Cost pressures hit millers hard

The milling industry says it has been hard hit by cost pressures emanating from the recent fuel price increases.

By Staff Reporter

In a statement at the weekend, the Grain Millers’ Association of Zimbabwe’s finance and costing technical committee chairman, Anias Chiware, said transport costs and workers’ expectations were the major cost drivers.

Government recently increased fuel prices by 150% and promised to consider a rebate to millers.

“Transport costs for our raw materials and outside deliveries have increased to over 80%, with some transport operators attributing this to the challenges in procuring spare parts for their vehicles,” Chiware said.

He said most of their members used hired transport, an arrangement which does not fall under the promised and anticipated government fuel rebate
category.

“We have costs on repairs and machinery maintenance, which have sky-rocketed and all this is affecting our operations,” Chiware said.

“We also have pressure from our workers, who, just like all workers in the country, are expecting a huge pay rise and our appeal to them is that inasmuch as they would want their salaries to be increased, this would also affect us in terms of costs.”

He said the prices of their products had remained constant since last November, “despite these costs pressures which we have been absorbing, hence our appeal to workers who are also consumers to be reasonable in their demands”.

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