Cabinet is concerned about 'collusive behaviour' in the food industry, government communications head Themba Maseko said on Thursday.

Briefing the media following Wednesday's fortnightly Cabinet meeting, he said government was developing a strategy to address this challenge.

"Collusive behaviour in some sectors of the economy, particularly in the food industry, is a matter of concern to many South Africans."

Government was confident that the competition authorities would continue to be vigilant and take strong action to curb these negative practices that had also contributed to higher food prices.

"The economic and social cluster Ministers were mandated to develop a strategy to address this challenge and to report back to Cabinet in the near future," Maseko said.

Feedstock to bio-fuel producers

The global rise in food prices was largely due to the combined impact of production shortfalls in major supply regions, rising consumption in developing economies, and some diversion of feedstock to bio-fuel producers.

SA had also been affected by the rising prices, although its food prices had not increased at the same pace as many countries across the globe.

Higher food prices impacted more severely on the poor, and the Budget contributed to supporting the income of poor households through the social grants system and school feeding scheme.

Food security also depended on expansion and development of the rural economy, investment in agricultural capacity and technology, and broader participation of emerging farmers in commercial agriculture, Maseko said.