Food prices going up Augetto Graig Thursday, March 13, 2014 - 08:00 The Namibian Competition Commission (NCC) has warned consumers that food prices worldwide will only go up, and Namibia will be no exception. Food prices are expected to rise 3% to 4% in 2014 and will continue rising till year 2018, representing a 12% to15% increase over a four year period CEO of NCC, Mihe Gaomab II, said the data and inflation reports by Namibia Statistics Agency indicates that food price inflation is on an increasing trend and this trend, based on forecasted data worldwide, will continue till 2018. Also, because commodity prices are only reflected in food price increases after several months, “most of the drought’s price effect will occur in 2014, as it is happening currently in Namibia,” he said. “Higher prices of agricultural inputs will directly affect the cost of meat and any other animal-base product. Also hardest hit will be cereals, baked goods and other grain-based food. The current exchange rate depreciation from around eight-plus to the US Dollar in 2012 to around ten-plus in 2014 will also cause the price of imported food to increase,” he said. “Rising food prices will result in the annual food bill for the average family tripling over the coming years, heaping further pressure on already overstretched household incomes of the Namibian consumer,” said Gaomab. Because Namibia does not have an overarching food control regime it is very hard to tell what could happen but, from a theoretical basis, the impacts on consumers is very high as high food prices inadvertently reduces the purchasing powers of consumers. Concomitantly consumer choice is frustrated, and even quality and choice of such food products could also be adversely affected which have implications on consumer protection in terms of competitive pricing and wider product choice, Gaomab explained. “It should, however, be understood that the government considers such a move on price control viable only to the extent that it should be commercially and financially viable for the targeted sectors or products. Equally, it should not frustrate or counter infant industries which are necessary for industrial development and for creating local value added manufacturing in Namibia,” he said.
Posted on: Fri, 14 Mar 2014 14:00:01 +0000
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