The South African Agriculture Minister, John Steenhuisen, has revoked a contract with Leaf Services, initially proposed in 2016, to inspect the quality of bread produced in the country. The contract would have required bread producers and retailers to pay fees for inspections previously provided free by the Agriculture Department, likely increasing production costs and retail bread prices.

Pick n Pay, a major retailer, opposed the contract, with CEO Sean Summers welcoming the minister’s decision. Summers noted that bread quality is regulated under the Agricultural Product Standards Act, but questioned the need for Leaf Services’ paid inspections, citing no prior research to justify them. He stated that bread quality is already managed by producers, millers, retailers, and the department’s free service, and that the proposed inspections focused only on composition, not food safety.

The Consumer Goods Council of South Africa (CGCSA), Grain SA, and the Chamber of Baking also opposed the contract. In 2021, the CGCSA successfully challenged Leaf Services’ appointment in court, arguing the proposed business model was unreasonable.

Summers outlined that Leaf Services’ inspection plan required three annual inspections at each of Pick n Pay’s 920 stores, involving duplicate samples from every bread batch and size at the point of sale. This would have increased operational complexity and costs, estimated at R10 million annually for Pick n Pay and R15 million for Boxer, excluding additional costs for specialty and in-store bakery breads. Summers emphasized that Pick n Pay has maintained compliance with bread quality standards without issues, suggesting external inspections were unnecessary.

Grain SA supported the revocation, with CEO Dr. Tobias Doyer calling it a step toward transparent and accountable regulation aligned with global best practices. Grain SA had previously estimated that a R4-per-ton fee proposed by Leaf Services in 2016 would have cost its members over R600 million to date, likely raising staple food prices. Summers noted that bread, a low-margin staple for many South Africans, would have become more expensive under the proposed regime, particularly impacting those under financial strain.

The minister’s decision was praised as a response to industry concerns, avoiding unnecessary costs with no clear benefit.