COSATU Congress of South African Trade Union : Maize Traders Ripping Off Poor South Africans with Government Permission

Maize Traders Ripping Off Poor South Africans with Government Permission

20 January 2016

The rises in the price of Maize is a classic case of how the wealthy, mainly white trading and investment companies splurge off the poor black community of South Africa. The crisis mentality that Safex/ JSE traders and the farming community want to create in relation to maize shortages, gives them the ideal cover to inflate maize prices.

The present South African Maize demand will still be supplied by local production till at least July 2016. The drought will impact on next year - if water does not come soon. Whilst some grain will have to be imported from the USA this year, that is not impacting on the market yet.

We are now seeing the same collusive practices that we have seen in the manipulation of bread, chicken and steel prices by mainly white controlled companies. This clearly demonstrates how these companies will prey on the National interest, with no regard for the impact on the poor.

The trading companies must be investigated and regulated to avoid these predatory practices in times of crisis. As Cosatu we have raised the matter with the Minister of Agriculture in a meeting yesterday and he promised to get the National Agricultural marketing Council to investigate the pricing and supply distortions. We have also filed a formal complaint with the Competition Commission, to investigate the trading and pricing practices.

Cosatu will be insisting that these exploitative practices stop immediately and that any traders guilty of collusion be jailed for these corrupt practices.

With questions, please call Tony on 082 7733194

Geraldine Kennedy
COSATU Western Cape
021 448 0045 - TEL
021 448 0047 - FAX
084 6447316 - CELL

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