Competition Commission to start an inquiry to investigate the fresh produce market


By Tshegofatso Makola

The cost of living is evidently on the rise for South Africa as socio-economic factors among other issues both in the country and externally have resulted on the increase in prices for many essentials including fresh produce. To better aid the public in understanding this, the Competition Commission formally launched its Fresh Produce Market Inquiry (FPMI).

The formal launch comes as the Competition Commission had published a government gazette last month detailing the inquiry.

According to the Commission, the inquiry is to examine whether the chosen features of the fresh produce sector impede, restrict or distort competition in the market. It will further examine the pricing of these products that land in our stores in relation to this.  following the publication of the final terms of reference for the inquiry. For the purposes of the inquiry, the commission will focus on five kinds of fruits and six kinds of vegetables

The inquiry is set to see the FPMI focus on five different fruits and six different vegetables which account for over 70% of the production and sale of fresh produce and related products throughout the country.

Among the fresh produce chosen for the inquiry include:
  • fruits: apples, bananas, citrus, pears and table grapes
  • vegetables: cabbage, carrots,onions, potatoes, spinach and tomatoes
This inquiry has been probed by studies published in 2021 , which revealed how high prices of fresh produce have a disproportionate effect on people who are poor or earn a low-income, as they were more prone to spending most of their income on essentials.

What studies and records of the Commission also reveal is that of 1,254 excessive pricing investigations during Covid-19, 713 of them related to basic food and fresh produce.

With the inquiry set to begin at the end of the month, the commission has identified three themes that cover the entire fresh produce value chain:

  • Efficiency of the value chain, with an emphasis on the dynamics around fresh produce market facilities.
  • Market dynamics of key inputs and its impact on producers.
  • Barriers to entry, expansion, and participation.

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Competition Commission

fresh produce

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