From News24 (SA), 5 September
Chris Muronzi
Harare - Zimbabwe's flour supplies will run out on Thursday, the country's largest baker said. The state-owned daily newspaper, The Herald, reported that Lobels Bread, the largest bread-maker in the troubled southern African country, is only left with two days' supply of flour. This comes after reports that 36 000 tonnes of imported wheat are grounded in Beira, Mozambique because of foreign currency shortages that have hit the country. Zimbabwe is facing an acute shortage of foreign currency owing to a negative balance of payments position. Lobels operations director Lemmy Chikomo said the current bread shortages was because of a critical wheat shortage adding that his 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. [...] The company says it was releasing almost 200 000 loaves of bread daily into the market but this month production drastically dropped to 40 000 per day.
[...] Chikomo added that the price slashes in June resulted in an artificial shortage of bread. Lobels accrued a $100bn debt since May this year, as it had to borrow funds to pay its employees and sustain operations, the paper reported. Bakers petitioned government to review the price of bread from Z$30 000 to Z$73 000 a loaf but their plea fell on deaf ears. According to bakers, it costs bakers Z$55 561 to produce a standard loaf. President Robert Mugabe ordered businesses to reduce prices of goods in June by 50% accusing industry of causing a runaway inflation. [...]
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