Meat traders defend price hike

MEAT traders have refused to reverse the 30-50% hike they introduced on all meat products this year, saying the increments were necessitated by the high costs they were incurring along the value chain.

BY TATIRA ZWINOIRA

Yesterday, government failed to break the impasse, as stakeholders vowed to keep the prices up pending a second meeting to be held today with the National Competitiveness Commission.

Confederation of Zimbabwe Industries president Sifelani Jabangwe who chaired the meeting confirmed the stalemate.
“As of today (yesterday), there is nothing yet that has been done because we saw this as a more complicated problem than even the bread one that we were facing, so this one is a bit more complicated but it can be resolved,” he said.

“It (price increments) has been specifically to deal with mark-ups as all of them (meat players) are trying to hedge the challenges that they are facing but what has happened is that no one is benefiting, as consumers are not buying.

“It is the costs and the coordination which is the thing about a value chain. Sometimes, if the players do not collaborate and act individually, they can actually do it to the detriment of the entire chain and this is what we have having.”

Currently, meat players are charging between 30% and 40% mark-ups on meat which is up from a previous of 10 to 15% mark up on meat prices.

According to one of poultry players present at the discussions, who did not want to be named, beef meat has gone up due to increased demand, as chicken supply is still low on the back of the avian bird flu from October this year.
The reason for the price hike of chicken meat was due to a shortage of foreign currency required to import stockfeed.

Consumer Council of Zimbabwe (CCZ) executive director Rose Siyachitema said they where receiving complaints that the price of beef, chicken, pork, and fish were now almost the same.

“What we understand from the public was that between those four products they used to be able to say ‘I will not eat beef, I will eat the other products because those alternatives are cheaper’. Now, beef and pork prices per kilogramme are nearly the same and kapenta is nearly the same as beef, so for us that is a challenge where all those products could have a similar price,” she said.

On Monday, government ordered players in the baking industry to reverse the 10% bread price hike introduced at the weekend.

27 Comments

  1. Increasing prices for no reason, that’s how hyperinflation begins.

    1. Price increases don’t just happen for no reason across the board. It’s a reflection of the poor state of the economy.

    2. GONO–ISM PROGRESSING

  2. Zimbabweans lets not buy the meat.

  3. These increases has nothing to do with cost within the value chain. Changing a mark up from 15% to 50% is a company policy decision no a cost issue. Continuing charging 15% of cost will make the trader profitable.
    I also don’t understand how the value chain of Kapenta and Beef has the same cost components for them to be charged the same price.
    I think the real problem is to do with currency risk, thus trader are hedging so that they will be able to meet their future obligations.

    1. then the customer has to buy where it makes economic sense for him to buy. why would the customer buy at an expensive price when there are cheaper options?

    2. uri producer here iwe unotaura kuti it has nothing to do with value chain cost? enda ku koala unoona kuti producer price for beef imarii, also advice your gvt to order reduction of fuel as well, hamenowo imwe value chain yauri kutaura.

      1. My point is, even if production cost increase lets say from $5 to $10 a kg. It does not mean markup has to change from 15% to 50%. Retailer must put their usual mark up of 15% on the new production cost not 50%. They will still cover their cost with the old mark up.

  4. I have stopped eating any meat!!! Plenty of vegetables @ +/- $ per kg and still nutritious, then see what happens to meat producers. Customers take charge!!!!

  5. I wont buy and sell at a loss to please Mnangagwa and his gang. I am in business for a profit.

    1. You run the risk of closing shop on the back very low demand because your customers’ salaries have remained stagnant.

    2. true, business is not done to make someone relevant in his waning political career

  6. John Bond(fencepost tortoise)

    The problem is the BOND Notes, period.

  7. look up to God, Zimbabweans pray. izvi zvakuda Mwari. Asi tivhote tichiziva next year. nokuti ndaona zvichiendera mberi izvi.

    GOD BLESS ZIMBABWE….

  8. im in the meat industry i own a chain of butcheries, what is happening is producers sell their beef at a price per kg between $4.20-$4.60 for economy and between $4.60-$5.50 for commercial and super beef between $5.80-$6.80. fuel increased by 0.08-0.13 cents per litre and we need to go out there to source and bring the product to the consumer. there is also vehicle wear and tear, rentals, wages, zesa, packaging materials, butchery licencing and health inspectorate fees etc. so to tell us to reduce the price to $3.50 is not only absurd but an idea of a govt which has now no clue on how to tame the inflationary environment they caused by bringing bond notes. if they they want to reintroduce price controls they should reintroduce subsidies from the producers up to the fuel suppliers and other connecting service providers. they should order councils to reduce licensing fees as well. they should abolish the bond notes and either adapt rand or continue with USD but richiwanikwa on demand. right now producer haadi ecocash anoda only hard cash and after we sell with ecocash we later buy the cash on a premium on black market. as long all those anomalies are not addressed forget about the reduction of meat and its by products.

    1. i think the problem is you have not given us what has gone up to justify the increase. the major cost is purchasing of the beast or meat and what else has gone up which is imported. we need to move away from profiteering everything has to come down to enable us to move from bond notes

      1. ko peturu hausi kuiwona kuti yakakwira here, nyama haitambidzwe mumaoko, a bag of 1000 packaging plastics was costing $3.50 in january and its now $13.00, sausage casings also increased in price, first gvt should control the producers price and say beef economy should cost $1.50, commercial $2.50 and super $3.50 and see if we wont reduce prices. Gvt has failed its mandate period. what they should do is to resuscitate CSC and sell beef at absurd wholesale prices, that way it cascade down the the consumer kwete kungo vukura kuti dzikisai vasina kana mombe 1 yavanotengesa.

        1. Production cost needs to be effected in the final price for sure. It does not make business sense to sell below the cost of production. My question for you Mr Retailer. What is the basis for changing mark up from 15% to 50%, since this is a board room decision ?

        2. PLANT MORE MAIZE IMMEDIATLY

    2. YOU MEAN Z$ THEY DID NOT PLANT SUFFICIENT MAIZE LAST RAINS — ONLY 800 THOUSANDS TONS
      IN GMB — KRAP — NOW WITH EUROPEAN FARMERS LEASING MUGABE FARMS & PAYING HIM 5% OF THE GRAIN
      PRODUCED WE WILL HAVE ENOUGH TO FEED THE POPULATION AND ANIMALS

  9. Apa MDC yaiva ku AMERICA kuti tipiwe ma scntions. Vanhu vanokwidza ma busines makambani avo ngaatorwe apiw ma youth. I sabotege yavarikuita kuitira kufadza varungu vavo.

    1. I am a first year university student, price control has never worked in any economy. the reason why an entrepreneur open business is to make profit… profit maximisation. if the government put up a price ceiling (normally to with intention to protect consumers) , it will result in shortage as producers will be reluctant to supply their beast at that low price. the concequency is we will end up nt having beef in shops. and black market will thrive…. or producers will export to nearby countries like SA where there is a better price.

  10. Vatengesi varamba nenyama

  11. Cold Storage Commission……………………………..I miss you!

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