Concerns over rising cost of food

Stats SA on Wednesday revealed that the consumer inflation remained unchanged at 2,8% last month, with the annual rate for food increasing from 4 to 4,8 per cent.

The biggest contributors to the rise in prices are meats, specifically beef.

Maize meal and vegetables also saw notable increases.

" This is driven by factors such as the foot-and-mouth disease, as well as higher prices for the feed that is given to cattle. We do also see some increases in the cereal products, so this covers our staple product, and in particular, maize meal and SSP are recording double-digits inflation levels," says Stats SA’s Patrick Kelly.

Meanwhile, economist Wandile Sihlobo says the recent increases are in line with expectations and may be short-lived due to improving local and global supplies, temporary poultry import restrictions and easing grain and oil prices.

"We see now things recovering and if you look at the various fresh flow markets across the country, the supplies are healthy. So, we are not as worried on that.

"I don't think that there are some retailers being greedy on anything because the price increases is really driven by these factors that I have explained, and yes, this involves price increases and beetroot, lettuce, carrot all of those were seasonal heavy rains that have affected that.

Meanwhile, the government is partially lifting its ban on poultry imports from Brazil — starting on Thursday.

The Department of Agriculture says trade can now resume with all Brazilian states, except one, which was hit by a bird flu outbreak last month.

Only products made within 28 days before the outbreak were affected by the ban.

Durban-based Merlog Foods Manager, Georg Southey, has welcomed the move.

"This move balances biosecurity with the urgent need for affordable protein in South Africa. Speed matters when it comes to food security. We now await final agreement on the health certificate wording to resume immediate trade without delay."