1. WHERE IS NATIONAL FLOUR MILLS LOCATED AND WHAT FACTORS INFLUENCED THIS LOCATION?
NFM’s Head Office is located at 27-29 Wrightson Road, Port of Spain and its Rice Milling facility is located at Carlsen Field, Chaguanas.
The Head Office is ideally located at the west coast with a natural deep-water port where it can easily offload grain and load products for export. The site comprises of:
· Administration Building
· Security Building
· Credit Union and Consumer Cooperative
· Garage
· Warehouse
· Dry Mix Operations
· Machine Shop
· Silos
· State-of-the-art Feed Mill
· State-of-the-art Flour Mill
National Flour Mills Limited is a manufacturing company that specializes in the processing of grains for the manufacturing of flour and animal feeds. The Company also engages in the trading of rice, oil and several dry mixes. Most of the grains used are obtained from sources outside of Trinidad and Tobago such as the United States of America.
NFM neighbours the Port Authority of Trinidad and Tobago and has a deep-water harbour at the rear of its operations. Through this port, all grains imported are easily transferred from ship to storage facilities (Silos and Warehouses) via an extensive conveyor system. The port also allows export of the company’s products, quite easily and quickly.
If the company’s operations were located further inland it would be more expensive to transport the grain via trucks to the facility.
2. WHAT TYPE OF COMPANY IS NFM?
NFM is a public limited liability company incorporated in the Republic of Trinidad and Tobago. Its principal activities are the production and distribution of food staples, animal and poultry feeds.
NFM’s products include:
· Flour and flour by-products
· Parboiled and White Rice
· Animal Feed
· Dry Mixes e.g. icing sugar, pholourie mix, baking powder etc.
3. WHAT IS THE COMPANY’S PURPOSE AND OBJECTIVE?
NFM’s purpose and objectives are clearly identified in its Vision and Mission statement.
NFM’s Mission is “to be the preferred provider of quality food and related products and services to the international community”.
NFM’s Vision is “to be a leading Caribbean company that is internationally competitive, diversified and innovative”.
4. WHAT ARE NFM’S MAJOR BRANDS
NFM’s products are marketed under the following brands:
-
Lotus
-
Ibis
-
good N’ natural
-
Lion
-
National Feeds
-
Hibiscus
-
Winner’s Choice
-
Command Performance
5. WHO ARE THE COMPANY’S SHAREHOLDERS?
National Flour Mills Limited has a share capital of 120,200,000 shares. Its major shareholder is the National Enterprise Limited (NEL) which owns 51% (61,301,998). The company’s stock is traded on the Trinidad and Tobago Stock Exchange.
6. DESCRIBE THE ORGANISATIONAL STRUCTURE OF NFM
National Flour Mills Limited has a hierarchical organizational structure, with the Board of Directors having ultimate authority. Shareholders appoint the Board of Directors who has the responsibility of appointing a Chief Executive Officer to oversee the day to day operations.
NFM also has various Divisional and Departmental Managers responsible for the Marketing, Production, Quality Control, Human Resource and Information Technology functions. .
7. HOW MANY EMPLOYEES ARE THERE IN THE COMPANY?
As at the end of October 2008, NFM had approximately 361 permanent employees.
8. ARE EMPLOYEES PROVIDED WITH A JOB DESCRIPTION?
Yes, all employees are provided with a job description and job specification by their respective managers.
9. WHAT ARE THE WORKING HOURS OF THE COMPANY?
· Normal Administration working hours are:
- 8:00 am – 4:00 pm, Mon- Fri. Some employees however, are allowed to work flexi-time. e.g. 7.00 am – 4.00 pm or 9.00 am – 5.00 pm.
· Some Production employees operate under a three shift system;
- 7:00 am – 3:00 pm
- 3:00 pm – 11:00 pm Sunday- Saturday
- 11:00 pm – 7:00 am
Other Production employees operate under a two shift system.
- 7:00 am – 7:00 pm
- 7:00 pm – 7:00 am
10. WHAT FACTORS OF PRODUCTION DOES THE COMPANY UTILIZE?
The three main factors of production used by NFM are:
· Labour
· Machinery
· Money i.e., capital
Labour
NFM utilizes the services of skilled and unskilled, professional and paraprofessional men and women to carry out the various company functions.
Machinery
This is another vital factor, which aids in the successful operation of the business.
Machinery types include:-
· Conveyors
· Forklifts
· Robotic palletizers
· Computers
· Extruders
· packers
Money/Capital
Perhaps the most important factor in the company’s operations is money. This can be said to be the lifeblood of the company. Without money, employees cannot be paid and investment in the appropriate equipment would not be possible, and there would be no returns to shareholders.
11. IS NFM UNIONIZED?
NFM has both unionized and non-unionized employees. The Seamen and Waterfront Workers Trade Union (SWWTU) engages in dispute resolution and negotiates with the company on behalf of unionized employees regarding salaries and benefits.
12. DESCRIBE NFM’S TRANSPORT ARRANGEMENTS FROM RAW MATERIAL TO FINAL PRODUCT.
Raw materials utilized by NFM are imported via ships. The Raw material is off-loaded and transported via conveyors to steel or metal Silos.
These Silos are very large, strong cylindrical structures. National Flour Mills (NFM) concrete and steel Silo capacity is approximately 35,000 metric tones.
Local raw materials are transported via truck to NFM’s compound. NFM’s products are distributed through the company’s distribution system or through private distributors. All NFM’s products are sold at supermarkets nationwide and exported to different countries.
13. HOW DOES NFM MARKET ITS PRODUCTS?
Like most large companies NFM utilizes advertising to make the public aware of its products. Various types of media are used. These include:
· Television
· Newspapers
· Radio
· Trade Publications
· Expositions
The company also uses special promotional strategies in the form of competitions/promotions to stimulate customers.
14. WHAT ARE THE FUNCTIONS OF THE MARKETING DIVISION?
The main function of the Marketing Division is to determine what the consumer wants and to supply those needs in a timely and efficient manner at an appropriate price.
The Marketing Division also holds sales promotion type activities, such as contests where product packages submitted by consumers are rewarded with discounts or specific prizes. This is done in an attempt to keep the consumer happy and maintain a loyal buyer based relationship.
15. HOW PROFITABLE IS NFM?
The following table shows NFM’s after tax profit/loss from the period 2000 to 2007:
|
Year |
Profit/Loss ($M) |
|
2000 |
44.4 |
|
2001 |
22.1 |
|
2002 |
35.7 |
|
2003 |
27.5 |
|
2004 |
16.3 |
|
2005 |
10.4 |
|
2006 |
(53.7) |
|
2007 |
(42.1) |
| 2008 |
(3.1) |
Based on the table above, one can observe that after 2002, NFM's profitability steadily decreased until the companybegan to make losses in 2006, 2007 and 2008
In 2006, the after tax loss of $53.7M was as a result of the VSEP Programme which was implemented at a cost of $57.157M and the forced closure of the Edible Oil Complex which was the result of an explosion. This closure resulted in NFM’s absence from the refined oil market in the first three quarters of 2006.
In 2007, the after tax loss was $42.1M versus the loss of $53.7M in 2007. These weakening financial results reflected the extent of the challenges that NFM continues to face. Profitability suffered as a result of the increasing cost of grain, asset impairment and competition which resulted in the significant reduction in sales during the first half of 2007.
Currently, NFM's Board of Directors and Management are implementing various strategies to erode the impact of the factors affecting profitability. In 2008, the after tax loss reduced from $42.1M in 2007 to $3.1M in 2008. They are confident that NFM would return to profitability.
16. HOW DOES NFM CONTRIBUTE TO THE SOCIAL AND ECONOMIC DEVELOPMENT OF T&T?
As a demonstration of its good corporate citizenship, NFM continues to support community groups and organizations that operate in the field of sports, health, education, culinary arts and culture.
17. WHAT TYPES OF INSURANCE DOES NFM HAVE?
Insurance is a necessary and important investment for the company. With insurance the company is protected and compensated for any loss and liability of its assets.
For this reason NFM has the following insurance coverage:
· Fidelity Guarantee
· Cash in Transit
· Risk Machinery Equipment
· Goods in Transit
· Personnel Accident
· Personnel Accident for Travel
· All Risk Computer
· Boiler and Machinery
· Directors/Officers Liability
· Group Health/Group Life
· Workmen Compensation
· Product/ Public Liability
18. DESCRIBE THE RELATIONSHIP BETWEEN MARKETING AND PRODUCTION
Being in the manufacturing sector, the company has a strong production and marketing orientation. Production is driven by the marketing requirements which are initiated by the customer.
The production supervisors in consultation with the marketing division perform Production Planning. This ensures that the customers’ requirements are always met on a timely basis.
19. WHAT ARE NFM’S MAIN SOURCES OF CAPITAL (MONEY)?
National Flour Mills has four main sources of capital. The capital (money) is used for present and future operations and expansion projects.
The capital sources are:
· Sale of goods
· Sale of shares through stock exchange
· Reinvestment of profits
· Banks and other lending organizations
NFM’s major bankers are:
· Scotia Bank of Trinidad and Tobago
· Citibank of Trinidad and Tobago
20. HOW DOES NFM DISPOSE OF ITS WASTE PRODUCTS
NFM’s processes are basically dry processes. The waste generated from these are:
Flour Milling – from the wheat cleaning process
- Metal- discarded in the dumpster
- Stones - discarded in the dumpster
- Sticks and wheat related foreign material - discarded in the dumpster
- In the instance where wheat related products (flour or bran) have to be discarded for one reason or another it is disposed via SWMOL (special disposal)
Packaging & Dry Mixes – Scrap packaging are discarded in the dumpster.
Feed Milling - In the instance where feed or related raw material has to be discarded for one reason or another it is disposed via SWMOL (special disposal)
Maintenance – Waste (used) Oil – Special disposal – Oil Mop
General Waste in the dumpster is handled by Waste Disposal.
Caribbean Tech Disposal or Piranha Technology Asset Management Limited is currently being sort for e-waste.
21. WHAT IS THE AVERAGE TOTAL WHEAT IMPORT FOR FLOUR PRODUCTION IN TRINIDAD PER MONTH/YEAR?
NFM imports approximately 55,000 MT to 60,000MT annually.
22. WHAT GOVERNMENT REGULATIONS ARE IN PLACE WITH RESPECT TO NFM’S IMPORTATION OF RAW MATERIALS AND TAXES?
- Import permits for oat, wheat, soybean meal, rice, alfalfa pellets are required and renewed annually.
- All shipping documents of Imported Raw materials require CARICOM Invoice.
- Phytosanitary Certificates and Fumigation Certificates are required for grain shipments and other raw material organic in origin.
- Value Added Tax is paid on all shipments.
- Duty is dependent on the tariff, but there is none assigned to the raw materials, if the raw material is from CARICOM origin. For example, we do not pay duty on rice if it is imported from Guyana. However, if it is from the USA or Brazil, duty has to be paid.