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In South Africa, it works like this: - Farmer - Fresh Produce Market (for most around 8% agent fee + 8% market fee = 16%; for potatoes it is 5% + 8% for histo
by mikorym 6y ago
In South Africa, it works like this:
- Farmer
- Fresh Produce Market (for most around 8% agent fee + 8% market fee = 16%; for potatoes it is 5% + 8% for historical reasons)
- Supermarket (40%–60% fee)
So in our case the middle men are not that significant compared to the supermarkets. I know the situation is different for cooperatives, but they are either export orientated or in separate markets like wine or grain, both not considered fresh produce.
Cutting out the FPM actually tends to increase the end cost to the consumer as they tend to be higher value products to start out with. Typically it's berries, naartjies or apples and not staples like potatoes. But like I mentioned above, this is something that changes a bit every year.
Another interesting thing is that in rural areas you can cut out the supermarket instead, as many people like buying directly from the market or buying from people who resell it with small bakkies (pick-ups) to street sellers:
Farmer -> Market -> Pick-up truck reseller -> Street reseller
In the case of resellers on the street, I think they charge anywhere from 10%–70% commission, but it's difficult to say as these are all informal cash transactions.