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Oliver Kazunga, Senior Business Reporter

DIVERSIFIED food processor, Arenel will this year install a US$6 million wheat milling plant in Bulawayo as it expands and diversifies operations, a senior official has said.

The company has engaged some farmers in Matabeleland to supply the crop under an out-growers’ scheme. Arenel is one of the oldest Bulawayo-headquartered firms and produces sweets, sauces, biscuits and mahewu.

Arenel compliance officer, Mr Stephen Ncube, said the wheat milling plant, which was being imported from China, should be up and running by June this year.

“By June to the close of the year that plant will be running. The investment, which amounts between US$3 million and US$6 million is from our own local funds and also from the borrowings in the market,” he said in an interview.

“We are facing challenges as a country in terms of wheat production so we decided to put up our own plant obviously working with contract farmers on an out-grower scheme.”

Zimbabwe requires between 200 000 and 350 000 tonnes of wheat annually but prevailing challenges are impeding farmers from producing enough. As a result the country has over the years been importing wheat to cover the deficit.

“For the wheat milling plant, we will be getting the wheat from the farmers and milling it on our own into a special flour that we require in producing biscuits. This flour is not only for our own consumption, it’s also flour for the retail market and also for the commercial market. The plant will also be doing pastas like macaroni and spaghetti,” he said.

Mr Ncube said to ensure adequate supplies of wheat to their plant once it becomes operational, they have engaged some farmers to grow the crop under a contract arrangement.

“We have got some farmers that we have also engaged for the out-grower scheme and we are also still engaging with some farmers from Matabeleland region and also throughout the country but the focus is on supporting the local community,” he said.

Meanwhile, Mr Ncube told Industry and Commerce Minister Dr Sekai Nzenza during a briefing before the tour of the company’s factory last week that the export market has managed to anchor Arenel business operations as the local aggregate demand was presently subdued.

The company exports some of its products into the region to countries such as Zambia, Malawi, Democratic Republic of Congo, Botswana and South Africa.

To widen its market share, Arenel is also eying international markets, exporting some of its products to Dubai, United Arab Emirates. — @okazunga