/ 6 March 2007

SA experiences increase in average food prices

Food prices increased by an average of 7,88% between December 2005 and December 2006, the National Agricultural Marketing Council (NAMC) said on Tuesday.

The increase was more than the 3% to 6% inflation target of the South African Reserve Bank.

Food items such as super maize meal increased by 36,16%, frozen chicken by 27,9% and frozen peas by 21,3%.

Products whose prices decreased over the same period were boerewors, with a decrease of 1,21%, full-cream milk by 1,19% and oranges by 16,7%.

Senior researcher at NAMC Simphiwe Ngqangweni said the price increases were mainly due to an increase in commodity prices.

Ngqangweni said there were concerns about the production of maize and other crops for this year because of the recent heat wave and lower than normal rainfall.

He said the low level of soil moisture could also affect the planting of wheat in the northern production region, adding that limited rainfall could impact negatively on the availability of grazing.

Wheat-producing prices this year could be on average R500 higher than that of 2006. This would result in increased maize meal and bread prices for 2007, Ngqangweni said.

Consumers, however, could expect a relief in the high retail prices of fresh meat, he said. — Sapa