Eat smart, eat simple, fight high prices

A leading economist has urged cash-strapped South Africans to “eat more simply” in answer to the rocketing food prices threatening the pockets of consumers.

The advice from T-Sec Brokerage economist Mike Schussler comes as rising inflation has forced consumers to change their priorities and spending patterns.

“We are seeing a lot of basic food prices jump radically,” said Schussler.

A comparison of basic foodstuffs by the Saturday Dispatch confirms this, with a small basket of general essentials costing R33 more today than a year ago.

Schussler advised consumers to shop around and simplify their diets to stay out of debt.

“Shop around, buy different brands, buy vegetables from greengrocers and stay away from prepared foods which cost more,” Schussler said.

Although poorer families are likely to feel the pinch most, middle class shoppers have also begun making changes to the way they operate their monthly food budgets.

Bulk buys take a knock

Supermarkets have already seen evidence of this shift, with shoppers choosing to spend money on smaller items rather than bulk buys.

Spargs SuperSpar floor manager Dennis Ford said he had noticed a change in customers' buying trends.

Shoppers were still sticking to favourite brands, but were buying smaller quantities . Rather than forking out on a two-litre bottle of oil, for instance, customers were opting for 750ml. And commodities that were once considered staple are now being viewed as luxury items, he said.

“People are starting to use less of commodities like rice, oil, sugar and coffee. Things like coffee are not going to be a household item any more, but rather a luxury,” Ford said.

Store manager for Beacon Bay Fruit & Veg City, Raj Gopar, said he had noticed a slow-down in purchases at the grocery section of the store, where the oil price had increased “tremendously”.

Clothing and shoes the first to go

During the first round of increases just more than a month ago, oil went up by about R5 per two-litre bottle and has now gone up by another R5. Fruit and vegetables recently increased by about 30% and are expected to reach a peak increase of about 45% this year.

Gopar said farmers had already warned of further increases due to a hike in fertilizer prices and distribution costs.

“People will stop buying food last. They will cut out other items like clothing and shoes first.”

East Londoners this week voiced their concerns at the rising food prices.

Lindy Davoren from Vincent said she had been forced to shop around and try different brands and scrutinise prices.

Rising by the week

“It seems like the prices are going up every week. I don't know how people on a tight budget are coming out every week,” Davoren said.

Palesa Matiwane from Dorchester Heights said: “We are not coping with the salaries we are getting. ”

And the economic outlook is unlikely to ease the burden on consumers any time soon.

Schussler said that while it was difficult to say whether prices would continue to increase, this was likely. He said demand for bio-fuels and commodities in places like China, India, Vietnam and even Zimbabwe had squeezed the market.

“There is a whole big shift in food production and that's causing a shift in food prices,” Schussler said.

Source: Daily Dispatch

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