NatFoods' milling volumes depressed due to high volume of imports

NATIONAL Foods says milling volumes especially in the southern region are depressed due to the high volume of imports.

"We are making every effort to compete, however, our milling volumes in the southern region are depressed due to the high volume of imports," National Foods said.

National Foods joins other millers that are raising alarm over the effect of cheap imports particularly from South Africa.

Millers in Gwanda, Bulawayo, Beitbridge were the worst hit with some of them closing shop as a result of loss of business.

The Grain Millers Association of Zimbabwe said Government should stem the importation of grain from neighbouring countries to protect local millers.

GMAZ deputy chairperson Mr Thembinkosi Ndlovu said a 10kg packet of super refined mealie-meal from South Africa is selling at prices around $5,60 compared to $6,93 for locally produced mealie-meal.

"We are not sure how the mealie-meal from South Africa is finding its way into the country because Government banned its importation.

"We urge Government to look into the illegal imports of mealie-meal," Mr Ndlovu said.

National Foods said although the actual cost of imports could not be easily established, imports were draining the fiscus of resources which are being channelled outside.

"This cannot be easily quantified but imports are certainly channelling revenue outside of the country and reducing employment in Bulawayo," said National Foods.

The company said it will continue to invest in plant upgrades despite the challenges being faced by local millers.

"We continue to invest heavily in projects to upgrade all of our plants to improve the quality of the product we deliver to our customers and consumers," the company said.

In the year to December 2013, National Foods said average factory capacity utilisation improved over the same period in the prior year to 47 percent due to increased sales of maize meal and stockfeeds, albeit at reduced margins to counteract the flood of imports from South Africa.

"The dramatic weakening of the rand against the US dollar has enabled South African millers to marginally cost product for sale into the Zimbabwe market," the company said.

It said Government's efforts to support local industry by restricting imports are encouraging, as the measures taken will ensure a level playing field for all.

GMAZ last month held an indaba to assess the state of grain in the country.

The millers have mobilised more than $200 million and set up more than 200 centres to purchase grain countrywide.

GMAZ is in negotiations with seed producers with a view to use the association's maize buying centres to distribute seed to farmers.