Zimpapers Logo

Charity Ruzvidzo Business Reporter
THE price of bread has gone down to between $0,70 and $0,95 from $1 as bakeries and retail operators embrace the government’s call to cut prices for goods and services to allow economic recovery.

Players in the sector pledged to slash prices by an average 10 percent starting last Friday in line with the Reserve Bank of Zimbabwe advice to re-adjust prices.

Consumers have hailed the move, which has brought a reprieve to them for the first time since adoption of the multiple currency system when price for a standard loaf was pegged at $1.

The situation was compounded by lack of change due to unavailability of smaller denomination.

Last December the Central Bank introduced bond coins in denominations of one, five, 10 and 25 cents valued at par with US cents to address the price distortions.

A snap survey by Business Chronicle in Bulawayo yesterday revealed shops such as OK, TM, Choppies, Pick’n’Pay, and Innscor outlets had reduced the price.

Innscor managing director for southern region Warren Meares said Bakers Inn has reduced its bread prices to $0,95 from $1.

“Bread now costs $0,95 from $1. The price has been reduced for all our Bakers Inn bread nationwide,” he said.

Retailers like OK are now selling Bakers Inn bread at $0,96.

Double Fresh Bakery, managing director Mnothisi Nsingo said their bread was now going for $0,85 per loaf.

“We reduced the prices of bread about two months ago when the government called upon all businesses to cut their prices. Our bread now costs $0,85 from $1,”said Nsingo.

At Pick’n’Pay Hyper, bread now costs $0,80 from $0,90. Choppies is selling its unsliced bread at $0,70 per loaf.

However, Lobels bread, one of the country’s leading bakery is still selling its bread at $1 a loaf.

“The price of our bread is still $1, we’re yet to reduce the price,” said an official from the company’s Bulawayo offices who preferred anonymity.

Meanwhile, the Consumer Council of Zimbabwe regional manager for Matabeleland, Comfort Muchekeza, said the reduction of bread price was a welcome move.

“We’re happy as consumers that the price of bread has been reviewed downwards. We feel this move will push the bakeries’ sales volumes,” said Muchekeza.

“We would like to urge all players in the economy to follow suit. Already fuel prices and mobile tariffs have reduced. Customers must be given value for their money.”

The country’s baking industry is operating at about 60 percent of its installed capacity of 1, 8 million loaves a day.