Rebate system must be exposed - Solidarity

It said that this was probably the culprit responsible for South Africa's high food prices.

Solidarity also emphasised that the investigation must be finalised as quickly as possible in order to relieve the pressure on South African consumers, who were currently suffering the burden of a recession.

It said that following talks with former employees of food producers and supermarket groups, it had identified the rebate system as a problem area in establishing food prices.

Rebates were negotiated on a confidential basis between manufacturers and supermarket groups, and these rebates were paid by the suppliers to the supermarket groups, Solidarity said.

Comprehensive information about the rebates was not released by the producers and supermarket groups, it said.

According to Jaco Kleynhans, spokesperson of Solidarity, the trade union's monthly food price survey, which had been carried out at three of South Africa's largest supermarkets since January this year, had shown that food prices were remaining at high levels and that lower input costs are not passed on to consumers.

Solidarity, which in a recent meeting with the Competition Commission made an urgent plea for an investigation into the activities of supermarket groups, has praised the commission for its decision to go ahead with such an investigation.

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