winter (HRW) ex USA, via Walvis Bay, landed in Windhoek
Or
Formula B:
The average of the actual SAFEX spot price for the whole of October, plus:
• 30 % import parity ex Upington landed in Windhoek and,
• 70 % of the average wheat price for Hard Red Winter (HRW) ex USA, via Walvis Bay, landed in Windhoek
The higher of the two prices of formulae A or B will serve as the floor price for wheat marketed that season.
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