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TimesLIVE
a day ago
- Business
- TimesLIVE
Reduce food prices and add food wastage laws, urges anti-hunger movement
With more South African families being forced to cut nutritious food from their plates because of rising costs, advocacy movement United Against Hunger has initiated a nationwide petition campaign to exert pressure on government and retailers to reduce food prices on nutritious best buys. This comes as the latest Household Affordability Index report by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) showed a 3.1% year-on-year increase in core staples such as brown bread, cooking oil, maize meal, tea, potatoes, frozen chicken pieces, white sugar and sugar beans. United Against Hunger, which comprises the Nelson Mandela Children's Fund and the Healthy Living Alliance , is demanding through its petition that retailers drop food prices for '10 best buys' including rice, long-life milk, soya, eggs, tinned fish, dried beans, peanut butter, fortified maize meal, maas and lentils. 'These foods are full of protein and energy. That doesn't mean that other foods are not important. These foods could provide high nutritional value at the lowest cost, especially for families living below the poverty line.' The movement also called on government to implement legislation on food wastage in South Africa, saying companies 'can't just throw away fresh food when people go to bed hungry'. 'We demand more public engagement in the government's draft National Food Security and Nutrition Plan. Over the years, many organisations have built public pressure to increase and top up social grants. But even if we get the significant social grant increases we have been demanding, the cost of living will undermine these victories and keep people in poverty. The R370 [grant] is hardly enough to travel to a job interview or start a small business, let alone buy enough food for the month.' According to the Household Affordability Index, core foods are bought first to ensure families don't go hungry. 'When the prices of core foods increase, there is less money to secure other important nutritionally-rich foods, which are essential for health, wellbeing and strong immune systems. These include meat, eggs and dairy which are critical for protein, iron and calcium; vegetables and fruit, which are critical for vitamins, minerals and fibre; and maas, peanut butter and pilchards, which contain good fats, protein and calcium essential for children,' said Mervyn Abrahams of PMBEJD. The data shows that the core foods contribute 54% of the total cost of the household food basket. 'At an average cost of R2,955.34 in May, these foods are relatively very expensive in relation to the total money available in the household purse to secure food. These foods must be bought regardless of price escalations. 'The high cost of core staple foods results in a lot of proper nutritious food being removed off the family plates. The consequences of high costs on the core foods has a negative impact on overall household health and wellbeing, and child development,' said Abrahams. Overall the latest Household Affordability Index report, which tracks the prices of 44 basic foods from 47 supermarkets and 32 butcheries in Johannesburg, Durban, Cape Town,Pietermaritzburg, Mtubatuba in Northern KZN, and Springbok in the Northern Cape, shows that in May the average cost of the household food basket is R5,466.59 — a 2.6% increase from R5,330 a year ago. Foods that increased by more than 5% include potatoes, onions, tea, carrots, butternut, spinach and peanut butter, while items that increased by 2% or more include samp, frozen chicken portions, fish, wors, cabbage, bananas, apples, margarine and apricot jam. Abrahams said food is bought after transport and electricity have been paid for or money set aside. 'PMBEJD calculated that workers' families will underspend on food by a minimum of 45%. In this scenario there is no possibility of a worker being able to afford enough nutritious food for her family.'
IOL News
2 days ago
- Politics
- IOL News
Urgent petition launched in South Africa to tackle soaring food prices
Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) has been mootoring food prices for many years Image: Armand Hough: Independent Newspapers A nationwide petition has been launched calling on the government and retailers to intervene to bring down rising food prices as South Africans are facing a daily battle to feed their families. The action has been brought by United Against Hunger (UAH), which hopes to collect about 100,000 signatures as part of its campaign to reduce food prices. The organisation stated that many families are no longer able to feed themselves, and children are starving. The petition has also been linked with door-to-door campaigns, with affiliates of the union visiting homes to collect signatures and brief residents on the issues of hunger and malnutrition among children. The petition was launched as part of the World Hunger campaigns. Mark Heywood, the leader of UAH, stated that the petition aims to encourage large retailers making significant profits to respond to the moral needs of their customers or to get the government involved in regulating food prices. "The petition is going slower than we had hoped, but we are beginning to engage communities, going door to door in KwaZulu-Natal. Abahlali BaseMjondolo (the shack dwellers' movement) is visiting homes, collecting signatures, and engaging with communities on issues of malnutrition," he said. The 2024 General Household Survey, which was released last week revealed that nearly 14 million South Africans, equivalent to almost a quarter of all households, faced daily hunger last year. The data showed that 22.2% of households reported inadequate or severely inadequate access to food, with the Northern Cape (34.3%), Eastern Cape (31.3%), Mpumalanga (30.4%), and KwaZulu-Natal (23.9%) the most affected provinces. Children are particularly vulnerable. Malnutrition significantly impairs physical and cognitive development, increasing mortality risks and undermining long-term educational and economic outcomes. Heywood said: 'By the age of five, 29% of children have experienced malnutrition and are stunted as a result of not having sufficient food. We know that there are several causes of hunger, and they are complex, but one of the biggest causes is the prices and profiteering off essential foodstuffs." He added that the organisation believes, based on studies by universities, that if food could be made available to poorer people, malnutrition could be significantly reduced. He said they wrote to the CEO of one of the major food stores, urging the company to reduce prices on essential food items for children developing in the early stages of their lives. He emphasised that big companies in the retail sector can afford to reduce prices and are currently making huge profits. "Everyone has a right to sufficient food; that is a constitutional right. If companies that set high food prices are violating the realisation of those rights, then we say the government must regulate not just the quality of food but also the affordability of food to ensure that people in this country do not go hungry. Hunger is a human rights violation; it is not something that we should subject people to because our country produces a surplus of food," he said. Heywood suggested several interventions that can be undertaken, including: Pass legislation to prevent food waste. Reduce food prices Introduce legislation to prevent food wastage Set up a National Food Security and Nutrition Council and finalise the National Plan on Food Security and Nutrition in consultation with communities. Mervyn Abrahams, director of the Pietermaritzburg Economic Justice and Dignity Group, stated that the calls for food prices to be reviewed are genuine. The group has been assessing food affordability for the past few years. "As we have demonstrated before through our Household Affordability Index, food prices continue to rise both on a monthly and annual basis, making it difficult each and every day for many families, especially those in the low-income bracket, to buy essential food items." He added, "We have been consistent in calling for transparency in the food ecosystem primarily out of concern that big business is driven by the sole desire to make profit. This concern arises from an appreciation that when profits are prioritised above everything else, families find themselves having to make difficult choices and compromises when it comes to buying food because of high prices."
IOL News
28-05-2025
- Business
- IOL News
Rising food prices choke South African households
Food basket. South African families are increasingly burdened by soaring food prices, with many unable to afford basic nutrition as costs continue to rise dramatically. Discover the latest insights from the May 2025 Household Affordability Index and what it means for households across the nation. Image: File image In a stark reflection of the economic pressure faced by South African families, the latest Household Affordability Index for May 2025 revealed an increase in the cost of basic groceries across the country. The report highlighted the ongoing escalation of food prices as well as the widening gap between wages and the rising cost of living, particularly for the poorest households. Compiled monthly by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), the food index showed that in May 2025, the average cost of a household food basket was R5 466,59. This was a month-on-month increase of 0.9% (R46.29) and a yearly increase of 2.6% (R136.29). Price movements signal ongoing struggles Of the 44 foods examined, 33 items saw price hikes in May 2025, with several staples experiencing increases of 5% or more. Potatoes, onions, and chicken feet exemplify the troubling trend; the cost of onions alone soared by an alarming 23%. Other notable increases included: Carrots - 8% Spinach - 5% Peanut butter - 5% Conversely, some relief was noted as 11 food items recorded price drops. Rice, tomatoes, and oranges saw significant reductions, with oranges falling by as much as 23%, although these decreases are overshadowed by the overall trend of rising costs. Nutrition under threat The index further showed that the average cost to feed a child a basic nutritious diet rose to R979.66. "With the Child Support Grant of R560 being 30% below the Food Poverty Line, many families are left struggling to provide adequate nutrition, forcing some to choose between essential food and hygiene products," the PMBEJD stated. Statistics South Africa's Consumer Price Index indicated food inflation is at 3.3%, with lower-income quintiles experiencing even higher rates of inflation, suggesting that the poorest households are unfairly burdened by rising costs. Often, essential expenses such as electricity and transport consume over half a worker's net wage, leaving limited funds for food. "The increased cost of living and stagnant wages indicate a looming crisis for many South African families. With essential food items becoming increasingly unaffordable, urgent action is needed to address these disparities and ensure that all citizens can afford basic nutrition and live with dignity. Policymakers must consider these findings, as the implications of inaction could be profound, affecting health, wellbeing, and societal stability," the PMBEJD said. The situation is further complicated by the geographical disparities in food prices. While Johannesburg's basket increased by R51,00, Cape Town recorded the most significant rise at R112,62. In contrast, Springbok residents witnessed the only decrease, highlighting the uneven burden of inflation spread across the country. Workers While the unemployment rate in the country sits at 32.9%, even those who are employed are struggling. The National Minimum Wage (NMW) is R28.79 per hour, R230.32 for an 8-hour day, R4,836.72 for a 21-day month. The NMW translates to R1 209.18 per person for a family of four, below the upper-bound poverty line of R1 634 per person monthly. The NMW in South Africa is failing to keep pace with living costs, leaving workers struggling to support their families, especially in black households where one wage often supports four individuals. The food index stated that electricity and transport together consume 56.3% of a worker's wage. The index further showed that families will underspend on food by 45%, with only R2,113.75 left after essential bills. The amount remaining for food provides R528.44 per person, below the food poverty line of R796. "The financial strain on workers underscores systemic issues within wage policies and cost of living adjustments, highlighting the urgent need for reforms to ensure that workers can afford basic necessities," the group said. BUSINESS REPORT Visit:
Zawya
21-05-2025
- Business
- Zawya
Retail discounters and e-commerce dominate the growth of South Africa's retail sector
New data from Trade Intelligence reveals key shifts in South Africa's FMCG retail landscape, with discounter and e-commerce formats outperforming other channels in 2024. Despite easing inflation, South African shoppers remain under economic pressure, leading to changing missions, increased cross-channel behaviour, and format diversification among major retailers. According to Trade Intelligence's latest modelling, outlined in its newly released SA FMCG Market Size and Channel Report, total FMCG retail sales grew +6.9% in 2024, with performance supported by footprint expansion in the corporate retail sector and a strong final quarter, buoyed by interest rate cuts and early withdrawals under the country's two-pot retirement system. 'Retailers are pursuing growth by diversifying format strategies and moving into new spaces,' says Carey Leighton, economist at Trade Intelligence. 'We're seeing a continued push into the discounter and e-commerce channels, all in an effort to meet shoppers where they are.' Shopper strain persists despite lower inflation While the official food inflation rate dropped to +4.5% in 2024 — down from +10.8% in 2023 — household pressure remains high. Data from the Pietermaritzburg Economic Justice & Dignity Group (PMBEJD) show that the cost of a basic food basket has risen +26% since 2021, leaving many South Africans with less disposable income and prompting shifts in how and where they shop. Retailers and suppliers are responding by intensifying promotions, refining pack sizes, and rethinking pricing architecture across channels. Format evolution: focus on discounters and e-commerce Discounters (i.e., players such as Boxer, Usave, and SaveMor) recorded high year-on-year growth at +13.9%. While still relatively small in total market share, discount formats are gaining momentum across income groups, led by aggressive expansion. At the same time, FMCG e-commerce remains the fastest-growing channel, albeit off a small base. Trade Intelligence estimates online FMCG growth at +40% year-on-year, driven largely by the expansion of on-demand platforms like Checkers Sixty60, PnP asap!, Spar2U and Woolies Dash. Supermarkets hold dominance, but pressure is mounting Supermarkets continue to be the largest channel in South African FMCG, with over half of spend flowing through this format. However, growth within the supermarket channel is uneven. According to Trade Intelligence's data, premium supermarkets outperformed value supermarkets in 2024, reflecting the pressure felt by value-seeking shoppers who are also shopping at Discounters and Informal Retail (spaza shops, etc.). Informal retail still holds ground Despite rapid corporate expansion, the informal retail sector remains a significant player in South Africa's FMCG environment. Trade Intelligence reports +5.2% growth in the informal space in 2024, with proximity and convenience continuing to drive shopper loyalty. Spaza shops and township outlets have retained relevance, particularly for small, frequent shopping missions and cash-based shoppers. However, the sector faces rising regulatory and infrastructure challenges, as well as increasing competition from the corporates, which may affect growth in the medium term. Implications for retail strategy The picture is one of increasing channel blurring, with formats evolving rapidly in response to both shopper needs and retailer ambitions. Format strategy, route-to-market planning and shopper engagement tactics are being reevaluated across the board. These dynamics are unpacked in greater depth in Trade Intelligence's newly released SA FMCG Market Size and Channel Report, which provides sector, channel and sub-channel sizing as well as future forecasts. 'South Africa's FMCG market, sectors, channels, and sub-channels are as complex and dynamic as the shoppers in them,' says Leighton. 'Understanding is vital for building retail channel and format strategies.' All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
IOL News
07-05-2025
- Business
- IOL News
Soaring food costs squeeze South Africans
The Pietermaritzburg Economic Justice and Dignity (PMBEJD) in its April 2025 Household Affordability Index showed that the price of a basic food basket increased by almost R100 month on month. WHILE the slight drop in fuel prices on Wednesday at midnight offered much-needed relief, many South Africans are still grappling with the still surging cost of living. The price of both 95 and 93 unleaded has fallen by 22 cents per litre. Diesel (0.05% sulphur) dropped by 42 cents a litre, and diesel (0.005% sulphur) has come down by 41 cents per litre. However, for households already struggling with strained finances, the minor reduction was a drop hardly mitigated for rising food and utility costs. According to the April 2025 Household Affordability Index, compiled by the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), the average cost of the "Household Food Basket" increased by R90.94 (1.7%), from R5 329.36 in March to R5 420.30 in April. This spike in food prices continued to hurt the poor the most, all of which were spin offs from a sluggish economy and political instability. In Durban, the Rise With Us Foundation, which provides weekly meals to the homeless, said it was battling to cope with the rising cost of food. Wendy Maharaj, a representative from the foundation, said this hampered their operations. 'As things stand, we are struggling to provide food for the people who have no one to depend on but us. The cost of living not only affects us, but it also affects all South Africans. Our operations are funded by member contributions and occasional donations, but we've had to fork out over R8,000 recently just to keep going.' Maharaj called on the government to regulate private retailers, warning that unchecked price increases could spiral out of control. 'If they continue to adjust prices as they wish, that will become a big problem to contain in the future. It is already a challenge.' The foundation distributed food to various hotspots in Durban, including the vicinity of the Durban City Hall, where eThekwini Mayor Cyril Xaba and his executive were based. Although the fuel price cut was a welcome development, it comes amid increasing frustration over high electricity and water rates in municipalities like eThekwini. Ish Prahladh, chairperson of the eThekwini Ratepayers and Residents Association (ERRA), said the petrol price decrease does little to ease the broader burden on residents. 'We pay high municipal rates, yet we don't have a consistent water supply. The decrease in petrol prices does not fix the broken systems we have to deal with daily,' said Prahladh. He added: 'It's hard for people to survive in these conditions, especially when the cost of living keeps climbing.' South Africa's high unemployment rate, especially among young people, further worsened the situation. The ongoing debate around minimum wage has also reignited, as more families struggled to make ends meet. Economist Dr. Ntokozo Nzimande from the University of Johannesburg said that while the fuel drop was a step in the right direction, its broader economic impact depends on whether it translates into reduced costs for essential goods. 'In theory, a drop in fuel prices should reduce the cost of transportation and food. 'It also presents an opportunity for the South African Reserve Bank to consider more aggressive interest rate cuts to support economic recovery. But global uncertainties continue to pose inflationary risks, so our focus must be on stimulating growth.' Mervyn Abrahams, programme coordinator at PMBEJD, said while the average food basket now stood at R5 420.30, year-on-year it has increased by R83.99 (1.6%). 'Out of the 44 foods we tracked in the basket, 24 increased in price in April while 20 decreased,' he said. Key food items saw significant price hikes: tomatoes jumped 26%, carrots 20%, onions 11%, and oranges 18%. Other staples such as potatoes, spinach, cabbage, and beef also rose between 6% and 7%. Even essentials like maize meal, full cream milk, and brown bread registered increases of 2% or more," he said. Regional data painted a bleak picture. Durban's food basket cost increased by R157.64 (3%) month-on-month, and by R168.23 (3.2%) year-on-year, reaching R5 425.23 in April. In Johannesburg, the basket rose by R77.58 (1.4%) from March, although it fell slightly year-on-year. Evashnee Naidu, KwaZulu-Natal regional manager for Black Sash, told Business Report that while the lack of a VAT increase in 2025 was positive, it did little to offset the rising cost of food. 'South Africa continues to see food prices increase. We at Black Sash renew our call for permanent Basic Income Support to help vulnerable individuals and families,' she said. WhatsApp your views on this story at 071 485 7995 DAILY NEWS
