Bread price is set to go up anytime after the Grain Marketing Board (GMB) hiked wheat producers’ price to above ZWL$11 000 from around ZWL$8000 last year.
The development comes at a time when the local companies are grappling with high cost of production, hyper inflationary environment, foreign currency challenges and power outages.
National Bakers Association of Zimbabwe (NBAZ) president Denis Wala said that due to rising costs of raw materials in the whole value chain, the price of bread may go up.
“As you can see the Grain Marketing Board has hiked the wheat producer’s
price, this means the millers will get wheat at a high price and consequently
they have increased flour prices hence all the costs will affect us and this will definitely increase bread prices.
“As we speak, we are in negotiations with millers and the government as
to what price we may put in place.
Every time we increase the bread price, people think we are inconsiderate to the consumers but we are the last in the value chain,” Wala said.
He said at peak the country produced over one million loaves a day but the
numbers have since dropped to 800 000 loaves a day last year due to high cost of production.
This year, the numbers have further dropped to 400 000 loaves a day.
Bakers say, the agreed price which is likely to be announced soon is going to
be around US$0.90 of the parallel rate market which is at around US$1:45.
If that is going to be approved, a loaf of bread is likely going to cost at around ZWL$40.50 per loaf.
Analysts believe the imminent price increase of bread will push up price of
other basic commodities as bread has an effect to other commodities.
Zimbabwe requires between 350 000 tonnes and 400 000 tonnes of wheat
yearly for consumption.
Last year, the country managed to produce less than 100 000 tonnes of
wheat, leaving the monetary authorities to import over 250 000 tonnes of wheat.