The Congress of South African Trade Unions (Cosatu) said it was concerned that the substantial revaluation of the rand has not led to an equal drop in the price of maize.
The federation said the South African Futures Exchange (SAFEX) spot price has declined slightly, but remains more than 10% above the import-parity price.
“There is no evidence of any moderation in retail prices for maize meal. Meanwhile, Grain South Africa now expects this year’s maize crop to exceed domestic requirements plus normal regional exports.
“These circumstances prove that, as Cosatu has always argued, the main factor behind soaring food prices is market power through the supply chain, and specially in maize storage and retail. Just three companies own 75% of all silos in the country, and they are actively engaged in maize trading.”
Cosatu added that the situation points to the importance of vigorous and rapid action by the new Food Price Monitoring Committee to define the real reasons behind soaring food prices, especially maize, and urgently initiate measures to end profiteering.
“In this context, Cosatu is concerned that the committee is insufficiently representative in terms of both race and gender and the organisations involved.
Thus, although Cosatu and the National Consumer Forum are represented, the
churches, women’s organisations and other groups whose members are heavily
affected by food price hikes are not.”
The union said it was particularly concerned that the chair of the committee has in recent years worked for the Free Market Foundation. “This ideological standpoint should not be allowed to pre-empt the empirical analysis we expect of the committee.”
“The Food Price Monitoring Committee has a critical role to play in ensuring development and the well-being of all South Africans. Above all, it must provide the basis for government to ensure real food security for the majority of our people. – I-Net-Bridge