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Price Controls and Shortages - Index of articles
Shortages
provides window of opportunity for swindlers
IRIN News
August 10, 2007
http://www.irinnews.org/report.aspx?ReportID=73669
It's early morning
and a small truck with fake number plates draws upto a shopping
centre in St Mary's, a populous suburb in the dormitory town of
Chitungwiza - about 30km from the capital Harare - and within minutes
long queues form after the word spreads that there is beef for sale.
Beef has become a rare
commodity in the country and being sold at a price of Z$100,000
(US$0.40 at the parallel market exchange rate of Z$250,000 for US$1)
a kilogram from the back of the truck, those queuing cannot believe
their luck. When beef was readily available it was sold for as much
as Z$550,000 (US$2.2) a kilogram.
After 30 minutes the
truck has sold its stock and hurriedly disappears, and then it dawns
on the customers that they have been duped and have bought donkey
meat, condsidered unedible by Zimbabweans.
In rural Dema, which
lies on the southern border of Chitungwiza, Chrispen Mutongi, 53,
awoke to discover that his two donkeys had been stolen and alerted
the police, who later found the remains of his animals on a roadside
in the dormitory town.
They had apparently been
killed and skinned the evening before the truck appeared at St Mary's,
making it possible that the meat sold as beef were his donkeys.
"If the thieves
had stolen goats or cattle and sold the meat, it would be understandable
but that they had the guts to sell donkey meat to unsuspecting people
just shows how cruel these people can become in their quest to make
fast money during these difficult days," Mutongi told IRIN.
Mutongi used the donkeys
in tandem with his three cattle, but without them, Mutongi says
he will not have sufficient draught power to adequately till his
land next months when the rains are due and expects bad yields from
his crops this season, which will only add to his households worsening
hunger.
There has been a spate
of livestock thefts in the Dema area and residents have now taken
to keeping their goats and chickens in their homes as a security
precaution, whereas before the livestock would be housed in pens
away from the homesteads.
"Of course, we always
experienced thefts particularly of poultry but the cases have sharply
gone up in the villages in the last month. What we have gathered
is that those who steal the goats and chicken sell them in Chitungwiza
and Harare," said Mutongi, who is urging the police crackdown
on the informal trade of meat products.
Price
controls
It is just one more incident
reflecting the increasing desperation among consumers, after President
Robert Mugabe's ruling ZANU-PF government introduced price controls
six weeks ago in a bid to cap inflation levels that have surged
beyond 4,000 percent, resulting in shop shelves becoming barren.
According to the police
7,660 people have been arrested for overpricing after they failed
to reduce prices by 50 percent since the price controls were introduced
and beef and other livestock products have all but disappeared from
butcheries.
When butcheries were
ordered by price control taskforce inspectors to price their beef
between Z$90,000 (US$0.36) and Z$120,000 (US$0.48) a kilogram, abbattoirs
stopped slaughtering arguing that they would be operating at a loss
since they were still buying beasts at high price. The government
revoked the abbattoirs' licences and brought the parastatal, the
Cold Storage Company (CSC), out of mothballs, and gave them the
sole right to slaughter and distribute meat.
But the CSC is struggling
to meet demands, even though the parastatal increased the price
of a head of cattle from Z$3 million (US$12) to Z$12 million (US$48),
still far short of the Z$40 million (US$160) price that were obtainable
before the price blitz.
"Now is
the time for the government to take stock of Operation Reduce Prices
and revisit the rationale behind it against the negative implications
it has had on consumers," Innocent Makwiramiti, a Harare-based
economist, businessman and past chief executive officer of the Zimbabwe
National Chamber of Commerce (ZNCC) told IRIN.
"That consumers
can become so desperate as to fail to distinguish between donkey
meat and genuine beef reflects their vulnerability in an environment
of extreme scarcity offset by bad policies. It is not only consumers
but livestock owners as well who are affected as unscrupulous people
take advantage of the situation," he said.
"Before the blitz,
the CSC was not functioning and was hurriedly revived at a time
private abattoirs were closed down. It is poorly capitalised and
lacks the necessary infrastructure for a massive rollout of beef.
That means, for as long as there is no change in policy, beef will
remain scarce in this country," said Makwiramiti.
The CSC said recently
it required least Z$700 billion (US$2.8 million) to function properly,
but as yet has only received a first tranche of Z$80 billion (US$320,000)
from the government.
Poachers
and rustlers
At a time when drinking
taverns are experiencing low patronage because of the unavailability
of beer and meat, a butcher, who identified himself only as Nick
to IRIN has managed to maintain a constant supply of meat.
"I did not cause
the current shortage of beef and I will be the last to moralise
about who brings me the stuff and where he or she gets it. I have
managed to strike it with some 'connections' of mine who give me
regular supplies of both game meat and beef.
"Of course, I know
that some of the meat is poached or rustled from farmers and rural
cattle owners and even game parks, but it is the work of the police
to investigate that," Nick told IRIN.
Edward Mbewe, the Parks
and Wildlife Management Authority spokesperson, told the state-run
Herald newspaper recently that the government was "concerned
that the continued demand for meat now with our animals that are
edible roaming our parks, we could be seeing a worse poaching situation."
When meat is sourced,
it has often been transported in unhygienic conditions, but consumers
care little for that or the legality of the meat.
"When you have gone
for a month without tasting beef, hygiene is the last thing that
comes to your mind. There is a sense of victory when you manage
to bring a morsel of meat to the table," John Mangirazi, a
patron of one of Harare's taverns told IRIN.
Nick is not deterred
that if caught selling the meat of stolen animals that he could
face a jail sentence of 30 years under strict anti-rustling legislation.
He sells a kilogramme
of game meat for Z$600,000 (US$2.4), arguing that "the price
monitors cannot touch me since it is not controlled", but even
the beef he sells at Z$450,000 (US$1.8) is above the gazetted price;
although he does not expect to be arrested becasue he has "made
friends" with the price control monitors.
Conservationists believe
about 80 percent of Zimbabwe's wildlife population has been killed
since 2000 when the government embarked on a controversial land
redistribution programme that saw commercial farms owned by whites
redistributed to landless blacks.
There have been reports
of villagers hunting down elephants for food, particularly in areas
close to nature conservancies, but smaller animals such as hares
and kudu are prime targets in rural areas.
Beef has joined the ever
growing list of shortages in Zimbabwe, which includes, fuel, electricty,
potable water and staple foods. The Food and Agriculture Organisation
and the UN World Food Programme (WFP) issued a joint report on Zimbabwe's
food security in June, predicting that "people at risk (from
severe food shortages) will peak at 4.1 million in the first three
months of 2008 - more than a third of Zimbabwe's estimated population
of 11.8 million."
The WFP made an urgent
an US$118 million appeal on Wednesday to raise funds for the millions
of Zimbabweans facing severe food shortages.
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