Latest news with #EssentialFoodPriceMonitoring
Yahoo
08-05-2025
- Business
- 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.
The South African
07-05-2025
- Business
- The South African
6 essential FOOD items that are cheaper than before
Essential food items are under the spotlight following Treasury's about-face on 2025 VAT increases. Finance Minister Enoch Godongwana proposed an increase in VAT but would counter this by adding more essential food items to the VAT-exempt list. Nevertheless, data from the latest Essential Food Price Monitoring (EFPM) report suggests many of these items have seen price improvements anyway. The following essential food items in South Africa have shown price decreases (however modest) … Administered by the Competition Commission, the EFPM tracks a host of essential food items in South Africa. Included sunflower oil, brown bread, eggs, chicken and maize meal: For the review period, there have been lower-than-average retail prices for brown bread. Moreover, the farm-to-producer spread increased from 75% to 77% late in 2024. However, this expansion occurred due to lower wheat prices, but did not translate into commensurate producer prices. As such, the Competition Commission says this may warrant proactive engagement to analyse producers' financial results. The report finds that the gap between farm value and producer prices fell from 27% to 23% in Q4 2024. This was caused by lower producer prices towards the end of last year. Currently, egg producer prices are at their lowest point since 2023. Although prices are still higher than the long-term average. This is attributed to the Avian flu outbreak of late 2023 that severely affected the egg value chain. Since then, while positive, prices have still been slow to recover. Meanwhile, the price gap between producer and retail prices for chicken is still below 38%. This suggests there has not been a significant change in retailers' and producers' pricing behaviour for this essential food item. However, players in the industry have experienced improvements in operations and profitability due to the easing of load-shedding and other factors. There are still to reflect in more than modest retail price improvement. Canned pilchards enjoy a steady trend of declining price spreads for this essential food item. Over the past six months it has dropped from 19% to 17%. Nevertheless, this drop in retail price is offset by producer prices increasing over the review period. As a result, the report praised the restraint shown by producers and retailers in their pricing behaviour to ensure affordability. The essential food item of maize meal has been under immense pressure ever since the midsummer dryness of February 2024. Therefore, the upward pricing trend that began in March 2024 continued for the rest of the year. However, higher maize meal prices have not been fully transmitted to producer and retail prices. As a result, stable average retail prices actually enjoyed a drop from 33% to 26% in Q4 of 2024. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
