The cheapest protein in South Africa
The Competition Commission’s Essential Food Pricing Monitoring Report revealed that dry beans are South Africa’s cheapest protein source.
Eggs, chicken, and canned pilchards were listed as other cheap protein sources in the country.
Curiously, the Essential Food Pricing Monitoring Report, released on 6 May 2024, said the prices do not reflect consumer demand.
Despite being significantly more expensive than dry beans and eggs, chicken is South Africa’s favoured protein source.
Dried beans, eggs, and canned pilchards are all value-added tax (VAT) exempt, making them more affordable.
Chicken, in comparison, is not VAT-exempt. This is because of the challenges associated with accurately classifying meat products aimed at poorer households.
Food prices in South Africa increased significantly over the last three years, placing pressure on poorer households.
They rose 9.2% in 2022 and 10.8% in 2023, which caused household expenditure in South Africa on food to rise to 17%.
The report found that protein sources experienced differing levels of inflation over 2023.
This is not surprising given the considerable differences in the costs of producing these products and, to some extent, their demand.
It has reached such concerning levels that President Cyril Ramaphosa announced a plan to change the range of food items exempt from value-added tax (VAT).
Financial challenges have forced many South Africans to change the foods they buy, including their protein sources.
Price-conscious consumers opted for dry beans, which are the most affordable protein source at R0.32 per gram.
Other popular options included eggs at R0.48 per gram and Individual Quick Freezing (IQF) chicken at R0.91 per gram.
An interesting finding was a big rise in the popularity of canned pilchards despite being more expensive than beans, eggs, and chicken.
Canned pilchards cost R1.12 per gram, more than three times the price of dry beans and more than double the price of eggs.
The Competition Commission said there were many reasons for the rising popularity of canned pilchards.
- Canned pilchards are easy to store. The cans can be stacked and do not need refrigeration to keep them fresh for a long time.
- They are sold in smaller quantities, which gives consumers some flexibility regarding their purchasing patterns.
- Pilchards are available in various flavours to accommodate consumer tastes without additional expenditure on flavour-enhancing ingredients.
- Canned pilchards are zero-rated for value-added tax, which may help them remain more affordable.
“These features suggest that pilchards will continue to be important in the food baskets of low-income consumers,” the Competition Commission said.
It added that canned pilchards may act as an important buffer when there are shocks in the supply of the other more popular protein sources.
A good example of such a shock is the avian flu outbreak in South Africa last year, which forced farmers to kill millions of chickens.
This disease caused a significant reduction in the production of hatching eggs, causing prices to increase rapidly.
Loading ...
