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In the news this month: The South African International Trade Administration Commission (ITAC) has allowed anti-dumping duties on French fries from three major importers to expire, allowing local importers to claim refunds for any duties paid since July 2022. This is a small but much needed reprieve for the food industry during a period of rising food prices. Low-income South Africans have been hit the hardest by skyrocketing prices, with households spending on average 13.5% or R580 more on food per month than a year ago. To bring prices down, South Africans need to do away with unnecessarily heavy duties. Imports of French fries have decreased by third since before Covid-19 due to the high import tariffs placed on three major trading partners. Germany alone, which previously only made up around 6% of total imports and had very little impact on local prices, has largely stopped exporting fries to South Africa altogether. But whilst we welcome the duty lapse on fries, Hume continues to call on government to suspend trade duties on staple food products, as well as previously inexpensive sources of protein such as chicken. Until local producers are able to catch up with demand, and there is increased investment in local production to help these producers better compete, import duties will simply continue to exacerbate rising prices. Suspending tariffs could bring South Africa back from the edge of rampant food price inflation. “When we consider action in the face of uncertainty, we have to ask ourselves three questions: why must we act, how can we act, and what must we learn to do.” - Marshall Ganz Thank you again to each one of you for being a part of the Hume story. A warm welcome to all the new team members – we trust that you will enjoy being a valued part of our family. |
Frederick Hume Managing Director |
