Hard year sees 8% egg price hike
THE 8% price increase of eggs has not been felt by the hospitality industry as it is only one component of meals, but it will affect consumers.
This is the view of Federated Hospitality Association of South Africa (Fedhasa) chief executive Tshifhiwa Tshivhengwa.
“Any price increase on goods used in food preparing in a hotel has a negative bearing on business. The increase will hit the consumer because breakfast will have to be adjusted. But eggs would just be one component – we need to look at the range of food value chain,” Tshivhengwa said.
The already soaring food prices has put a strain on the industry which has been forced to adjust fees to sustain itself.
Wendy Alberts of the Restaurant Association of SA said soaring food prices added more strain to restaurateurs who had to keep adjusting prices to stay in business.
“Obviously the breakfast price will increase to accommodate costs. Owning an eatery has become expensive for consumer and owner. We have to hike prices to stay afloat. But we advise the public before the adjustments are applied. Sometimes they do not understand but explaining there is a shortage in the market they get it.”
She said some owners have been forced to shut down because of high monthly rentals including food prices. Others have had to cut staff.
However, Charlotte Nkuna, senior executive at the SA Poultry Association, said a 7% to 8% price increase has not really affected the industry because it was responding well to the shortage of eggs.
“The situation will eventually improve, it is temporary.”
The association said last year was a difficult one for producers as farmers had seen the feed price rise by at least R1 000 per ton between January and August because of the drought.