Hike in Food Prices by Mmakgantse Mmereki

Hike in Food Prices – What About the Poor?

Opinion Article by Mmakgantse Mmereki

*This Photo* *by Unknown Author is licensed under* *CC BY-NC-ND*

The latest Essential Food Price Monitoring (EFPM) report from the Competition Commission presents a measured yet alarming picture of our food and affordability crisis in South Africa. As the nation grapples with persistent unemployment and poverty, understanding the implications of these findings is crucial, particularly for the most vulnerable segments of society, the unemployed individuals and low-income citizens. The report notes that prices for items like canned pilchards, brown bread and eggs have shown signs of easing. For example, the producer-to-retail spread for canned pilchard dropped from 19% to 17% (see Figure 1), and the retail price of brown bread slightly declined.

Figure 1: Producer-to-retail spread of canned pilchards

While recent months have shown some easing of cost pressures due to factors like less electricity load-shedding and lower fuel prices, the reality remains unattractive for the unemployed and low-income households (South African Reserve Bank, 2024; South African Reserve Bank, 2025).

The EFPM report confirms that essential food prices are still high and rising at an unaffordable rate for many South Africans who are already struggling to make ends meet. Moreover, findings indicate that basic items such as bread, maize meal and cooking oil have become increasingly unaffordable. This situation not only affects the citizens’ immediate nutritional needs but also has long-term consequences on health and well-being.

Unemployed individuals and low-income families, whose incomes are fixed or non-existent, often allocate a significant portion of their limited budget to food. When prices increase, they face the harsh reality of having to choose between food, nutrition, hygiene and daily survival. The child support grants, for example, fall drastically short of covering enough food baskets. According to Stats SA (2025), low-income households spend more than 50% of their income on food and non-alcoholic beverages compared to the 10% of the high-income households. When food prices rise, the poor suffer the most.

What Needs to Change?

The report underscores the urgent need for integrated policy responses ranging from improved market competition enforcement, better supply chain resilience measures, targeted social grants adjustments, to tackling structural vulnerabilities such as transport inefficiencies and market concentration. Transparency in price formation and timely cost pass-through to consumers also remain key priorities.

Without decisive, empathetic intervention, the rising tide of essential food prices will continue to erode the dignity and well-being of South Africa’s most vulnerable citizens, undermining social harmony and stability

Policy Implications and Recommendations

In light of the findings from the Essential Food Price Monitoring Report, it is important for policymakers to take action. Here are a few recommendations

Strengthening Price Monitoring: The Competition Commission should enhance its efforts to monitor food prices closely and hold suppliers accountable for unjustified price increases.
Collaboration: Foster collaboration between the government, the private sector and the community to develop integrated food affordability strategies. For example, FoodForward SA (2025) runs a FoodBanking model that partners with farmers, manufacturers and retailers to recover surplus edible food and redistribute it to registered beneficiary organisations nationwide. This reduces food waste and improves access to nutritious food for vulnerable populations at scale.
Community Engagement: Encouraging community-led initiatives to promote local food production can help reduce reliance on expensive commercial food sources. Urban gardens and cooperative farming models could provide cost-effective alternatives.
Consumer Protection and Subsidies: Proposals for implementing price caps or subsidies on staple foods during periods of acute price spikes to protect low-income consumers from the worst inflation impacts.
Waste Reduction and Climate Impact Mitigation: Integrated food affordability strategies also focus on minimising food loss and waste to reduce environmental impact and improve food systems efficiency, such as legislation like a food donation Bill to compel surplus food donation.
Support for Employment Initiatives: Investing in job creation skills development programs will be crucial in addressing the root causes of unemployment. Empowering individuals with the skills needed for available jobs can reduce dependence on food assistance

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