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'Production costs push price of bread up'

by Staff reporter
23 Sep 2018 at 08:50hrs | Views
THE country's bakeries have attributed the recent 10 percent bread price increase to operational costs.

National Bakers Association of Zimbabwe president Mr Ngoni Mazango said bakers were struggling to cope with the rising cost of production largely accelerated by the prevailing foreign currency shortage in the country. The retail price of a standard loaf rose from $1 to $1,10.

"Fuel prices have gone up and yet bakers continue supplying bread . . . The shortage of foreign currency is a constraint to the business as most of the ingredients and machinery is imported. We also have to repair and maintain our equipment and yet the cost of doing so has gone up," he said.

Mr Mazango said the price increase was also necessitated by the rise in international wheat price.

"Since July the international price of wheat has increased . . . shortages of flour constrains the production of bread and other confectioneries," said Mr Mazango.

Prices rose significantly in early August as a result of deteriorating crop prospects in key producing countries, particularly in the European Union due to dry and hot weather.

Grain Millers Association of Zimbabwe (GMAZ) indicates that the price of wheat has in the past 90 days increased by about 10 percent from $375 per tonne to $415. Last year the country's farmers obtained 178 000 tonnes of wheat against a national requirement of 420 000 tonnes.

Source - zimpapers