Fruit, veg sector overhaul

Standardised pricing quickens comparisons.

- Anathi Madubela

South African retailers must standardise pricing for fruit and vegetables and per 100g to enable consumers to compare prices across stores. This is a result of a Competition Commission investigation into the fresh produce market, which found that most of the prices for fresh produce are not comparable between retailers from the perspective of a consumer.

The investigation was in response to allegations of anti-competitive conduct, including concerns over competition and market distortions.

The commission's food price monitoring reports have also highlighted concerning price increases and volatility in fresh produce markets.

The inquiry assessed the fresh produce value chain from input level down to retail.

Clouding the issue

"The inquiry makes a finding that the lack of transparency in unit pricing per kg or gram distorts competition in that consumers are less likely to compare pricing between retailers," Hardin Ratshisusu, the commission's deputy commissioner said.

He said this practice was deemed uncompetitive because prices were presented per-unit yet the units varied across supermarkets.

One retailer may sell tomatoes in 3kg bags, while another offers them per 1kg.

This makes it difficult for consumers to make accurate, like-for-like price comparisons, he noted.