I’ve always been fascinated by the inner workings of our economy, and the fresh produce sector is no exception. It’s not just about the food on our plates—it’s about how it gets there, who benefits, and whether the system truly works for everyone. That’s why the recent Fresh Produce Market Inquiry caught my attention. Let me break it down for you.
The inquiry, led by the Competition Commission, has unveiled some eye-opening findings about South Africa’s fresh produce market. With a value of around R53 billion annually (excluding informal sales and exports), this sector holds enormous potential. Yet, its challenges remind us why transformation is so crucial.
A DIVE INTO THE VALUE CHAIN
The inquiry, which began in March 2023, scrutinised three key areas:
- The efficiency of the value chain, including fresh produce market facilities.
- The impact of key inputs, such as fertilisers and seeds, on producers.
- Barriers to entry and participation, especially for emerging farmers.
At the heart of the findings is an unsettling reality: historically disadvantaged farmers and market agents remain underrepresented. Deputy Commissioner Hardin Ratshisusu summed it up perfectly, calling this lack of inclusion “a stark reminder of the sector’s historical inequities.”
THE PRODUCTS WE ALL RELY ON
The inquiry focused on staples we all know and love—fruits like apples, citrus, bananas, pears, and grapes, as well as vegetables like potatoes, onions, carrots, cabbage, tomatoes, and spinach. Despite their importance in South African households, inefficiencies in the supply chain mean these items often don’t reach consumers as cost-effectively as they should.
WHAT’S HOLDING US BACK?
Six major issues were flagged:
- Inefficient municipal fresh produce markets.
- Value chain inefficiencies.
- Questionable practices by market agents.
- High input costs, particularly for fertilisers and seeds.
- Regulatory obstacles.
- Systemic barriers for small-scale and emerging farmers.
These hurdles mean smaller, independent farmers—especially historically disadvantaged ones—struggle to break into formal retail markets or even national fresh produce markets. As Ratshisusu pointed out, this limits not only their growth but also our ability as a nation to create a more dynamic and inclusive economy.
A FAIRER FUTURE
The report doesn’t stop at identifying problems; it proposes solutions. Among its 31 practical remedies are policy reforms, market restructuring, and targeted support for smaller farmers. One idea that stood out to me is exploring a mandatory code of conduct to ensure fairer treatment of farmers within retail value chains. This could be a game-changer for many.
FOR THE CONSUMER
Here’s where it gets personal: as consumers, we’re not immune to these inefficiencies. The inquiry found instances of high mark-ups at supermarkets for certain fresh produce items. While slim net margins show that supermarket operations are costly, it’s clear that prices aren’t being efficiently passed from farmers to us. This needs to change.
MOVING FORWARD
What I love about this report is its optimism. It’s not just about pointing fingers but creating a roadmap for real change. By addressing entrenched challenges, we can build a fresh produce market that works for everyone—from the smallest farmer to the largest retailer, and ultimately, to you and me, the consumer.
This isn’t just about economics; it’s about economic inclusion. As Ratshisusu said, the findings reflect the Commission’s commitment to fostering competitive markets that drive growth, transformation, and broader socio-economic objectives.
Let’s embrace this opportunity for change. After all, a thriving fresh produce market benefits us all—at the checkout counter, in our homes, and across the nation.