Zimpapers Logo

Tinashe Makichi Business Reporter
The bakery industry requires about $300 million that will go towards replacing obsolete equipment with new and sophisticated technology to improve capacity.Zimbabwe currently has about 275 operating bakeries while about 100 have since closed shop due to working capital constraints and the need for retooling.

Bread production for half year to July, 2014 increased 150 percent to about 1 million loaves per day from 400 000 loaves produced in the past two to three years.

In an interview with The Herald Business yesterday, National Bakers Association of Zimbabwe president Mr Givemore Mesoemvura said new equipment is required in the industry.

“About 90 percent of the industry requires retooling and this amounts to around $300 million. According to consumption patterns, Zimbabweans are not eating as much bread as they should, considering that we have a population of 13,6 million. If we divide that into a million loaves of bread produced every day we are looking at about two slices per person which is very little,” said Mr Mesoemvura.

The country’s bakery industry is operating at 60 percent of its installed capacity of 1,8 million loaves a day.

“We have always had these ups and downs but now we expect demand for bread to increase right into the festive season. Bakers cannot do much about increasing production because it’s a national thing and the economy is not performing well,” said Mr Mesoemvura.

He said although some bakeries have been able to retool, imported semi processed products, cakes, dough imported from South Africa and biscuits have posed a challenge to the operations of different bakeries across the country.

He also raised concern on electricity and other challenges.

“Erratic electricity supply has become a challenge considering that the tariff is very high. Wages are continually increasing yet the price of bread remains static at one dollar.

“Water shortage is another challenge considering that most bakeries are buying water in bulk while it is supposed to be the responsibility of local authorities to provide the service,” said Mr Mesoemvura.

He said the bread industry is very stable and there are enough supplies of raw materials after receiving a guarantee from  the grain millers association that stocks are available sufficient to meet the demands of the industry for the next four months.

“We agree that the industry has lost a lot of capital through an influx of imported bakery products but we have not yet quantified how much we may be losing through imports as an industry.” he said.