Share

Competition Commission takes on fresh produce market agents

Cape Town - The Competition Commission on Wednesday said that the 50-year-old practice by fresh produce market agents of charging fixed commissions to farmers amounts to price fixing. 

The commission, which carries out investigations into allegations of unfair business practices, said it had referred 14 fresh produce market agents to the Competition Tribunal, after carrying out an investigation into how agents pay farmers. 

The tribunal adjudicates on matters relating to business competition.

The 14 agents, members of the Institute for Market Agents of South Africa (IMASA), face charges of price fixing and fixing trading conditions. 

Not small potatoes

In a media statement, the commission said it investigated the agents, who serve as fresh produce intermediaries between farmers and buyers, following a complaint lodged by the Department of Agriculture Forestry and Fisheries (DAFF).

DAFF’s original complaint noted that previously disadvantaged market agents were not able to compete effectively within the market. 

It said that following an investigation in Pretoria, Johannesburg, Cape Town and Durban in March, it discovered that agents were charging fixed commission fees. 

These were 5% to 6% for potatoes and onions, 7.5% for "all other fruits and vegetables", and up to 9.5% for "all fruits and vegetables delivered to them by farmers without pallets".

The Commission said that that practice of charging a fixed commission fee was enforced by the institute. “In addition, the practice has been in place for over 50 years and is ongoing,” it said. 


SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.0%
Rand - Pound
23.90
+0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
+0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent-ruolie
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders