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Food security warning for South Africa

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Data from the Competition Commission’s research unit shows that essential food prices in South Africa are easing, but the country is not out of the woods by a long shot.

The Competition Commission’s economic research unit says that lower food inflation in South Africa is a positive sign for households in the country. However, it warns that food prices are still rising at a rate that may threaten food security.

Local retailers were seen maintaining or bumping up their margins in the last four years, while international retailers have seen their margins thinning. In the egg value chain, retailers, on average, even absorbed some of the pricing pressure from the producer level. Alongside efforts to ration egg purchases, this has insulated consumers from the effects of the avian flu outbreak, the commission said.

 

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