THE National Bakers’ Association of Zimbabwe (NBAZ) says the coming on board of Mega Market and Victoria Foods as flour suppliers will boost bread production.
Over the years, the sector has faced challenges which include increased bread prices as flour availability has become volatile.
The instability of flour supplies mainly stemmed from Russia’s invasion of Ukraine as the latter was a significant provider of wheat blended with local wheat to produce flour for bread.
“All companies in the baking industry have been managing to supply bread to the satisfaction of customers or consumers. This is evidenced by the availability of bread in all retail outlets countrywide be it the modern or the general trade,” NBAZ president Elvis Ncube told NewsDay Business.
“Flour is currently available from all suppliers namely Mega Market, Victoria Foods, Blue Ribbon Foods, Manyame Milling and National Foods to mention a few. The availability of flour has been improved due to the coming in of new players in that industry, for example, Mega Market in Mutare and the resuscitation of Victoria Foods.”
Ncube said the sector was making great strides to contain operational costs in a bid to maintain bread availability.
Bakers complained that the only challenge that crippled the sector was the introduction of a 5% withholding tax to non-tax compliant customers which resulted in bread being retailed at more than US$1.
Ncube, however, revealed that the issue has since been resolved.
Bread is retailing at US$1 per loaf and the equivalent in local currency at the prevailing official exchange rate.
“Our major challenge was the introduction of a 5% withholding tax to non-tax compliant customers from January 1, 2024 and this resulted in bread being retailed at more than US$1,” Ncube said.
“However, this issue was addressed in the mid-term budget review effective the 1st of July 2024 in which the bread industry was exempted from charging the 5% withholding to non-compliant retailers.”
In the 2024 mid-term budget review, Treasury said perishable products such as bread, milk and milk products would be distributed by manufacturers directly to retailers to protect the quality of goods and safety of products.
According to Treasury, significant investments in modern automation technologies such as robotics have resulted in the bakery sub-sector increasing bread production capacity to 2,3 million loaves per day.
