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NewsDay

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Bread consumption declines

Business
The National Bakers Association of Zimbabwe says the economic challenges in the country have resulted in the decline of bread intake by families to 850 000 loaves per day.

The National Bakers Association of Zimbabwe says the economic challenges in the country have resulted in the decline of bread intake by families to 850 000 loaves per day.

BY VICTORIA MTOMBA

Speaking yesterday at the baking industry stakeholders’ conference, National Bakers Association president Givemore Mesoemvura said the sector has over 250 big, medium and small players.

“We have an installed capacity of two million loaves per day, but due to economic challenges production is now at 850 000 loaves per day. In 2010 production stood at 1,5 million loaves, ” Mesoemvura said.

He said the big bakers constitute 2% of the sector and hold 85% of the market share while medium and small bakers share the rest and constitute 98% of the market in the baking sector.

Mesoemvura said bakers were encountering inconsistencies in the quality of bread and challenges in getting packages from local. The process of acquiring importing permits is also said to be taking longer than expected.

He said the baking sector’s capacity increased by 22% in 2014 due to the revamping of operations.

He said the bakers were facing problems of water and electricity shortages, and failure to access long-term credit from financial institutions.

Mesoemvura commended the central bank for introducing bond coins to the market as change was now readily available in the market. Buy Zimbabwe chairperson Oswald Binha said despite the increase in local flour production, the sector still imports 75% of its wheat which translates to $1 million every year.

“Worth noting is the fact that annually, the local milling industry imports over 85% of its wheat requirements which allows the industry to supply over 90% of the industry’s flour requirements following the duty increases in 2014. While there are arguments that imported wheat is of better quality; wheat imports have pushed the country’s import bill by $100 million,” he said.

The baking sector contributes 2,5% to Gross Domestic Product and employs 3 500, down from a peak of 6 000.

Grain Millers Association of Zimbabwe president Tafadzwa Musarara said the milling sector was operating at 45% capacity and it needed to retool.

Consumer Council of Zimbabwe executive director Rosemary Siyachitema said the reduction of bread prices that have been witnessed in the country was welcome although consumers say the move was long overdue.

“People are saying these should have been done long ago. Don’t expect us to clap hands because you have reduced the bread prices. Reduce bread price so that it gets to the right price,” she said. Siyachitema said CCZ carried a survey on the quality of bread and 75% of the people were happy with its quality while the rest thought the shelf life of bread was short and of poor quality.