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Charity Ruzvidzo Business Reporter
ZIMBABWE’S bread production has dropped from 1.2 million loaves a day to 900,000 loaves due to a seasonal fall in demand and low capacity utilisation by bakeries, an official said yesterday.
National Bakers Association of Zimbabwe (NBAZ) chairperson Givemore Mesoemvura said demand for bread has temporarily softened while companies were also facing operational challenges.

“Demand for bread is different during the year. The festive season has high demand compared to any other month of the year and currently demand has decreased because people are spending their income on school fees and other expenses,” he said.

“Demand for bread is low. Our production capacity was hovering around 1,2 million loaves per day and has dropped to 900,000.
“The machinery used in most of these bakeries is dilapidated. This also contributes to low levels of bread production.”

Mesoemvura said maximum bread production was around 1,8 million loaves per day but most small firms were operating below their full capacity with many averaging 60 percent capacity utilisation.

He, however, said demand was expected to increase by end of this month.
“We expect demand to increase again by end of the month because assumptions are that people would have cleared their school fees and covered other expenses so they would afford a loaf of bread from their low disposable incomes,” said Mesoemvura.

He said his organisation signed a Memorandum of Understanding with the Grain Millers Association on flour supplies.
“We are entitled to import 25 percent of flour but we are only importing seven percent because of low demand,” said Mesoemvura.

“Bakeries are still functioning. They have only reduced their levels of production to suit the current levels of demand. If demand increases we expect them to increase production.”

The chairman of the Grain Millers Association of Zimbabwe Tafadzwa Musarara could not be reached for comment.
However, there were indications the milling industry was overstocked with bread flour due to the slump in bread demand.

In the past four years, about 80 bakeries closed shop with the remaining ones, particularly small operators, struggling to keep afloat.
However, big firms such as Lobels and Bakers’ Inn have been able to invest in plant and equipment upgrades.