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Oliver Kazunga Senior Business Reporter—
THE Grain Millers’ Association of Zimbabwe (GMAZ) is seeking audience with the Competition and Tariff Commission (CTC) as it intensifies the fight against unfair competition from cheap imported mealie-meal, which it blames for threatening the survival of the local milling industry. GMAZ chairman Tafadzwa Musarara told journalists at a press conference in Bulawayo yesterday that the continued influx of cheap mealie-meal imports was “stealing” more than 55 percent of the local milling industry’s market share.
As a result, he said, the local milling industry was on the brink of collapse.
Musarara also blamed the government for continuing to issue import permits for mealie-meal despite the capacity shown by local millers.
“As grain millers, we’ve resolved to engage the Competition and Tariff Commission (CTC) that we’re facing unfair competition from cheap maize meal imports. Recently, the government issued permits for 200,000 tonnes of maize meal and we feel that this isn’t within the aspirations and principles of the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset), which is based on beneficiation,” he said.
Musarara said players in the local milling industry were a critical economic engine as they produce for both humans and livestock as part of the value chain.
He said if cheap imported mealie-meal continues flooding the market, livestock producers would soon run short of stockfeeds as imports were coming as mealie-meal.
“In 2013, we agreed with the Ministry of Agriculture, Mechanisation and Irrigation Development that for any imports, we should be consulted and if the country is to import maize meal the imports should be there to cover the deficit. The presence of these mealie-meal imports is the worst we’ve ever seen since dollarisation in 2009,” Musarara said.
He said the southern part of the country had 22 milling companies when the country adopted a multicurrency system but more companies in the sector continue to close down due to viability constraints.
“Sadly, we continue to have an influx of cheap imported maize meal, a situation which is threatening milling industries currently operating,” said Musarara.
“Until such a time when the government stops maize meal imports, the producer price of maize by grain millers shall remain at between $140 a tonne and $200 a tonne. We’re going to meet the leaders of farmers’ unions and highlight that by coming up with such a low price it’s not a protest.”
He insisted that local millers had the capacity to meet national requirements.
“We’ve an installed capacity of 200,000 tonnes per month against a national monthly demand of 80,000 tonnes,” Musarara said adding: “We’ve spoken and lobbied the government to stop maize meal import permits which are being issued to individuals to no avail. We also speculate that there’s corruption because the maize meal imports are lending at about 23 cents a kilogramme while our kilogramme is at 44 cents. We also speculate that this is meant to profiteer.”
Agriculture Minister Joseph Made could not be reached for comment.
Online Reporter