Sunday, October 25, 2026
SUBSCRIBE
22 GLOBAL MEDIA AWARDS
Food For Mzansi
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought
No Result
View All Result
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought
No Result
View All Result
Food For Mzansi
No Result
View All Result
in News

New farmer? Informal markets ‘the way to go’

Apart from the 40 000 commercial farmers in Mzansi, hundreds of thousands of smallholders contribute to the economy too. Many small-scale farmers say they prefer to trade in the informal sector as it gives them a sense of control and often higher prices

by Tiisetso Manoko
10th August 2022
The value of South Africa’s informal farming sector is understated, experts say, and many farmers say that they prefer trading to this segment of the economy. Photo: Supplied/Food For Mzansi

The value of South Africa’s informal farming sector is understated, experts say, and many farmers say that they prefer trading to this segment of the economy. Photo: Supplied/Food For Mzansi

Share on FacebookShare on TwitterShare on WhatsApp

South Africa’s informal farming sector and its contribution to the economy and food security is far more than what is actually being recognised, an expert says. While increased support to develop the informal sector is needed, farmers point to informal markets as a definite way to go, especially for new entrants.

According to Professor Ferdi Meyer, managing director for the Bureau for Food and Agricultural Policy (BFAP), agricultural data does not reflect the contribution that the informal sector makes to food security.

“It is not true that there are only large-scale white farms in South Africa who contribute greatly to employment and exports. 93% of all VAT-registered farms are small and micro operations that only contribute 23% of the income, but 37% of employment in the sector,” Meyer says.

Ferdi Meyer, director of the Bureau for Food and Agricultural Policy
Prof. Ferdi Meyer, director of the Bureau for Food and Agricultural Policy. Photo: Supplied

Data shows that there are over 40 000 commercial farming units that contribute to food security in the country. According to the General Household Survey 2019, there are 300 000 smallholder operations and another 2,3 million households that should be included when counting contributors to food security.

Meyer believes that these statistics do not necessarily take into account the around 214 000 households that, in recent surveys, indicated that they receive at least a secondary income from agricultural activities such as raising pigs and chickens.

“If we don’t understand where these producers are, how can we support small SMME operations with credit and infrastructure?

“The media only reports on the contribution of commercial farming. No one reports on the informal sector and its real contribution to food security,” he says.

‘Informal markets offer better prices’

Meanwhile, farmers tell Food For Mzansi that informal markets are the way to go, especially for new entrants.

Leshalagae Mojapelo, a butternut farmer in Limpopo, says small-scale farmers should not be in a hurry to sell off their products to big retailers or make use of third-party agencies to sell their products. These agencies, he says, can take up to 15% a farmer’s profit, which is a lot for those producing on a small scale, he says.

“In the direct market you can set your prices [and make it] non-negotiable. They do not have to be compared to someone else’s prices.”

“In retail, you will be selling a lot of bags at a go, but the prices are already set. It might be half or even below half of your informal market price,” he explains.

Mojapelo says he prefers selling his produce on street markets and to school feeding programmes.

“The street market is the one that gives us a reasonable return because the big supermarkets, retailers and agencies rip emerging farmers off. Although the demand from them is higher, you end up working for them.”

ALSO READ: Retailers ‘use bully tactics to squeeze farmers’

‘Informal markets offer control’

Leshalagae Mojapelo practices his passion for soil science on his farm in Ga-Maboi village in Limpopo. Photo: Supplied/Food For Mzansi
Leshalagae Mojapelo practices his passion for soil science on his farm in Ga-Maboi village in Limpopo. Photo: Supplied/Food For Mzansi

Another farmer and founder of Ya Maja Bital, Segwarihle Siesegoana, says for him, the advantage of selling in the informal market is that it helps him feel more in control.

“I sell my produce according to the orders I received. If there is an order for 50 units, I will harvest that and sell them. If you harvest everything and wait for them to be bought, rats might mess with them in storage.

“I believe in leaving the produce on the veld and not taking them out until they are bought, so that one does not experience any type of loss in storage,” Siesegoana says.

Meanwhile, Meyer says that developing the small-scale sector remains a challenge.

However, he reckons that the private and public sector must work together to develop skills and build supply chains that include the informal sector.

ALSO READ: New farmers: How to diversify your markets

Sign up for Mzansi Today: Your daily take on the news and happenings from the agriculture value chain.

Tiisetso Manoko

Tiisetso Manoko is a seasoned journalist with vast experience in community media. He possesses diploma in media studies majoring in journalism, certificate in civic leadership. He loves news from all angles with particular interest in local government, agriculture and politics. He is a staunch Mamelodi Sundowns Football club supporter.

Tags: informal marketSmall-scale farmers
Advertorial

Why simple farm records beat complex systems

by Lisakanya Venna
22nd October 2026

Unlocking farm profitability doesn’t require high-cost digital platforms or complex systems. Stefan Corbett, data analytics specialist at Agritistics, explains how...

Read moreDetails
Mogogelo farmers receive packhouse and cold storage facilities

Mogogelo farmers receive packhouse and cold storage facilities

22nd October 2026
Godongwana unveils fuel relief and R10 billion El Niño buffer

Godongwana unveils fuel relief and R10 billion El Niño buffer

21st October 2026

Smart irrigation: Precision tools boost crop yields while cutting costs

21st October 2026
Record farm exports overshadowed by growing drought disaster

By-laws vs. livelihoods: Barriers facing WC smallholder farmers

21st October 2026

Limpopo teen farmer turns dream into growing poultry business

CPAs urged to register for free governance support toolkits

Mogogelo farmers receive packhouse and cold storage facilities

Godongwana unveils fuel relief and R10 billion El Niño buffer

Potatoes and tomatoes plunge while avocado prices soar

Join Food For Mzansi's WhatsApp channel for the latest updates!

JOIN NOW!
Next Post
Control and prevent downy mildew on crops

Control and prevent downy mildew on crops

THE NEW FACE OF SOUTH AFRICAN AGRICULTURE

With 21 global awards in the first six years of its existence, Food For Mzansi is much more than an agriculture publication. It is a movement, unashamedly saluting the unsung heroes of South African agriculture. We believe in the power of agriculture to promote nation building and social cohesion by telling stories that are often overlooked by broader society.

Costa Rica’s banana battle offers critical field lessons for SA

Africa’s indigenous crops and youth are the secret to ending hunger

Agda conference: Why giving farmers land isn’t enough

Limpopo teen farmer turns dream into growing poultry business

How to protect poultry from damaging sticktight flea infestations

Eskort announces Herman Janse van Rensburg as group CEO

  • Awards & Global Impact
  • Our Story
  • Contact Us
  • Cookie Policy
  • Privacy Policy
  • Copyright

Contact us
Office: +27 21 879 1824
News: info@foodformzansi.co.za
Advertising: sales@foodformzansi.co.za

Contact us
Office: +27 21 879 1824
News: info@foodformzansi.co.za
Advertising: sales@foodformzansi.co.za

  • Awards & Global Impact
  • Our Story
  • Contact Us
  • Cookie Policy
  • Privacy Policy
  • Copyright

Chat Options

About this assistant

This feature generates automated answers summarised from Food For Mzansi articles. By using it, you are interacting with an AI system (provided by Google), not a human. AI can make mistakes. Please refer to the source articles for verification and citation purposes.

Our staff do not check or moderate Lerato’s answers in advance, but may review some later. Our journalists continue to write and edit all the articles Lerato uses as sources.

To estimate unique and returning web users, we store a random browser ID in this browser. WhatsApp users are counted by phone number. The same person using both channels may be counted twice.

I'm Lerato, your AI assistant!
No Result
View All Result
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought

Copyright © 2026 Food for Mzansi