Businesses in the retail and agriculture industries are concerned about the effect of loadshedding on food security in the country.
Also read: Lower weekend demand brings stages 3 and 4 loadshedding
Gareth Ackerman, chair of Pick n Pay, says the entire food industry is threatened by loadshedding, and that possible food shortages are imminent. He noted during his delivery of the company’s 2023 financial results that Pick n Pay spent R522 million on diesel to run generators for the year ended 26 February 2023 – adding that not all businesses can continue such expenditures. ‘I feel compelled to caution that the entire food industry is under existential threat.’
CEO Pieter Boone says the retailer has started experiencing shortages in the supply of basic essential items such as maize meal, potatoes, and paper (both for printing and toilet paper). A risk for long-life milk has also been noted.
As per Moneyweb, these shortages are not only due to the deterioration of local economic conditions, but also global challenges that affect trade partners.
‘Unfortunately, we already see shortages in food supply in certain categories given that there is a lack of power supply and also certain countries lack [sufficient] water supply,’ says Boone. ‘You’re talking about basic commodity items – that is a severe threat, especially going into the winter period when more power is required from the national grid.’
However, Dawie Maree, head of information and marketing at FNB Agribusiness, says consumers needn’t be concerned about a widespread food shortage. ‘We might find [shortages] in certain products and product ranges – for example, in the broiler industry, where load shedding has an impact on availability because farmers could produce, but due to load shedding the abattoirs couldn’t process the chicken.’
He adds that consumers may see localised availability issues for selected food categories due to the impact of loadshedding on operations and possible logistical obstacles. Meat producers face a higher risk due to their reliance on continued cold-chain processes.
As per the latest Household Affordability Index – compiled by the Pietermaritzburg Economic Justice & Dignity Group – the average cost of a household food basket increased from R5 023.95 in April. This is R57.75 up from March. Compared to last year, the same basket increased by 10.6%.
The cost increase of several basic food items is currently being investigated by the Competition Commission, who believe that consumers have been subjected to ‘unjustified increases’. The organisation launched a probe in March.
Also read:
The World Health Organisation declared an end to the COVID-19 crisis
Picture: Pexels