Increasing local food production could help to stabilise and reduce soaring food prices caused by imports, Agri South Africa said on Tuesday.

"Increased local production could therefore assist in stabilising and even reducing food prices, provided that food processors and the trade manage to keep their costs and profit expectations in check," president Johannes Moller said in a statement.

Given favourable climatic conditions there would be more than enough food to meet local market requirements.

"The challenge at this stage is therefore keeping costs low rather than being concerned about the availability of food."

The sharp increase in input costs like fertiliser and diesel had reduced farmers' profit expectations to such an extent that it inhibited long-term investment in production capacity.

"Investor confidence in agriculture had in recent years also been negatively influenced by policy and politics, which now means that government must become a partner in seeking solutions."

Moreover, food prices depended largely on what happened between the farm gate and the consumer. This required the involvement of various other role players in the food value chain.

The government's strategic plan for South African agriculture was useful in addressing production, competitiveness, price formation and sustainability.

"We need to be innovative... South Africa cannot afford a situation where we face food insecurity," Moller said.

Sapa