The doubling in soyabeans producer’s price to around ZWL$35 000 per tonne fuelled an increase in the price of cooking oil as oil expressers
battled to stay afloat, the sector has said.
Before the increase, soyabeans was being sold for ZWL$17000 per tonne.
This triggered a 35% increase in the price of cooking oil to between ZWL$200 and ZWL$245 per 2 litre bottle from ZWL$170 which was
prevailing last week.
Oil Expressers Association of Zimbabwe (OEAZ) president Busisa Moyo told
Business Times that despite the underlying sectoral challenges like foreign currency shortages, high cost of production and inflationary environment, local factors are critical in the recent spiking of prices.
“The recent movement of the exchange rate has an impact to additives prices which also went up,” Moyo said.
According to OEAZ, cooking oil capacity utilisation has more than doubled to above 20% from 10% last month. Moyo said local soyabeans production was expected to go down by 20% to 40 000 tonnes from 60 000 tonnes last year.
He said this year’s 40 000 tonne output caters for two months for the sector which requires 20 000 tonnes per month. Informal traders are selling cooking at US$3 per 2litre bottle which is cheaper compared to ZWL$230