Slice of relief: Bread prices saved from rising in South Africa

South Africans will breathe a sigh of relief following an intervention by the Department of Agriculture to stop the price of bread from going up.

This is after the department last week revoked the designation of Leaf Services, which, since 2016, has been responsible for carrying out inspections of grain, grain products, and bread sold in the country.

Inspections

Since 2016, Grain SA has actively opposed the implementation of Leaf Services’ custodianship over the grain grading system, citing excessive costs to producers, estimated at tens of millions of rands annually, without sufficient consultation or methodological justification.

Formal objections were submitted, legal advice was pursued, and a direct appeal was made to the ministry in 2024 to revoke the appointment of Leaf Services.

“Had the proposed R4-per-ton fee by Leaf Services been implemented in 2016 as intended, it would have cost our members more than R600 million to date. Seen differently, this revocation represents a R600 million saving for grain producers,” Grain SA said.

“Grain SA believes that going forward, stronger, principled partnerships between government, industry, and the private sector are essential to building a regulatory framework that protects public interest while fostering productivity, sustainability, and prosperity – both in rural and urban communities”.

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Cost of grain

In revoking its designation, Agriculture Minister John Steenhuisen, cited many of the same reasons echoed by the industry.

The department said that the fees charged by Leaf would have added tens of millions of rands to the cost of grain and oilseeds.

“Considering the importance of the need to ensure that products, which amongst others form stable diet of South Africans, are compliant with mandatory regulations, the Department of Agriculture’s Inspection Unit will take over the mandate of inspection of grain and grain products whilst a potent Private-Public Partnership inspection model as provided for in the Act is explored”

Bread

The DA said it has noted that national retailers have confirmed that Steenhuisen’s actions will stop a price hike on loaves of bread.

“The contract that the DA leader has terminated would have allowed a service provider to charge retailers for an unnecessary testing service. And retailers would have had to pass this extra charge on to South Africans buying their bread”.

The DA said it is engaged in fighting against the rising cost of living, “in every way that we can, to lower prices for all people in South Africa”.

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