The Sunday Mail
Africa Moyo —
BLUE Ribbon Foods Limited, which is slowly coming to life after a US$20 million injection from new Tanzanian investors Bakhresa Group, believes bakers need to buy their local flour requirements from local millers as part of a deliberate move to shift from costly imports.
The milling company closed shop in 2012 due to funding constraints and a US$2 million debt owed to PTA Bank. However, on January 5 its Belmont, Bulawayo plant was re-opened.
The plant has the capacity to produce 3 000 tonnes of maize per month. Though the Harare plant can produce 8 000 tonnes per month, output currently stands at 5 000 tonnes per month as the revival begins to gain momentum.
Blue Ribbon’s general manager in charge of operations and marketing Mr Yusuf Kamau said through investing in local millers, bakers would conveniently support investors such as the Bakhresa Group that are in for the long haul.
“We are going to play our part in the economic development of the country. We are not here to take money out of the country, our mission is to be in every country in Africa, and not to export our products to other countries.
“Already we are working with the Zimbabwe Wheat Board which comprises fertiliers, bakers, millers and consumers, and everyone in the food value chain so that we increase output of wheat and flour in the country.
“But we have some bakers who still complain without supporting the country. We need to get over the importation of finished products,” said Mr Kamau.
Mr Kamau said relying on flour imports is tantamount to exporting jobs. He said it was prudent for bakers to support the “Made in Zimbabwe” brand.
Blue Ribbon’s plants in Chinhoyi and Mutare are understood to be “too old” and will only be revived when demand recovers.
There are however plans to install a new plant in the country in the medium to long-term.
So far, Blue Ribbon has re-engaged 300 employees and more might be taken on board when demand for products rises.
Government sought to create demand for local products by introducing Statutory Instrument 64 of 2016, which restricted the import of several products such as cooking oil and building materials that ordinarily can be produced locally.
Government added flour to the list of products removed from the Open General Import licence beginning this year in a move aimed at stabilising the milling industry.
The intervention has helped industry increase production from an average 40 percent to between 80 percent and 100 percent.
However, a biting liquidity crunch coupled by challenges of foreign payments is militating against the planned growth.
Confederation of Zimbabwe Industries (CZI) president Mr Busisa Moyo warned last week that there is an urgent need to address the present challenges.
The milling industry has been under considerable stress since 2007. It is therefore unsurprising that the number of milling companies has shrinked to 37 by the end of 2016 from 368.
Bakers say millers are taking advantage of the import restrictions by unilaterally hiking their product. The price of a 50kg bag of flour is understood to have risen from US$27 to US$33,50.
Last week, National Bakers Association of Zimbabwe president Mr Givemore Mesoemvura said the criticism levelled on bakers was unfair as they are currently buying over 75 percent of their flour requirements locally.
Proton is understood to be getting 100 percent of its flour from Manyame Milling Company, while Baker’s Inn gets most of its requirements from National Foods.
National Foods, which is currently the biggest milling company in the country, is currently selling standard white flour, which is used in bread making, at US$32,50.
The Grain Millers Association of Zimbabwe has dismissed the price hike claims saying what the bakers claim to have been “lower prices” were promotions offered to those that paid within an agreed period.
