The Tribunal has confirmed a consent agreement between the Competition Commission and Cambridge Food Jozini, a division of Cambridge Food and subsidiary of Massmart relating to alleged excessive pricing of maize meal in the context of Covid-19.

The Commission found that Cambridge Food Jozini (a division of Cambridge Food in Kwa-Zulu Natal) charged an excessive price for 25kg Top White Super Maize Meal during April 2020.

Maize meal falls under the category of “basic food and consumer items” in the Consumer Protection Regulations.
Cambridge Food has agreed to resolve the complaint to avoid protracted litigation and costs. In terms of the consent agreement, Cambridge Food agrees, among others, to:
  • ensure, with immediate effect and for the duration of the state of national disaster, that its gross profit margin on 25kg Top White Super Maize Meal does not exceed a specified percentage;

  • donate essential goods worth R24 947.00 (twenty four thousand nine hundred and forty seven Rand) to the Siyaphambili Qondile Home Based Care Project. This amount is based on, among others, the additional income derived by Cambridge Food as a result of the significant increase in margins in April 2020;

  • develop and implement a competition law compliance programme; and

  • circulate a statement summarising the content of the consent agreement to all senior management and senior operational staff employed at Cambridge Food.