Canned fish overtakes chicken as preferred protein in South Africa – The Mail & Guardian

Lucky Star Sardines

Canned sardines are sold in smaller quantities (typically 400g cans or less), offering consumers some flexibility in their purchasing patterns.

Sardines have overtaken chicken as South Africa’s favorite protein, according to the Competition Commission’s essential food price monitoring report.

Released on Monday, the report showed that the bird flu outbreak, first reported in early June 2023, raised chicken prices to an unaffordable level.

A total of 8.5 million broiler chickens and laying hens were culled between April and November 2023 as a result of the outbreak, the commission reported. The government allowed the import of 30,986 tons of poultry meat as a safety measure to stabilize chicken supplies during the flu outbreak.

From June to December 2023, the retail price of chicken increased by 0.58%, while the producer price increased by 8.80%.

In December 2023, canned sardines cost consumers R1.12 per gram of protein, while frozen chicken cost R0.91 per gram, according to the report. Beef, at R2.81 per gram, was the most expensive.

Although consumers saw sardines as an alternative, canned fish is not the most affordable source of protein. One gram of sardine protein cost R1.12 in December 2023.

The most affordable protein is dried beans, which cost R0.32 per gram of protein, followed by eggs at R0.48 per gram of protein.

Canned sardines are sold in smaller quantities (typically 400g cans or less), offering consumers some flexibility in their purchasing patterns.

This price increase is reflected in the sales figures of publicly traded canned sardine producers, Oceana and Premier Fishing.

Oceana, owner of Lucky Star, reported sales volume growth of 9% in local and export markets, rising from 8.8 million cases in 2022 to 9.6 million in 2023.

Kagiso Zwane, economist at the commission, said: “While sardines may not be the cheapest source of protein per gram, there are clearly some benefits that consumers find relevant as inflation has increased and load shedding has become more prevalent. “.

Zwane said sardines have value to the consumer because the fish stores easily and does not need refrigeration. Additionally, fish is available in smaller quantities for people who do not or cannot visit large grocery stores.

“There is also a wide range of flavors that, depending on consumer preferences, can reduce spending on other ingredients to improve taste,” Zwane added.

Canned sardines have a zero VAT rate, which can help them remain more affordable.

“In this context, consumer decisions to swap items in their basket for other foods, such as chicken for canned sardines, are likely to continue and remain an important feature of grocery shopping in the coming months,” Zwane said.

The report noted that at 5.1% year-on-year, March 2024 marked the lowest rate of food inflation since September 2020.

This figure follows a period of significantly higher food inflation, which put pressure on household budgets. South Africa’s food inflation rate rose to a 14-year high of 14.4% year-on-year in March 2023.

The Household Affordability Index tells a similar story of food inflation. The average cost of the household food basket increased by 6.2% (R312.36), from R5,023.95 in April 2023 to R336.31 in April 2024.