MBABANE – Cereals, cooking ingredients and other household staples could soon cost more as major food manufacturers supplying the Eswatini market warn that price increases may be unavoidable.
The warning comes from South African food giants Premier Group and Tiger Brands, whose products form a significant portion of the groceries purchased by emaSwati every month.
The Johannesburg Stock Exchange (JSE)-listed Premier said it would likely need to increase prices by about 5 per cent across its portfolio of 52 food brands as it grapples with escalating fuel costs, packaging expenses and other production-related input costs.
The warning follows a similar caution issued recently by fellow South African food giant Tiger Brands, whose products also occupy a significant share of supermarket shelves across Eswatini.
Tiger Brands warned two weeks ago that geopolitical tensions and uncertainty in global markets were expected to place additional strain on supply chains and consumers’ spending power. The company said it would be forced to pursue further efficiency measures and implement selective price increases to protect profitability.
For many emaSwati consumers, the warning is likely to hit close to home. Products manufactured by Premier Group and Tiger Brands are among the most recognisable brands on local supermarket shelves. These include Blue Ribbon Bread, Snowflake flour and Iwisa maize meal from Premier, as well as Jungle Oats, Ace maize meal, Tastic rice, KOO canned foods, All Gold tomato sauce, Black Cat peanut butter and Oros concentrates from Tiger Brands.
Any price adjustments by the two companies would, therefore, be felt by thousands of households that purchase these products regularly.
The warnings come at a time when Eswatini’s inflation rate has already started to edge higher. According to the latest Consumer Price Index report, annual inflation accelerated to 2.7 per cent in May 2026 from 2.0 per cent recorded in April.
In its financial results for the year ended March 2026, Premier Group painted a cautious outlook despite delivering one of its strongest financial performances to date.
Premier said a global soft commodity price cycle appears to have reached its bottom, suggesting that prices for key agricultural inputs may begin rising again.
The company also highlighted concerns around ongoing international trade tensions and tariffs.
While tariff uncertainty is expected to affect sales within its Culinary International division, Premier said the current United States tariff rates of between 10 and 12.5 per cent were significantly more favourable than the previous 30 per cent tariff environment experienced last year.
Premier Group Chief Executive Officer Kobus Gertenbach said inflationary conditions would continue exerting pressure on operating costs and financing expenses.
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Economist sees hope despite food price threats
MBABANE – While the warnings from major food producers point to possible increases in grocery prices, Economist Sanele Sibiya says there are also emerging global developments that could help ease some of the cost pressures facing consumers and manufacturers.
Sibiya said the concerns raised by Premier Group and Tiger Brands were justified given the rising costs of fuel, fertiliser, packaging and other key inputs that influence food production across the value chain.
“The warnings by these food producers are indeed likely to hit home for emaSwati because the majority of the products they manufacture are consumed locally and form part of everyday household spending,” he said.
However, the economist noted that there was growing optimism following reports of a peace agreement between the United States and Iran, which has contributed to a decline in global oil prices.
He explained that geopolitical tensions in the Middle East had previously pushed up oil prices, increasing transport and production costs worldwide and creating additional pressure on food manufacturers.
“The positive development is that oil prices have already started responding to the prospects of peace. Lower oil prices generally translate into lower transportation and production costs across the economy. That is encouraging because fuel is a major component of the cost structure for both farmers and food manufacturers,” Sibiya said.
He cautioned, however, that any relief at the fuel pump would not be immediate.
“Even if international oil prices continue to decline, it may take some time before consumers see fuel prices returning to pre-war levels.
“Fuel pricing adjustments do not happen instantly and there are other factors within the pricing mechanism that need to be considered,” he said.
*Full article available on Pressreader*
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