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Report on the availability and pricing of bread
Consumer Council of Zimbabwe
September 18, 2006

Background information
The baking industry increased the prices of bread on the 15^th of September 2006 from the gazetted retail price of $200 retail price to $330, in contravention of statutory instrument 87A of 2005.

Controlled and monitored products can only be increased when the Ministry of Industry and International Trade in consultation with the producers and manufacturers have agreed on a price.

In the past week the National Bakers Association had been flighting advertisements in the print media publishing information on the input costs that they needed in the production of bread, proposing a new price of $385 being a breakeven price. They also indicated that consultations with the Ministry of Industry and International Trade were in progress.

As part of the mandate of the Consumer Council of Zimbabwe to monitor product quality and prices a survey was conducted in all the five regions CCZ is represented in, to determine the prices charged on bread and its availability.

Objectives

• To identify retail shops that have increased the prices of bread.
• To identify shops that have reverted to the old price following the Government directive not to increase the bread price.
• To get views from consumers how they feel about the new prices.
• To consult bakers on the way forward with regard to the pricing of bread.

Mashonaland/Harare

21 shops were surveyed in Harare, the majority of shops have taken heed of the government directive not to increase the price of bread before it has been agreed on or gazetted. The price of a standard loaf in most outlets remains $200. However the bread has not been constantly available and in some instances such as at some shops at Stordart there were no deliveries made today (18-09) whilst other retail outlets were supplied with low quantities one noteworthy example being Lucky 7 in Mbare which normally gets a supply of 400-500 loaves per day and they were only supplied with 50 loaves today. Of concern was the price of Mitchell’s standard loaf of bread in Mbare where it was still being sold at the illegal price of $330.

Gweru

In all the 10 shops that were surveyed bread was available in normal quantities. In the region only OK, Food Chain and Nyaningwe were selling bread at the gazetted price in the shops surveyed. In the rest of the outlets prices were ranging from $215-$350. 7 out of the 10 shops surveyed have not taken heed of the government directive.

Mutare

A total of seven (7) shops were surveyed in the region and it emerged that out of the 7, three outlets were in breach of the law by selling a standard loaf of bread for prices ranging from $320- $350. The rest of the outlets were selling at the gazetted prices with a few having even lower prices than the gazetted.

Masvingo

A total of 10 shops were surveyed in Masvingo, it emerged that only four (4) shops had adhered to the government directive not to increase prices of bread. With the exception of TM Supermarket, bread was generally available in the region at the prices noted above.

Conclusion
In all the shops surveyed in the country it has been revealed that the majority of shops and outlets in the capital, Harare have taken heed of the government directive not to hike the price of bread without approval. In other areas/regions most shops have increased their prices, thus disregarding the government orders not to change the pricing of bread.

CCZ Recommendations
Having noted the situation on the ground CCZ proffers the following recommendations:

• All retailers and bakeries that had increased the price of a standard loaf to a price above $200 should follow and adhere to the directive given by the Government through the Ministry of Industry and International Trade to maintain the gazetted price of $200.
• Bakeries and suppliers of bread should not take this opportunity to retaliate by stopping or limiting the production of bread. Bread should continue to be supplied at the normal rate and price until such a time an agreement of price is reached.
• It is our hope at CCZ that for the sake of consumers in the country, Government and manufacturers timeously agree on prices for controlled or monitored commodities so that consumers continue to access the commodities for their consumption.

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