HARARE – THE Grain Millers Association of Zimbabwe (GMAZ) has announced an upward review in mealie-meal and bread prices on the back of the Ukraine/Russia war and rising tensions in Eastern Europe.
GMAZ Chairman, Tafadzwa Musarara, yesterday said the Grain Marketing Board had increased the cost of maize from ZWL 43 000 to ZWL 50 000 per metric ton, necessitating an upward review in mealie-meal prices.
Coupled with this, fuel prices have also surged following the play of geo-politics in the Balkan region in particular the Russia-Ukraine conflict, adding substantially to operating costs.
“Maize Meal retail price for 10kg Roller Meal will increase by 15 percent from ZWL 955 to ZWL 1099.
“Bread Flour will move up by 14, 74 percent from ZWL 119,000 to ZWL 136,544 per Metric Ton,” Musarara said.
The millers said the wheat landing price had surged from $475 to $675, cautioning that the upward trend was anticipated to continue on the back of the disturbances in East Europe. Wheat constitutes 30-42% of the cost of bread.
Zimbabwe is one the biggest net importer of Russian wheat in the East and Southern African region. The country has been managing to ensure sufficient supply of bread nationwide through a number of locally made initiatives.
“The government sponsored wheat farming programmes have recorded highest yield since the commencement of wheat farming in Zimbabwe. However, the war in Ukraine has greatly affected dynamics leading to the price increase,” Musarara said.
Currently, Zimbabwe is consuming 16 000 metric tonnes of bread flour monthly, and approximately 1,2 million loaves a day. Demand for bread is expected to increase as aggregate demand improves, owing to removal of COVID-19 induced lock downs.
The 2021 local winter wheat harvested saved the country USD146 million.
“This proves to be a profitable import substitution transaction. However, the country will need to import 155 000 metric tonnes of wheat to mitigate on the variance between local production and national demand,” he said
