SOUTH AFRICA - THE PRICE OF BREAD IS EXPECTED TO INCREASE SOON

It is expected the wheat import tariff will go up by 30% soon and consumers are unhappy about the possibility of a bread price increase.

This after the North Gauteng High Court last week ruled that government should publish the new wheat import tariff.

South Africa is a net importer of wheat.

South Africa imports about 2 million tons a year, which is about 60% of the country’s wheat requirement.

While the tariff is important to protect local wheat farmers, an increase will mean millers who import wheat will have to pay more for it.

The South African Chamber of Baking says while it's sympathetic to the farmers, the consumer is also likely to suffer as a result of a tariff increase.

The Chamber’s Geoff Penny says: “We have had the El-Nino effect and Climate Change and we had the terrible drought last year. We have also had the effects of the weak rand although it has strengthened recently however we don’t know where it’s going to go. So, those things have all impacted on the price of wheat and therefore the price ultimately of bread. The farmers may need a certain element of protection and we as a baking industry are very concerned about the plight of the farmer as well because the South African wheat industry actually produces a very good quality wheat so, it would be a shame to see the industry disappear.”

Agricultural economist, Wandile Sihlobo says the tariff comes on the back of low international wheat prices.