Yesterday, the department of agriculture announced a potent eight-member food price monitoring committee aimed at ensuring transparency around retail prices and their relation to actual costs.
The committee is headed by Professor Johan Kirsten from the University of Pretoria and its deputy chairperson is Fikile Mazibuko of the University of Zululand.
Other members include Josephine Hlophe-Nhlapo (Cosatu), Lumkile Mondi (Transnet), Nonia Rampomane (National Consumer Forum) and Professors Johann Potgieter, Sbu Nkomo and Herman van Schalkwyk.
The team’s terms of reference include monitoring the pricing of basic foodstuffs, investigating any sharp or unjustified price increases, determining the competitiveness of production operations, investigating price formation mechanisms within the value chain of basic foodstuffs and recommending required productivity improvements.
It is also expected to investigate collusive, discriminatory or any unfair business practice in the basic food value chain, investigate and make recommendations on market inefficiencies and distortions and investigate incidents of predatory pricing and monopolistic tendencies.
The committee was instituted following Cabinet’s decision to set up a body that would protect the public from predatory food pricing.
Consumer watchdog South African National Consumer Union (SANCU) welcomed the appointment of the team as ‘a very timeous and appropriate measure.’
‘The move will offer consumers information and protection against unfair food pricing and will make it easier for them to opt for cheaper prices,’ said SANCU chairperson Lillibeth Moolman.
She called on manufacturers and retailers to co-operate with the committee. -BuaNews
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