Bakpro bread no threat to bakers

04 November 2019 | Business

Namib Mills says its new N$120 million bakery is not a threat to small bakers, who distribute their bread to shops across the country.

The company recently launched a new bread brand that retails for as little as N$11, following the commissioning of its new bakery.

Namib Mills' commercial manager Pieter van Niekerk Junior (Jnr) says the market is big enough for all bakers.

“There will always be a market for breads that SMEs bake… buns, cakes, rolls, speciality breads, etc. This along with a model where we give current SME bread suppliers an opportunity to add Bakpro bread to their range of offerings, if they are interested, ensures small and medium enterprises have more products to offer,” he said.

Van Niekerk said Namib Mills has always supported local bakers.

“As with our vetkoek entrepreneur drive, 6 000 vetkoek producers which we know of, and our SME poultry production drive, 730 which we know of, we are always looking how to uplift SMEs, as their entrepreneurial skills is the only way we can grow sectors,” Van Niekerk said.

“There is a lot we can do in sectors where large organisations work with SMEs and create wealth together. We welcome all SME bakeries to contact us for technical assistance; we remain committed to all of our customers and consumers.”

The Namibia Competition Commission (NaCC) said it was not worried.

“The Competition Act prohibits is an abuse of a dominant position. The commission, as the custodian of the Competition Act, is not concerned with the commercial strategies that undertakings, including dominant ones, employ in order to remain competitive. The commission will only intervene in the event that undertakings engage in anti-competitive conduct, in contravention of the Competition Act,” NaCC spokesperson Dina Gowases said.

According to her, there was no evidence to suggest that Namib Mills would automatically put small bakeries out of business with his new bakery.



OGONE TLHAGE

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