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Conrad Mwanawashe Business Reporter
MILLERS and bakers have renewed a Memorandum of Understanding which requires the grain processors to procure 75 percent of flour locally.

The National Bakers Association of Zimbabwe president Mr Givemore Mesoemvura said the current MoU was due to expire on August 8.

“The MoU between the NBAZ and the Grain Millers Association of Zimbabwe was extended by 24 months after which we will review, recognising the importance of the baking industry in the wheat value chain, cooperating with other stakeholders in the value chain, the millers, who will consequently enter into contract farming with wheat farmers, as enunciated in the result-based programme of action, the Zim-Asset cluster on Food Security and Nutrition,” said Mr Mesoemvura.

The MoU entails that the baking industry will procure 75 percent of its flour requirements locally to promote growth in the milling industry.

“In the same spirit, the milling industry will enter into contract wheat farming with farmers.

“The baking industry, with the consent of the milling industry, be allowed to import 25 percent of its flour requirements for blending purpose,” he said.

Currently, bakers are relying on imports as local wheat production has gone down.

Zimbabwe requires between 350 000 and 450 000 tonnes of wheat a year.

But production of wheat has continued to decline with farmers planting only 8 000 hectares of wheat this winter season from around 11 000 hectares planted last year.

“What we are producing is not enough, that’s why we want to ensure that there is ready market for millers so that they in turn support farmers to promote local production of wheat,” said Mr Mesoemvura.

Erratic power supplies, high water rates and unavailability of viable markets are some of the reasons cited for the decline in capacity.