PRESS STATEMENT ON THE FALL OF BREAD PRICES

1. In May 2020, Grain Marketing Board advised millers that they had run out of wheat and millers had to import on their own to meet market requirements. This led millers to resume imports using free funds. Regrettably, the price of bread flour could not be stabilised as before as it was now susceptible to vagaries of moving rate. Consequently, In the past 8 weeks, bread prices moved from ZWD18 per standard loaf of bread to the current price of ZWD79.00 per standard loaf of bread largely on account of flour. Equally affected was also the rest of confectionery and biscuit products.

2. Admittedly, the price of bread, a necessity in all households, had become expensive and indeed worsened the cost of living. Following the re-establishment of the Foreign Currency Auction System by Reserve Bank, GMAZ has had fruitful discussions with the RBZ Governor, Dr Mangudya, whereupon foreign currency allocations to millers are now being made.

3. As a result, on behalf of wheat millers, I am pleased to advise that the cost of bread flour, with effect from 3July 2020, has been reduced from ZWD3,150/50kg to ZWD2,136.89.

4. Consequently, the bakers have committed to reduce the price of a standard loaf of bread from Wholesale Price of ZWD70.00 and Retail Price of ZWD79.00 to Wholesale Price of ZWD59.00 and Retail Price of ZWD66.00. From now on, our prices will be guided by the Foreign Currency Auction outcomes.

5. Further, GMAZ private wheat imports are continuing and we are endeavouring to ensure national adequate supplies between now and December 31,2020.

T.Musarara CHAIRMAN