Thursday, September 06, 2007

ZNFU seeks ways of keeping bread prices stable

ZNFU seeks ways of keeping bread prices stable
By Florence Bupe
Thursday September 06, 2007 [04:00]

Responding to concerns that the price of bread would drastically increase due to an upward trend in wheat prices, Zyambo said ZNFU would meet various stakeholders to find a solution to consumers’ fears. “We would like to emphasise that there are no farmers exporting wheat and therefore, this can’t be cited as the reason the price of bread is likely to go up,” Zyambo said.

“However, we are aware that there are some misunderstandings between wheat farmers and millers on the price of wheat, as farmers are asking for more attractive prices than what they are getting right now.”

Zyambo said the union would try and arbitrate between farmers and millers to find a compromise to the situation. Some outlets in Lusaka have already effected a marginal increase in the price of bread by about K200, from K2,500 to K2,700. It is also projected that the price of a 50 kilogramme bag of flour will increase to K160,000 from K140,000.

“The situation on the ground is that some farmers are not happy with the price being offered for their wheat produce by the millers. As a farmers’ representative union, we will try and help the two parties come up with a price they will both be happy with. We will prioritise this issue at the stakeholders’ meeting that we will hold in response to the directive by the Ministry of Agriculture and Cooperatives on September 11, 2007,” said Zyambo.

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2 Comments:

At 5:04 PM , Blogger MrK said...

It would be interesting to know what the cause of high wheat prices is.

The same thing is happening in Zimbabwe, and I'm sure president Mugabe will be blamed for it there.

However, obviously this is also happening in Zambia.

 
At 9:51 PM , Blogger MrK said...

Guess what, they are blaming President Mugabe.

http://news.bbc.co.uk/2/hi/africa/6979824.stm

Zimbabwe flour shortage warning
Zimbabwean woman holds money and a loaf of white bread
Bread shortages could further boost inflation
Zimbabwe's main bread producer has warned it only has two days' supply of flour, state media have reported.

The company, Lobels Bread, said a flour shortage had already forced it to scale back its operations by 80%.

Reports say 36,000 tonnes of imported wheat are blocked in a Mozambican port owing to foreign exchange shortages.

A foreign currency crisis caused inflation to rise to 7,638% in July. Government price controls have been blamed for worsening shortages.

Lobels' operations director, Lemmy Chikomo, said stocks would run out after two days if they were to cease production.

He said the firm could only guarantee 40,000 loaves of bread per day, as opposed to 200,000 previously.

Critics have blamed President Mugabe's policies, especially the seizure of farms, for ordinary Zimbabweans' hardship.

[Gee, I guess it had to happen, but who is to blame for the wheat shortage in Zambia? And did they manage to read over their own statement that imported wheat is stalled in Mozambique because of a foreign exchange shortage - caused by ZDERA? - MrK]

For his part, President Mugabe has accused foreign governments of trying to interfere in Zimbabwe's affairs - saying some businesses had raised prices without justification as part of a Western plot to oust him.

 

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