DELAYS by South African supermarkets in cutting food prices after a sharp fall in grain and fuel prices are angering labour unions and consumers in the run-up to April general elections in Africa's biggest economy. Prices of staple food maize, wheat and diesel – which is used in farm machinery, milling and transport – have dropped by about 40 percent in South Africa since late last year, but food prices remain high. However firm food food prices are not seen harming the African National Congress in the elections on April 22 as it faces a strong challenge from a new party, COPE, made up of ANC defectors. “I haven't seen any reference to unions blaming the government for food prices...It's not seen as the government or ANC's fault but rather an issue between unions and employers,” said Keith Gotshalk, a political analyst at The University of the Western Cape. The powerful COSATU labour federation, which is allied to the ANC party, has said it is “extremely angry” that food prices are continuing to rise despite lower input costs. “This is no doubt a crime against the poorest sections of the population and these continuing high prices are bound to lead to poor families going hungry,” Patrick Craven, COSATU's spokesman, said. Retailers and food producers insist they are trying to cut prices, but this may take time to trickle down to shoppers. “I think your basics such as (maize meal) will come down soon,” said Andre Hanekom, Managing Director of Pioneer Foods, which makes wheat flour, maize meal, rice and bread. The ANC has said it wants to increase grants to help the poor who cannot afford food, but these may not be enough. “Certainly (food prices) are an issue, but in terms of the ANC's strategies for example... handing out increased grants to poor people doesn't really deal with the fundamental causes,” said Hussein Solomon, a political analyst at the University of Pretoria's centre for international political studies. Solomon said the root problem lay in inadequate support for agriculture in the country. Supermarkets in the continent's largest maize producer and No. 3 wheat grower hiked prices last year after fuel and agricultural commodity costs sky-rocketed on the back of record oil prices, pushing up production and transport costs. But oil prices have fallen more than $100 from a peak of $147 last summer and the unions and consumer groups say that producers and retailers are keeping prices artificially high, and taking advantage of shoppers while pocketing hefty profits. Despite South Africa being a major food producer and exporter on the continent, its poorest people struggle to buy basic foodstuffs in a country with an unemployment rate of about 23 percent. Inflation A million South Africans live on less than a dollar a day and many have been left hungry by food price inflation, which rose to 17.1 percent in December from 16.6 percent in November. A weekly survey on food prices conducted by the Solidarity trade union at leading food stores in the capital Pretoria shows all the large supermarket chains were keeping their prices at last year's highs, and some were even raising them. “It is unacceptable and unethical,” Solidarity spokesman Jaco Kleynhans said. Retailers, who have come under heavy pressure for not passing on lower input costs, claim they are being unfairly targeted for the persistently high food prices. “To assist struggling shoppers, savings brought about by falling fuel prices were rapidly passed on to consumers,” said Whitey Basson, chief executive of Africa's biggest supermarket chain Shoprite Holdings Ltd in the company's financial results statement last Tuesday. Economists say the fall in food prices has also been delayed by the Christmas holidays, a peak business period for retailers. “Food prices generally move up during that (festive) period and then slow a bit in the new year so...prices will come down soon,” agricultural economist Herman van Schalkwyk said. The World Bank said last month the global financial crisis would pose a serious threat to the poor in developing countries in 2009, with the poorest people likely to suffer most as they spend more of their incomes on food.
