/ 9 December 1997

SA millers ‘not competitive’

TUESDAY, 10.00AM:

A TRADE and industry department study has shown the local milling and baking induxtry to be uncompetitive by international standards.

The industry study, conducted by a government committee and representatives of the private sector concluded that millers should not bank indefinitely on the 50% imported flour tariff. The study also found that volume-driven “plant” bakers face growing competition from small bakers who are difficult to police to ensure they supply loaves to the government 800g standard. Industrial bakers have been lobbying for some time to have the regulation weight dropped.

The studay was set up five months ago, and examined all levels of the production chain with the intention of improving information sharing and competitiveness while lobbying government in an organised fashion.