South Africa’s grain industry body, Grain SA, on Monday slammed the alleged price-fixing of bread, saying it is “a shame that certain large food companies” are allegedly involved.
“If the financial results of these companies are studied and the allegations are true, it is difficult to understand that they cannot compete with one another in a fair and just manner,” said Neels Ferreira, chairperson of Grain SA.
His comments come after the Competition Commission launched a case against food companies Tiger Brands and Pioneer Foods, accusing them of running a bread cartel in the Western Cape.
“When Grain SA applied for a fairer and more reasonable tariff dispensation in terms of imported wheat, one of the accused protested sharply, both officially and in the media, that the proposed tariff would result in an increase in the price of bread, to the detriment of poor consumers,” the body said in a statement.
Ferreira said it is ironic that the same company was allegedly prepared to exploit poor consumers by price-fixing bread for the benefit of its shareholders.
Although the Competition Tribunal still has to confirm the findings of the Competition Commission, Grain South Africa remains concerned that further cases of collusion exist within the wheat value chain due to the concentrated nature of the processing industry.
Ferreira called on all role players in the wheat industry, which makes a significant contribution to the country’s economy and well-being, not to jeopardise the future of the industry. — I-Net Bridge