The Minister of Trade, Industry and Competition, Parks Tau, has welcomed the Fresh Produce Market Inquiry (FPMI) report released by the Competition Commission on Monday.
The inquiry began on 31 March 2023 and assessed the fresh produce value chain across three main themes, including the efficiency of the value chain, concentrating on fresh produce market facilities; market dynamics of key inputs and their impact on producers, and barriers to entry, expansion and participation.
The inquiry, on the main, focused on five fruits, namely, apples, citrus (notably oranges and soft citrus), bananas, pears and table grapes, along with six vegetables, including potatoes, onions, carrots, cabbage, tomatoes and spinach. These products are staples in South African households.
“Although we have just received the report and have yet to apply our minds, our experience with the preliminary findings is that the outcomes of the FPMI are a significant step towards addressing the challenges faced by our fresh produce market.
“The report highlights the need for greater transparency and competition, particularly for small-scale and historically disadvantaged farmers who have been marginalised in this sector,” Tau said.
READ | Inquiry makes recommendations to improve competition in fresh produce market
The report lays bare some of the challenges in the fresh produce value chain, including:
- Inefficient municipal fresh produce markets;
- Inefficiencies in the value chain;
- The conduct of fresh produce market agents;
- High input costs (particularly for certain fertilisers and seeds);
- Regulatory obstacles, and
- Systemic barriers to entry for small-scale, emerging and historically disadvantaged farmers.
The report outlined at least 31 recommendations and remedies to be addressed.
“We hope that the recommendations set forth by the Commission provide a roadmap for creating a more equitable and inclusive fresh produce market. It is essential that we act on these findings to ensure that all farmers, regardless of size or background, have fair access to market opportunities,” Tau said.
The full report, including recommendations and remedies, is available on the Commission’s website at https://www.compcom.co.za/fresh-produce-market-inquiry-final-report-launch. – SAnews.gov.za
