News / National
Beef goes up in the capital
08 Nov 2011 at 20:28hrs | Views
There are reports that beef prices have shot up in Harare and its surrounding areas due to gradually diminish numbers of cattle ready for slaughter, while the cost of some basic foodstuffs rose marginally, with manufacturers attributing this to the recent 31 percent increase in electricity tariffs.
The price of beef, as of yesterday, was ranging from US$5,80 per kg for commercial cuts to US$12 per kg for fillet in butcheries and supermarkets across the capital.
Before the sudden increase, economy beef was selling for between US$3,60 and US$5,50 per kg, while such specials as fillet were going for between US$6 and US$7.
Bulawayo, viewed as the hub of the beef industry, was not spared as meat was also reportedly scarce on the market, triggering price increases as dealers profiteered.
Agricultural Marketing Authority director production and operations Mr Maxwell Chikanda said the low supply of beef could have been caused by the fact that the Cold Storage Company had been slaughtering cattle from Botswana.
The cattle that have been coming into the country under a deal between the governments of Botswana and Zimbabwe have since been finished.
"This could have possibly created a void that local abattoirs are struggling to fill using local cattle.
"So they had to up their prices and other local meat retailers have also reacted to the situation by raising their prices as well," he said.
Efforts to get comment from CSC chief executive Mr Ngoni Chinogaramombe were fruitless as his phone went unanswered yesterday.
Private abattoirs have taken over the meat industry, but the recent Botswana cattle deal had seen significant dealers getting their beef from CSC.
Of late, prices of most basic commodities have been going up while workers' salaries remain stagnant.
The cost of living, as depicted by the Consumer Council of Zimbabwe's monthly basket for a low-income urban earner for a family of six, rose from US$527,52 in September to US$540,80 in October reflecting a 0,03 percent increase.
The food basket rose from US$145,09 in September to US$158,18 in October, representing a 0,9 percent increase.
The food basket consists of such items as meat, mealie-meal, sugar, cooking oil, bread, milk, tea leaves and salt among others.
The prices of all basic commodities went up from the previous month with very few commodities such as bath soap Geisha, margarine and bread maintaining their prices.
The cost of maize-meal (Roller meal) rose by US20cents, white sugar by US7cents, tea leaves by US15cents, cooking oil by US6cents, flour by US10cents, salt by US5cents, rice by US20cents, onions by US20cents and laundry soap by US34cents.
Zimbabwe National Chamber of Commerce economist Mr Kipson Gundani believes the recent 31 percent increase in electricity tariffs had a cross cutting effect of over 50 percent on the cost structure of commodities.
"This had a significant effect on the pricing structures of most commodities that had a strong bearing on the costs of production," he said.
Zesa Holdings recently announced that industries with the capacity to pay more could get more hours of power supply, meaning the costs will also be pushed on to the consumer.
Mr Gundani said the reinstatement of excise duty on some basic commodities by the Government could have also triggered changes in the pricing structures.
An official with the National Incomes and Pricing Commission, who cannot be named for professional reasons, said retailers could be taking advantage of the 10 percent increase in the cost of raw materials to raise prices of commodities.
The Ministry of Finance reintroduced duty of varying percentages on imported food items to protect local manufacturers.
Said Mr Gundani: "Industry is saying the price of stock feeds has gone up so they could be using that reason to justify their actions".
CCZ believes the big increase in the October 2011 family basket was due to profiteering retailers' speculative attitude as employers prepare to pay workers bonuses ahead of the festive season.
Between January and September 2011, CCZ recorded a 2 percent increase in the family basket figures, the highest increase so far.
However, the month of October has gone even higher to 0,09 percent with locally manufactured goods increasing on the shelves, but still not being produced and supplied at adequate levels to instill confidence in the transacting public, CCZ said.
The price of beef, as of yesterday, was ranging from US$5,80 per kg for commercial cuts to US$12 per kg for fillet in butcheries and supermarkets across the capital.
Before the sudden increase, economy beef was selling for between US$3,60 and US$5,50 per kg, while such specials as fillet were going for between US$6 and US$7.
Bulawayo, viewed as the hub of the beef industry, was not spared as meat was also reportedly scarce on the market, triggering price increases as dealers profiteered.
Agricultural Marketing Authority director production and operations Mr Maxwell Chikanda said the low supply of beef could have been caused by the fact that the Cold Storage Company had been slaughtering cattle from Botswana.
The cattle that have been coming into the country under a deal between the governments of Botswana and Zimbabwe have since been finished.
"This could have possibly created a void that local abattoirs are struggling to fill using local cattle.
"So they had to up their prices and other local meat retailers have also reacted to the situation by raising their prices as well," he said.
Efforts to get comment from CSC chief executive Mr Ngoni Chinogaramombe were fruitless as his phone went unanswered yesterday.
Private abattoirs have taken over the meat industry, but the recent Botswana cattle deal had seen significant dealers getting their beef from CSC.
Of late, prices of most basic commodities have been going up while workers' salaries remain stagnant.
The cost of living, as depicted by the Consumer Council of Zimbabwe's monthly basket for a low-income urban earner for a family of six, rose from US$527,52 in September to US$540,80 in October reflecting a 0,03 percent increase.
The food basket rose from US$145,09 in September to US$158,18 in October, representing a 0,9 percent increase.
The food basket consists of such items as meat, mealie-meal, sugar, cooking oil, bread, milk, tea leaves and salt among others.
The prices of all basic commodities went up from the previous month with very few commodities such as bath soap Geisha, margarine and bread maintaining their prices.
The cost of maize-meal (Roller meal) rose by US20cents, white sugar by US7cents, tea leaves by US15cents, cooking oil by US6cents, flour by US10cents, salt by US5cents, rice by US20cents, onions by US20cents and laundry soap by US34cents.
Zimbabwe National Chamber of Commerce economist Mr Kipson Gundani believes the recent 31 percent increase in electricity tariffs had a cross cutting effect of over 50 percent on the cost structure of commodities.
"This had a significant effect on the pricing structures of most commodities that had a strong bearing on the costs of production," he said.
Zesa Holdings recently announced that industries with the capacity to pay more could get more hours of power supply, meaning the costs will also be pushed on to the consumer.
Mr Gundani said the reinstatement of excise duty on some basic commodities by the Government could have also triggered changes in the pricing structures.
An official with the National Incomes and Pricing Commission, who cannot be named for professional reasons, said retailers could be taking advantage of the 10 percent increase in the cost of raw materials to raise prices of commodities.
The Ministry of Finance reintroduced duty of varying percentages on imported food items to protect local manufacturers.
Said Mr Gundani: "Industry is saying the price of stock feeds has gone up so they could be using that reason to justify their actions".
CCZ believes the big increase in the October 2011 family basket was due to profiteering retailers' speculative attitude as employers prepare to pay workers bonuses ahead of the festive season.
Between January and September 2011, CCZ recorded a 2 percent increase in the family basket figures, the highest increase so far.
However, the month of October has gone even higher to 0,09 percent with locally manufactured goods increasing on the shelves, but still not being produced and supplied at adequate levels to instill confidence in the transacting public, CCZ said.
Source - TH
