LIVINGSTONE MARUFU
The foreign currency auction system has been a boon for oil expresser after they accessed forex to import raw materials and avert perennial cooking oil crisis, an industry association has said.
Oil Expressers Association of Zimbabwe (OEAZ) president Busisa Moyo told Business Times that the forex auction system has averted perennial cooking oil shortages during September and October.
“The industry requires US$30m to procure soyabeans for cooking oil and cattle feed and US$15m for crude oil between now and December to maintain current cooking oil supply as well as averting cooking oil shortages during the festive season.
The forex auction system has helped our members to access forex for procuring raw materials,” Moyo said.
Government has been pulling all stops to secure the raw materials. Last month, the producer price more than doubled to above ZWL$35,000 per metric tonne from ZWL$17,000 per tonne.
This saw the price of cooking rising to ZWL$245 per 2 litre bottle.
According to OEAZ, cooking oil capacity utilisation has risen to above 30% from 20% last month.
Moyo said local soyabeans production went down by 20% to 40, 000 tonnes from 60,000 tonnes last year.
He said this year’s 40 000 tonne output is just a two-month soyabeans requirement for the oil producers.
This implies that cooking oil producers require 20 000 tonnes per month.
Cooking oil prices have stabilised at ZWL$240 per 2litre cooking oil bottle in the past two months.
Confederation of Zimbabwe Retailers president Denford Mutashu said cooking oil was available in shops due to the efficiency of the forex auction market which has resulted in price stability.
Eggs, chicken and pork availability will be negatively affected as these depend on soya meal as the base protein source.
Zimbabwe requires US$3m to cater for the 2m litres of cooking oil required per week.
