By Maile Matsimela
For many South African farmers – especially those transitioning from small-scale to commercial production – navigating the journey from field to market remains one of their greatest challenges.
At the recent African Farming Production and Financial Matters Workshop, held at the Tshwane Market, attendees received valuable insights from Boipelo Phale, the market development director, who offered a behind-the-scenes look at this vital agricultural hub.
As the second-largest of South Africa’s 16 national fresh-produce markets, the Tshwane Market plays a pivotal role in the regional economy, having processed an impressive R4,6 billion in the past financial year alone. But beyond the numbers lies a complex ecosystem, one that both emerging and established farmers must navigate effectively to succeed.
“Many people underestimate the significance of our market to the regional economy,” Phale told the audience. “We handle approximately R20 million worth of fresh produce daily, which adds up to around R430 million monthly.”
From the farmers who supply the produce to the agents who sell it, and from the transporters who deliver it to the processors who transform it, the market generates a ripple effect of economic activity across the entire value chain.
“Five percent of every transaction returns to the market as commission,” Phale said. “These funds are reinvested into infrastructure and city projects, creating a virtuous cycle of development that benefits everyone in Tshwane.”
Getting to know the system
For farmers new to the fresh-produce market system, Phale offered a clear explanation of how the relationships between key stakeholders work: “The market itself doesn’t buy your produce. We provide the infrastructure, oversight and systems that make trade possible. Market agents are your actual partners in sales – they connect your produce with buyers and manage the sales process.”
This three-way relationship operates through a carefully balanced commission structure: The market receives a 5% commission for providing facilities and oversight; market agents earn between 7,5% and 9% for their selling services; and the remaining proceeds go to the farmer, typically paid out within five to seven days after the sale.
“Think of us as the referee, the agents and your teammates,” Phale explained. “We ensure fair play and uphold the rules, while the agents actively work to secure the best possible price for your produce.”
This system offers security to farmers through built-in transparency and oversight. All transactions are processed through the Freshmark system, which generates a verifiable record, protecting both farmers and buyers.
The advantage of accessibility
One of the key advantages Phale highlighted was the relative accessibility of fresh-produce markets compared to other sales channels.
Phale noted that retailers often have extremely stringent requirements, ranging from certifications and on-farm inspections to strict grading standards and lengthy payment terms. “For many developing farmers, these hurdles are simply too high during the early stages of business development.
“We see ourselves as an entry point where farmers can build their commercial capabilities. Many successful commercial farmers who now supply retailers directly began their journey right here on our trading floor.”
How pricing works
Perhaps the most enlightening part of Phale’s presentation was her explanation of how pricing works within the market system – a source of both opportunity and occasional frustration for farmers.
“Prices are driven entirely by supply and demand,” she explained. “Unlike fixed contracts, market prices fluctuate daily based on what buyers are willing to pay for the available produce.”
Many farmers make the mistake of checking prices on a day when they’re unusually high, only to be disappointed when they deliver their produce two weeks later and find that prices have returned to normal, Phale explained. “Understanding price patterns over time is critical to effective planning.”
The market offers valuable historical pricing data that farmers can analyse before planting to identify the optimal timing for specific crops. “We encourage farmers to study the past three years of pricing data for their commodities. This helps you recognise typical seasonal patterns and make more informed planting decisions.”
Consistency is key
Throughout her presentation, Phale repeatedly emphasised that consistency was the single most important factor in achieving market success. “Buyers build their businesses around a reliable supply. They need to know they can count on getting quality produce in predictable quantities at regular intervals,” she stressed.
“The farmers who struggle most at the market are those who appear sporadically with unpredictable quality and quantity. Even if your volume is small, consistency builds a reputation, and that can lead to better prices and preferential treatment over time.”
The importance of packaging
Phale noted that packaging was one of the biggest stumbling blocks for developing farmers. “Using incorrect packaging creates problems on the trading floor and can even result in your produce being rejected.”
She advised farmers to consult with market agents before delivery to confirm current packaging requirements, budget properly for compliant materials, and view packaging as part of their marketing strategy – not merely a regulatory burden.
She added that the market occasionally steps in to mediate when tensions arise between farmers and agents. “In most cases, these issues stem from miscommunication about expectations.”
An ongoing educational journey
To maintain strong relationships with market agents, Phale advised that farmers should clearly document all agreements regarding services and commissions, maintain regular communication beyond delivery days, address concerns promptly before they escalate, and understand that the market can offer support if disputes arise.
She emphasised that successful market farmers develop a keen understanding of market dynamics and use this knowledge in their production planning. “The market publishes daily price information that’s freely available online. Farmers who consistently monitor these trends gain insights that inform everything from planting schedules to harvest timing.”
As she concluded her presentation, Phale stressed that the market was more than just a transaction point – it’s also a community and a place of learning.
“The market floor is where generations of agricultural knowledge converge. The relationships formed here can provide mentorship, practical advice, and business opportunities that extend far beyond individual sales.”
She encouraged farmers to view their market participation as part of an ongoing educational journey: to observe how other farmers present their produce, learn from agents about buyer preferences, build networks with transporters and service providers, take part in market-hosted educational events, and think of the market as a classroom for commercial agriculture.
“Some of South Africa’s most successful commercial farmers still visit the market regularly,” Phale said. “Not just to sell, but also to maintain relationships and gather intelligence that shapes their business decisions.”
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