NAMC backs small-scale farmer support in fresh produce markets reform

A recent commentary by the National Agricultural Marketing Council (NAMC) strongly endorses measures to address the persistent barriers facing small-scale and historically disadvantaged farmers in South Africa’s fresh produce markets. Authors Bernard Manganyi, Buhlebemvelo Dube and Naledi Radebe evaluate the Competition Commission South Africa’s Fresh Produce Market Inquiry, highlighting both opportunities and implementation challenges for meaningful transformation.

By Maile Matsimela

The NAMC commentary emphasises that small-scale and historically disadvantaged farmers continue to face significant barriers when it comes to accessing fresh produce markets. These obstacles include costly quality assurance requirements such as Global Good Agricultural Practices (GAP) certification, lack of water rights, municipal bylaw restrictions and limited access to commission systems.

According to the NAMC authors, the Competition Commission correctly identifies these structural challenges, which have persisted for nearly two decades. The Council strongly supports the Commission’s target of increasing annual sales by 10% for small-scale and historically disadvantaged farmers, but stresses that achieving this goal requires more vigorous enforcement mechanisms than previously implemented.

“Progress on transformation targets from our own 2006 Section 7 Report has been disappointingly slow,” note the NAMC authors, referring specifically to the goal of achieving 30% of volumes traded through black commission agents. This history underscores their emphasis on stronger enforcement measures and clearer implementation timelines.

NAMC Calls For Comprehensive Farmer Support Interventions

The NAMC recommends accelerating targeted support for small-scale and historically disadvantaged farmers through comprehensive interventions including capacity building, technical assistance, mentorship programmes and the establishment of databases to track progress on certification and water-licensing challenges.

The NAMC broadly supports the Competition Commission’s findings regarding operational inefficiencies in the national fresh produce markets (NFPMs). These markets suffer from inadequate funding mechanisms, poor infrastructure maintenance and governance issues that limit their ability to support transformation goals and effectively serve smaller producers.

The authors endorse several key recommendations from the Commission to address these structural issues:

• Transitioning NFPMs to corporatised or public-private partnership models with profits reinvested into infrastructure and training.
• Enhancing transparency and competition within the commission system to empower farmers.
• Revising the Agricultural Produce Agents Council’s regulatory role through amendments to the Agricultural Produce Agents (APA) Act.
• Implementing measures to improve price transparency in retail markets, particularly the “per 100 gram” pricing format.

These recommendations align with the NAMC’s own findings from its 2006 Section 7 Report, indicating that many challenges identified nearly two decades ago persist in the fresh produce sector despite previous reform attempts.

While supporting the Commission’s direction, the NAMC raises important cautions about implementation approaches. The authors note that capping commission fees, though well intentioned, could lead to unintended consequences such as hidden charges or reduced service quality. 

Implementation Challenges Require Careful Consideration

Instead, they propose a “sustainable, standardised commission fee formula” that balances the interests of all market participants.

Regarding retail price transparency, the NAMC supports improved pricing displays but warns about adoption challenges for smaller retailers with limited technological resources. The organisation recommends phased implementation to prevent undue burdens on smaller market players.

The NAMC highlights the technical complexity of building effective data-sharing systems, particularly those integrating supply and demand indicators, producer categorisation and traceability information. These challenges require careful planning and adequate resource allocation.

The authors further recommend a targeted approach for incentivising black economic empowerment compliance through capacity building rather than potentially disruptive financial measures. This approach recognises the delicate balance between encouraging transformation and maintaining market stability.

Collaborative Approach Essential For Lasting Transformation

Manganyi, Dube and Radebe emphasise that successful implementation requires collaboration between all stakeholders, including government agencies, market managers, commission agents, retailers and producer organisations. The NAMC positions itself as both a supporter of market transformation and a practical adviser on implementation realities.

The organisation warns against one-size-fits-all approaches, noting that different market centres face unique challenges requiring tailored solutions. The authors stress that time-framed implementation with clear milestones will be critical to addressing inefficiencies that have persisted for nearly two decades.

Read the full NAMC commentary.