The NAMC commentary highlights ongoing barriers faced by small-scale and historically disadvantaged farmers in South Africa when accessing fresh produce markets. The identified obstacles include costly quality assurance mandates such as Global Good Agricultural Practices (GAP) certification, lack of water rights, municipal bylaw constraints, and limited access to commission systems. The NAMC authors concur with the Competition Commission in identifying these structural issues, which have persisted for nearly two decades.
The NAMC backs the Commission's goal of increasing annual sales by 10% for these farmers but calls for more robust enforcement mechanisms than those previously deployed. Progress on transformation targets from the 2006 Section 7 Report has been slow, particularly the objective of achieving 30% of volumes traded through black commission agents, emphasizing the need for stronger enforcement measures and clear implementation timelines.
The NAMC advocates for targeted support through interventions like capacity building, technical assistance, mentorship, and creating databases to track progress in certification and water-licensing challenges. The NAMC aligns with the Commission's insights into operational inefficiencies within national fresh produce markets (NFPMs), citing inadequate funding, poor infrastructure maintenance, and governance issues as barriers to transformation goals.
The suggested recommendations include transitioning NFPMs to corporatised or public-private partnership models with profits reinvested in infrastructure and training, enhancing transparency and competition within the commission system, and revising the Agricultural Produce Agents Council's regulatory role through amendments to the Agricultural Produce Agents (APA) Act. These measures correspond with findings from the NAMC's 2006 Section 7 Report and underline that previous reforms have not fully resolved persistent sector challenges.
While supportive, the NAMC advises caution in implementation approaches, suggesting a "sustainable, standardised commission fee formula" to prevent unintended consequences like hidden charges. The organisation approves improved retail pricing displays but recommends phased implementation to not overburden smaller retailers. Addressing technical complexities in data-sharing systems, the NAMC highlights the need for careful planning and resource allocation.
For incentivising black economic empowerment compliance, the NAMC proposes capacity building instead of financial measures, aiming to balance transformation with market stability. Collaboration among stakeholders is deemed essential, with time-framed implementation and clear milestones crucial for addressing long-standing inefficiencies.
Source: African Farming
