South Africa's food system combines high production levels with widespread food insecurity. A 2024 survey found that 63.5 per cent of households were food insecure and 28.8 per cent of children were stunted. In this context, municipal fresh produce markets remain a central point of access for fruit and vegetables.
According to the Agriculture Department, the country's 17 main municipal fresh produce markets sold more than 3 million tons of fruit and vegetables in 2023, valued at R24.6 billion (US$1.37 billion). This accounts for an estimated 40 per cent to 50 per cent of national fresh produce sales from farmers. These markets link directly with the informal sector, where street traders sourcing from municipal hubs offer lower prices than formal retailers.
Researchers supported by the DSTI-NRF Centre of Excellence in Food Security note that informal traders play a key role in lowering food costs and reducing travel distances for low-income consumers. However, they report that the system is under pressure as supermarket chains increasingly buy directly from farmers, reducing volumes passing through municipal markets. Findings align with Competition Commission reports showing a decline in market share for these markets.
The Johannesburg fresh produce market, the largest municipal hub, was studied over three years through interviews and observations. The market handles more than 1.3 million tons of produce annually, valued at more than R11 billion (US$610 million). It supplies Gauteng and the surrounding regions and sources from both large commercial growers and small-scale farmers.
The market operates through registered agents who sell produce on behalf of farmers. Agents earn a 7.5 per cent commission on sales, and the market charges a 5 per cent commission to cover operational costs. Cash buyers can also purchase smaller quantities from the Unity and Tshiamo markets located on the same site.
The study highlights the market's central role as a wholesale supplier for thousands of informal traders. More than 10,000 registered buyers pass through daily, with the majority being street vendors and small retailers who distribute produce across Johannesburg and Gauteng.
Challenges include reduced market share as supermarkets expand direct sourcing, ageing infrastructure, unreliable cold storage, and power disruptions. Market users also report issues linked to entrenched networks and limited transformation among agents. Political instability within municipal structures further complicates long-term planning.
Recommendations include upgrading infrastructure, particularly cold storage, insulating market management from political changes, and supporting more inclusive participation while retaining functional trading networks.
Source: The Conversation
