Business
Slight drop in food basket price but no relief for low income consumers
The marginal decrease in the price of the household food basket does not bring low-income consumers closer to affording nutritious food.
There was a slight drop in the household food basket price, but this does not mean that low-income consumers can now afford to eat nutritious food. The decrease was thanks to various vegetables costing less, although sources of protein that are important for growing children still increased in price.
The Household Food Basket cost on average R5 238,20 in December, R76,43 (-1.4%) less than the price of R5 314,63 in November, but R385,03 (7.9%) more than in December last year, when it cost R4 853,18.
The survey for the household food basket is part of the Household Affordability Index run by the Pietermaritzburg Economic Justice and Dignity Group and conducted by women who live and shop in low-income communities at 47 supermarkets and 32 butcheries, in Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba (in Northern KwaZulu-Natal) and Springbok (in the Northern Cape).
Food prices that increased by more than 5% during December are for soup and carrots which cost 6% more, bananas which cost 7% more, apples which cost 5% more and oranges which cost 23% more. In addition, the price of salt increased by 4%, the price of frozen chicken portions 2%, tea 2%, beef 2%, fish 3%, spinach 2%, green peppers 4%, Cremora 2%, and apricot jam by 4%.
Thankfully, the prices of some vegetables dropped significantly. Potatoes cost R25,07 less, with a 10 kg bag costing R104,95, while onions cost 10,34 less, with a 10 kg bag costing R96,19, tomatoes cost R16,47 less with a 6 kg box costing R121,91 and butternuts costing R24,93 less with a 10 kg bag costing R123,54.
Maize meal and cooking oil prices stabilizing
There was also a significant decrease in the price of maize meal, which cost R18,45 less for 30 kg (3 10 kg bags) cost R281,65 in December. The price of rice also decreased slightly by R2,53 in December, with a 10 kg bag costing R165,01. This seems to confirm that the price of rice is indeed starting to stabilise although on a high base.
Cooking oil also continued to decrease after the high prices of 2022, dropping by another 4% in December compared to November and by 13% compared to December 2022. The average price of 5 liters of cooking oil is now R156,37.
It also appears that the price of eggs is starting to stabilize but also off a high base, with an R13,31 (7%) decrease in the price of 60 eggs (2 by 30 egg trays) between November and December, with 60 eggs in December now costing R178,52. However, the egg price is still considerably higher (55% or R63,19) than in December 2022, when 60 eggs cost R115,33.
In December, the total average price of the food basket decreased in all the areas tracked:
- The food basket cost R62,40 (-1.2%) less in Johannesburg in December compared to November, but R471,08 (9.7%) more than in December 2022.
- The food basket cost R56,49 (-1.1%) less in Durban in December compared to November, but R297,22 (6.0%) more than in December 2022.
- The food basket cost R115,61 (-2.2%) less in Cape Town in December compared to November, but R355,45 (7.4%) more than in December 2022.
- The food basket cost R153,81 (-2.7%) less in Springbok in December compared to November, but R464,87 (9.1%) more than in December 2022.
- The food basket cost R30,31 (-0.6%) less in Pietermaritzburg in December compared to November, but R361,71 (7.7%) more than in December 2022.
- The food basket cost R76,40 (-1.4%) less in Mtubatuba in December compared to November, but R202,18 (4.0%) more than in December 2022.
Affording food by earning the minimum wage
However, the lower prices in December did not make much of a difference for workers earning the National Minimum Wage of R25,42 an hour and R203,36 for an 8-hour day. In December 2023, with a short 18 working days, the maximum National Minimum Wage for a General Worker was R3 660,48.
These workers do not only use their wages to sustain themselves but also use it to support their entire families. According to the group for black South African workers, one wage typically supports 3.9 people.
Dispersed in a worker’s family of four people, the wage is reduced to R915,12 per person, far below the upper-bound poverty line of R1 558 per person per month. Compared to the December price for a basic nutritional food basket for a family of four at R3 687,12, it is clear that low-income consumers simply cannot afford nutritional food.
Core foods are important in the food basket
The group says the cost of the foods prioritized and bought first in the Household Food Basket is important. The women buy core foods first to ensure that their families do not go hungry while ensuring that meals can be cooked.
But when the prices of these core foods increase, they have less money to secure other important mostly nutritionally-rich foods, which are essential for health and well-being and strong immune systems, such as meat, eggs, and dairy – which are critical for protein, iron and calcium, vegetables and fruit which are critical for vitamins, minerals and fiber and Maas, peanut butter and pilchards that contain good fats, protein and calcium essential for children.
The data shows that the core foods contribute 53% of the total cost of the Household Food Basket and at an average cost of R2783,45 in December, these foods are relatively expensive about the total money available in the household purse to buy these foods that must be bought regardless of price escalations.
The group says the high cost of core staple foods results in a lot of proper nutritious food being removed from the family plates. The consequences of high costs on the core foods hurt overall household health and well-being, as well as child development.
Not enough money left for food baskets after electricity and transport
Using Pietermaritzburg-based figures for electricity and transport and the average figure for a minimum nutritional basket of food for a family of four, the group calculates that electricity and transport take up 64.1% (R2 346,92 of R3 660,48) of a worker’s wage.
They only buy food after paying or setting aside money for transport and electricity, leaving only R1 313,56 for food and everything else. Therefore, the group calculates that in December 2023 workers’ families underspent on food by a minimum of 64.4% (having R1 313,56 left after transport and electricity and with food costing R3 687,12).
The group points out that in this scenario there is no possibility of a worker being able to afford enough nutritious food for her family. If the entire R1 313,56 is spent to buy food, a worker will spend R328.39 per person on food per month, less than half below the food poverty line of R760 per person.
The picture is even worse for children. In December, the average cost to feed a child a basic nutritious diet was R939,74, R7,25 (-0.8%) less than in November, but R96,27 (11.4%) more than a year ago. However, in December the Child Support Grant was only R510, which is 33% below the Food Poverty Line of R760 and 46% below the average cost to feed a child a basic nutritious diet (R939,74).
