A whole new introduction to fresh produce market
South Africa produces a wide range of fruits and vegetables. Some of the major
fruits produced are citrus, pineapples, avocados, bananas, mangoes, litchis and
grapes. Moreover, of the total vegetable crops produced, about 50% is delivered to
fresh produce markets and a further 18% as processed. Potatoes make up around
40% of vegetable farmers' gross income while tomatoes, onions and sweet corn all
contribute about 38%. However, to meet the burgeoning demand for fruits and
vegetables, the industry should exhibit a compounded growth rate of about 10%
annually.
With the rising health consciousness, there is also an increasing consumption trend
towards varieties of off-season fruits, which are usually met by rising imports. For
vegetables, like potato, there is the recent trend of growing consumption especially
among the middle-income group in South Africa. The crops, such as potatoes,
tomatoes, onions, sweet corns, beetroots, apples, citrus, grapes, bananas, litchis,
peaches, pineapples, and avocados are some of the major fruits and vegetable
crops identified with great market growth potentials in South Africa.
The competitive rivalry is high for the fruit and vegetable market, with the presence
of large number of players from small scale, like farmers, to hypermarkets in South
Africa.
There are about 30 fresh produce market agents in the country however. There are
six significantly big ones and they account for about 80 percent of the fresh produce
intermediaries. Most retailers buy their products from the Johannesburg Market
which is the largest wholesaler of fresh produce. There are other fresh produce
market intermediaries between farmers and buyers of freshly produced fruits and
vegetables in South Africa. They include companies like Botha Roodt Group,
Subtropico, RSA Group, Dapper Market Agents, DW Fresh Produce, Farmers Trust,
Noordvaal Market Agents, Marco Fresh Produce Market Agency, and Wenpro
Market Agents most based in Johannesburg and Pretoria