- Trade officials have backed a new 20% import duty on peanut butter, saying local manufacturers are struggling against cheaper overseas products.
- Peanut butter is one of South Africa's cheapest sources of protein, but a 400 gram jar already costs between R39 and R55 in many supermarkets.
South Africans could soon be paying even more for one of the country's favourite and most affordable foods.
Peanut butter, a staple in millions of homes, may become more expensive after the International Trade Administration Commission approved a higher import duty to protect local manufacturers.
The commission wants the duty on imported peanut butter to increase from just 99 cents a kilogram to 20%.
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This move follows an application by RCL Group Services, the company behind the YUM YUM peanut butter brand.
The company wanted a 25% tariff, but the commission approved a lower 20% rate after reviewing the evidence.
Trade officials say South African manufacturers are under growing pressure from cheaper imported peanut butter.
According to the commission, local factories have seen production, sales and factory use decline while imported peanut butter continues to flood the market.
International Trade Administration Commission chief commissioner Ayabonga Cawe said the current system unfairly punishes local producers.
He said imported groundnuts, which South African factories use to make peanut butter, face a higher duty than imported peanut butter.
That means foreign manufacturers can buy raw materials, produce peanut butter on a much larger scale and sell it in South Africa at lower prices.
"We took the decision to not grant the 25% that the applicant wanted, but to provide a 20% duty based on the evidence before us," said Cawe.
The commission believes the higher tariff will give local manufacturers a better chance to compete while trying to limit the impact on consumers.
It has also started another investigation into creating a temporary rebate on imported groundnuts.
The aim is to reduce production costs for South African manufacturers and make locally produced peanut butter more competitive.
Peanut butter has become a lifeline for many families because it is one of the cheapest ways to put protein on the table.
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Just two tablespoons provide about seven grams of protein, healthy fats and important vitamins.
South Africa has about 21.3 million households.
Research shows that between 77% and 80% of households buy peanut butter regularly.
That means between 16.4 million and 17 million households depend on it as an affordable everyday food.
But prices have already climbed sharply.
A 400 gram jar now sells for between R39 and R55, depending on the brand and the supermarket.
The Pietermaritzburg Economic Justice and Dignity Group also found that peanut butter prices increased by 2% in January 2026 as food inflation continued to squeeze household budgets.
Experts say prices have risen because South Africa is producing fewer groundnuts.
Many farmers have switched to crops such as soybeans and sugar beans because they are more profitable.
Smaller harvests, higher global production costs and changing trade conditions have also pushed prices higher.
Consumers will now be watching closely to see whether the new import duty helps rebuild local manufacturing or simply pushes the price of peanut butter even higher at the checkout.
