Breakfast cereals firm feels the heat from imports

Breakfast Cereal Company—which makes Weetabix — is facing a profit slowdown as it finds it difficult to raise prices following additional production costs arising from expensive wheat as a result of stiff competition from South African and European low cost importers.

International wheat prices have increased by 30 per cent in the last month to stand at $360 (Sh28, 944) a tonne or Sh2, 620 per bag (excluding duty), piling pressure on pastries makers to increase prices to protect profit margins.