July 11, 2006
Zimbabwe's beef prices triples due to hyper-inflation
Zimbabwe's consumers were last week hit by another price increase as the economy continued to deteriorate as hyperinflation plagued the country.
The price of beef tripled from about ZWD$500 000 (US$5) to ZWD$1.5million/kg (US$14.8) in one week.
Beef prices had already shot up two months ago from ZWD$300,000 (US$3) to ZWD$500,000 (US$5).
While beef in supermarkets retails at ZWD$1.5million/kg (US$14.8), on the outskirts of the capital it is about ZWD$750 000/kg (US$7.4).
The shrinking of the national herd has resulted in the price of beef getting more expensive and rising demand has also exacerbated the problem. Although the government blames sanctions imposed by western governments and drought, analysts say the fault lies largely on failed agrarian reforms.
Former head of the Grain Marketing Board (GMB), Renson Gasela, said it would take a long time to rebuild the national herd, after it was decimated by drought in the early 90s.
Although a programme had been put in place to revive the herd, it was again dragged down by the land reform programme, Gasela said.
The destructive policies have meant that herds were used to supply the Cold Storage Commission (CSC) for exporting to the EU, reducing the herd from 500,000 head to less than 100,000 head.
Gasela said at its peak both the commercial and communal herd numbered in the millions.