South Africa: Watchdog worried that retailers didn't pass cost cuts for bread on to consumers

Published 2022년 8월 25일

Tridge summary

The Competition Commission has raised concerns that retailers may not have passed on wholesale cost reductions for bread to consumers, as retail prices have risen faster than producer prices. The commission's monitoring report on essential food pricing shows that between January 2022 and June 2022, the retail price of white bread rose by 12%, while the producer price only increased by 10%. Similarly, the retail price of brown bread rose by 13%, compared to a 9% increase in producer prices. The commission also observed that the margin between retail and producer prices has widened, and the margins for white and brown bread have increased significantly since 2019.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Competition Commission is concerned that retailers may not have passed on wholesale cost reductions for bread ((700g loaf)) to consumers in the past. This assumption is based on an analysis of retailers' margin growth done for the Commission's latest monitoring report on essential food pricing, released on Wednesday. White bread The retail and producer prices of white bread were R15.46 and R11.31 respectively in January 2022 - a difference of R4.16. By June 2022, the retail price of a loaf of white bread was R17.41 and the producer price was R12.42, a difference of R4.99. To the commission, this indicates that retail prices of bread have risen faster (12%) than producer prices (10%) over this period. Looking further back, the commission submits that a steep decline in producer prices, which went from R11.71 in August 2019 to R10.08 (16%) in September 2019, was not passed on by retailers to consumers. Brown bread In January this year, the respective retail and producer prices ...
Source: News24

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