Milling company shuts four plants
By Lance Guma
11 October 2005
Zimonline reports that the country’s biggest milling company National Foods has shut down 4 flourmills because of a severe wheat shortage. Bread shortages, which have always been a problem, are now set to worsen. The news follows similar closures by the country’s sole tyre manufacturer, Dunlop Zimbabwe because of foreign currency shortages.
National Foods’ Finance Director, John Pilgrim is reported to have written a letter to the Ministry of Industry and International Trade advising them of the plant closures in Harare and Bulawayo. The decision was made after the last 400 tonnes of wheat had been milled last Saturday with no sign of any further wheat supplies from the Grain Marketing Board.
National Foods, which controls a 70 percent share of the flour market, was the only milling company that until now was still supplying most bakers. The second biggest miller Blue Ribbons Foods stopped milling two weeks ago after running out of wheat. Victoria Foods, which is the third biggest miller, is said to have a few more tonnes of wheat left in stock.
Business reporter for the Zimbabwe Independent, Godfrey Maravanyika says the new resettled farmers have not done very well in growing wheat. There were only a few hectares devoted to growing the crop and hence the shortfalls. He says they have received complaints from some wheat farmers that quelea birds ate their crops. Maravanyika however says the effects are only being felt because not much wheat was grown in the first place.
A disastrous land seizure policy has turned the country from a net exporter of food to one that relies on imports. Most companies are now struggling to survive in an environment where raw materials are difficult to source because of foreign currency shortages. Agro-based industries have struggled with low food production levels. Government officials have been taking turns to urge the new farmers to utilize land properly, an admission that the land reform programme has been a disaster.
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