Lovemore Zigara Business Correspondent
THE National Bakers Association (NBA) is lobbying the government to repeal legislation which limits bakers to only two loaf sizes
Speaking at a Trade Measures conference in Gweru yesterday NBA president, Givemore Mesoemvura said Statutory Instrument (SI) 56 of 1989, which enforces bakers to manufacture only two varieties of the commodity namely bread weighing 700 grammes and 350 grammes  should be repealed to ensure viability of the industry.

He proposed the introduction of a 525 gramme loaf  on the market.

“The NBA is seeking the review of (SI ) 56 of 1989 to pave way for the introduction of variety or weight of bread products but specifically a 525 grammes loaf. The argument being to create a niche market for individual and small to medium players because they are facing competition from the big bakers who were mechanised and automated,” said Mesoemvura.

“Their economies of scale are not comparable to the small to medium players.  What we want to create is a niche where the small player has a choice to produce a variety of loaves, which isn’t in direct competition with the big players.”

He said regional neighbours like Namibia, South Africa and Zambia have adopted the same model, which he said has helped small players to remain afloat.

The NBA further proposed that the 700 grammes loaf be the only standard bread, which the manufacturers would be certified by the Standards Association of Zimbabwe (SAZ) to protect the consumer.

“Therefore, we’re recommending that we have one standard, which weighs 700 grammes in the new statutory instrument. It should be certified by SAZ so as to avoid consumers being short changed.

“In addition to that all other products should not be controlled but should be allowed to compete against each other for the benefit of the consumers. If there is going to be competition among the small players then there is need to introduce a variation of weights where consumers would be able to buy depending on their spending power,” Mesoemvura said.

The lobby group is pushing for the deregulation of the industry arguing that the sector was controlled by five statutory bodies among them the Competitions and Tariffs Commission instead of allowing the market forces to determine the price of bread.

At some point NBA lobbied for the increase of bread price from $1 citing escalating operation costs but faced fierce criticism from consumers who accused the players of profiteering.

Following the introduction of bond coins last month there are increased calls for manufacturers including bakeries to reduce their prices to enhance product competitiveness in the wake of increased influx of cheap imports.

 

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