Local bread wars return as wheat levy cut again

BusinessWeek has learnt that the Trade Ministry recently slashed the wheat levy to nine percent continuing a one and half percent annual reduction instituted from 2015 and designed to eventually completely remove the levy.

Government imposed the levy in 2003 to protect the then infant local milling industry from predatory pricing or “dumping” by South Africa’s powerful millers. Bakers however mounted a relentless campaign against the levy, saying it had transformed local millers into price monopolies who wielded unfettered control over the baking industry, including even credit terms and conditions available to local bakeries.