Despite the fresh produce market’s annual value exceeding R53 billion, the participation of historically disadvantaged farmers remains minimal. This was revealed in the final report of an inquiry into South Africa’s fresh produce value chain, initiated by the Competition Commission in March 2023.
The inquiry aimed to uncover factors that hinder competition and distort market operations for key fruits and vegetables.
The Competition Commission released a final report on Monday, 13 January 2025, and handed it over to the ministry of trade, industry and competition. The investigation spanned fruits like apples, citrus, bananas, pears, and table grapes, as well as vegetables including potatoes, onions, carrots, cabbage, tomatoes, and spinach staples in South African households.
Barriers for farmers
Looking at historically disadvantaged farmers, the report stated, “This underrepresentation reflects historical inequities and underscores the urgent need for meaningful transformation. In total, the inquiry proposed 31 practical recommendations aimed at promoting competition, reducing barriers to entry, and promoting a more inclusive fresh produce value chain.
“These include calls for policy reforms, market restructuring, and targeted support for small-scale and historically disadvantaged farmers.”
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The report indicated that the inquiry identified significant barriers to competition, including inefficiencies in municipal fresh produce markets, the conduct of market agents, high input costs (especially for fertilisers and seeds), regulatory hurdles, and systemic challenges for small-scale, emerging, and historically disadvantaged farmers.
Hardin Ratshisusu, who served as the inquiry chairperson, said there have been concerns regarding market agents utilising their own buying cards, market agents’ credit extension to both buyers and farmers, reserve buying and after-trading hours or late sales or trading, as well as relationships with large buyers.
“Fresh produce market agents are one of the key role players in the fresh produce value chain and act as intermediaries between farmers and buyers for transactions at fresh produce markets,” Ratshisusu said.
Recommendations to agriculture department
Some of the recommendations from the report indicated that the department of agriculture should review the composition of the Agricultural Produce Agents Council (APAC) within three years. This is to minimise conflicts of interest for produce market agents when considering matters that regulate the conduct of fresh produce market agents.
“The department of agriculture should, within three years or alternatively as part of the current legislative amendments to the Agricultural Produce Agents Act, submit to Parliament an amendment of this act to confer powers to APAC to regulate market agencies.
“The APAC should implement measures to encourage all fresh produce market agents to develop emerging salespeople,” the report stated.
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