FARM implements manufacturer, Mealie Brand says the increase in steel prices, regionally and internationally, will impact negatively on its production.
BY MTHANDAZO NYONI
The company’s managing director, Walter Chigwada, told NewsDay in an interview that, while they were geared for the 2016/2017 farming season, the major challenge was the increase in steel prices.
“Our major challenge is that steel prices have started going up because in South Africa, the same protection that we are getting here through SI64 of 2016, the major steel manufacturer, ArcelorMittal South Africa (AMSA) has also received similar protection by the government to be able to compete against the products that are coming from the Far East,” he said.
“What this has done is that it has forced the price of steel to start picking up.”
Chigwada said during the forthcoming agricultural season, the company will maintain its original prices, but promotions they been running would be scrapped.
Keep Reading
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Mealie Brand is Zimplow’s key agriculture implements unit, with markets throughout sub-Saharan Africa.
Since the beginning of 2016, the company slashed prices of ploughs by 20 to 25%.
In South Africa, from where Zimbabwe imports steel, the price for flat and long-steel products, increased by 10% in May, while international steel prices increased by 20% in February.
Zimplow’s Mealie Brand exports to the sub-Saharan Africa, with its major markets being Angola, Zambia, South Africa, Lesotho, Namibia and Botswana.
The firm produces a wide range of animal-drawn implements, which provide mechanisation solutions for land preparation, planting, and crop cultivation through to post harvest.
For the 2016/2017 farming season, Chigwada said they are well-stocked and ready.
Chigwada urged the government to include its products on the import ban list.
He said Zimplow currently employs 150 workers, down from 350 in 2012.