Grain SA has condemned the THREE companies alleged to be involved in fixing the price of bread. “If the financial results of these companies are studied and the allegations are true, it is difficult to understand that they cannot compete with one another in a fair and just manner,” said Neels Ferreira, the organisation’s chairperson, in a statement released last week.
He said when Grain SA applied for a fairer tariff dispensation for imported wheat, one of the accused protested that the proposed tariff would result in an increase in the bread price, to the detriment of poor consumers especially.
Ferreira’s comments follow the Competition Commission’s announcement it will not rule out expanding its investigation into improper bread-pricing activities. his comes after it referred a case to the Competition Tribunal for judgment on the alleged collusion of Pioneer Foods (Sasko and Duens Bakeries), Tiger Food Brands Limited (Albany Bakeries) and Premier (Blue Ribbon Bakery) on bread prices in the Western Cape in December last year.
It is alleged the bakeries had increased the price of bread to independent distributors in the province by between 30c and 35c a loaf, while at the same time decreasing and fixing the discount given to independent bread distributors to a maximum of 75c a loaf regardless of the volumes purchased. – Lloyd Phillips
