Cap won't lower food prices

Managing director Etienne Terre'Blanche said the problem with regulating prices was that SA could not regulate foreign companies' prices.

"If you regulate prices, the rest of the world is just going to go on," he said.

"Import prices of maize to feed cows and of fuel would keep going up. Something would go wrong somewhere down the line."

Terre'Blanche said government should invest in a growing agricultural sector to secure national food supplies in the future.

"If any country would totally rely on food-imports, it would be in deep, deep trouble," he said.

Food prices in countries outside SA were "sky-high" and "soaring".

"It is unprecedented, they are a lot higher than in SA."

Terre'Blanche said SA farmers were under stress to produce enough food.

Prices of fertilisers had gone up 100 to 150%, those of feed went up 80% and fuel prices had risen 60%, whereas food prices had "only" risen 40% over the same period, he said.

In particular dairy farmers were fighting shrinking profit margins due to increasing input costs. The number of active dairy farmers in SA was steadily decreasing.

"Producers cannot afford to invest in their farms, but at the same time the government demands 15 percent growth from the agricultural sector."

MPO, Cosatu, government, organised agriculture, food processors and retailers held a meeting on Tuesday to discuss the rising food prices.

Terre'Blanche said the talks had been constructive and another such meeting was planned for May 21.

- Sapa