South Africa's fresh produce markets, important to both commercial and small-scale farmers, are under scrutiny as concerns grow about concentration, fairness, and barriers to transformation.
At the recent Transformation Lekgotla, the Competition Commission, government departments, market agents, and industry bodies discussed issues such as price volatility, municipal inefficiencies, and limited opportunities for new-era farmers and black-owned businesses.
Sello Makhubela, acting CEO of the Joburg Market, said the enquiry was prompted by distortions. "There are very high levels of concentration in all the major markets in the country. Durban, Cape Town and Johannesburg. About 80%, 90% for the major produce, accounted for by these agents, we then were concerned about this," he said.
He added that players are already being challenged in court, with recommendations including divestitures. "Engagements are underway on issues related to commission and matters of participation, with the emphasis that achieving true competitiveness depends on ensuring the market itself functions effectively," Makhubela said.
Brian Zondo, policy analyst at the department of trade, industry and competition (DTIC), pointed to the role of government. "One of the remedial actions is to look at how the ownership structure of the fresh produce market is actually taking place. The recommendation is that there needs to be some form of independence for these fresh produce institutions from the municipalities. The proceeds, the revenue, that is created from these institutions, actually is driven to try and fund municipal inefficiencies," Zondo said.
Francois Knowles, registrar of the Agricultural Produce Agents Council (APAC), said about 3,000 agents operate under strict rules. "We know that there's hanky-panky happening at some stages, and we are the ones to make sure that we point that out and that we take those individuals to task. We issue hefty fines. We even put agents who are dishonest in jail. It's that serious," he said.
Dimpho Xaba of the South African Union of Fresh Markets said transformation must prioritise participation. "We are creating an inclusive economic space in the market now. We have been spending a lot of time allocating the spaces for SMMEs, and in the pipeline, we are also going to be able to develop an agro-processing hub in the market, where these SMMEs can be provided with a facility which complies with food safety," he said.
Access to finance remains a hurdle. Nhlanhla Nyembe of the National Empowerment Fund (NEF) said, "I don't think the problem is that there's no money, but it's the market failures that are generally experienced by small businesses even in the agricultural sector. Recently, especially with the new minister, the minister has really been proactive, as well as engaging with the National Empowerment Fund to find solutions and to align the organisation with the government priorities to create jobs, to create SMEs, to support women-owned businesses, businesses owned by people with disability and youth."
Source: foodformzansi
