HARARE (Zimbabwe Investor) - Following years of operational constraints in the confectionary industry in Zimbabwe at the height of the country’s economic crisis, the industry is optimistic that it will grow substantially. This comes in the wake of revelations by the Bakers Association of Zimbabwe (BAZ) that players within the industry are at different levels of re-capitalizing their companies.

Chairman of the BAZ Mr Bramwell Bushu revealed that the association was positive of an improvement in business this year, although operational constraints still need to be addressed. “We need to continuously improve bread products against the backdrop of increased demand during the festive season. In terms of the future, the industry needs new lines of credit,” he said.

Companies that fall under the BAZ include Lobels and Bakers Inn among others. The baking industry has reportedly increased production in the past four months although most companies have aging equipment. The industry is reportedly operating at 25% of its capacity.

It may be a case of blind optimism for the BAZ’s as other factors such as last year’s inadequate wheat production; erratic electricity supplies, critical water shortages, and lack of funding play their part.

Production levels for the winter wheat crop, harvested in September 2009, are estimated to be below average, due to high input costs and an inconsistent power supply that affects irrigation systems.

The bakery industry greatly depends on the production and supply of wheat.

Zimbabwe requires 400,000 tonnes of wheat per year and may not be able to supply adequate quantities to the baking industry without sponsors.

Farmers needed between US$1.000 and US$1.500 to produce a hectare of wheat last year, money which was not provided with any sponsors from the government or the bakers.

Zimbabwean farmers only managed to plant less than 10% of the projected goal of 100,000 hectares in 2009, down 60% from 2008. Zimbabwe grows a soft variety of wheat, which on its own is not good enough to make bread so it has to import other varieties.

Investment in the manufacturing sector is not yet at par with the previously anticipated levels.