The National Agricultural Marketing Council (NAMC) has indicated that smallholder farmers in South Africa are finding it difficult to establish a presence in markets predominantly occupied by Johannesburg, Cape Town, Tshwane, and Durban. The council's Smallholder Access Estimates (SMEAs) for Q2 this year showed revenue and volume fluctuations for fruits and vegetables from June to August 2024, highlighting the various challenges and opportunities these farmers encounter.
An increase in total revenue was observed, moving from approximately $32.4 million in June to $40.1 million in August, suggesting an uptick in market activity. Yet, over 84% of this revenue was concentrated within four major markets, emphasizing the necessity for improved access for smallholder farmers, who often lack the resources to compete in such environments.
The SMEAs report revealed that vegetables generated an average revenue of around $20.7 million, with potatoes, onions, and tomatoes being the primary contributors, making up nearly 80% of the total revenue. The volume of produce averaged 579,000 tons, with potatoes accounting for a significant 44.13%. Despite these promising figures, the situation for smallholder farmers is more complex.
In the fruit sector, average revenue was about $10.7 million, with bananas and apples contributing 28.18% and 17.71% to the SMEAs, respectively. Johannesburg held the largest market share for fruit at 44.78%.
The Competition Commission's Fresh Produce Market Inquiry Provisional Report highlighted that small, medium, and micro enterprises (SMMEs) make up less than 1% of the proceeds in the National Fresh Produce Markets (NFPMs).
A study among 16 farmers revealed equal gender representation and an average age of 53. Market access indicators varied, with those closer to markets reporting higher satisfaction. However, transportation issues, inadequate storage facilities, and unfavorable market prices were significant obstacles. These challenges necessitated support in areas such as advanced farming equipment, reliable transport, and improved storage solutions to better market access and competitiveness.
Source: IOL