The latest Essential Food Pricing Monitoring (EFPM) Report, released by the Competition Commission on 27 March 2025, reveals that while some food prices are beginning to decline, the changes remain modest. The Commission stresses the importance of ongoing monitoring to ensure that when input costs decrease, those savings are fairly and promptly passed along the value chain to retailers and ultimately, consumers.
The EFPM report tracks prices across various essential food items, including sunflower oil, brown bread, canned pilchards, eggs, and individually quick frozen (IQF) chicken. A key focus is the spread between producer and retail prices, helping to identify where pricing gaps are expanding or narrowing. This analysis, based on publicly available data, is not aimed at identifying anti-competitive conduct but rather assessing how pricing changes move through the value chain.
Notable Product Trends
Sunflower oil remains under scrutiny, as the producer-to-retail price spread has reached its highest point since 2021. Although price responsiveness has improved, the elevated spread suggests consumers are still not seeing full relief at the till.
Canned pilchards, on the other hand, present a more encouraging picture. The spread between producer and retail prices has been decreasing over the past six months, indicating continued restraint in pricing practices by both producers and retailers.
Egg prices have also shown improvement. Producer prices are now lower than they were in November 2023, suggesting that the egg sector is recovering. This rebound is attributed to a combination of private and public efforts, including enhanced biosecurity protocols, fertilised egg imports, and tariff rebates.
Meanwhile, the average retail price of brown bread has declined, providing some financial relief on a key staple for South African households.
White Maize Market Faces Climatic Challenges
The EFPM report also explores the challenges in the South African white maize market during the 2024/25 maize marketing season. The region experienced significant midsummer dryness in February and March 2024, a crucial time for crop development. This weather disruption led to a surge in demand for South African white maize, both locally and in key export markets.
As a result, white maize prices have risen above import parity levels—a notable shift from the norm during strong harvest seasons when prices typically fall below export parity levels. However, these higher prices have not yet fully reached the producer and retail levels for maize meal. Factors such as price transmission delays, strong opening stock levels, and increased downstream supply are helping buffer consumers for now.
The Importance of Transparency
The Commission’s ongoing monitoring efforts play a critical role in promoting transparency and ensuring fairness in the food value chain. This report highlights not only the impacts of climate and market forces on pricing but also the need for timely information to keep both consumers and regulators informed.