News / National
Flour price goes up
13 Jul 2022 at 07:21hrs | Views
THE price of bread is likely to go up after flour prices rose by 10% yesterday.
This comes after the Grain Marketing Board increased its wheat prices to millers by 8% from $239 360 to $258 416 per tonne.
In a statement yesterday, the Grain Millers Association of Zimbabwe (GMAZ) also announced a 10% review in the price of bread flour, a move likely to increase the price of bread which is now beyond the reach of many.
GMAZ spokesperson Andrew Kunambura said the decision was made after noting serious inflationary headwinds in the industry.
"The milling industry continues to face serious inflationary headwinds, which include the finance cost occasioned by the increase in interest rates from 100% to 200%, and the increase in the local wheat price from GMB to millers by 8%," Kunambura said.
"The interbank exchange rate has moved up by 5,5% from US$1:$362,6 to US$1:$382,5. The currency devaluation has severely impacted the general operating costs. There was also an upward review of the prices of fuel. The aggregate impact of these movements will be around a 10% increase in the price of flour to bakers."
Kunambura said millers and bakers would, however, continue to deliberate on prices, leveraging on quantity discounts, payment terms and any other considerations.
Currently, the price of bread is $690 and is beyond the reach of many.
National Bakers Association of Zimbabwe president Dennis Wala said the move by GMAZ would affect the whole bread production value chain.
"We are in a value chain and one of the suppliers in the value chain highlights that it has reviewed their prices, which means it also affects our cost drivers in terms of the final product which is bread," Wala said.
Confederation of Zimbabwe Retailers Association president Denford Mutashu said the price of bread would go up as a result of the 10% hike in flour prices.
"The market should expect a slight adjustment on the price of bread, unfortunately," Mutashu said.
The increase in the price of flour comes barely a month after Finance and Economic Development minister Mthuli Ncube announced a cocktail of measures meant to stem the rising inflation and to restore confidence in the economy.
This comes after the Grain Marketing Board increased its wheat prices to millers by 8% from $239 360 to $258 416 per tonne.
In a statement yesterday, the Grain Millers Association of Zimbabwe (GMAZ) also announced a 10% review in the price of bread flour, a move likely to increase the price of bread which is now beyond the reach of many.
GMAZ spokesperson Andrew Kunambura said the decision was made after noting serious inflationary headwinds in the industry.
"The milling industry continues to face serious inflationary headwinds, which include the finance cost occasioned by the increase in interest rates from 100% to 200%, and the increase in the local wheat price from GMB to millers by 8%," Kunambura said.
"The interbank exchange rate has moved up by 5,5% from US$1:$362,6 to US$1:$382,5. The currency devaluation has severely impacted the general operating costs. There was also an upward review of the prices of fuel. The aggregate impact of these movements will be around a 10% increase in the price of flour to bakers."
Currently, the price of bread is $690 and is beyond the reach of many.
National Bakers Association of Zimbabwe president Dennis Wala said the move by GMAZ would affect the whole bread production value chain.
"We are in a value chain and one of the suppliers in the value chain highlights that it has reviewed their prices, which means it also affects our cost drivers in terms of the final product which is bread," Wala said.
Confederation of Zimbabwe Retailers Association president Denford Mutashu said the price of bread would go up as a result of the 10% hike in flour prices.
"The market should expect a slight adjustment on the price of bread, unfortunately," Mutashu said.
The increase in the price of flour comes barely a month after Finance and Economic Development minister Mthuli Ncube announced a cocktail of measures meant to stem the rising inflation and to restore confidence in the economy.
Source - NewsDay Zimbabwe
