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APAC outlines role in South African fresh produce markets

The Agricultural Produce Agents Council (APAC) says its work remains focused on maintaining fairness and accountability across South Africa's fresh produce marketing system. The organisation regulates market agents under the Agricultural Produce Agents Act, Act 12 of 1992, and oversees compliance across national, regional, and private markets.

Registrar Francois Knowles recently met with ProAgri at the Johannesburg Fresh Produce Market to discuss APAC's activities and regulatory approach. "The Johannesburg Market is one of the most vibrant trading hubs in the country," Knowles said. "Our role as APAC is to ensure that operations here, and at all markets we regulate, are conducted in a fair, professional, and transparent manner to the benefit of the farmers and the agricultural sector at large."

Across South Africa, 37 market platforms fall under APAC's oversight, including 16 national fresh produce markets. More than 800 agents are registered and must comply with standards in the Act. APAC regulates fresh produce, export, and livestock agents, promotes transparent trade practices, and works with industry partners to support orderly market activity.

Knowles said the agency's role includes monitoring whether agents represent farmers correctly and whether transactions reflect proper market conduct. "One of the most critical functions of the market is price discovery," he said. "Market agents are responsible for establishing fair prices on behalf of farmers."

Cold-storage operations are also monitored to ensure produce maintains quality through the supply chain. Knowles said maintaining the cold chain supports food safety and product integrity.

APAC also provides training and support to registered agents. "We take pride in developing and maintaining the careers of the agents we regulate," Knowles said.

Market audits and stock verifications are carried out by APAC-appointed auditors to confirm that produce delivered to markets is correctly recorded. "Behind the scenes, we verify that stock records match the quantities delivered," Knowles said. When irregularities are identified, APAC may initiate investigations and disciplinary procedures.

The commission-sales system at fresh produce markets gives farmers the option to sell through registered agents and allows price formation to reflect supply and demand. "We believe the markets are the true price formulators," Knowles said.

APAC is reviewing the Competition Commission's 13 January 2025 report on the fresh produce value chain and plans to respond before January 2026. Knowles said the findings relate closely to APAC's mandate and that the organisation will engage with the recommendations.

Source: ProAgri

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