Commission issues warning as crop losses push grocery prices to troubling highs — here's what to expect
Food prices are still climbing, and according to a report out of South Africa, it's not a temporary blip. Rising food prices are part of a larger trend hitting households across South Africa.
Independent Online (IOL) reported that the Competition Commission's latest Essential Food Price Monitoring report identified several pressure points across the food supply chain: extreme weather, high transportation costs, and ongoing load shedding.
"The reason we started this was because of factors called feathers and rockets," Competition Commission economist Khalirendwe Ranenyeni told Independent Online.
In plain terms, that means food prices tend to rise quickly when costs increase but fall slowly when costs decrease. Take maize, for example. When prices surged by 60%, grocery costs jumped almost immediately. But even after maize prices cooled off months later, those savings weren't passed on to shoppers nearly as fast.
Canned pilchards, frozen chicken, and maize meal are a few examples of everyday staples that are getting more expensive. Some prices are still high due to past events, such as the avian flu that caused egg shortages in late 2023. Others are rising again because harvests are falling short, and South Africa is expected to produce 1 million fewer tons of maize than last year.
A major cause of rising food prices is the climate crisis. Droughts last year dried up key crops, and that ripple effect is still being felt. Changing weather patterns, made worse by our overheating planet, are making food harder to grow — not just in South Africa but around the world.
Climate shocks are driving up rice prices across Asia, according to multiple reports, affecting billions of people. And a World Bank report warned that food insecurity is rising globally, which means lower-income households are being hit the hardest.
It also puts pressure on school meals, nutrition programs, and health outcomes, especially in communities that are already struggling.
Smarter grocery shopping, such as planning ahead, shopping in season, eating better food, and wasting less, can make a huge difference for you and everyone else. And by supporting clean cooking tech and climate-smart farming, you can help build more resilient food systems. Solar-powered stoves in Rwanda and the Digital Heating Room in Germany are two examples that make household energy use more efficient, lowering costs and reducing strain on the planet.
Food prices may be rising, but smarter systems and small everyday choices can help keep groceries more affordable for everyone.
How much does your family spend on groceries each week?
Under $75
Between $75 and $150
Between $150 and $300
Over $300
Click your choice to see results and speak your mind.
Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
19-05-2025
- Business Insider
‘Cartels' in Kenya are largely to blame for expensive food prices in the country
A strange culprit has been identified as one of the root causes of soaring food inflation in the East African country of Kenya. Kenya is experiencing a rise in food inflation, heavily impacting the cost of living in urban centers like Nairobi. Key drivers of increased food prices include market concentration, uncompetitive practices, and the influence of trader cartels. Edible oil costs significantly exceed production expenses, attributed to inefficient supply chains and high markup pricing. Alongside, Tanzania's commercial capital Dar es Salaam, Nairobi is currently experiencing a food inflation that is driving up the cost of living for the average residents in these regions. A report by the Common Market for Eastern and Southern Africa (COMESA) Competition Commission (CCC), showed that both cities currently boast some of the highest maize costs in the broader East African region. For Kenya, a couple food inflation drivers were identified, including what the report described as 'cartels', as well as market concentration. As seen in the Star, the report reveal that due to unreasonably high profit margins imposed by dominant traders and uncompetitive market practices, Kenyan consumers are faced with the growing costs of basic food inputs like cooking oil and fertilizer. 'African agri-food markets are not working. These pricing distortions are undermining farmers and punishing consumers,' the report reads partly. Kenyans spend nearly twice as much for production and inputs before VAT in the edible oils market, according to COMESA, with the disparities being most noticeable in urban regions. As per the findings in the report, there is little competition, little market data, and a large concentration of influence among a small number of powerful companies in Kenya's market for agricultural inputs and outputs. This points to that inadequacies in the systems for distribution, storage, and transportation are contributing causes. It also points out that government subsidy programs aren't doing enough to protect Kenyan consumers from rising food costs. The report shows that fair value estimations are greatly out of line with retail pricing for important commodities. Subsidy measures are essentially futile in Nairobi since food goods are marked up by up to 53% over what the Authority considers fair price. Recent food inflation in Kenya Last month, reports indicated that Kenya's inflation continued to climb, as its annual rate reached 4.1%, the highest level in eight months. The surge was fueled by a scarcity of critical food staples such as maize, potatoes, and green vegetables, crops which were highlighted in the COMESA report. In the face of comparatively modest input and processing expenses, Kenyans have to pay up to $3 per liter for cooking oil, which is more than twice the price estimated by underlying cost structures, the COMESA report revealed, stating, 'Vegetable oil is largely imported as crude oil and refined locally.' Kenya's bureau of statistics (KNBS), in presenting the inflation report noted that Kenya's reliance on rain-fed agriculture implies that irregular weather patterns, along with supply chain interruptions, can quickly result in food shortages and price increases. Another report by the KNBS, revealed that agriculture accounts for a significant portion of Kenya's exports.
Yahoo
14-05-2025
- Yahoo
BLCO Q1 Earnings Call: Misses on Profit, Highlights Product Innovation and Tariff Uncertainty
Eyecare company Bausch + Lomb (NYSE:BLCO) fell short of the market's revenue expectations in Q1 CY2025 as sales rose 3.5% year on year to $1.14 billion. On the other hand, the company's full-year revenue guidance of $5.05 billion at the midpoint came in 1.1% above analysts' estimates. Its non-GAAP loss of $0.07 per share was significantly below analysts' consensus estimates. Is now the time to buy BLCO? Find out in our full research report (it's free). Revenue: $1.14 billion vs analyst estimates of $1.14 billion (3.5% year-on-year growth, 0.7% miss) Adjusted EPS: -$0.07 vs analyst estimates of $0.02 (significant miss) Adjusted EBITDA: $126 million vs analyst estimates of $163.4 million (11.1% margin, 22.9% miss) The company lifted its revenue guidance for the full year to $5.05 billion at the midpoint from $4.98 billion, a 1.5% increase EBITDA guidance for the full year is $875 million at the midpoint, below analyst estimates of $921.9 million Operating Margin: -7.3%, down from 0.5% in the same quarter last year Free Cash Flow was -$135 million compared to -$26 million in the same quarter last year Constant Currency Revenue rose 5.2% year on year (20.2% in the same quarter last year) Market Capitalization: $4.16 billion Bausch + Lomb's first quarter results reflected ongoing growth in core eye care franchises, with management citing strong uptake of daily silicone hydrogel (SiHy) contact lenses and robust performance in its over-the-counter (OTC) dry eye brands. However, leadership acknowledged the quarter was impacted by a voluntary recall of its enVista intraocular lens (IOL) platform and underperformance in high-margin U.S. generics, both of which are being directly addressed. CEO Brent Saunders emphasized the company's ability to maintain steady revenue growth across all business segments, despite these setbacks, and pointed to the swift market return of enVista as a testament to operational resilience. In discussing full-year guidance, management highlighted both opportunities and challenges ahead. The company raised its revenue outlook, buoyed by product momentum and a diversified manufacturing footprint, but noted that ongoing tariff volatility and the lingering effects of the enVista recall would weigh on margins. CFO Sam Eldessouky described the tariff environment as a 'moving target,' with scenario planning and mitigation strategies underway to limit downside risk. The company reiterated its focus on innovation and operational flexibility as key to navigating a complex macroeconomic and regulatory landscape. Management cited operational resilience and product momentum as key themes for the first quarter, while outlining responses to external and internal headwinds that shaped performance. Voluntary enVista IOL Recall: The company initiated a voluntary recall of its enVista intraocular lenses in March due to a safety signal. Management prioritized patient safety and transparency, returning to market within a month by enhancing inspection protocols and vendor standards. They expect a one-time impact from the recall but anticipate rebuilding customer trust and market share in subsequent quarters. Daily SiHy Contact Lens Growth: Daily SiHy contact lenses saw 42% constant currency revenue growth, fueled by strong U.S. demand and plans for product expansion in Japan and other geographies. Management attributed this to manufacturing flexibility and effective direct-to-consumer campaigns. OTC Dry Eye Franchise Expansion: The Blink and Artelac OTC dry eye brands delivered substantial growth, driven by new product launches such as Blink NutriTears and increased eye care professional engagement. A tenfold sales increase for NutriTears followed a targeted advertising campaign, highlighting management's focus on consumer outreach. Tariff Mitigation Strategies: Management detailed immediate and longer-term plans to mitigate the effects of reciprocal tariffs between the U.S. and China. These include inventory management, scenario planning for manufacturing shifts, and selective price adjustments, leveraging the company's global production footprint. Pharmaceutical Segment Mixed Results: The pharmaceutical business faced underperformance in U.S. generics due to increased competition and lower inventory, while branded products like MIEBO and XIIDRA continued to post strong prescription growth. Management stated that further gross-to-net headwinds for XIIDRA were expected, but volume gains would be supported by direct-to-consumer marketing and access initiatives. Management's outlook for the remainder of the year centers on product innovation, operational agility, and ongoing responses to external pressures such as tariffs and inventory dynamics. Pipeline Advancements: Multiple new products are expected to enter clinical trials, including a biomimetic contact lens and a dual-action therapeutic for dry eye disease. Management believes these pipeline assets could enhance standard of care and support mid- to high-single-digit revenue growth over time. Tariff and Supply Chain Flexibility: The company's ability to shift manufacturing across global sites and adjust supply chains will be critical in mitigating tariff-related headwinds. Management noted that scenario planning is ongoing, and rapid implementation of mitigation levers could limit margin impact if trade tensions persist. Rebound in Surgical and Premium IOLs: The return of enVista IOLs, along with the upcoming launch of the LuxLife and LuxSmart platforms in Europe, is expected to drive recovery in the surgical segment. Management indicated that regaining surgeon confidence and rebuilding inventory channels are top priorities for the second half of the year. Patrick Wood (Morgan Stanley): Asked about the customer response and overall market impact from the enVista recall. Management reported that most surgeons plan to resume use quickly, and trust was reinforced by the recall's transparency and speed of market return. Young Li (Jefferies): Inquired about consumer demand trends and whether sentiment or inventory destocking signaled any slowdown. CEO Brent Saunders stated that actual consumption remains resilient, even as some retailer destocking continues, and highlighted essential healthcare demand as a buffer. Joanne Wuensch (Citi): Requested details on contact lens market demand and the development pipeline for next-generation lenses. Management responded that demand is steady globally and described new lenses in late-stage development, emphasizing design for existing manufacturing lines to minimize capital needs. Unidentified Analyst (Wells Fargo): Probed the timing and magnitude of tariff impacts. CFO Sam Eldessouky disclosed that actions taken so far will protect the first half of the year, with most tariff effects expected in the second half if policies remain unchanged. Robbie Marcus (JPMorgan): Asked why tariff impacts were not included in full-year guidance and about debt covenant risks. Management explained the exclusion was due to ongoing policy uncertainty and assured compliance with existing debt agreements regardless of tariff scenarios. In coming quarters, the StockStory team will be watching (1) the pace of enVista IOL adoption and the restoration of market share in surgical implants, (2) execution on pipeline milestones, including clinical trial progress for new contact lens and dry eye therapies, and (3) the effectiveness of tariff mitigation strategies as U.S.-China trade dynamics evolve. Developments in consumer product launches and the ramp-up of new premium IOL platforms in Europe will also serve as important indicators of recovery and long-term growth. Bausch + Lomb currently trades at a forward P/E ratio of 14.8×. Should you load up, cash out, or stay put? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Yahoo
Commission issues warning as crop losses push grocery prices to troubling highs — here's what to expect
Food prices are still climbing, and according to a report out of South Africa, it's not a temporary blip. Rising food prices are part of a larger trend hitting households across South Africa. Independent Online (IOL) reported that the Competition Commission's latest Essential Food Price Monitoring report identified several pressure points across the food supply chain: extreme weather, high transportation costs, and ongoing load shedding. "The reason we started this was because of factors called feathers and rockets," Competition Commission economist Khalirendwe Ranenyeni told Independent Online. In plain terms, that means food prices tend to rise quickly when costs increase but fall slowly when costs decrease. Take maize, for example. When prices surged by 60%, grocery costs jumped almost immediately. But even after maize prices cooled off months later, those savings weren't passed on to shoppers nearly as fast. Canned pilchards, frozen chicken, and maize meal are a few examples of everyday staples that are getting more expensive. Some prices are still high due to past events, such as the avian flu that caused egg shortages in late 2023. Others are rising again because harvests are falling short, and South Africa is expected to produce 1 million fewer tons of maize than last year. A major cause of rising food prices is the climate crisis. Droughts last year dried up key crops, and that ripple effect is still being felt. Changing weather patterns, made worse by our overheating planet, are making food harder to grow — not just in South Africa but around the world. Climate shocks are driving up rice prices across Asia, according to multiple reports, affecting billions of people. And a World Bank report warned that food insecurity is rising globally, which means lower-income households are being hit the hardest. It also puts pressure on school meals, nutrition programs, and health outcomes, especially in communities that are already struggling. Smarter grocery shopping, such as planning ahead, shopping in season, eating better food, and wasting less, can make a huge difference for you and everyone else. And by supporting clean cooking tech and climate-smart farming, you can help build more resilient food systems. Solar-powered stoves in Rwanda and the Digital Heating Room in Germany are two examples that make household energy use more efficient, lowering costs and reducing strain on the planet. Food prices may be rising, but smarter systems and small everyday choices can help keep groceries more affordable for everyone. How much does your family spend on groceries each week? Under $75 Between $75 and $150 Between $150 and $300 Over $300 Click your choice to see results and speak your mind. Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
