Pensioner Wilson Mshengu, 62, of Imbali township in Pietermaritzburg discovered a rusty silver ring in a loaf of bread he bought from a local tuck-shop.
A furious Mshengu said he bought the loaf of bread on Friday afternoon, but only discovered the ring after his children had eaten some of the bread.
"My wife discovered the ring while she was making me supper," said Mshengu.
Mshengu said what concerned him most was the fact that his children and wife had already eaten the bread and might have come into contact with bacteria or poison.
"I don't know how long the ring had been in the bread and what effect it is going to have on my family's health," said Mshengu.
Mshengu said he was still weighing his options.
His wife Mavis said she was shocked when she discovered the ring, which is slightly bigger than a regular key ring.
"I nearly fainted. I am very angry because it means that our money was wasted, but I'm also concerned about the well-being of my family because the ring is rusty," she said.
The family wants to be compensated, she said.
A spokesman for Albany Bakeries said they would comment later.