Rising food, fuel, and electricity prices put further pressure on struggling households

According to the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), the average cost of a household food basket increased by 70% over the past five years. In 2019, an average basket of food for a family cost R3,199. Today that same basket costs R5,433. 

Fuel prices have risen every month over the past four months, and remain volatile due to global conflicts, which impact on a range of goods and services in South Africa, including freight costs and food prices. Nersa’s recent announcement to increase electricity costs by 12,7% will put even further pressure on vulnerable households that are already facing economic hardship. 

Some economists predict that food inflation is likely to shift upwards over the course of the year, depending on seasonality, weather patterns, droughts, floods etc. White maize, a staple food in South Africa, is likely to increase significantly this year, adding increased anxiety to households already grappling with economic pressures.

With less money available to spend, and as wages continue to remain stagnant, households are forced to cut back on nutrition-rich foods, which ultimately impact their long-term health and well-being.

The recent National Food and Nutrition Security Survey (NFNSS), paints an alarming picture: Approximately 63% of South African households experience food insecurity, with 17% facing critical undernourishment. This translates to roughly 20 million people struggling to access adequate nutrition - a critical reminder of the need for urgent collective action.

One solution to keep food prices in check is to reduce food waste and its associated costs. All actors across the food system - farmers, manufacturers, retailers, restaurants etc. will inevitably have unavoidable losses and food surpluses because of several internal and external supply chain dynamics. This equates to more than 10 million tonnes of mostly edible food, costing our economy in excess of R64bn every year. 

These losses, such as dumping costs and the use of third-party waste companies to dump food, are significant drivers of high food prices since supply chain actors have to recoup this cost. This means that consumers are actually paying for this mostly avoidable cost. 

The cost of dumping organic waste has increased significantly in recent years, in order to deter the practice due to environmental impacts such as climate change. Food systems account for an estimated 60% of global methane emissions and food loss and waste-related emissions account for 20% of this amount.

Municipalities are already introducing organic waste to landfill bans. The Western Cape has proposed a 100% organic waste-to-landfill ban by 2027. Other municipalities will likely follow with similar actions as we move towards climate mitigation and adaptation, and improve on the progress of the Sustainable Development Goals (SGD) towards 2030. 

When farmers, manufacturers, and retailers donate their edible food rather than dump it, they not only save millions of rands, which can invariably keep food prices in check, but they also improve their Environmental, Social, and Governance (ESG) reporting scores, which are becoming increasingly necessary to do business into the future. The good quality surplus food is then used to address food insecurity and malnutrition. Everybody wins. 

While high food prices are concerning, the real cost of food goes far beyond what we pay for it, including the social and environmental impacts. As a country, we need more ambitious aspirations towards a food system that is more sustainable, one that delivers healthy food, but not at the cost of our fragile planet, and one that is more responsive to the needs of those suffering from food insecurity and malnutrition.