The Fresh Produce Market Inquiry conducted by the Competition Commission identifies suppliers of fertiliser, agrichemicals and seeds as part of the problem surrounding competition in the South African market.
The Inquiry conducted its assessment according to three themes that cover the entire fresh produce value chain: The market size of the domestic market in South Africa is currently estimated at over R53 billion annually, with about R21 billion for fresh produce sold at national fresh produce markets and about R32 billion at formal retail.
“Some questionable practices of the market agents were also uncovered. These practices have the likely effect of distorting market outcomes. To resolve instances of practices such as stock reservation and credit sales, the industry regulator together with the markets must play an active oversight role,” Ratshisusu says.
In the seeds industry, the Inquiry found instances of companies charging farmers exploitative prices as the inquiry noted that price increases for certain seeds popped up where these firms have high market share.
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