Milling industry failing to service local market

THE milling industry in Zimbabwe has failed to continue servicing the local market due to the continuous shortages of raw materials on the market, players in the industry have said.

Industry captains said there is a lot of distress in the milling industry which was escaping the attention of authorities.

The industry has, in the past few months, been scaling down operations because of ballooning costs of production.

“We are failing to produce enough to meet the demands of the local market. There is high demand on the local market but we are failing to satisfy it. So it is difficult for us to start thinking about any other markets,” said Gibson Ndlovu the Secretary of the Zimbabwe Rural Millers Association.

Ndlovu said millers were failing to secure foreign currency to pay for other expenses and capital expenditure.

This development, said Ndlovu had also affected down stream industries that have been providing services to most milling companies.

He said most millers are now implementing strong cost control measures to keep operations running.

Ndlovu said that the good rainy season that graced Zimbabwe in the 2007/ 2008 agricultural season had offered a good beginning for the turn of fortunes in the milling industry, but all the hope faded mid-season when a long dry spell hit the country.

Most basic foodstuffs have been in short supply in Zimbabwe and the millers blame the shortages on draughts that have rendered farmers unable to supply raw materials to millers.

The shortages have resulted in price hikes on a monthly basis of between 100 percent and 1 000 percent.

The monthly consumer basket for a family of six shot up to $600 billion, a development which has resulted in most families struggling to buy enough food.

Supermarket shelves have also been flooded with imported products.