Cosatu calls for lower bread prices

2010-12-09 11:01

Union federation Cosatu today called on all bread and flour producers to cut their prices.

“We call on retailers and other bread distributors to pass through the price reductions to the end consumers,” spokesperson Patrick Craven said in a statement.

The Competition Commission (CC) ruled in November that Pioneer Foods had been involved in anti-competitive conduct, by colluding to fix prices of maize and wheat milling, baking, poultry and eggs.

The CC said such conduct in these important food sectors had impacted negatively on consumers and the ability of small and medium firms to enter and grow in these markets.

An agreement was reached by the CC and the company, in which Pioneer would pay R500 million to the National Revenue Fund. The settlement comprised of an administrative penalty to the fund and R250 million to create an “agro-processing competitiveness fund”.

This fund is to be administered by the Industrial Development Corporation to promote competitiveness, employment and growth in food value chains and provide finance, on favourable terms, to small and medium enterprises.

“Cosatu will monitor prices of bread and flour to ensure the realisation of the agreement.”

Craven called on other companies to cut prices, as Pioneer had been required to do by the CC.

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