At a briefing in Parliament earlier this year, Agriculture Minister Senzeni Zokwana warned that food prices were bound to go up, given the drought South Africa is facing – the worst we’ve seen in 23 years.

What kinds of price hikes to expect

How much are we looking at, you may wonder? The answer is fairly alarming.

Take chicken as an example. The South African Poultry Association said the price of a 2 kilogram bag of quick-frozen chicken may go up by as much as R7, and it’s already looking rather high (typically over R50) when you scan the meat aisles. Because the drought has killed livestock, meat prices are those earmarked to rise most.

The country’s staple, maize, is also being drastically affected. With low crop yields anticipated by the Bureau for Food and Agricultural Policy and dwindling reserves of stored maize, it has been reported that we may have only eight months of white maize left. Will we have to import?

Government, major food retailers and food security experts have been discussing the nature of these price hikes and the potential effects on consumers. The National Treasury may even have to step in to assist, given concerns that investors may avoid backing the agricultural sector if, heaven forbid, things reach the national disaster level.

As it stands, farmers are already calling it quits and selling their drought-stricken farms; jobs are being lost; and more people are being pushed below the poverty line.

Tips to save on your grocery spend

With these disastrous forecasts, it’s easy to panic. If grocery shopping already stresses you out, you may wonder how you’ll survive more price increases.

The situation means we will all have to pay greater attention to what we buy. We have to find ways to get “grocery smart” to make our budgets stretch further. Fortunately, there are ways to shop and eat smart. Here are a few tips for spending less on food:

• Confirm your budget. Every household needs an up-to-date budget with exactly how much you can comfortably spend on groceries each month. Divide this up into weeks and spend no more than is stipulated.
• Go for no-name brands. They’re almost always cheaper, and often comparable in quality to branded products.
• Separate needs from wants. Is a daily chocolate treat an essential? Can you make simpler meals that don’t require exotic or expensive ingredients?
• Cut down on meat. Eating more vegetables and grains is better for the environment and your health, and it’s easier on the pocket.
• Check supermarket specials on a weekly basis, and stockpile the basics you use if they’re ever on promotion.
• If you buy lunch out during the work week, eat packed lunches you prepare at home instead. Try this for a week and you’ll be surprised at how much money you save.
• Never go shopping without your grocery list. This makes it less likely you’ll be tempted to browse the rows, idly popping whatever takes your fancy into the trolley. Get in, stick to the list and get out.
• Be wary of deals like “buy two, get one free” when it comes to fresh produce. Often you don’t need that much and may end up wasting money by throwing unused produce away.
• Count your cents. Compare prices and go for the cheaper brands. Even if the difference is fairly small, it will add up over the course of the year, especially if you apply it to all the products you buy. It’s about adopting an “every little bit counts” mindset, and choosing to be in control of what you spend.

If times get tough and you need a short-term loan

If you need funds quickly to tide you over a tough spot, you can use an asset you own to secure a short-term asset-based loan. At Lamna, we’ll offer you a loan based on the value of the asset. The process is quick, efficient and confidential.

For more information about using an asset to secure a short-term loan, contact us on 086 111 2866 or simply complete and submit our online application form.