By A Correspondent- Grain millers in Zimbabwe have warned that there might be a bread price hike due to a decline in global wheat supply after major producer countries were hit by drought.
The Grain Millers Association of Zimbabwe revealed that only 20 percent of local wheat is mixed with imported wheat to produce bread.
Bread is between US$0.90 and US$0.95 a loaf.
Speaking to ZTN, GMAZ chairman, Mr Tafadzwa Musarara said because of the decline in supply of wheat globally, importing it will be expensive.
“There is a world decline on wheat supplies which has caused prices to go up. So, it does not necessarily mean a shortage, but the cost of importing has gone up. Here we are talking about imported wheat. So, there are many cases where the wheat is going up and the bread price is not going up,” said Mr Musarara.
According to Bloomberg, crop losses in two of the world’s biggest wheat exporters have pushed prices to multi-year highs, adding to worries about food price inflation for millions of the world’s most vulnerable.
Drought and heat continued to fry Canada’s wheat in July, months after a brutal winter hit the Russian crop.