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Cape Town – Concerns over food retailers profiting at the expense of the poor during the drought were raised by the Western Cape standing committee on economic opportunities, tourism and agriculture on Wednesday.
Committee chairperson Beverley Schäfer asked provincial agricultural officials after their presentation on drought aid whether they thought this might be the case.
"At the end of the day, we hope that retailers are not further capitalising on profits at the expense of the people in this province and the country," she said.
Darryl Jacobs, acting deputy director general of agricultural development, said he did not want to venture an answer.
"We have obviously been monitoring [this]," he said. "I can assure you if we do pick up a particular trend, we will definitely raise the alarm bells."
Andre Roux, director of sustainable resource management, warned that a scientific analysis is needed.
He said one should be careful of what is heard in the news.
A farmer might be paid a lower amount for a sheep than its retail price. However, value was added in preparing, cutting and packaging the meat.
"We can’t compare the two and say the public is being ripped off."
Committee member Sharon Davids referred to price-fixing and collusion in the bread sector.
"That case was proven in court, so we need to be careful how we answer from the department’s side," she said.
Schäfer said the department’s answer about retailers was a safe one.
"I certainly think that most retailers would be mindful that they carry almost [all] the access of food to our poorer communities."
She said she would invite retailers to brief the committee at the end of the year on how they balanced profits and access to food.
