Tetra Pak Managing Director Argues Food Affordability is an Engineering Problem Solvable on the Factory Floor

Wael Khoury of Tetra Pak Southern Africa explains how manufacturing efficiency and aseptic packaging can lower South African food prices.

By: AXL Media

Published: Mar 20, 2026, 4:15 AM EDT

Source: The information in this article was sourced from Business Report

The Reality of the Household Affordability Gap

While recent data from the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) showed a slight month-on-month dip in the average food basket to R5,383.81 in February 2026, the underlying economic pressure remains severe. With food inflation at 4.4% outpacing headline inflation of 3.5%, the gap between income and basic nutrition is widening. For a worker on the National Minimum Wage supporting a family of four, the monthly shortfall for basic nutrition stands at R1,076.02. Wael Khoury argues that the food manufacturing sector must take accountability for these numbers, as price points are often dictated by invisible inefficiencies long before a product reaches the retail shelf.

Efficiency as a Strategic Pricing Decision

Khoury posits that affordability is as much an engineering challenge as it is an economic one. By the time a consumer views a price tag, costs associated with energy consumption, production waste, and spoilage have already been baked into the margin. High operational costs force manufacturers into a corner: they must either raise prices or discontinue products. Tetra Pak’s perspective is that localized efficiency—reducing material waste and optimizing thermal processing—directly influences the household budget of a family buying essentials hundreds of kilometers away from the factory.

Addressing the "Punishing" Cold Chain Costs

In the South African context, where energy costs are high and distribution infrastructure remains uneven, the dependency on a continuous cold chain is a significant price driver. Khoury advocates for a wider adoption of aseptic packaging, which allows products to be transported and stored without refrigeration. By removing the requirement for a cold chain in key product categories, manufacturers can significantly reduce the risk of spoilage and the high cost of refrigerated logistics. This consistency is particularly valuable in a volatile market where the price of produce like onions can climb 9% in a single month.