Deregulation and the free market system have made the local fresh produce market the success it is today. Gerhard Uys spoke to Lindie Stroebel, general manager of the Produce Marketing Association Southern Africa.
The Competition Commission (CompCom) recently raided the offices of fresh produce market agencies at the Johannesburg and Tshwane markets after allegations of price-fixing surfaced. However, some industry leaders have said that this was the result of CompCom not understanding how fresh produce markets in South Africa operate.
SA’s fresh produce markets allow for fair and transparent price formulation, and market agents enable market access for all producers and buyers, said Lindie Stroebel, general manager of the Produce Marketing Association Southern Africa.
“The free market system shaped our fruit industry into the success it is today,” said Stroebel.
“After deregulation in 1996, the industry had to improve its quality, systems and technology and find new markets for products.
“Many farmers could not keep up, but those who could are now world-class export producers. This would not have happened in a regulated market.”
Price is not determined at a market; it is discovered.
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