How many investigations are required to achieve the desired reform in fresh produce industry?
By Dr Lindikaya W Myeki
If one begins to count from 1967, the fresh produce market system in South Africa has been in existence for more than 50 years. But the first serious market investigation began in 1995 by the Auditor General (AG), focusing on the Joburg market in response to complaints from farmers and the National Fresh Produce Forum.
This was succeeded by an additional report in 1996 from the investigation conducted by the Office for Serious Economic Offences (OSEO). Both reports from the two investigations made recommendations, but lacked information that could substantiate legal action.
As a result, three more market investigations into the affairs of fresh produce market system at national level followed, conducted by the National Agricultural Marketing Council (NAMC) in 1998, 2000 and 2006. But a number of questions arise from these investigations.
For instance, who has been in charge of monitoring the execution and accomplishment of recommendations? Are these recommendations legally binding or non-binding? Is there any report available showing the attainment of each recommendation? what about a report showing how each investigation has shaped the discourse on transformation in fresh produce markets? I doubt if we can get clear and complete answers to these questions.
Nonetheless, the Competition Commission of South Africa (CCSA) recently concluded the Fresh Produce Market Inquiry, and this can be regarded as the sixth investigation in a space of 30 years, since the first one in 1995. So then, how many investigations are required to achieve the desired reform in South Africa's fresh produce market system? This question, too, is difficult to answer because new changes and developments emerge over time, necessitating periodic investigations.
But given that most of the findings and recommendations on key issues such as market efficiency, management and ownership, price discovery and commission as well as the regulation of market agents have been cross referenced from one investigation to the next, I suspect that the answer to the question does not lie on the number of market investigations required but rather on implementation. It seems to me that we have been moving from one investigation to the next with very little to no implementation. To date, it is still not clear whether the targets set by NAMC investigation to be achieved in 2014 were met on not.
As I bring this to a close, I would like to point to the words of Russell Brand who says, “The revolution that's required isn't a revolution of radical ideas, but the implementation of ideas we already have”. So, my take is that the scope and depth of Fresh Produce Market Inquiry by CCSA are amazing, and the recommendations are excellent; but we need implementation. May I say a coordinated implementation rather than partial fragments of implementation here and there.
Dr Lindikaya W Myeki is a senior lecturer in the subject group Agricultural Economics and Extension. He is an expert in agricultural productivity and efficiency with great interest on the topic of fresh produce market system.
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