Legal updates and opinions
Author
News / News
Market Inquiry: South African Fresh Produce Market
by Ahmore Burger-Smidt, Director and Head of Data Privacy and Cybercrime Practice and member of the Competition Law Practice and Nyiko Mathebula, Associate
The Competition Commission of South Africa (“the Commission“) has published the draft Terms of Reference regarding its intended market inquiry into the Fresh Produce Market. Interested parties have until 25 April 2022 to submit written submissions to the Commission.
The Commission is of the belief that the Fresh Produce Market may have features that impede, distort, or restrict competitiveness within that market. As such, it intends to investigate the whole value chain of the fresh produce industry from the input level to end-user consumption. This includes role players such as –
| LEVEL IN VALUE CHAIN | EXAMPLE |
| INPUTS | Seed & fertilizer companies; farm equipment suppliers; agrochemical companies |
| PRODUCERS | Large‑scale producers and small‑scale growers |
| WHOLESALE | Produce Markets (national fresh produce markets) |
| INTERMEDIARIES | Exporters and processors |
| WHOLESALE‑RETAIL | Distribution centres |
| RETAIL | Formal and informal traders |
| CONSUMERS | Local consumers and foreign market consumers |
Part of the Commission’s concerns centres around the cost of fresh produce (i.e., price) and barriers to entry for fresh produce farmers (especially small‑scale and emerging farmers). On a broad level, the Commission deems it necessary to canvass the following –
- the efficiency of the value chain;
- market dynamics and impact of key inputs for growers;
- small and HDP growers and participation; and
- barriers to entry in relation to the regulatory environment.
Consequently, the comment period presents an opportunity for role players in the fresh produce industry to participate in this process and help shape the focus of the South African Fresh Produce Market Inquiry. In so doing, the eventual thinking and understanding of the issues that the Commission will be investigating can also be shaped.
For more details, contact us at aburgersmidt@werksmans.com or pkrusche@werksmans.com.
Competition Law e-Learning Tool
Find out more about our Competition e-Learning tool.
Latest News
Bafana Bafana’s World Cup qualification hanging by a thread
by Brendan Olivier, Director and Daniel Gewer, Candidate Attorney Bafana Bafana's prospects of taking to the field at next year's [...]
ESG, the key to sustaining the construction sector?
by Justin Duarte, Candidate Attorney, reviewed by Natalie Scott, Director and Head of Sustainability and Jennifer Smit, Director and Head [...]
SME cashflow threats: ensuring that your security offers a protection against payment default
by Brendan Olivier, Director It's becoming all-too-common: an SME that provides goods and services on credit to a major supplier [...]
SME cashflow threats: ensuring that your contracts are worth more than the paper they are written on
by Brendan Olivier, Director When a key commercial supplier, or valued customer that is benefiting from long-standing payment terms and [...]
The Road Ahead: The SCA Gives Green Light to Vehicle Lenders “On the Road Fees” Under the NCA – Subject to Strict Disclosure Requirements
by Armand Swart, Director In a recent judgment, the Supreme Court of Appeal ("SCA") considered if, in terms of the [...]
You can’t have it both ways: Contractors who act like businesses must live with the consequences
by Bradley Workman-Davies, Director When you run your work as a business, invoice for your services, and elect to [...]
