Friendly fire

In his report on the cabinet meeting held last week, President Mbeki announced the approval of a draft framework for a national food control agency. It’s an effort to address and contain the negative repercussions of a global price spiral phenomenon, with the poorest of the poor top of mind.

The idea is to fight fire with fire: a formal and institutionalized counter-attack against a less orderly – but no less formidable - systemic conundrum. In theory, the agency will serve as an internationally-seeing watch-dog, and posit appropriate and timeous government interventions.

But it’s not so clear-cut.

The Agricultural Business Chamber has been swift to call for greater clarity on the proposal and to voice its concern about the dangers inherent in direct market interference. They favour immediate measures to assist the hardest hit and tariff adjustments going forward.

In support of the proposal, Mbeki cited the success of the collaboration of the last pricing committee with a major food supplier in driving down the price of a basic food. His reference strikes an uncomfortable contradiction with the Competition Commission’s insistent finger-pointing at price colluders in the food industry. What’s more, it’s the basic food producing sectors – milling, milk and poultry – that have been implicated. How’s that for an unfortunate symmetry? Perhaps Mbeki’s “war room” should check on its arsenal before making any war declarations or enemy advances, especially if it’s to enter the battle without a sting in its tail.