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We Can’t Guarantee Bread Price Cuts - Bakers

We Can’t Guarantee Bread Price Cuts - Bakers

The National Bakers Association of Zimbabwe (NBAZ) says the price of bread will go down but the new price is dependent on how other cost drivers will remain constant.

Earlier this week, the Reserve Bank of Zimbabwe (RBZ) announced that it had held a consultative meeting with the NBAZ, with the two parties agreeing to reduce the price of bread.

RBZ Governor John Mangudya said members of the bakers’ association will now access their full requirements of foreign exchange through the weekly foreign exchange auctions for the importation of inputs and procurement of fuel.

In a telephone interview with Business Weekly on Wednesday, NBAZ president, Denis Wallah, confirmed the discussions with RBZ. He said:

Definitely, discussions have been ongoing with RBZ and in the statement, the monetary authority highlighted the terms and conditions that came out of our engagement. We’re going to see some movement in the price of bread going down.

In terms of the quantum at which the price will go down, we cannot say the price will go down by such a figure because we are fighting a moving target in the sense that there are other cost drivers that we are not guaranteed will remain constant. But certainly starting tomorrow (yesterday) consumers should see the reduction.

At the beginning of June, the retail price of a standard loaf of bread increased to an average of ZWL$650 and US$1.20, from about ZWL$370 and US$1.00 in April.

NBAZ attributed the increase in the price of bread to cost drivers such as fuel and bread flour.

The astronomical rise in the price of wheat, which is used to produce bread flour, has been largely attributed to Russia’s ongoing war in Ukraine, with the two countries accounting for about 70 per cent of the global wheat supplies.

Wallah did not reveal the bakers’ congregated forex requirements per month but indicated that they need forex to import raw materials such as baking fat and enzymes. He said:

In terms of what our forex requirements are over a given period of time, for example, a month, that is dependent on what we need to import.

Our members require forex to import mostly baking fat and enzymes and these are imported from South Africa.

More: Business Weekly

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13 Comments

MY 1 week ago

I have changed my prayer from "Give us our daily bread " to "Give me the whole bakery."I ain't playing this year!


🗣️Voiceless🇿🇼 6 days ago

🤣🤣🤣🤣🤣 "give me the whole bakery"

Men shall not live on bread alone 1 week ago

Mukadota


Asalif 1 week ago

we have shunned expensive bread 🍞 since time immemorial we buy fresh bread for $1 for 2 from local bakeries


Miles 1 week ago

Bread is now a privilege of the rich, many people cannot afford it anymore!


Purse 1 week ago

Vene venyika havavhari mabakery asi imi vaputin hamuna Mari yekutnga chingwa regedzai price haichinji


® 1 week ago

inini hanq i don't see how we are gonna reduce those prices, coz fuel is almost at its peak , wheat farmers demanding us dollars n there is inflation to add insult to the injury. pple used to say things will change back in 2019 but it looks like hope is the problem. we have got to make it work not hope for it to work n thats one weakness we have as a nation


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Cable Guy 1 week ago

THE HEADING IS SO SAD EISHHH 😭😭😭😭


Observer 1 week ago

The Smiths government subsidiesed
basics like bread and mealie meal with taxpayers money to keep basics affordable instead of enriching themselves.
This government treats people as cash cows for their welfare.


Putin 🇷🇺 OG 1 week ago

Bakers inn ndiro Zi cancer ,Lobels inoita mugudza dungwe kana vachivhara ngava vhare kwete ma price e**** . Operation ma baker.......siya


shango 1 week ago

unorwara iwe,uri mupengo chaiwo,kuvhara chii,kuti zvidii,wheat farmers vari kurima kuti tidye Chingwa

Mmmm 1 week ago

So we take what the RBZ says with a pinch of salt.


User 1 week ago

lm personally okay with your bread prices,my focus is on mbambayira now



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