adminCharity Ruzvidzo Business Reporter
DEMAND for bread this festive season is expected to remain depressed due to an influx of cheap alternatives, an official has said.
National Bakers Association of Zimbabwe (NBAZ) chairperson Givemore Mesoemvura said sales during the festive season were not promising.
“Traditionally bakeries would be receiving orders from December 15 up to Christmas. The situation has changed due to cheap alternatives that have flooded the country. One can buy spaghetti or rice at $1,50 or $1,20 which can last a week or two. On the other hand, bread costs $1 and does not last that long, the better option will be to buy rice,” he said.
Mesoemvura attributed the shift to the prevailing economic situation.
“Our economy is not performing well. As a result the number of people who can afford to buy bread on a daily basis has decreased. So far, sales are down and very depressed,” he said.
Mesoemvura said bakeries had done all the preparations for the festive season.
“We’ve done everything in preparation for the festive season. However, we’re still competing for the few customers we’ve always had. Demand is still 900,000 loaves instead of 1,5 million loaves,” he said.
The association, which has 250 members, is facing challenges to secure $300 million to retool and boost the bakery sector’s capacity utilisation, which at the moment is at 60 percent.
Due to the hyperinflation and economic instability, more than 80 bakeries have closed shop in the past four years.
A manufacturing sector survey report released by the Confederation of Zimbabwe Industries (CZI) indicated that due to a host of challenges prevailing in the economy, capacity utilisation in local industry had further declined to 36,3 percent this year form 39,6 percent in 2013.
Online Reporter