Food prices not dropping - Solidarity

Food prices not dropping - Solidarity

Research released today, Monday 24 August 2009, by trade union Solidarity revealed that South Africa's three largest supermarket groups, Spar, Pick n Pay and Shoprite/Checkers had not dropped their food prices in the past three months.

Solidarity said it had conducted a monthly survey of food prices at the three supermarket groups since January.

The union's research revealed that food prices had increased every month from January to May, however there was a slight decrease in the cost of some products in June, but that most of those products' prices had increased again in July, and that prices had remained at "record-high levels in August".

"Following the 16.8% food price increase last year, we still saw increases at the beginning of 2009, despite the drop in input costs experienced in the fourth quarter of 2008. Food prices should have dropped earlier this year, but supermarket groups and food producers are currently abusing lower input costs to increase their profits," said Solidarity spokesperson, Jaco Kleynhans.

Solidarity's research revealed that Checkers was "slightly ahead" of Pick n Pay and Spar in terms of competitiveness. "If we leave out all the products in our basket that are on special or are not available, our basket currently costs R175.73 at Checkers. At Pick n Pay our basket costs R181.43 and at Spar R197.22.

"Our basket focuses on basic foodstuffs such as bread, milk, margarine and rice, and does not attempt to monitor the prices of luxury items. The reality is that most South Africans buy these basic foodstuffs and they are currently paying record-high prices for these products. The consumer will have to protest more effectively against this," Kleynhans said.

Solidarity said it was in the midst of planning a campaign to put pressure on food producers and supermarket groups to pass on lower input costs in the production of food to consumers.

The trade union added that it had asked the Competition Commission to probe supermarket groups' rebate systems as part of their investigation into food prices.

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