South Africa’s Competition Commission is blaming the country’s retailers for recent chicken price increases.
Retail prices of individually quick frozen (IQF) chicken pieces had increased in June, while producer prices had remained stable, the commission said in its latest Cost of Living Report. The popular IQF packs constitute a large portion of the South African retail market.
“The Commission has previously highlighted concerns with the increasing prices of IQF chicken at the retail level despite stable producer prices and we remain concerned that this trend is recurring again in the more recent months,” it said.
“Individually Quick Frozen (IQF) chicken remains one of the most affordable and widely consumed sources of animal protein in South Africa, making it an essential component of household food expenditure, particularly among lower income consumers.
“Its affordability, convenience and versatility have contributed to strong and sustained demand, positioning IQF chicken as a key substitute for higher-priced meat products during periods of economic pressure.
“Given its prominence in household consumption, movements in IQF chicken prices have important implications for food affordability and consumer welfare,” the commission stated.
While the commission criticised retailers over higher IQF prices, it praised them for keeping egg prices down.
“The higher producer prices from April onwards have not been passed on to end consumers suggesting that retailers have been absorbing these costs,” it said.
