R1bn lost as South Africa’s fresh produce markets deteriorate

South Africa’s Presidential Envoy on Agriculture and Land met with the key stakeholders in the National Fresh Produce Markets environment on Thursday with concern about conditions of certain fresh produce markets and a lack of maintenance
South Africa’s Presidential Envoy on Agriculture and Land met with the key stakeholders in the National Fresh Produce Markets environment on Thursday with concern about conditions of certain fresh produce markets and a lack of maintenancePicture: Supplied

South Africa’s Presidential Envoy on Agriculture and Land met with the key stakeholders in the National Fresh Produce Markets environment on Thursday with concern about conditions of certain fresh produce markets and a lack of maintenance. The meeting was in Pretoria, at the National Agricultural Marketing Council Head Office. Experts have also raised concerns.

Wandile Sihlobo, South Africa’s Presidential Envoy on Agriculture and Land, said that the dialogue was triggered by the prevailing deterioration of the conditions of certain fresh produce markets. “We had the Departments of Agriculture, Land Reform and Rural Development, Competition Commission, amongst others. Some of the key stakeholders included ZZ2 Group, RSA Group, IMASA, BFAP, and SA Union of Food Markets. Such issues not only drive farmers and other stakeholders away, but also pose food safety risks.

Sihlobo added that in some instances, the deterioration has led to litigation among stakeholders, underscoring the value placed on these markets.

“In our reflections, above all, stakeholders agreed that the National Fresh Produce Markets remain the “national treasure” in their role in price discovery and ensuring affordable food supplies for South Africans.”

Sihlobo said that revamping the Fresh Produce Markets will only improve their contribution to society and serve farmers, agents, government, informal traders, and consumers well and efficiently.

“We deliberated on a range of interventions that are essential to this revitalisation, and all stakeholders will play a collaborative role. In the coming months, we will be working on this process.”

Sihlobo added that in essence, this work is part of the government’s Agriculture and Agroprocessing Master Plan, which centres on inclusive growth, job creation, and food security.

“I thank all the stakeholders who participated in the discussion. Their inputs enriched our reflection and planning. We look forward to continuing this essential work. R1 Billion is being lost in revenue every year due to the deterioration of the national fresh produce markets.”

Professor Simphiwe Madikizela, senior lecturer in economics at UNISA's School of Graduate Business and Leadership, said that the deterioration of the national fresh produce markets is an unfortunate situation in that the facilities were allowed to deteriorate and not being proactively maintained as the cost will not be much higher compared to a scenario of continuous maintenance that is planned periodically over time.

“It’s of critical and crucial importance that facilities such as these ones dealing with food are maintained and kept to the acceptable standards as issues of food safety and risks are significant.”

Madikizela added that it’s also equally concerning that some of these matters had to reach courts in terms of litigation amongst stakeholders.  

“It’s important that there is a deliberate effort to work on the relationships with the different role players involved to foster partnerships and collaboration to ensure the sustainability of these important national treasures that play a very important role in the agricultural sectors, a primary sector that has a lot of potential to contribute to addressing the challenges of youth unemployment in our country.”

Madikizela concluded that it's encouraging that the deliberations have taken place and there is a plan to implement the necessary interventions hopefully with a sense of urgency as speed in implementation cannot be overemphasised to realise the intended objectives. “We remain positive and confident that these matters are addressed much sooner than later.”

Dawee Maree, head of agriculture information and marketing at FNB, said that from what he understands from clients, there is definitely reason for concern, and that is also well documented over time.

“There are also differences in the markets. Joburg Market, for example, is still well maintained and operating. Tshwane Market is definitely deteriorating and so are other smaller markets. This definitely creates certain problems for the industry as per the message below.”

Maree added that one must add that the importance of the municipal markets must not be underestimated.

“Apart from the link that it creates between the farmer and the consumer, it also acts as a transparent price-discovery mechanism. It enables formal market participation for informal businesses/vendors and is therefore a very important job creator and crucial link towards food security. Investment in municipal markets should therefore be encouraged.

yogashen.pillay@nationalmg.co.za

THE NATIONAL