Mzansi Maize Milling — Products & Operations

MMM will produce a diversified portfolio of super and special maize meal, samp, grits and animal feed using established seven-stage dry-milling technology, supported by an FSSC 22000 quality system and a multi-channel grain procurement strategy…

Mzansi Maize Milling Business PlanSection 4 › Products & Operations

Section 4 · Business Plan

Products & Operations

MMM will produce a diversified portfolio of super and special maize meal, samp, grits and animal feed using established seven-stage dry-milling technology, supported by an FSSC 22000 quality system and a multi-channel grain procurement strategy…

4.1 Product Portfolio

Figure
Figure 4.1: Target Product Mix by Revenue Contribution — visualised from the accompanying data.
Product Grade Pack Sizes Target Price/kg Revenue Share
Super Maize Meal Super (sifted) 1kg, 2.5kg, 5kg, 10kg, 25kg R9.50–R11.50 40%
Special Maize Meal Special (unsifted) 2.5kg, 5kg, 10kg, 25kg, 50kg R7.00–R9.00 25%
Samp Whole kernel 2.5kg, 5kg, 10kg R10.00–R12.00 12%
Maize Grits Coarse/Fine 25kg, 50kg (bulk) R8.00–R10.00 8%
Animal Feed (Hominy Chop) By-product 50kg, Bulk R3.50–R4.50 15%

4.2 Manufacturing Process

4.2.1 Process Flow

The milling process follows established dry-milling technology using a roller mill configuration. The process comprises seven primary stages:

Stage 1 – Grain Receiving: Incoming maize is weighed, sampled for quality (moisture, foreign matter, defective kernels), and graded per SANS 375 specifications. Accepted grain is transferred to storage silos via bucket elevators.
Stage 2 – Cleaning & Conditioning: Raw maize passes through separators, destoners, aspirators, and magnetic separators to remove foreign material. Grain is then conditioned (tempered) to optimum moisture content of 15.5–16.0% for milling.
Stage 3 – Degermination: Conditioned maize enters the degerming system where the germ, pericarp, and tip cap are separated from the endosperm through impact and attrition.
Stage 4 – Roller Milling: Degermed endosperm is progressively reduced through a series of break rolls, reduction rolls, and sifters. This multi-pass system achieves the target granulation for each product grade.
Stage 5 – Fortification: Compliant with Regulation R.504, a micro-dosing system adds the mandatory vitamin and mineral premix at prescribed levels. Automated monitoring ensures consistent dosing.
Stage 6 – Packaging: Finished products are conveyed to the packaging hall where automated packaging lines fill, seal, date-code, and palletise products across all pack sizes (1kg to 50kg).
Stage 7 – Quality Assurance & Dispatch: Finished goods pass through metal detection and weighing verification before transfer to the finished goods warehouse for dispatch.

4.3 Plant Specifications

Parameter Specification
Milling Capacity 200 tonnes per day (8.33 TPH)
Annual Throughput (at 90%) 54,000 tonnes raw maize
Operating Hours 24 hours/day, 3 shifts, 300 days/year
Extraction Rate 78–80% (super grade)
Power Requirement 1.2 MW installed capacity
Water Consumption 0.3 m³ per tonne processed
Silo Storage 5,000 tonnes (25 days at capacity)
Finished Goods Warehouse 2,000 m² ambient storage
Total Site Area 3.5 hectares (industrial zoned)
Building Footprint 4,500 m² (mill, warehouse, offices)

4.4 Quality Management System

MMM will implement a comprehensive quality management system aligned with international food safety standards. The facility will pursue FSSC 22000 certification within the first 18 months of operation, which is increasingly required by major retail chains for supplier qualification.

  • HACCP (Hazard Analysis & Critical Control Points) – foundation of the food safety system.
  • FSSC 22000 certification – target within 18 months of commercial production.
  • SANS 10049:2011 – Good Manufacturing Practices for the food industry.
  • ISO 9001:2015 – Quality Management System framework.
  • NRCS compliance – ongoing conformity with compulsory product specifications (SANS 714).
  • Integrated pest management and allergen control programmes.

4.5 Supply Chain & Procurement

4.5.1 Raw Maize Procurement Strategy

Raw maize procurement is the single largest cost component, representing approximately 56% of operating costs. MMM will employ a multi-channel procurement strategy to optimise cost, quality, and supply security:

SAFEX-Linked Forward Contracts (60%): Structured hedging programme using JSE-listed maize futures to lock in 60% of annual grain requirements at known prices, reducing spot market exposure.
Direct Farm-Gate Purchases (25%): Contracts with commercial farmers in Mpumalanga and eastern Free State, offering competitive pricing with transport cost advantages.
Spot Market / Silo Purchases (15%): Opportunistic purchases from grain traders and silo operators to fill short-term requirements and exploit favourable pricing.

4.5.2 Grain Price Risk Management

MMM will implement a disciplined grain price hedging policy, managed by the CFO in consultation with an independent commodity risk advisor. The policy parameters include:

  • Minimum 50% of forward 6-month requirements hedged at all times.
  • Maximum single-position limit of 20% of annual requirements.
  • Stop-loss triggers at 15% adverse price movement on unhedged positions.
  • Monthly risk committee review of hedging positions and market outlook.

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