No more lies on labels
by Fidelis Zvomuya

After 17 years of hard work, South Africa will finally see its new food labelling and advertising legislation come into effect in March 2012.

Following the publication of the Regulations Governing the Labelling and Advertising of Foodstuffs in terms of the Cosmetics and Disinfectants Act in March this year, local foodstuff manufacturers, as well as importers, will be obliged to adapt their labelling according to the new act.

According to the new regulations, no person shall manufacture, import, sell or offer for sale any foodstuff unless it is labelled in accordance with the regulations, Maretha Vermaak, a consumer lawyer, explains: “These are regulations that will prescribe the labelling of both pre-packaged and non-pre-packaged foodstuffs, as well as the information, claim, reference or declaration that will not be permitted when advertising a foodstuff.”

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Important consumer trends
by Koos Coetzee, MPO economist

All role-players in the South African food industry must take note of the important changes that are taking place in the local market.

Internationally, the sharp increase in food demand in 2008 and again in 2010/11 is largely driven by fundamental changes in the composition, income and distribution of the global population. Fast population growth and urbanisation in developing countries, as well as the growth of the middle income group have resulted in record food prices. The FAO Food price index is currently at its highest level ever.

Consumer class mobility
The same trends that drive food demand globally are present in South Africa. Population growth is relatively fast at 1,06% per year for the total population and 1,24% for the African population, while the white population grew by -0,49% from 2009 to 2010.

An estimated 50% of the total population live in urban areas and the income distribution of the population has changed dramatically. The percentage of the population in the lowest income groups (LSM 1 – 4) decreased by 69%, 49%, 45% and 5% from 2004 to 2010. In the middle income groups (LSM 5 – 7) the percentage increased by 28%, 38% and 60%, while the percentage of the population in the highest income groups (LSM 8 – 10) increased by 68%, 52% and 12% respectively.

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