Economy

Competition Commission identifies barriers in SA fresh produce market

Date: Jan 13, 2025

The South African (SA) Competition Commission's Fresh Produce Market Inquiry has revealed significant barriers to competition within the fresh produce value chain.

The inquiry, which aimed to uncover market features that impede, distort, or restrict competition, found several concerning issues affecting the industry.

One of the key findings was the high mark-ups on supermarket sales and pricing compared to what suppliers are paid for selected products. This discrepancy highlights the challenges suppliers face in receiving fair compensation for their goods.

Despite the fresh produce market's annual value exceeding $2 billion, the participation of historically disadvantaged farmers remains minimal, further exacerbating inequality within the sector.

Deputy Commissioner of the Competition Commission, Hardin Rantshisusu, presented the findings of the inquiry in Pretoria.

"The Inquiry has identified barriers to competition across the fresh produce value chain as well as features of the market that impede, distort, or restrict competition. These concerns pertain to the following, Inefficient municipal fresh produce markets, inefficiencies in the value chain, 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," Rantshisusu explained.

The inquiry's findings underscore the need for comprehensive reforms to address these barriers and promote a more equitable and competitive fresh produce market. By tackling inefficiencies and regulatory obstacles, the Commission aims to create a more inclusive environment that supports the growth and participation of small-scale and historically disadvantaged farmers.

--SABC/ChannelAfrica--

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