Call for retailers to drop prices for essential foods
The South African Federation of Trade Unions has called on retailers to reduce the prices of essential food items.
It's after the release of a Competition Commission report.
The latest Essential Food Price Monitoring Report has revealed that input costs of these items have declined, yet their retail prices remain high.
"Retail prices of maize, brown bread, and tinned fish are on the rise. While farmgate prices for wheat have come down, the producer price of brown bread has increased. Further, the producer price of cooking oil has dropped significantly, but this cost reduction is not reflected in the retail prices," says Saftu’s Mogoshadi Maserumule.
READ: Food retailers prompted to regularly check expiry dates
"The commission further highlighted what it called “the rocket and the feather” that is, prices are quick to go up but slow to come down, which suggests that retailers are exploiting the spread between input costs and retail prices to rake in profit.
"Retailers exploit the spread between input prices and retail prices, which is witnessed in their profit margins. South African retailers have higher profit margins than their international counterparts, which are upwards of 6% to 8% higher."
Find us on social media
Follow the ECR Newswatch WhatsApp channel here
