NFPMs are an integral, although diminishing part, of the price-making, distribution and marketing of fresh produce in South Africa.
There are about 18 National Fresh Produce Markets (NFPM’s) in SA which are owned by the Municipalities. A small number of private Fresh Produce Markets also exist.
The four largest NFPMs are: Johannesburg, Tshwane, Cape Town and Durban which represent more than 74% of turnover and volume throughput at all NFPMs.
The Joburg Market (JM) is the largest Fresh Produce Market in terms of the volume traded on the market floors and the revenue generated.
The JM accounted for 47.7% of the revenue generated in 2014/15 while the second largest market “Tshwane” accounted for only 21.8%.
The trend in fresh produce marketing is from the traditional wholesale markets towards supermarket chains.
The NFPM’s operates on a commission business model with Agents and suppliers (farmers) at the centre of trade.
The NFPM’s operates on a commission business model with Agents and suppliers (farmers) at the centre of trade.
Market agents are regulated by the APAC Act no 12 of 1992 as amended.
Agents are further required to be registered and follow the code of good practice in conducting their business.
According to the Act, Agents are supposed to charge 7.5% commission of the commodities traded and the market authorities charge 5%.
Noteworthy is that 90% of the produce in the NFPM emanates from commercial farmers while 10% is sourced from black farmers.
Food quality assurance at JM is composed of three components namely, Food Safety, Quality Control and Laboratory Service as indicated below.
Food quality assurance at JM is composed of three components namely, Food Safety, Quality Control and Laboratory Service as indicated below.
Black producers are assisted to comply with Food Safety Standards (FSS).
Black producers are assisted to comply with Food Safety Standards (FSS).
Quality of food received for sale is assessed to determine compliance with national regulations e.g Agricultural Products Standards (APS) Act and Joburg Market protocols
To determine compliance with Maximum Residue Levels (MRLs) as prescribed by national regulations - Foodstuffs, Cosmetics and Disinfectants Act (FCD Act).
To determine compliance with Maximum Residue Levels (MRLs) as prescribed by national regulations - Foodstuffs, Cosmetics and Disinfectants Act (FCD Act).
The JM conduct monitoring and testing for chemical residues on produce received for sale.
Tests are conducted to check:
Insecticides
Fungicides
Herbicides
Producers are given notifications on their products.
JM is experiencing an increase in the participation of black farmers who trade on the market floors.
JM is experiencing an increase in the participation of black farmers who trade on the market floors.
However, there is a tendency of black producer’s dis-appearance from the market systems.
The problem of dis-appearance is linked to many constraints that affect producers such as less volume, quality of the produce, lack of transport, value adding facilities e.t.c.
JM is directly addressing some of these problems through its market access programs.
JM is further exploring future direct interventions in the areas of logistics and value adding facilities to increase black producer’s participation.
To achieve this objective more collaborations and partnership is required from all the developmental institutions and departments.
