Fresh produce market inquiry wants sweeping reforms to address inefficiencies in sector
The inquiry was launched by the Competition Commission in 2023 following concerns that small and emerging farmers were struggling to break into the scene and a lack of transparency on pricing by retailers.
Packed vegetables, supermarket. Image: Fikri Rasyid on Unsplash
JOHANNESBURG - The fresh produce market inquiry has called for sweeping reforms to be implemented in a bid to address a range of inefficiencies in the sector.
The inquiry released its final report into an investigation on issues affecting the condition of the fresh produce markets across the country, including the big four in Johannesburg, Tshwane, Cape Town and Durban.
The inquiry was launched by the Competition Commission in 2023 following concerns that small and emerging farmers were struggling to break into the scene and a lack of transparency on pricing by retailers.
Chairperson of the fresh produce market inquiry, Hardin Ratshisusu, said that the value chain was flawed.
"Under the current models of modern food retailing, supermarket chains are not efficiently transmitting prices obtained from farmers to consumers for these produce categories. This suggests that competition in the fresh produce markets is not as competitive as it should be."
Ratshisusu said that transparent pricing was among more than 30 recommendations made by the inquiry on how to make the national fresh produce market more competitive.
"Disruption of the status quo requires dynamism through new and diverse, lower-cost models of retailing that allow greater pass-through farmgate and supply prices."