The Sunday News

Milling industry records boom in business

Ngonidzashe Chiutsi Business Correspondent
CAPACITY utilisation for milling companies in the Matabeleland region has gone up by 100 percent following the ban of imported mealie-meal early this year, an official has said. Government suspended mealie-meal and maize imports as part of efforts to empower local millers and farmers.

Late last year local milling companies were operating at around 40 percent capacity due to a plethora of challenges chief among them stiff competition from imported mealie-meal.

In an interview with Sunday News last week Grain Millers of Zimbabwe (GMAZ) Southern Region chairman, Mr Thembinkosi Ndlovu, said the milling industries in the region were now operating at above 90 percent after the Government moved in to address their operational challenges.

“Capacity utilisation has gone up due to the availability of maize. Our millers are now operating between 90 and 100 percent and are now able to adequately supply the local market,” said Mr Ndlovu.

The official said most of the millers in Matabeleland that had shut down had resumed operation.

“A lot of millers have opened in the past month because there is now a market from the local shops,” he said.

He, however, expressed concern that there were still a few unscrupulous shops that were selling imported mealie-meal from South Africa and Botswana.

“There are some retail shops like in Gwanda that are importing mealie-meal called Blue Bag mealie-meal, from South Afrca and selling it at US$5,50 per 10 kilogrammes. Locally we are selling super refined at US$6.60 per 10 kg and roller meal at US$6,40. We want this to be investigated because the price is unfair and is killing the local companies,” said Mr Ndlovu.

“We want to know how these shops get that mealie-meal when we know that imported mealie-meal has been banned. Who is getting the permits when everyone is not having that permit? We need that to be investigated because this might be happening outside the attention of the authorities,” said Mr Ndlovu.

He said local millers now had the capacity to supply the local market.

“All the millers have the capacity to supply the whole of Matabeleland and we don’t need the imports now,” he added.

Mr Ndlovu said local millers were eager to buy local maize to support local farmers.

“The milling industry is eager to boost capacity of local famers through offering correct value for their produce. We need to support our local farmers so that they can continue producing more,” he said.

A snap survey by this paper last week in Bulawayo central business district revealed that most big retail shops such as TM and OK supermarkets were selling locally produced mealie-meal.

“We have 100 percent in stock of locally produced mealie-meal. Local producers have been able to supply us with the product in the right quantities,” said an OK supermarket manager on condition of anonymity.

Last year more than 30 milling companies in Matabeleland region closed down due to stiff competition brought by cheap imported mealie-meal and acute shortage of grains such as maize.

The country has been importing the maize from Zambia to cover the food deficit after the country had poor harvests due to low rainfall.

The country requires 1,8 million tonnes of maize for human and livestock consumption annually.

Although the crop assessment is reportedly still under way, indications were pointing towards a bumper harvest after great improvements in Midlands, Manicaland, Matabeleland South and Matabeleland North.