The African Farmers Association of South Africa (Afasa) has expressed support for the recently released report by the Competition Commission on the Fresh Produce Market Inquiry.
Jabulani Mthembu, Afasa president, said the findings of the report align closely with the objectives of the Agriculture and Agro-Processing Master Plan (AAMP).
Challenges within the national fresh produce markets
He said the report highlights a long-standing challenge within the National Fresh Produce Markets (NFPMs). This includes the declining volumes of fresh produce being sold.
“Over the years, we have observed with concern, like all other role-players, the inability of the NFPMs to assist small and medium scale farmers — the majority of whom are black — in accessing markets.
“This statement is supported by the Competition Commission’s finding that there is evidence that the volumes of fresh produce being sold at the NFPMs have been steadily declining over the years.
“As Afasa, we believe that understanding of underlying factors that contribute to this trend is important. And we would like to be part of the solution,” said Mthembu.
Success in the agricultural sector
He commended the Competition Commission for addressing key enablers of success in the agricultural sector. These factors include resolving policy ambiguities and fostering an investment-friendly environment. Also emphasising the need for critical infrastructure development such as electricity, roads, railways, and ports.
He said these steps are seen as essential for expanding markets, improving access, and boosting trade opportunities.
“As early as 2006, the National Agricultural Marketing Council (NAMC), initiated a study into the national fresh produce markets. And this investigation was followed by a report. This was prompted by what was seen as the slow pace of transformation at the level of the NFPM.
Most recommendations not implemented
“One of the key challenges was market access challenges faced by black farmers, and declining competitiveness and efficiency of NFPMs. We are deeply concerned as Afasa that 18 years down the line, few recommendations from this investigation have been implemented,” said Mthembu.
The report was released and handed over to the Minister of Trade, Industry, and Competition, Parks Tau, on Monday.
This means that Tau should present this document in parliament. He needs to do so within the 10 days from which report was handed over to him.
