South Africa: Peanut Butter Price Hike Fears After Import Tax Approved

What the report says

AllAfrica, carrying a Scrolla report from Johannesburg, says South African trade officials have approved a new 20% import duty on peanut butter, raising concerns that shoppers could face higher prices for a widely used staple. The International Trade Administration Commission backed the increase after an application by RCL Group Services, owner of the YUM YUM brand, which had sought a 25% tariff. The previous duty was reported as 99 cents per kilogram.

According to the report, the commission said local producers have been losing ground to cheaper imported peanut butter, with declines in output, sales and factory utilisation. Chief commissioner Ayabonga Cawe said the tariff decision was based on evidence before the commission and noted a trade imbalance: imported groundnuts used by South African factories carry a higher duty than finished peanut butter brought into the country.

The issue matters because peanut butter is described as one of South Africa’s most affordable protein sources. Scrolla reported that a 400g jar already sells for about R39 to R55 in many supermarkets, and cited figures indicating that roughly 77% to 80% of the country’s 21.3 million households buy it regularly. The Pietermaritzburg Economic Justice and Dignity Group was also cited as finding a 2% peanut butter price rise in January 2026.

The commission is also looking into a temporary rebate on imported groundnuts, which could lower costs for domestic manufacturers. The report says prices have been pressured by reduced local groundnut production, farmers shifting to other crops, higher global costs and changing trade conditions. Consumers will be watching whether the tariff strengthens local manufacturing or adds to grocery bills.