
Inclusive market strategies could transform South Africa's fresh produce sector
The fresh produce sector stands at a critical crossroads. While it remains an engine of economic vitality and nourishment for the nation, it also starkly reflects persistent inequalities.
Large-scale commercial farms continue to dominate, yet many small-scale black farmers face systemic barriers that limit their access and growth.
Despite its vast potential for driving inclusive economic growth, food security, and employment, the sector's viability is threatened by deep-rooted structural challenges.
Systemic barriers facing emerging farmers
The challenges confronting emerging farmers are deeply embedded in dynamic systemic impediments and structural issues that are multifaceted. Among the most urgent concerns are the multilayered barriers to entry that these farmers face.
Access to suitable land and affordable financing remains a critical obstacle. Without sufficient capital, many aspiring farmers find it impossible to invest in essential inputs such as quality seeds, fertilisers, and modern equipment. This financial limitation not only restricts their productivity but also hinders their ability to compete effectively in the marketplace.
Market access is another significant hurdle that many small-scale and emerging-scale commercial farmers struggle to overcome. These farmers often find themselves sidelined from formal supply chains dominated by large retailers and wholesalers.
The stringent quality and certification standards imposed by these large entities can be overwhelming, leaving many small farmers unable to meet the required benchmarks.
As a result, they become increasingly marginalised and excluded from lucrative market opportunities. The power dynamics within the agricultural sector tend to favour large buyers, effectively stripping small producers of their bargaining power and further entrenching their economic vulnerability.
Infrastructure and post-harvest losses
Infrastructure deficiencies further exacerbate the challenges faced by emerging farmers. Inadequate storage facilities and poorly developed transportation networks lead to substantial post-harvest losses, which not only diminish farmers' income but also discourage future investment in their operations.
The lack of reliable infrastructure creates a detrimental cycle characterised by low productivity and limited market participation, trapping these farmers in a state of perpetual struggle.
Moreover, anti-competitive practices within the agricultural sector distort the market landscape.
Market concentration, where a handful of large entities control a significant share of the market, can result in price-fixing and other exclusionary behaviours. Such practices stifle innovation and limit consumer choice, collaterally undermining the viability and sustainability of small-scale farming operations.
Addressing these interconnected challenges requires a concerted effort from all stakeholders, including government, private sector actors, and civil society organisations.
By advocating for policy changes that promote equitable access to resources, improving infrastructure, and fostering a more inclusive market environment, we can work towards empowering emerging farmers and ensuring their essential role in the agricultural sector is recognised and supported.
Key interventions for sector transformation
Addressing these deep-rooted problems requires a collaborative public-private partnership environment that enables and promotes concerted effort from all stakeholders.
Here are some key interventions that could help to foster a more equitable and thriving fresh produce sector:
• Policy reform: Government policies must play a central role in levelling the playing field. This includes strengthening competition law enforcement to prevent anti-competitive practices and creating a regulatory environment that supports smallholder farmers.
• Infrastructure investment: Investing in rural infrastructure is critical. This means improving roads, storage facilities, and market infrastructure to reduce post-harvest losses and facilitate market access for farmers.
• Inclusive market development: Creating more inclusive market systems is vital. This could involve promoting alternative market channels, such as farmers' markets and community-supported agriculture, and encouraging retailers to source produce from small-scale farmers.
• Empowerment and inclusion: Special attention must be paid to the inclusion of marginalised groups, particularly women. Addressing gender inequalities in access to land, finance, and markets is crucial for unlocking the full potential of the sector.
South Africa's fresh produce sector has the potential to be a powerful engine for inclusive growth and development. By addressing the systemic challenges and fostering a more equitable environment, we can create a sector that not only feeds the nation but also empowers its most vulnerable citizens.
'At Kagiso Trust, we believe transforming South Africa's fresh produce sector requires a systemic approach. Through our SED work, we support emerging farmers via policy engagement, aggregator partnerships, catalytic funding, and inclusive infrastructure solutions.
"We are enabling access and building towards a more inclusive and resilient food system," says Quinton Naidoo, head of socio-economic development, Kagiso Trust
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Zawya
2 hours ago
- Zawya
Furthering Implementation of the Peace Agreement Between the Democratic Republic of the Congo and the Republic of Rwanda
In support of implementation of the Peace Agreement Between the Democratic Republic of the Congo (DRC) and the Republic of Rwanda (Rwanda) signed in Washington, D.C. on June 27, 2025, the United States hosted two sets of meetings on July 30 through August 1, 2025, focused on implementation of the security aspects of the agreement and building a framework for regional economic growth opportunities, which together are critical to achieving long-term stability and durable peace in the Great Lakes region. This bilateral initiative is designed to unlock the immense economic potential of the Great Lakes region made possible only through the implementation of the Peace Agreement. On August 1, representatives from the DRC and Rwanda, facilitated by the United States, initialed the text of the Regional Economic Integration Framework Tenets, a requirement outlined in the Peace Agreement. Through joint coordination in areas including energy, infrastructure, mining, national park management and tourism, and public health, the DRC and Rwanda will drive economic progress and improve the lives of people and the communities where they live across the Great Lakes region. Also on July 31, DRC and Rwandan delegations held the first meeting of the Joint Oversight Committee to support implementation of the Peace Agreement Between the DRC and Rwanda, observed by the United States, the State of Qatar, the Republic of Togo (as the African Union facilitator) and the African Union Commission. The Committee serves as a platform for implementing the Peace Agreement and resolving disputes. At its first meeting, participants appointed Chairpersons to the Commission, agreed to governing terms, and prepared for the launch of the Joint Security Coordination Mechanism. This week's meetings represent a significant step forward in implementing the Peace Agreement, with the DRC and Rwanda taking meaningful actions to advance security and economic cooperation. The United States reaffirms its commitment to supporting these efforts and, as the parties make progress implementing the Peace Agreement, looks forward to hosting the Summit of the Heads of State in Washington, D.C., to drive peace, stability, and economic prosperity. Distributed by APO Group on behalf of Department of State, United States of America.

Zawya
17 hours ago
- Zawya
Ambassador Gao Wenqi Attends the Working Meeting between Leaders of Export-Import Bank of China and Ministry of Finance and Economic Planning of Rwanda
AFRICA On July 31, Ambassador Gao Wenqi attended the working meeting betweenYang Dongning, Vice Governor of Export-Import Bank of China and Hon. Yusuf MURANGWA, Minister of Finance and Economic Planning of Rwanda. Both sides exchanged views on promoting the trade, economic and financial cooperation between China and Rwanda. Distributed by APO Group on behalf of Embassy of the People's Republic of China in the Republic of Rwanda. Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an 'as is' and 'as available' basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release. The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk. To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages. © ZAWYA 2025

Zawya
17 hours ago
- Zawya
South Africa: Cooperative Governance and Traditional Affairs (COGTA) Chairperson Concerned by Closure of Emfuleni Local Municipality Client Service Centre
The Chairperson of the Select Committee on Cooperative Governance and Public Administration (Traditional Affairs, Human Settlements and Water&Sanitation), Mr Mxolisi Kaunda, is concerned by reports of the closure of the Emfuleni Local Municipality client service centre due to unpaid rent. 'The closure of the client service centre negatively impacts the ability of the municipality to collect rates and taxes, a key driver of municipal revenue. The inability to collect revenue will have an unintended negative impact on the ability to deliver quality services to the people,' Mr Kaunda said. The 6th Parliament select committee visited the municipality and criticised the lack of progress in resolving material risks of governance and financial control within the municipality, which exacerbate the already dire state of poor service delivery. Furthermore, the continued attachment of the municipality's bank accounts by service providers, such as Eskom and Rand Water, due to non-payment for services requires a focused and deadline-driven approach. 'While it is not sustainable that the accounts of the municipality are attached, it is also unsustainable that the municipality does not pay for services. The residents of the municipality deserve better basic services in line with the objects of municipalities as envisioned in Section 152 of the Constitution,' Mr Kaunda suggested. The Chairperson also highlighted the importance of government departments paying the municipality for services to improve cash flow management and enable the municipality to provide services. The Chairperson called on the municipality and the provincial executive to find a workable solution to ensure that the client service centre is reopened and that service providers are paid on time. Distributed by APO Group on behalf of Republic of South Africa: The Parliament.