Final fresh produce inquiry pins low level of transformation on farming environment

The Competition Commission released its final report on the Fresh Produce Market Inquiry in mid-January, maintaining that transformation in the industry was being impeded by a lack of support for emerging farmers.

- Lindi Botha

The Competition Commission's (CC) recently released final Fresh Produce Market Inquiry (FPMI) report maintains many of its findings from the provisional report, most notably that participation by historically disadvantaged persons (HDPs) in the fresh produce industry is being impeded by crumbling municipal market infrastructure, high barriers to entry, and lack of support.

The final report is, however, inconclusive as to whether retailers are implementing undue markups on fresh produce, but found that their procurement practices towards small-scale farmers were fair.

The inquiry into fresh produce markets began in March 2023 to assess why participation by HDPs was low and if prices were being distorted, resulting in lower prices for small-scale farmers, while raising prices for consumers.

A provisional report was released in June 2024 and comments were collected from stakeholders for the final report. In the final report, 31 practical recommendations were proposed.

FRESH PRODUCE MARKETS

A large focus was placed on the role that dilapidated national fresh produce markets (NFPM) played in preventing HDP farmers from succeeding. The inquiry found that the public-private partnership (PPP) model on which the Cape Town market was based was the best model. The Cape Town market was the only one not in a state of decline.