AFRICA- A report by Consumers International (CI) has highlighted the escalating challenge of unfair food prices faced by consumers in Africa.
The cost of accessing food on the continent is among the highest globally, with consumers grappling with issues such as supply fluctuations, distribution problems, and unfair market practices.
CI, the Global Federation of Consumer Protection Associations, introduced a new tool called the “Fair Food Price Monitor” to assess the relationship between food prices at different stages of national supply chains using data from national statistical authorities and United Nations agencies.
The tool’s findings indicated that retail prices for essential food items in Ghana, Nigeria, and Kenya increased at a faster rate than wholesale prices, leading to an unjustified burden on consumers.
In Ghana, between January 2022 and July 2023, the retail price of onions surged by 42.4%, while wholesale prices only rose by 18.1% during the same period.
In Nigeria, the retail price of yams increased by 74% between January 2022 and September 2023, compared to a 60.3% increase in wholesale prices.
Similarly, in Kenya, consumer milk prices rose by 13.9%, while wholesale prices increased by only 8.7%.
CI suggested that rising fuel costs and a weakening exchange rate may have contributed to the divergence between retail and wholesale prices. However, these factors alone do not appear sufficient to explain the excessive rise in prices.
Despite a steady decline in global food prices according to the FAO index since March 2022, consumers worldwide are not yet benefitting from this trend.
“When the costs of producing and importing food increase, it is inevitable that consumers will have to pay higher prices. However, in a competitive domestic market, profit margins are expected to decline slightly, as the burden is shared between food producers, traders, retailers and consumers,” it said.
CI emphasized that in competitive domestic markets, profit margins are expected to decline slightly, with the burden shared among food producers, traders, retailers, and consumers.
The report aligned with UNCTAD and WTO reports published this year, highlighting the practices of companies abusing dominant positions to inflate profits at the expense of consumers.
CI called on governments, particularly in Kenya and Nigeria, to strengthen market competition monitoring and enforce fair pricing for consumers.
In Ghana, where there is currently no competition law, urgent steps CI recommended to establish a specialized competition authority.
The association emphasized the need for improved data on food prices at different supply chain stages, identification of unfair pricing cases, and measures to strengthen market competition by addressing monopolies and supporting small and medium-sized businesses.
