Patricia de Lille’s Independent Democrats (ID) on Friday called for the government to regulate bread prices.
Rising bread prices were hurting the poor and the unemployed the most, according to Rodney Lentit, the ID’s local government liaison officer.
He said: “Bread is a staple food for the majority of the people of South Africa, and we in the ID believe that the time has come for government to ensure the food security of our people by regulating bread prices.”
He added that the ID would be watching the investigation into the fixing of bread prices very closely. “Those companies found guilty of fixing bread prices must be named and shamed,” he said.
Bread prices were deregulated in 1991. This increased the number of participants, but baking, especially of bread, is the most lucrative niche in the food retail industry.
Before deregulation, South Africa’s bread came from 250 plants spread around the country, which received a subsidy, so that no independent bakery — unsubsidised — could afford to break into the market.
Deregulation allowed the independents in and supermarkets soon started in-store bakeries, which added little cost to the overheads. Retail chains, convenience shops, garages and small individual bakeries also started baking their own bread.
The three big companies’ monopoly has since been reduced from 80% to 70% of the industry. — I-Net Bridge