Millers cry foul over cheap imports

MILLERS in the southern region are lobbying for suspension of all mealie-meal import permits citing viability concerns caused by the flooding of cheap imported products on the local market.

The southern region covers Matabeleland, Midlands and Masvingo provinces. Through their southern region office, the millers have written to the Grain Millers Association of Zimbabwe (GMAZ) chairman, Mr Tafadzwa Musarara, pleading with the Government to suspend mealie-meal import permits.

In November 2019, the Government scrapped import permits and licences for grain, maize meal and wheat flour to plug potential food supply gaps and counter the effects of drought experienced in the prior agricultural season.

In a letter dated 12 March 2021, seen by Business Chronicle, GMAZ national vice chairman Mr Masimba Dzomba said: “We appeal that an immediate suspension of all mealie meal imports permits be enforced to allow local millers to supply the market.”

He said as millers in the southern region, they were deeply concerned about the influx of imported mealie-meal on the market.

Mr Dzomba said on account of the cheap imported mealie-meal flooding the market, millers in the southern region were being crowded out as foreign products were sold at unreasonably low prices.

“There is dumping of substandard mealie-meal at low costs and local millers cannot compete with the pricing as they have higher production costs.

“These imports are taking up local shop floor space and crowding out the local mealie-meal,” he said.

Mr Dzomba said if the situation is allowed to persist the local milling industry could be forced to lay-off workers due to subdued productivity.

“The millers are now skeptical about participating in the payment scheme as they don’t have any market due to these imports and cannot get any commitment with their bankers to get funding as long as there are cheap imports on the market,” he said.

Mr Dzomba said it was not guaranteed that they would be able to sell their products at competitive prices.

GMAZ acting general manager Mr Garikai Chaunza said:

“I can confirm receiving this complaint from our southern region membership. It’s in the national interest that imported mealie-meal and maize brands be stopped forthwith and the market is opened for local millers.”

Zimbabwe expects a bumper harvest of between 2,5 million and 2,8 million tonnes of maize and 360 000 tonnes of traditional grains. The country requires about 1,8 million tonnes of grain annually and improved yields are expected to cut on imports. This year’s grain marketing season is expected to begin on the 1st of April.

The Grain Marketing Board (GMB), which has announced that it will be paying farmers within 72 hours of delivery would establish 1 800 mobile buying points countrywide by the end of this month as part of a host of measures to deepen preparations for a record-breaking bumper harvest that will see Zimbabwe achieving a food surplus.

The Government has also increased the maize producer price to $32 000 per tonne from the $21 000 that was paid for last year.

In 2020, GMB received 259 345 tonnes of maize after the season was hampered by drought. In addition to the poor harvest GMB also faced competition from private buyers as the parastatal delayed payments. —-chronice.zw