Shops keep food prices high while farming costs drop

By Dylan Bettencourt

  • The Competition Commission of South Africa found that the farm price for white maize dropped sharply by December last year.
  • Shops did not pass these large savings on to buyers and stores kept the cost of maize meal very high.

South Africans are paying high prices for basic food at the shops, even though the cost to grow crops has dropped.

The Competition Commission of South Africa showed this problem in its March 2026 Cost of Living Report. The price of white maize dropped from R22.16 per unit in May 2025 to R14.49 by December 2025. This was a 35% fall because of a good harvest.

But companies that make maize meal did not drop their prices. Some even raised them. Shop profits on maize meal reached 37% in November 2025.

The Commission said it will look closely at the maize meal market. It said: “This is concerning given that maize meal is a staple food item for most low-income households.”

The Pietermaritzburg Economic Justice and Dignity Group checked real shop prices in its March 2026 report. It found a 30kg bag of maize meal cost R305.07 in March 2026. This is 12% cheaper than the R347.90 it cost a year before.

Other foods also got cheaper. A 10kg bag of rice fell 25% to R129.92. Sugar beans dropped 22% to R183.54. Potatoes fell 13%.

But chicken and eggs got more expensive. A 10kg bag of frozen chicken portions cost R436.75 in March 2026. This is a 6% increase from the year before.

The Commission found that shops charged more for chicken even when farm prices stayed around R45. Egg prices at the farm dropped from R13.32 in June 2025 to R11.69 in November. But shop prices for eggs hardly changed.

The Commission said shops are quick to raise prices but slow to drop them. This hurts poor households who spend most of their money on food.

Pictured above: A family shopping for basic food.

Image source: File

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