Zimpapers Logo

Bianca Mlilo, Business Reporter
KWEKWE-based dairy processing firm Dendairy has cut the price of its 500ml fresh milk by 19 cents to 50 cents while Lobels bread has also joined other bakeries with its loaf now pegged at $0, 90 from $1.

Several companies mainly in the food processing sector have steadily reduced prices for their goods riding on increased volumes and competition.

A snap survey by Business Chronicle yesterday revealed that supermarkets in Bulawayo’s central business district sold a pint of Dendairy milk at 50c from 69c while a litre of the same brand ranged between $1,25 to $1,40.

Lobels had been resisting to cut its price since last year when most bakeries slashed their bread price to below $1. The move was sparked by the introduction of bond coins by the Reserve Bank of Zimbabwe, which enabled consumers and shops to get change.

While official comment could not be obtained from the two companies yesterday, the Consumer Council of Zimbabwe (CCZ) has also acknowledged in its monthly review that prices for most basic commodities have been going down.

CCZ noted that the cost of living as measured by the low income urban earner monthly basket for a family of six dropped from the end of January 2016 figure of $557 to $554 by end February 2016.

“As CCZ we assume that the above price decreases are necessitated by the reduction of fuel costs as more commodities are imported from outside the country.

“The total cost of the food basket and the price of each commodity are arrived at by averaging prices gathered from retail outlets throughout the country. The basket is a fairly accurate depiction of the cost of living in urban Zimbabwe,” said the consumer watchdog.

In March 2015, bakers, in line with submissions from the government and the Reserve Bank of Zimbabwe, readjusted the wholesale bread price from $1 per loaf to between 90c and 95c after the introduction of bond coins.

Lobels Bread, however, did not comply which saw some of its customers switching to cheaper products from rival bakeries.