By ETimes

Lobels bread has increased its wholesale and recommended retail price for bread and confectionery, as wheat prices are being driven by shortage caused by the Russia – Ukraine war.
 
Bread is now retailing at $341.00 from $237.00 representing a 30% increase in the retail price in local currency. This leaves a loaf of bread now costing US$2.27 using the official exchange rate. However, using the parallel rate the price of bread falls to a range of US$0.97 to US$1.03.
 
On the wholesale side, bread now costs $310.00 per loaf, whilst in US dollar terms, bread now costs US$2.06 for wholesale. This leaves the retailer with a profit of $31.00 and US$0.21 respectively.
 
This comes after the Grain Millers Association of Zimbabwe (GMAZ) reviewed upwards prices of mealie-meal and flour, following the increase of maize and wheat prices due to short supply caused by the Russia – Ukraine war.
 
Both Ukraine and Russia account for nearly 30 percent of the world’s wheat exports. It’s not just uncertainty about the crisis causing wheat prices to climb, but there’s also worries about infrastructure damage in Ukraine and whether it will hinder the country’s ability to export in the near future.
 
Zimbabwe does not import all its wheat from the Black Sea territory but this will push demand of wheat from all over the world as more countries shift their supplier base. This week, officials in Egypt announced the plan to source wheat from other regions despite Russia and Urkaine and more countries might follow suit resulting in increased bread prices locally in the long run.
 
As grains continue to see climbing prices, it’s also spurring concerns about the impact higher feed costs could have on livestock producers.
 
The prices of mealie-meal and flour recently went up by 52% and 31% respectively. The price of a 10kg roller meal rose to $1 665 from $1 099, while flour rose to $215 000 per metric tonne from $164 523.
 
In a statement last week, GMAZ said prices of grain from Grain Marketing Board (GMB) went up. Commercial white maize price increased to $75 000 per tonne from $50 000 which translates to a 50% increase, while wheat rose by 17.8% to $66 000 per metric tonne from $56 000.
 
“These increments are substantial and millers cannot absorb them. At its urgent virtual meeting yesterday, the GMAZ Secretariat reported the following price movements; a) 10kg roller meal to increase by 52 percent to ZWD1 665 from $1 099. b) One tonne of wheat bread flour to increase by 31 percent to $215 000 from $164 523 per metric tonne. These price increments are with immediate effect,” read part of the statement.
 
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 Covi-19 induced lockdowns – Harare

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here