Skip to main content

Deflation puts a dent in Pioneer Foods’ turnover

| Social Responsibility

But the company says sales volumes picked up, and costs were low, which bodes well for first-half profit. Deflation in soft commodities weighed on Pioneer Foods’ sales in the December quarter.

Turnover in the three months to December shrank at least 2.4% as prices in some maize and wheat product categories declined. But total volumes rose 5.2%, the company said in a trading update on Friday.

The price deflation followed low grain prices, as a result of a bumper harvest in 2017. SA harvested a record 16.7-million tons of maize over the period.

Pioneer Foods competes with Tiger Brands and AVI for space on supermarket shelves.

Revenue from the group’s international business grew 19.5%, the company said in Friday’s statement. Excluding the Nigerian business, revenue grew 12%.

Despite falling turnover, the groups said improved sales volumes and lower input costs, particularly for maize, would support first-half profits, compared with a year ago.

The company said it had put in place contingency measures to soften the blow of the drought in the Western Cape, where it has "considerable" operations.

Pin It

Related Articles

100 learners at Wittedrift Primary School in Plettenberg Bay are now better equipped to manage their health with dignity and confidence, following Engen’s 2026 We Care Campaign activation held on Tuesday, 24 February.
If you ever needed proof that Sixty60 has officially entered South African pop culture, look no further than Laerskool Die President in Germiston. 
 For too many young girls, menstruation still stands between them and their education. Engen is changing that narrative.
As South Africans prepare to spoil loved ones this Valentine’s Day, 28 previously unemployed young people are finding fresh hope of their own with the Shoprite Group’s first-ever Retail Readiness Programme (RRP) intake within its…
The Shoprite Group has opened applications for its 2026 bursary programme, offering financial support and a guaranteed pathway into employment for ambitious students in Retail Business Management, Accounting, Supply Chain and Log…