SA faces severe cooking oil crisis

Some experts are predicting that consumers can expect to pay up to R120 for two litres of cooking oil soon due to a severe shortage of oilseed products, according to the commercial director of Southern Oil, Morné Botes.

He says this was a direct result of the ongoing conflict between Russia and Ukraine. A large amount of sunflower and canola oil is imported from Ukraine.

The conflict has interrupted the planting season which will result in a poor harvest.

Botes said the high prices would remain for some time.

"The increases of what happened in the market already started pulling through towards the bulk market. A lot of the retailers still had some stock at the lower pricing. You'll see it starting to trickle through in this current period. Prices would have moved from about R60 to R80 a two-litre. With the impact happening now, it will move towards R100 to R120 on a two litre," said Botes.

Botes said that it was not just cooking oil that would be going up.

"Oil is an input in most of your favourite products you buy in-store (i.e., margarine, sauces, crumbed products, etc.), so all these products' prices are affected as well.

"Prices for the next six months at least will remain at these elevated levels. And depending on the European canola and sunflower crop in September/October - whether it's a ‘good or bad' crop will show if it remains for longer or if we might see some relief on pricing".

He added: "The ability to promote at ‘low' prices will not be possible and promoting at too ‘low' price will lead to out-of-stock situations as consumers will jump at the opportunity. So more likely than not a ‘every day low price' strategy might be followed instead of a deep cut promo strategy".