The Minister of Agriculture, Mr John Steenhuisen, has expressed concern over the ongoing crisis at the Matlosana Fresh Produce Market. The situation stems from the City of Matlosana Local Municipality's continued failure to comply with a high court order issued in March 2021. The order requires that 95% of daily produce sales revenue be transferred to registered fresh produce market agents within 48 hours.
© City of Matlosana
Irregular and inconsistent payments from the municipality have disrupted market operations. At one point, arrears owed to market agents reached R7 million (about US$375,000) in August 2025. Because of these delays, market agents have been forced to cover municipal debts by paying producers from their own trust accounts. This places them at risk of violating the Agricultural Produce Agents Act, 1992 (Act No. 12 of 1992), as they are unable to meet their legal obligation to pay producers within five business days. In addition, major suppliers have withdrawn produce worth millions, threatening the market's operational stability and food supply.
"The failure of a public entity to obey a clear high court order and uphold its fiduciary duty over trust monies is unacceptable and directly undermines confidence in the regulated market system. We require immediate, decisive action from the regulatory body to protect our producers and agents," Minister Steenhuisen said.
As part of efforts to address the situation, Minister Steenhuisen wrote to the Minister of Trade, Industry and Competition, Mr Parks Tau, and the Minister of Cooperative Governance and Traditional Affairs, Mr Velenkosini Hlabisa, highlighting the municipality's non-compliance and its impact.
Minister Hlabisa indicated that the Department of Cooperative Governance and Traditional Affairs' Directorate: Local Government Operations and Support (LGOS) met with representatives of the Matlosana Fresh Produce Market on 29 September. He expects to receive a report from LGOS by the end of the week.
The agriculture minister has also escalated the matter to the Agricultural Produce Agents Council (APAC), requesting an urgent regulatory intervention. The request includes an assessment of the municipality's continued role in managing trust funds, consideration of interim controls or oversight over the Freshmark system, and advice on possible enforcement measures or amendments to prevent similar failures in the future.
APAC confirmed that it will respond shortly with the proposed way forward.
Minister Steenhuisen concluded: "The collapse of a regulated market system such as Matlosana would not only harm producers and consumers in the region, but also erode confidence in the broader national fresh produce market framework."
For more information:
Ms Joylene van Wyk
South African Government
Cell: +27 (0) 83 292 7399
E-mail: [email protected]
www.gov.za
