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Fresh produce markets are a treasure, but the way they are being run is going to lead to a collapse, leading to the doubling or tripling of food prices which will have a devastating impact on the poorest South Africans. This is according to Clive Garrett, marketing manager of ZZ2, South Africa’s largest tomato producer.
ZZ2 is one of several producers that has not received payment for produce in a timeous manner from the Matlosana National Fresh Produce Market, formerly known as the Klerksdorp Market – the only fresh produce market in North West province.
In July, ZZ2 stopped sending produce to that market when the company’s accounting team informed Garrett that they (ZZ2) had not received payment for produce sold in weeks. “We then stopped sending loads to the market and although they have made the payments in the meantime, I’m now terrified to send any new products to that market. And I’m not the only grower,” Garrett says.
This non-payment has escalated to the point that the Institute of Market Agents of South Africa (Imasa) will be taking Matlosana National Fresh Produce Market to court today. The same organisation has also taken the Tshwane Fresh Produce Market to task – a matter that has now escalated to the point that high-ranking officials could be jailed if they don’t improve market conditions.
Read more about Jailtime looms for unruly Tshwane officials.
Market functioning
Garrett explains that farmers send produce on consignment to fresh produce markets, which means that the produce remains the farmer’s property until the produce is sold. Market agents serve as a middleman to find a willing buyer for the willing seller’s property. These agents work on a 7,5% commission basis. The municipality is paid a 5% commission on all goods sold. In turn the municipality needs to take care of the market’s amenities (water, electricity, cleaning the facilities, storage, etc.).
Once a deal is reached, the money is paid over by the buyer to the municipality, which then has to pay the money (minus their 5% commission) over to the market agent. The agent then pays the money (minus their 7,5%) to the farmer. In other words, for every R100 that is paid for produce, R5 will go to the municipality, R7,50 will be paid to the market agents, and the farmer will keep R87,50. This has to happen at the latest five days after produce was sold.
As transparency is key, everybody who is part of the transaction can observe the flow of money, and that is why ZZ2 knows that the money was paid to the municipality, but the municipality did not pay the agents.
National treasures
Garrett says South Africans should not undervalue the importance of the country’s fresh produce markets for keeping food prices low. “South Africa’s free market system is functional thanks to these fresh produce markets. When there are not enough potatoes, tomatoes, or whatever on the market, it gives farmers an indication of what to plant and to plan accordingly.”
If these markets were to collapse, they will most likely be replaced by wholesalers. “A wholesaler buys in bulk at the lowest possible price and then sells again at the highest possible price. This will wreak havoc on food inflation,” Garrett warns.
It is a myth to think that supermarkets hold all the power when it comes to prices, he adds. “ZZ2 has a 50% tomato market share, and we sell 85% of our produce through fresh produce markets. Only 15% goes to retail.” Therefore, prices truly are made on market level, but South Africa’s municipalities are slowly destroying these facilities, Garrett warns. “The poorest of the poor will end up suffering.”
To court!
Francois Knowles, registrar of the Agricultural Produce Agents Council (Apac), says similarly to the Tshwane market situation, the Matlosana payment lag is worrying. “If a producer isn’t paid timeously, it influences his financial position, and we are concerned how that impacts his cash flow.”
South African producers must have full confidence that the money transacted at a fresh produce market has been securely ringfenced in a trust and that it is protected from theft, Knowles adds. “This is similar to money that’s paid into a trust at a lawyer’s office for the purchase of a house.”
According to the wording in the Agricultural Produce Agents Act, 1992 (Act 12 of 1992), the market needs to pay out any transacted money to the market agents “forthwith”. “This means immediately,” Knowles says. A market agent then has an obligation to pay a producer within five days after the first produce has been sold. “If an agent does not comply, he is in the wrong and Apac needs to reprimand him. However, if the reason for the delayed payment is outside of the agent’s hands, the source reason needs to be addressed.”
DA uncovers more rot
During a routine oversight inspection by the Democratic Alliance (DA) on 6 August 2025 at the Matlosana National Fresh Produce Market, they were shocked by the state of the market under the ANC-led administration. This is according to a press release issued by Johannes le Grange, DA councillor for Matlosana.
There were no functional or clean toilets available for workers or visitors on the market floor, forcing people to resort to unsanitary alternatives. The floor-cleaning machine has been in disrepair for two years with no effort made to repair it, leaving the market in a filthy state — arguably one of the dirtiest in South Africa.
“Only 20% of the fruit-ripening refrigeration plant is operational, forcing major suppliers — including some of the largest banana suppliers — to divert their products to other markets,” according to Le Grange. Additionally, market agents are now being forced to tender to keep their businesses, without any consultation, placing their contracts with suppliers at risk. Le Grange also highlighted the issue with regards to non-payment.
“These complaints were formally brought to the attention of MMC for Local Economic Development (LED), Wesley Kgang, who has failed to take corrective action,” he said, adding that Kgang replaced the previous MMC, Moagi Kodisang, who was found guilty of stealing fuel from the market. Le Grange also said vandalism at the market is extensive. “Not a single door is intact, and security is nearly non-existent.” – Susan Marais, Plaas Media
(Editorial comment: This is a developing story that will be updated as more information becomes available.)
