Published by the government of Zimbabwe
5 September 2007
Harare — THE bread shortage is expected to worsen after the country's major producer, Lobels Bread, yesterday said it was left with only two days' supply of flour.
The disclosure comes amid reports that at least 36 000 tonnes of imported wheat are reportedly grounded in Beira, Mozambique, owing to foreign currency constraints.
Lobels operations director Mr Lemmy Chikomo attributed the current bread shortage to the critical deficit of wheat and that the company had since scaled down operations after its strategic stocks ran out.
"Flour availability has deteriorated and this has forced us to use our strategic stocks since May. Now we are only left with two days' supply. We have used all the 4 000 tonnes of flour that we had as reserve stock," said Mr Chikomo.
Lobels, he said, has not been receiving flour from major millers such as Blue Ribbon Foods.
"Blue Ribbon have nothing in their stocks and we have continued to rely on our strategic stocks that have sustained us until today," he said.
Mr Chikomo said since May this year, Lobels had been releasing about 200 000 loaves of bread per day to the market but this month production drastically dropped to 40 000 per day.
"This has nothing to do with prices but the wheat shortages we are facing. Once we get wheat we are home and dry, we will produce," he said.
Mr Chikomo said Lobels had since closed down its factory in Bulawayo and was only operating a single unit out of the six at its Harare plant.
"Our Bulawayo branch, which normally employs 254 people, stopped operations on Saturday August 25, 2007 as a result of acute shortages of flour. All these people were sent on forced leave pending an improvement in the supply of flour," he said.
In Harare, he said, 1 500 workers were also sent on forced leave but with full benefits.
"We have been forced to send our workers on forced leave. All contract workers have been laid off and only the permanent staff will be retained on leave. On expiry of leave days we will be forced to take other measures as we can no longer afford to keep the same staff levels," Mr Chikomo said.
Lobels, he said, has stopped supplying bread to its traditional markets in Mt Darwin, Bindura, Chiweshe, Mutoko, Shamva, Zvimba and Mhondoro.
He said the price slash exercise had also resulted in artificial shortage of bread as the commodity had now become the cheapest on the market.
"This demand has been aggravated by some bakeries that have stopped or reduced production due to viability concerns," he said.
Mr Chikomo said he wrote to the Minister of Industry and International Trade, Cde Obert Mpofu, who is also the chairman of the Cabinet Taskforce on Price Monitoring and Stabilisation, shortly before the Heroes and Defence Forces holidays, updating him on the dwindling flour stocks and acute shortage of wheat.
According to letters in the possession of The Herald, Lobels wrote to Cde Mpofu on July 13, August 9 and August 30, appealing for assistance.
Lobels, he said, had accrued a $100 billion debt since May this year, as it had to borrow funds to pay its employees and sustain its operations.
"Based on the above scenario, we once again appeal to your good office to allocate us more wheat to enable us to keep the manpower and to feed the nation. Our daily requirements are 200 tonnes. This allows us to produce up to 300 000 loaves for both our Harare and Bulawayo factories," one of the letters, dated August 30, reads.
The letters were also copied to the deputy chairman of the Cabinet Taskforce on Price Monitoring and Stabilisation, Cde Elliot Manyika, Minister of State Security, Lands, Land Reform and Resettlement, Cde Didymus Mutasa, Minister of Policy Implementation Cde Webster Shamu, Deputy Minister of Industry and International Trade Cde Phineas Chihota and ministry secretary Retired Colonel Christian Katsande.
Contacted for comment, Cde Mpofu said: "We are not looking at the availability but pricing structure."
Cde Mutasa, who is the chairman of the National Taskforce on Food Procurement and Distribution, said at least 36 000 tonnes of wheat was being held in Beira owing to shortages of foreign currency.
He, however, said Government was working on measures to procure the grain albeit in small quantities in order to ensure bread and flour availability.
The Bakers' Association of Zimbabwe has since forwarded proposals of bread prices to the Cabinet Taskforce on Price Monitoring and Stabilisation.
The association wants the price of bread to be increased from $30 000 to $73 000 a loaf.
According to the association, it costs bakers $55 561 to produce a standard loaf.
Millers' Association of Zimbabwe chairman Mr Mike Manga also confirmed that there was an acute shortage of wheat.
"Of course, we are not supplying Lobels with flour because there is a shortage of wheat in the country. Once we get wheat, we will supply them," Mr Manga said.
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