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SA Competition Commission releases final report on fresh produce market inquiry

Date: Jan 14, 2025

South Africa’s Minister of Trade, Industry and Competition, Parks Tau, has welcomed the final report of the Fresh Produce Market Inquiry (FPMI), released by the Competition Commission.

The report outlines key findings and recommendations aimed at improving competition, transparency, and inclusivity in the country’s fresh produce market.

The inquiry, initiated in 2023, examined concerns about food pricing and market inefficiencies.

Mogau Aphane, Principal Analyst at the Competition Commission, explained, “Over the years, we have received concerns about food prices, especially during COVID-19, when investigations revealed high concentration levels in the market. These and other issues led to the establishment of the inquiry.”

One of the key findings was the inefficient functioning of national fresh produce markets. “These markets are not operating effectively, and our interventions aim to ensure they become more efficient,” Aphane said. The report also highlighted barriers faced by small-scale farmers and market agents.

“Only about 1% to 10% of fresh produce traded at these markets comes from small-scale farmers. They struggle with scale and lack the resources to produce volumes attractive to market agents,” Aphane said.

The report includes recommendations to improve transparency in retail pricing. “We’ve flagged the need for retailers to display prices on a per 100 kilograms basis, which some have already started implementing. This will enable consumers to compare prices and stimulate competition,” Aphane added.

Another critical recommendation focuses on supporting small-scale farmers. “Seed suppliers like Sakata have committed to developing small-scale farmers, which will help bring them into the mainstream economy,” Aphane said.

The report also emphasises the need for policy interventions by the Department of Agriculture and the Department of Trade and Industry. “There must be concerted efforts to drive transformation and ensure small players have a role in the value chain,” Aphane concluded.

Minister Tau commended the report, stating that its recommendations would play a vital role in addressing the challenges in the fresh produce market and promoting fairness and inclusivity for all stakeholders.

--ChannelAfrica--