Unlocking the full growth potential over the long run will require policy interventions in agriculture and cross-cutting government departments
Sit up, take notice and get angry that a third of South African households have R120 or less a person a week for food, let alone nutritious food
The July year-on-year increase in the consumer price index for food is 17,8% — the highest rate since January 2003, an agriculture body says.
South Africa has experienced the highest rate of food-price inflation since January 2003, the National Agricultural Marketing Council said in its quarterly food price monitor on Thursday. From April 2007 to April 2008 the increase in the Consumer Food Price, as reported by Stats SA, was 15,7%.
With food price hikes affecting all consumers and particularly the poor, it is crucial to understand the pricing when working out what measures can be taken — and where the Competition Commission fits in. High food prices must be seen in the context of the liberalisation of agricultural markets in the mid-1990s and the expectation that with competition there would be greater efficiency and, ultimately, lower prices for consumers.
A plan to reduce the impact of rising food prices on the poor was tabled during an ordinary meeting of the Cabinet in Pretoria on Wednesday. The proposed short-, medium- and long-term interventions were also aimed at ensuring household and national food security, the Government Communication and Information System said in a statement.
Measures to stem the looming food price crisis in South Africa will be put before the Cabinet next week, the National Agricultural Marketing Council (NAMC) said on Friday. A short-term solution is likely to involve more funds for the government’s social programmes to protect the poorest of the poor from the price hikes, NAMC chief executive Ronald Ramabulana said.
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/ 22 January 2008
Strict action will be taken against those who ”manipulate” the price of bread, the government warned on Tuesday. It was gravely concerned about rising bread prices, which inevitably affected the poor, the Ministry of Agriculture and Land Affairs said in a statement.