Food prices still increasing for poor people – food basket survey

Although inflation is slowing down, food prices for poor people are still increasing, with the cost of core staple foods remaining a concern as the prices of these foods remain stubbornly high. Core staple foods ensure that people do not go hungry and consumers must buy them to prepare meals.

According to the Household Affordability Index survey conducted by the Pietermaritzburg Economic Justice and Dignity Group, the women from low-income communities who do the survey where they shop, identified 17 core staples: maize meal, rice, cake flour, white sugar, sugar beans, samp, cooking oil, salt, potatoes, onions, frozen chicken portions, curry powder, stock cubes, soup, tea and brown and white bread.

In August, these foods cost R2 826,37 for a family of four, taking up a large proportion of the money low-income households have available to buy food. Over the past year, the price of these core staple foods increased by R201,44 or 7,7%.

The group says women can allocate the remaining money to other critically important nutritionally rich foods which are essential for health and well-being and strong immune systems after they bought these staple foods.

The nutritionally rich foods include:

• Meat, eggs and dairy which are critical for providing protein, iron and calcium.
• Vegetables and fruit which are critical for vitamins, minerals and fibre.
• Maas, peanut butter and pilchards that contain good fats, protein and calcium essential for children.

The group says the high cost of core staple foods result in a lot of proper nutritious food never reaching the family plate.

“There is very little diversity of foods on our plates in general and we do not get the nutrients our bodies need. This has negative consequences for household health and well-being, child development and the ability to resist illness and particularly maternal health because mothers eat last and sacrifice their own bodies to secure whatever little nutritious foods might still be available for their children.”

Therefore, there can be no talk of improving health and well-being and nutritional outcomes for children, mothers, people with chronic illnesses and the population in general without reducing the cost of the core staple foods, the group says.

“The majority of South Africans have no money to buy these foods. It is in all our interests to ensure that the prices of core foods are kept low.”

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Average cost of household food basket

In August, the average cost of the household food basket increased by R42,40 to R5 124,34 from R5 081,94 in July and R348,75 more than in August last year when it cost R4 775,59. The index tracks data from 47 supermarkets and 32 butcheries in Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba and Springbok.

The prices of rice (5%), butternut (9%), apples (8%) and oranges (8%) increased by more than 5%, while the prices of white sugar (4%), samp (3%), potatoes (2%), frozen chicken portions (3%), stock cubes (2%), tea (3%), wors (3%), spinach (2%), Cremora (3%), bananas (4%), peanut butter (3%) and white bread (4%) increased by more than 2%.

These prices must be considered against the background of workers who earn the national minimum wage of R25,42 an hour and typically supports 4 people. This means R1 118,48 per person, far below the upper-bound poverty line of R1 558 per person per month.

Using Pietermaritzburg-based figures for electricity and transport and the average figure for a minimum nutritional basket of food for a family of four, the group calculates that electricity and transport take up 55,7% of a worker’s wage. They only buy food after paying for transport and electricity, leaving only R1 983 for food and everything else.

The group calculates that workers’ families will underspend on food by a minimum of 43,8%, which makes it impossible to afford enough nutritious food for a family.

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Price of rice is a great concern

The volatility in rice prices is also not good news for low-income consumers. The group says while South Africa imports most of its rice from Thailand (76,5%), with Indian imports making up a much lower 19,1%, the India rice ban is starting to affect rice prices on South African shelves.

In almost half of the supermarkets tracked, rice prices increased. In some supermarkets there was a marginal increase, but in others the price of rice surged. The group says the India rice ban will likely lead to global rice prices increasing.

While maize meal is the most important starch for low-income households, rice is the second.

“Women use maize meal and rice and to a lesser degree samp and ujeqe (steamed bread). This rotation of maize meal and rice is important because it provides some variance in the meal, even if everything else on the plate is the same.”

The group says demand for rice remains constant and when the prices increase, the women still buy rice just as they do with maize meal.

“If the price of rice goes up, even if it goes up a lot, we will still buy it, we are used to it, and we need it,” one of the women said.

Rice cooks quicker than maize meal and is therefore lighter on electricity and takes less time to prepare. When you cook rice you also do not have to watch or stir it all the time and it frees up women’s time to do other things while they cook.

Women tell us that rice is a safer bet when load shedding is unpredictable. If rice is on the boil and the lights go off, it will continue cooking using the residue heat. Maize meal, after two hours with no electricity, is typically unsalvageable and must be thrown away.

The price of rice is important as it is a core staple food for most South African households, as well as an energy food, which staves off hunger while also providing some starch variation.

“Rice prices in supermarkets will need to be carefully monitored, including ensuring that the India rice ban is not used to raise prices higher than what is reasonable or fair. Price gouging must be prevented.”