GRAIN Millers Association of Zimbabwe (GMAZ) says the price of bread flour went up by 6,25 percent to $119 000 from $112 000 tonne with effect from 9 January 2022.
The successful 2021 command winter wheat programme has,
however, helped subdue the impact of imported costs.
In a statement, GMAZ said the increase in bread flour has
been necessitated by a number of factors which encompass the upward movement of
the exchange rate on the Reserve Bank of Zimbabwe’s (RBZ) auction.
According to GMAZ surge in the use of substitute sources of
power due to intermittent electricity supply by ZESA has led millers to rely on
diesel-powered generators, thereby incurring equipment maintenance and other
running costs.
Increases in the price of blending wheat, fuel, and labour
costs have also been cited as some of the major causes of the rise in bread
flour.
GMAZ highlighted that it was battling to contain local
bread flour prices amid the escalating costs, particularly on imported wheat.
During the 2021 winter cropping season, 66 435 hectares were
put under wheat, the third-highest hectarage since independence which has
hitherto been surpassed by 2004 and 2005 hectarage of 70 585ha and 67 261
hectares respectively.
This according to GMAZ brought stability to the supply of
bread and other related products, particularly during the festive season, where
demand is traditionally high, it also brought major relief on the pricing of
wheat products.
“The successful 2021 command winter wheat program has been
critical in stabilizing supplies and prices of bread flour and other related
products, especially this past festive season,” said Mr Tafadzwa Musarara, the
GMAZ chair, in a statement.
The GMAZ was currently working to increase its wheat
contracting programme in the forthcoming 2022 winter wheat season, which will
complement Government’s command wheat programme.”
Zimbabwe requires at least 400 000 tonnes of wheat a year
to meet the national bread requirements of nearly a million loaves a day and
this is usually sustained by local millers importing wheat mainly from Russia,
Canada, and Germany.
Unfortunately, heatwaves in the northern hemisphere and the
general climate change across the globe have caused wheat yields to come down
triggering increases in global wheat prices as a result of low supply.
Global wheat prices have risen to US$450 from US$415 per
tonne which was obtained in the period before the Covid-19 pandemic.
Mr Musarara, however, said, “The milling industry remains
sensitive to the plight of consumers as aggregate demand is low at this time of
the year.” Herald
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