Less than one percent of the total sales value in the national fresh produce markets comes from small-holder or Small, Micro and Medium Enterprises (SMME) farmers. This finding is part of the provisional report from the fresh produce market inquiry conducted by the Competition Commission.
The inquiry focused on five types of fruit and six types of vegetables including citrus fruit, spinach and potatoes. The purpose of the investigation was to determine whether any aspects of the fresh produce value chain hinder, limit or distort market competition.
The inquiry listed deteriorating infrastructure and inconsistent bylaws among challenges faced by smallholder farmers in gaining market access.
Deputy Commissioner Hardin Ratshisusu says, “The inquiry also found that SME (Small and Medium Enterprises) farmers particularly HDP (Historically Disadvantaged Persons) farmers find it difficult to sell their produce in the national fresh produce market despite being the least costly route to market.”
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Ratshisusu also noted that the retail sector showed high mark-ups on fresh produce and no new entries challenging the top four retailers.
He outlines that fresh produce prices lack transparency and the integration of small-scale farmers into supply chains is slow.
The inquiry found that most historically disadvantaged farmers and small-scale market agents don’t enjoy access to the major fresh produce markets.
Ratshisusu adds: “National fresh produce markets must put in place a programme for the introduction of new HDP market agents where there’s none and ensuring that HDP markets agents have access to highly traded produce, namely, potatoes, onions, tomatoes and bananas at all national fresh produce markets.”
The inquiry also found that the input markets for fertilizers, agrochemicals, and seeds are heavily reliant on imports, exposing the agricultural sector to global risks and currency fluctuations.
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