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DIVERSIFIED group, Innscor Africa Limited, says engagements with stakeholders on the bread pricing model are ongoing in order to come up with a balanced cost that allows for a sustainable supply of products to the market.
This comes on the backdrop of a consumer outcry over recent prices increases, which have seen a loaf of bread being pegged at $350 from $290 in the past two weeks.
Millers have attributed this to the raging Russia-Ukraine war, which has disrupted global commodity supply chains.
In a latest trading update, the firm said in light of the geopolitical tensions, it saw growth across all core manufacturing business units underpinned by strong consumer demand in the informal channels and supported by diversified product portfolios.
Investments in the expansion project in both Bulawayo and Harare production facilities also enhanced volumes.
Driving product volumes and ensuring prices remain competitive including bread prices is key for the firm, and as such it registered a 23 percent growth ahead of the comparative period.
“Volumes within the bakery division continued to recover into the third quarter and from a nine-month cumulative perspective were 23 percent ahead of the comparative period,” said the company.
“Bread pricing remains a critical focus area in light of both local and international inflationary pressures, engagement continues with key stakeholders in ensuring that both consumer and producer pricing is balanced approximately to allow for a sustainable supply of product to the market,” reads part of the trading update.
The group said due to erratic rainfall patterns, which have negatively impacted on prospects for the local agricultural season, importation of maize and soya will be necessary.
The National Foods unit registered aggregate growth of 11 percent ahead of the comparative period.
Maize division volumes continued to track moderately behind the comparative nine-month period owing to a favourable harvest last year and the resultant increase in household retentions.
On the down-packed division, rice and salt demand continued to drive growth with 41 percent volume increase registered.
A strong performance was posted in the Colcom Division with 16 percent growth achieved.
“The processed pork category continues to deliver a strong performance with nine-month growth of 25 percent over the comparative period being recorded whilst improved market uptake in the pie category translated into volume growth of 34 percent over the same period,” it said.
Although current pig production is said to be excellent, more investment would be channelled towards improving facilities and unlocking further growth and production enhancements.
At Irvine cumulative nine-month volumes for the day-old chick and frozen poultry categories closed between 38 and 30 percent respectively ahead of the comparative period.
Table egg production continued to operate at full capacity and volumes remained slightly ahead of the corresponding nine-month period.
According to the update, milk production is a critical wing of the prodiary unit and a significant investment in national raw milk production both within its operations and in support of contract producers.
“Prodiary continued to record excellent volume growth through to the third quarter with aggregate volumes being 34 percent ahead of the comparative nine-month period,” said Innscor.
“The milk category delivered volume growth of 31 percent over the period while momentum within the dairy blend category remained excellent closing 43 percent ahead of the comparative period.”
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