Bread price to marginally decline this Friday

BREAD prices are set to go down this Friday by up to 15% in an effort to support and promote the adaptation of bond coins in the retail and distribution of bread.

The prices of bread have since 2009 been rounded up to $1 due to shortage of coins in the economy.

Speaking at a press conference National Bakers Association of Zimbabwe president Givemore Mesoemvura said Retailers, Bakers and Grain Millers Association of Zimbabwe met and resolved that retailers should apply a mark-up of 10 percent on bread price while Millers are going to lower their prices of flour.

“We resolved that the rounding up of retail prices of bread to $1.00 is no longer fair and necessary in light of the introduction of bond coins by the Reserve Bank of Zimbabwe. Retailers may apply mark-ups of up to 10 percent on bread prices and the varying prices of bread from different bakers must be allowed to reflect on the shelves by way of different retail prices,” he said.

Mesoemvura added that Millers shall re-look at revising downwards the prices of wheat bread flour to bakers, who in turn shall pass the price drop to the retailers for the benefit of the end consumers.

Grain Millers Association of Zimbabwe President Tafadzwa Musarara said bread would range between 85 cents and 99 cents and the bond coins have brought the divisibility effect in the pricing value chain and it was now feasible to price commodities below the dollar mark.

He said the reduction of prices will result in a 4 cents saving per loaf, and at 4 mln annual loaf production could result in an annual saving of between $9 and $10 mln.

Musarara said had the bond coins been available since dollarisation in 2009, the country could have saved $50 mln in change.

He said bread was the most frequently bought product in the retail chain and they hope by this gesture, retailing of bread will help accelerate the acceptance of bond coins in the market.

Musara said retailers have been purchasing bread at different prices and that should have been reflected in their pricing, but the unavailability of change had made that impossible.

“In this case we are saying those close to bakeries should have lower prices compared to a retailer elsewhere but should maintain a price below a dollar,” he said.

According to the association millers currently have of six months’ supply of flour hence allayed any fears of flour shortages. –FinX