The Grain Millers Association of Zimbabwe has issued a press release announcing an increase in prices of mealie-meal and other basic commodities. This will see the price of 10kg roller meal increase from $10.50 to $18.35. That is an almost 100% increase.
To be fair the price increase does not come out of the blue. They have been warning customers about an impending increase for days. These days prices go up in hours without warning a day’s warning is considered ample and fair.
The rationale for the increase
Over the past few weeks, the value of the local RTGS$ has depreciated significantly against major currencies especially against the US dollar. Millers have said that they need foreign currency for part of their operations. Also, our government has increased the producer prices for grain farmers. This has naturally increased the cost of raw materials-grain.
The full press release
GRAIN MILLERS ASSOCIATION OF ZIMBABWE
TO: ALL MEMBERS
Following significant changes in the economy influenced by, inter alia, the change in foreign exchange policy directing millers to use the interbank rate, increase in costs of fuel and pricing of packaging in foreign currency, the GMAZ Costs Review Technical Committee has thoroughly interrogated the costing of our prices and concluded the following prices to obtain with effect from 1 June 2019:
Product Maximum Miller Exit Price in RTGS Max Recommended Retail Price in RTGS 1. 5kg Maize Roller Meal $8.5 $9.60 2. 10kg Maize Roller Meal $16.24 $18.35 3. 20kg Maize Roller Meal $30.77 $34.77 4. 2kg Self-Raising Flour $12.27 $14.72 5. 50kg Bakers Flour $189.70 n/a 6. 2kg Salt $4.25 $4.80 7. 2kg Value White Rice $11.65 $13.98
The agreed margins, as contained in the signed Memorandum of Agreement with Confederation of Zimbabwe Retailers (CZR) have been used to compute the Maximum Recommended Retail Price.