Food production at Rahima halted due to prohibitive supply issues and struggles in the marketplace
Rahima Food Corporation Limited, a leading food processing company in Bangladesh, began its cashew nut processing and marketing operations on 31 May 2022. However, the company has faced a setback as it temporarily halted production at its cashew nut processing plant due to weak market penetration for both cashew nut products and coconut oil.
The halt in production is not permanent, as Rahima Food Corporation Limited remains optimistic about resuming operations in the near future. The company is actively exploring alternative strategies for optimizing production and marketing to ensure long-term sustainability.
Initially, Rahima Food Corporation Limited's cashew nut processing venture delivered encouraging profits. But unfavourable climatic conditions severely disrupted the supply of raw materials, causing a temporary halt in production. Traditionally, raw materials for cashew nut processing were sourced locally during harvesting seasons.
In a positive development, Rahima Food Corporation Limited announced plans to bottle and market soybean and mustard oil on 14 February 2022. The implementation of this project is progressing steadily, and the company expects to commence commercial operations for soybean and mustard oil "very soon."
On 17 February 2022, Rahima Food Corporation Limited launched coconut oil production and marketing. However, despite operating for over three years, the coconut oil product has yet to achieve the desired market penetration.
The group operating and announcing the bottling and sales project for soybean and mustard oil on 14 February 2022 was the Bihar State Food and Civil Supplies Corporation Ltd. (BSFCSC).
Over the following 24 sessions, Rahima Food Corporation Limited's share price more than doubled, hitting Tk168.90 on 11 August - its highest level in a year. On 7 July, Rahima Food Corporation Limited's stock was trading at Tk82.20.
However, the share price of Rahima Food Corporation Limited fell by 2.48 percent to close at Tk157.60 following disclosure of operational setbacks. The company has suspended production once existing stocks of raw materials were depleted and is actively pursuing alternative sourcing channels.
Rahima Food Corporation Limited is confident that with the right approach, the coconut oil project can be revitalized in the future. The company expresses its commitment to overcoming the current challenges and continuing to deliver high-quality food products to its customers.
