Maize flour and cereals market in Madagascar

Earlier Report Observations

From 2018 to 2021, the market for maize flour and cereals in Madagascar experienced moderate fluctuations. In 2018, domestic corn production reached 215 thousand tons, supporting the availability of raw materials for flour milling. The following year, severe international market impacts on the prices of imported wheat, corn, and oil led to higher local flour prices, which likely tempered consumption. The adoption of the organic agriculture law in 2020 encouraged diversification of cereal crops, potentially influencing flour-based products. Despite the introduction of a VAT exemption for local corn, flour, and oil sales and manufacturing in 2021, which aimed to reduce costs for consumers and bakers, the market volume contracted slightly to 139.8 thousand tons.

A sharp expansion occurred in 2022, with market volume jumping to 174.6 thousand tons. This surge was driven by a substantial increase in domestic corn production to 266.7 thousand tons, bolstering the supply of raw material for flour, and by the launch of Nutrifood's instant gluten-free flour, which created a new product segment. In 2023, the market receded to 167.9 thousand tons as persistently high international corn prices continued to pressure local production costs, even though new milling plants contributed to price stability.

In 2024, the inauguration of the 'Les Minoteries de l'Océan Indien' plant in Mahazo increased local flour production capacity, while the government's food self-sufficiency and industrialization policy (ODOF program) helped maintain stable flour prices. Additionally, price ceilings on flour, rice, oil, and sugar were imposed in the Analamanga region for three months to regulate the market, and abundant harvests combined with government support measures led to a trend of decreasing prices for basic necessities.

Production maize flour and cereals in Madagascar

In kind, 2017-2020, K t

Top producers of maize flour and cereals, 2017-2020

World map of production of maize flour and cereals, 2017-2020

Madagascar's production of maize flour and cereals has increased for the second consecutive year. In 2020, the country produced 142.5 thousand tons, marking a slight 0.7% increase compared to 2019. However, looking at the broader period from 2017 to 2020, production actually decreased by 23.9%, which translates to an average annual decline of 8.7%. The lowest production level was recorded in 2018 at 141.0 thousand tons, with that year also seeing the largest decline of 24.7%.

Annual dynamics of production in Madagascar in kind, 2017-2020, K t

Exports maize flour and cereals from Madagascar

Exports in kind, t

Madagascar's exports of maize flour and cereals have grown for the third year in a row. In 2020, exports reached 234 tons, showing a moderate 8.4% increase from the previous year. Over the four-year span from 2017 to 2020, exports surged by 78.2%, averaging an annual growth rate of 21.2%.

Annual dynamics of product's exports from Madagascar in kind, 2017-2020, t

From 2017 to 2020, Comoros and France were the primary destinations for Madagascar's maize flour and cereals exports, together accounting for 100.0% of the total export volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Madagascar in kind, 2017-2020

Exports in value, K $ US

In 2020, Madagascar exported 71 thousand US dollars worth of maize flour and cereals, a figure that remained nearly unchanged from 2019. Over the period from 2017 to 2020, however, export value increased significantly by 154%, with a compound annual growth rate of 36.4%. The most substantial increase occurred in 2018, when exports jumped by 65.5%.

Annual dynamics of product's exports from Madagascar in value, 2017-2020, K $ US

Between 2017 and 2020, two markets—Comoros and France—dominated the value of Madagascar's maize flour and cereals exports, jointly making up 100.0% of the total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Madagascar in value, 2017-2020

Imports maize flour and cereals to Madagascar

Imports in kind, t

Madagascar's imports of maize flour and cereals have declined for the third consecutive year. In 2020, imports stood at 1 017 tons, reflecting an 18.9% decrease compared to the previous year. Over the period from 2017 to 2020, imports dropped by 78.3%, with an average annual decline of 39.9%.

Annual dynamics of product's imports to Madagascar in kind, 2017-2020, t

From 2017 to 2020, the United States, Spain, and South Africa were the main sources of Madagascar's maize flour and cereals imports. The United States accounted for 50.3% of imports in volume, Spain for 23.2%, and South Africa for 11.2%, together representing 84.7% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Madagascar in kind, 2017-2020

Imports in value, K $ US

The import data shows irregular fluctuations, indicating a volatile market environment. Imports reached their lowest point in 2019 at 688 thousand US dollars, then peaked in 2017, with a 6.6-fold difference between these two years. In 2020, Madagascar imported a total of maize flour and cereals valued at an amount showing a steep 25.2% increase from the previous year. The largest decline was recorded in 2019, when imports fell by 76.5%.

Annual dynamics of product's imports to Madagascar in value, 2017-2020, K $ US

Between 2017 and 2020, the United States and Spain were the dominant sources for Madagascar's maize flour and cereals imports in value terms, jointly accounting for 80.6% of total imports, while the remainder was distributed among smaller markets.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Madagascar in value, 2017-2020