ONE of the biggest millers in the country, National Foods
Limited (NFL) says it will today switch off its wheat milling machines, citing
non-payment of its foreign suppliers, with the country facing possible flour
and bread shortages as the foreign currency crunch continues to bite.
Zimbabwe has been grappling with shortages of foreign
currency since 2016, while the falling value of its surrogate bond note
currency on the black market and a new tax on electronic transactions has
triggered steep price hikes.
“Unfortunately, due to delays in repatriating payments to
our foreign wheat suppliers, our wheat suppliers have today (Monday) instructed
National Foods to immediately cease drawn downs of wheat stocks. National Foods
will not mill out the wheat in the process, and we anticipate both our mills in
Harare and Bulawayo to close on Wednesday, 5th December,” chief executive
Michael Lashbrook said in a statement.
“National Foods will supply the limited stock it has on
hand, but we regret to advise that unless the payment situation is rectified,
we expect to be out of bakers flour later this week.”
However, Lashbrook said the company had “a full pipeline of
both imported and local wheat booked and that once payment is made, we will
immediately restart milling operations”.
The developments are likely to spark widespread shortages
of flour and bread, which comes over two months after millers had previously
suspended operations owing to wheat shortages.
Zimbabwe requires about 460 000 tonnes of wheat annually,
but local wheat farmers on average produce 180 000 tonnes, with the balance
imported at a cost of $20 million.
In September, Zimbabwe was left with less than a month’s
supply of wheat after a United Kingdom-based supplier held back a 30 000-tonne
consignment at Mozambique’s port of Beira over payment delays.
RBZ was later forced to intervene and availed 80% of the
foreign currency demand for the consignment.
Wheat shortages are blamed on foreign currency challenges
despite Treasury saying it is prioritising wheat imports.
Grain Millers Association of Zimbabwe chairperson Tafadzwa
Musarara, who organised an urgent meeting for millers yesterday, said other
millers had committed to remaining open.
“We have been advocating for more foreign currency
allocation . . . but the issue of closing down is not a GMAZ issue, it is an
individual (company) issue and we cannot stop someone from closing down,”
Musarara said.
“But, we are simply now stating that the rest of the other
millers will remain open.” Newsday
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