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Africa Subsaharan
Zimbabwe running out of wheat
2006-03-05
Zimbabwe has only two weeks of wheat supply left, while citizens are faced with soaring bread prices, Zimbabwe's main milling organisation has said. The cost of bread has risen by 30%, pushing Zimbabwe's inflation rate to more than 600%.

The government is reported to have put its security forces on alert in case the discontent leads to protests. David Govere, deputy chairman of the Millers Association, told AFP news agency the scarcity of wheat has meant a reduction in supplies to bakeries. "Due to depleted stocks, GMB [state-run food distributor Grain Marketing Board] is now giving us 400 tons of wheat a week, down from 600 tons," he is quoted as saying.

Shortages of wheat could force bakers to import flour from South Africa, which could lead to more price rises. A loaf of bread in Zimbabwe currently costs $66,000 Zimbabwean (66 US cents), having risen 30% in just one week.
That's 100,000 Bob-Bucks for a US dollar. Yesterday.
Zimbabwe's opposition Movement for Democratic Change (MDC) says the situation is becoming unbearable. "It's terrible right now because of shortages," Arthur Mutambara, leader of one of two factions of the MDC. "Fuel is not available, commodities are unaffordable, unemployment 80%, inflation above 600%.
It's been that way for a couple years. How much longer are you going to bear the unbearable?
"It's a travesty of justice that the country has been so run down by Robert Mugabe's regime."

Zimbabwe's leading millers - National Foods, Blue Ribbon and Victoria Foods - have shut production at most of their mills because of the wheat shortage, according to AFP.

International aid agencies say about 4.3m out of Zimbabwe's 13m people will require food aid until the next harvest in May. Economists say the rate of inflation could reach 1,000% by April.
Betcha Bob is still well fed.
Posted by:Steve White

#7  So when you run out of wheat cause you ruined all the farms you respond by robbing the mines and yelling to the world that you are out of wheat?

Who cares!
Posted by: 3dc   2006-03-05 22:25  

#6  It's time to beat the plowshs back into swords in Zimbobland.
Posted by: Spoter Unatle4689   2006-03-05 17:30  

#5  It's not as bad as Weimar yet.
Posted by: ed   2006-03-05 11:30  

#4  It's not as Weimar yet. At one point $1 = 1 trillion marks (e.g. bread = 200 billion marks). People being paid hourly and wives rushing from the factory to stores with wheelbarrows of money was not a myth. From noon to 5pm, most of the value was lost and prices would be increased hourly.

BTW, German hyperinflation was kicked off by the illegal French and Belgian occupation of the Ruhr to force reparation payments.
Posted by: ed   2006-03-05 11:28  

#3  From the middle of 1922 until the middle of 1923, prices increased by over 100 times. Measured by the price of food, prices were 135 times higher at the end of the period than they were at the beginning. Measured by how many marks it took to buy a dollar, prices were 222 times higher. Yet even this horrid inflation was mild compared to what happened from July to November of 1923, when prices increased by somewhere between a million and a billion times their previous level.

Those quarterly rates for 3Q23 are somewhere between 125% and 410% per week. So Bob isn't #1 yet, but he's getting there.

Posted by: Nimble Spemble   2006-03-05 10:55  

#2  Bob is amazing - transforming an economy that produced a food surplus to one where people are starving in just a few years.
Posted by: DMFD   2006-03-05 10:32  

#1  Any economists out there who could give us a reasonable comparison to the runaway inflation in postwar Germany? (WW1)

At first glance this sounds very similar.
Posted by: Redneck Jim   2006-03-05 09:42  

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