Bread Shortages, Price Hikes Loom In Zimbabwe As Supplies Decline1 year ago
Zimbabwe is facing a bread shortage crisis as a result of declining wheat supplies over the past few weeks mainly due to soaring prices of the commodity on the international market.
The conflict has resulted in at least 20 major wheat producers suspending exports to counterbalance their own internal demands.
An executive with one of the top milling companies in the country said:
Millers are currently experiencing serious headwinds as the wheat international prices continue to soar and this is being worsened by the weakening of Zimdollar and reduction in wheat allocations.
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International wheat prices are now close to breaching the USD700/mt mark, as more than 20 grain-producing countries have suspended exports. The local currency has weakened from US$1:ZW$178 to US$1:ZW$349 since the last bread flour increase in local currency.
At the same time, the local wheat allocations are now being made six to seven weeks apart, instead of every 4 weeks. In essence, it’s a drop in local wheat supply of 35% to 25%. Imported wheat contribution has risen from 30% to 75%.
Local wheat producers have for years been failing to meet local demand citing a lack of enough resources such as money, machinery and inputs.