Farm to retail price spreads

Date of publication: 
2017

EXECUTIVE SUMMARY

The farm value share is the value of the farm product’s equivalent in the final food product purchased by the consumers. The farm-to-retail-price-spread (FTRPS) is the difference between what the consumer pays for the food product at retail level and the value of the farm product used in that product. Price spreads measure the aggregate contributions of food manufacturing, distribution, wholesale and retail firms that transform farm commodities into final products:  Poultry: The real FTRPS of fresh whole chicken decreased on average by 0.66%, from August to October 2017. During the same period, the real farm value share of fresh whole chicken increased by 2.35%. The real farm value share of fresh whole chicken reached 60.66% in October 2017. From October 2016 to October 2017, year-on-year, real FTRPS decreased by 16.19%, while the real farm value share increased by 14.11%.

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South Africa