What is a Market?

A market is a place where people gather to engage in commercial activities, such as buying and selling provisions, livestock, and other commodities. It can also refer to an area or arena where commercial transactions take place.

Why do we have Fresh Produce Markets in South Africa?

A fresh produce market functions as a hub that brings together buyers and producers. Its primary purpose is to establish the daily prices of fresh produce through a price discovery mechanism. The market provides a competitive environment where buyers can negotiate prices and barter. It plays a crucial role in the sales process for producers and is one of the major channels for selling fresh produce in South Africa and Africa. Furthermore, it serves as a sales platform for fresh produce of varying sizes, volumes, quality, and grades.

In South Africa, Registered Market Agents sell produce on behalf of farmers. They are governed by the Agricultural Produce Agents Act No. 12 of 1992 (amended 2003) which prescribes, amongst other requirements, how they will handle the farmer’s money. These agents register with the Agricultural Produce Agents Council (APAC) and after complying with certain requirements of Act 12 can open for business. By reacting to the laws of supply and demand on a daily basis, fresh produce commission markets remain the purest form of price establishment available to farmers and buyers.