The World Union of Wholesale Markets conference takes place next week in Johannesburg, a fitting locale to discuss the importance of wholesale food markets, says Dr Justy Range of Freshmark Systems, the marketfloor trading data platform at twenty municipal markets.
South Africa's municipal market system is unlike any other in the world, he says, and expressly set up to integrate a broad range of farmers, ranging from new ones to those fully established, into formal food distribution networks.
Direct and stabilising impact on food security
"Farmers are only as strong as their markets are efficient," Dr Range remarks. "Efficient in selling their produce in a transparent system at a market-related price."
The power of the South African model, he explains, lies in its ability to provide an open and transparent sales platform that 'discover' the most optimal price depending on the ultra-specific conditions reigning during the point of sale. The market authorities and market agents, often specialists in their fields, take an ad valorem commission, while the farmer receives payment in as little as 24 hours.
Three million tonnes of fresh produce move annually through the municipal markets in operation across South Africa. He maintains that these markets have a direct and stabilising impact on food security across the region.
"Whereas supermarkets and export programmes typically absorb the higher-grade produce," he explains, "the commission markets would sell a broader range of varying grades. This allows farmers to market and sell all produce harvested in highly regulated markets. The result is that the various aspects that typically reduce the collective bargaining power of farmers are collectively addressed."
The commission markets are also providing work to thousands of people. Directly, through the various activities on the market, and indirectly, up and downstream from the markets.
The Tshiamo market adjacent to the main trading floors of the Joburg market, City Deep
Recurrent challenges remain
"Like all competitive multistakeholder environments, the industry is not devoid of its fair share of recurring challenges. The growing gap between the lack of infrastructure maintenance and the high service expectations of the private sector has been a discussion point for many years," he says.
Recently, and he quotes from a 2025 report by the Competition Commission into the fresh produce markets to investigate allegations of collusion, "… features which impede, distort or restrict competition in the market(s) for fresh produce in South Africa" have been added to the list of challenges.
"The commission market does not belong to a singular stakeholder," he adds. "It has to be an inclusive and transparent environment in order to ensure buy-in from all participants and to deliver positive externalities."
Potato buyers at the Joburg Market, March 2021
Exceptional granularity of SA fresh produce market data
Around 160 major commodity lines are sold on South Africa's municipal markets. If this is further broken down into unique varieties, grades, and packing combinations, thousands of product specifications make up annual trade, catering to the needs of a diverse buying sector.
As an economist, Dr Range appreciates the transparency of the system, a fundamental tenet of the system which is absent from other versions of a wholesale market. "Because of this transparency and consignment tracking on the markets, very accurate volume data is available. South Africa is one of the few countries in the world that can provide granular levels of transactional transparency across a broad range of farmers, agents and commodities."
Buyers come from thousands of kms away
"A broad range of buyers frequent these markets, and mostly, they are from the informal sector. But importantly, buyers from neighbouring countries and the broader African continent travel to South Africa weekly to purchase produce on these markets."
A study by Agrichain found that an estimated 43 million people annually depend on South Africa's municipal markets for much of its fresh fruit and vegetables, especially temperate crops like potatoes, onions, tomatoes, citrus and apples.
Dr Range lists the Joburg Market, the largest of its kind in Africa, as an example. "It is a common sight to see buyers from Zambia, Lesotho, Eswatini, Mozambique, Angola, Botswana, Zimbabwe, and even as far as East Africa and West Africa procuring produce at primarily the Joburg and the Thwane markets."
Although it is difficult to separate regional trade from local trade volumes, by analysing the sales volumes sold on the markets annually, and using available consumption-related data from the Food and Agriculture Organisation, it can be determined that the produce traded at South Africa's municipal markets feeds millions of people across South Africa and beyond.
Industrialisation of a horticultural sector
Dr Range studied the South African model in his PhD, observing that it was initially established to provide market access to small farmers under the previous political dispensation. Developing countries, including South Africa, face a similar challenge around market access for today's small farmers.
"The associated positive impact of these markets on the farming sector is no accident. These facilities serve as an example of how market infrastructure as a public good can yield long-lasting generational impact. It shows how a dedicated and structured governmental agricultural master plan, combined with the right private sector partnership model, can deliver broad industrialisation of a horticultural sector."
All of the agencies trading on the floors of the municipal markets, are privately-owned. "The markets are a great example of how a public-private partnership can work," he says. "Allowing our commission markets to degenerate will have a disastrous and immediate impact on the levels of food security and livelihoods of thousands of mostly lower-income people. Not just in South Africa, but also within the broader region."
Freshmark Systems will exhibit at the World Union of Markets conference at the Sandton City Convention Centre, Johannesburg, from 14 – 16 May 2025
For more information:
Dr. Justy Range
Freshmark Systems Business Development
Email: [email protected]
https://www.freshmarksystems.co.za/