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# The Competition Commission is questioning why cheaper crops aren’t translating into cheaper groceries
- URL: https://www.businessbagel.com/competition-commission-cost-of-living-report-food-spreads/
- Published: 2026-09-07T03:15:00.000Z
- Updated: 2026-09-07T03:14:59.000Z
- Description: Its third Cost of Living Report finds record gaps on maize meal, sunflower oil and frozen chicken, and its chief economist says margins like these may be worth a look.
- Author: Christian Maidman
- Tags: Economy, Business Bagel News

Food passes through three sets of hands before it reaches a till, and the Competition Commission has started publishing what happens at each one. Its third Cost of Living Report, released on Friday, tracks the difference between what a producer receives and what a shopper pays for canned pilchards, eggs, frozen chicken, brown bread, sunflower oil and maize meal. The commission calls that difference the spread.

Take maize meal. The farm value of the grain in a 2.5kg bag fell nearly 14% between January and June, while what the miller charged for that bag barely moved. The price on the shelf came down about 5%, to R39.79.

Sunflower oil ran the same way, further. The farm value of the oil fell 13% over the same six months, while the producers who bottle it put their price up 9%. The bottle in the shop ended 2% dearer, at R37.77.

Frozen chicken is the plainest of the three. Producer prices sat at about R45 a kilogram and did not move. Retailers passed on increases of 5.4% anyway, taking the shelf price from R96.38 to R101.56.

## A warning, not an investigation

Chief economist James Hodge told the launch that margins on most staple foods are historically high, and that the spread between the commodity price and the producer price is at record levels for each of them. Wheat and maize have been getting cheaper on record harvests without that reaching the consumer. If the margins keep persisting, Hodge said, “then it may warrant us getting involved to see whether they are actually justified by fuel increases or not”. That is a conditional: no investigation has been opened, and the report makes no finding of wrongdoing against any company.

## The bills rising faster than everything else

Food is only part of what the report covers. Electricity rose 8.1% and water 10.1% in the year to July, both well clear of overall inflation of 4.3%. A doctor's consultation costs 38% more than it did six years ago, slightly ahead of cumulative inflation over the same stretch.

Transport carried its own increase. Petrol rose 26% between January and July, mostly on the conflict in the Middle East, and minibus taxi fares went up 13% behind it. Fares generally do not adjust downwards, so a cheaper litre later will not unwind that one.

Commissioner Doris Tshepe's framing is that no single item caused this. Too many essentials are rising faster than inflation and faster than wages at the same time. For the poorest households, food alone takes about 40% of what they spend, and housing and utilities about a quarter.

This is the third time the commission has published these spreads. The fourth will show whether anybody moved.