Governmental food-price regulation was not the right way to handle the ”potential crisis” around increased food costs, the Milk Producers Organisation said on Tuesday.
Managing director Etienne Terre’Blanche said the problem with regulating prices was that South Africa could not regulate foreign companies’ prices.
”If you regulate prices, the rest of the world is just going to go on,” he said.
”Import prices of maize to feed cows and of fuel would keep going up. Something would go wrong, somewhere down the line.”
Terre’Blanche said the government should invest in a growing agricultural sector to secure national food supplies for the future.
”If any country would totally rely on food imports, it would be in deep, deep trouble,” he said.
Food prices in countries outside South Africa were ”sky-high” and ”soaring”.
”It is unprecedented, they are a lot higher than in South Africa.”
Terre’Blanche said South African farmers were under stress to produce enough food.
Prices of fertilisers had gone up 100% to 150%, those of feed went up 80% and fuel prices had risen 60%, whereas food prices had ”only” risen 40% over the same period.
He said dairy farmers were fighting shrinking profit margins, and, as a result, many had given up farming.
”Producers cannot afford to invest in their farms, but at the same time the government demands 15% growth from the agricultural sector.”
The MPO, the Congress of South African Trade Unions, government, organised agriculture, food processors and retailers held a meeting on Tuesday to discuss the rising food prices. Terre’Blanche said the talks had been constructive and another such meeting was planned for May 21. – Sapa