Pretoria: The Minister of Trade, Industry and Competition, Parks Tau, has welcomed the Fresh Produce Market Inquiry (FPMI) report released by the Competition Commission on Monday. The inquiry began on 31 March 2023 and assessed the fresh produce value chain across three main themes, including the efficiency of the value chain, concentrating on fresh produce market facilities; market dynamics of key inputs and their impact on producers, and barriers to entry, expansion and participation.
According to South African Government News Agency, the inquiry mainly focused on five fruits, namely, apples, citrus (notably oranges and soft citrus), bananas, pears and table grapes, along with six vegetables, including potatoes, onions, carrots, cabbage, tomatoes, and spinach. These products are staples in South African households.
The report is seen as a significant step toward addressing the challenges faced by the fresh produce market. It highlights the need for greater transparency and competition, particularly for small-scale and historically disadvantaged farmers who have been marginalized in this sector, Tau stated.
The report identifies several challenges in the fresh produce value chain, such as inefficient municipal fresh produce markets, inefficiencies in the value chain, the conduct of fresh produce market agents, high input costs (particularly for certain fertilizers and seeds), regulatory obstacles, and systemic barriers to entry for small-scale, emerging, and historically disadvantaged farmers.
At least 31 recommendations and remedies were outlined in the report. ‘We hope that the recommendations set forth by the Commission provide a roadmap for creating a more equitable and inclusive fresh produce market. It is essential that we act on these findings to ensure that all farmers, regardless of size or background, have fair access to market opportunities,’ Tau said.
The full report, including recommendations and remedies, is available on the Commission’s website at https://www.compcom.co.za/fresh-produce-market-inquiry-final-report-launch.
Source: South African Government News Agency