PAUL MATTHEW: Competition is the key to lower food prices

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Imports provide sufficient competition to force local chicken producers to keep their prices in check, and they also offer protection against shortages during times of poultry diseases, as is the case every year

President Cyril Ramaphosa noted recently in his weekly letter to the nation how steep food price increases have affected consumers’ quality of life, and that whilerising costs affect everyone, low-income households are feeling this the most. Ramaphosa also said the government is doing everything it can to protect South Africans from unsustainable cost-of-living increases. That is evident in its suspension of the fuel levy for a further two months, to August.

US president Joe Biden announced in May that his government is considering removing tariffs on a host of goods to temper inflation; as part of its effort to combat food price rises Mexico published a decree in May that suspended import duties on poultry, pork and beef until the end of the year.

Chicken is a vital component of the national food basket because it is the most affordable source of protein. But the price has risen every year for the past decade, and according to the Pietermaritzburg Economic Justice & Dignity Group’s May Household Affordability Index, frozen chicken piece prices increased by 16% in May compared with a year ago.

Given the importance of chicken, it is imperative that its rising cost is contained, especially for the 13.8-million people in our country who live below the food poverty line. What is also clear is that government cannot count on the commitments from local poultry producers.

 

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Someone needs to tell that to Tiger Brands and Unilever.

Then what about fuel prices , why is competition not key ? I guess the powerful fuel lobby pays you to push their agenda

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