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Bread price hike looms
3 hrs ago |
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Consumers should brace for an increase in bread prices starting November 1, 2025, following the gazetting of Statutory Instrument (SI) 87 of 2025 by Industry and Commerce Minister Mangaliso Ndhlovu last month.
The statutory instrument mandates a payment into the Agriculture Revolving Fund for all millers, a move that industry players warn will trigger inflationary pressures. Recommendations to revoke the SI were reportedly ignored, leaving millers with no choice but to factor the costs into retail prices.
According to the National Bakers Association of Zimbabwe (NBAZ) and the Grain Millers Association of Zimbabwe (GMAZ), the measure will result in at least a 4% increase in bread prices at the retail level. Other related products, including maize meal and stock feed, are also expected to see price hikes.
"The NBAZ wishes to reiterate that the sector does not have capacity to absorb increases in input costs without compromising business viability," reads a letter from NBAZ to Minister Ndhlovu, dated October 24, 2025. The letter notes that bread flour accounts for roughly 43% of the total cost of producing a loaf. A 4% increase in flour costs will translate to an estimated two-cent increase in production costs per loaf, pushing retail prices above the US$1 benchmark.
Despite previous challenges, including fuel price hikes and electricity shortages, bread prices have largely remained stable at around one dollar. Analysts warn that the upcoming price adjustment could have ripple effects across the economy, potentially reigniting inflationary concerns reminiscent of the late 2000s.
GMAZ confirmed in a letter to the government dated October 23 that efforts to reverse the SI had failed. "Regrettably, we have failed to successfully lobby for this SI to be reversed and have no option but to comply with it," the letter reads. The association indicated that the statutory payment will be incorporated into their costings, resulting in a roughly 4% increase in bread flour and other types of flour effective November 1, 2025.
Consumers are therefore advised to prepare for higher bread prices in the coming weeks as the new regulations take effect.
The statutory instrument mandates a payment into the Agriculture Revolving Fund for all millers, a move that industry players warn will trigger inflationary pressures. Recommendations to revoke the SI were reportedly ignored, leaving millers with no choice but to factor the costs into retail prices.
According to the National Bakers Association of Zimbabwe (NBAZ) and the Grain Millers Association of Zimbabwe (GMAZ), the measure will result in at least a 4% increase in bread prices at the retail level. Other related products, including maize meal and stock feed, are also expected to see price hikes.
"The NBAZ wishes to reiterate that the sector does not have capacity to absorb increases in input costs without compromising business viability," reads a letter from NBAZ to Minister Ndhlovu, dated October 24, 2025. The letter notes that bread flour accounts for roughly 43% of the total cost of producing a loaf. A 4% increase in flour costs will translate to an estimated two-cent increase in production costs per loaf, pushing retail prices above the US$1 benchmark.
Despite previous challenges, including fuel price hikes and electricity shortages, bread prices have largely remained stable at around one dollar. Analysts warn that the upcoming price adjustment could have ripple effects across the economy, potentially reigniting inflationary concerns reminiscent of the late 2000s.
GMAZ confirmed in a letter to the government dated October 23 that efforts to reverse the SI had failed. "Regrettably, we have failed to successfully lobby for this SI to be reversed and have no option but to comply with it," the letter reads. The association indicated that the statutory payment will be incorporated into their costings, resulting in a roughly 4% increase in bread flour and other types of flour effective November 1, 2025.
Consumers are therefore advised to prepare for higher bread prices in the coming weeks as the new regulations take effect.
Source - NewZimbabwe
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