Less than 1% of sales at fresh produce markets come from SMEs - inquiry
The Competition Commission’s Fresh Produce Market Inquiry has found that less than 1% of the sales at fresh produce markets come from small-scale farmers.
The inquiry was launched to examine whether any features in the fresh produce value chain impede, restrict or distort competition in the market.
It focused mainly on five fruits and six vegetables, including apples, citrus, bananas, pears, grapes, potatoes, onions, carrots, cabbage, tomatoes and spinach.
The Commission's Deputy Commissioner Hardin Ratshisusu says small and medium enterprise farmers find it difficult to sell their produce at fresh produce markets despite it being the least costly route.
"The inquiry also found inconsistencies in the NFPMs bylaws. This is a particular concern, especially for SME farmers; the difference in trading hours, for example, may imply that certain farmers are not able to access their ideal markets and are forced to sell to markets close to them, therefore may lead to distorted competition between farmers," said Ratshisusu.
Ratshisusu says historically disadvantaged people and SME market agents find it difficult to enter and grow in the national fresh produce market.
"Where entry occurs, this is limited, or the survival rate is low. The inquiry also found high levels of concentration with respect to the market for market agencies operating at the national fresh produce market.
"Related to this, there is a concern about structural linkages between market agents. These structural linkages have an effect of chilling competition between market agencies in a highly concentrated market, regardless of the measure of concentration employed.”
The inquiry also found that the national fresh produce market infrastructure is in a dire state.
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