Dilapidated markets, loadsheddding, undriveable roads, and high health and safety compliance costs have been listed as reasons for the lack of transformation in South Africa's fresh produce industry.
The Competition Commission released its Fresh Produce Market Inquiry (FPMI) provisional report on the state of the fresh produce industry in mid-June after a 14-month investigation. The purpose was to examine whether competition in the market was being restricted and whether historically disadvantaged persons (HDPs) and small-scale producers were being purposely kept off the playing field.
While the report provides recommendations to address identified issues, it lacks concrete solutions to tackle the systemic problems at the root of the issues. Instead, it lists recommendations that largely focus on forcing the inclusion of more players in the market, without detailing how those players will get up and running amid a host of infrastructure challenges.
The report is also being criticised for trying to shift blame to successful farmers and market agents, while acknowledging that all role players are being burdened by a challenging business environment.
TRANSFORMATION
The FPMI showed that less than 1% of the gross value of sales in the national fresh produce markets (NFPMs) comes from smallholders. Not only do new entrants find it difficult to get their produce onto the market, but their survival rates are low. Hardin Ratshisusu, deputy commissioner of the commission, said that the barrier to entry for small-scale producers was high, and that access to financing was challenging since these farmers did not have water rights.
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Denne historien er fra July 05, 2024-utgaven av Farmer's Weekly.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Why fish farms fail, and how to avoid becoming a statistic
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THE HITCHING POST
I'm a stylish elderly lady with a radiant glow and a good sense of humour that keeps me young at heart.
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In their paper on high-density grazing in Southern Africa, professors Angelinus Franke and Elmarie Kotzé from the Department of Soil, Crop and Climate Sciences at the University of the Free State say high-density grazing systems may not accurately reflect natural ecosystems. Roelof Bezuidenhout reports.
Global grain outlook: 2024/25 marketing season
In its latest summer crops report, the Crop Estimates Committee says South African farmers intend to plant 4,47 million hectares of summer grains and oilseeds in the 2024/25 season, up 1% from the previous season. As South Africa exports maize and soya bean, Annelie Coleman reports on the latest trends in the international grain and oilseed markets, amid fluctuations in weather conditions and ongoing armed conflicts.
