Fresh Produce Sector Poised for Transformation Through Inclusive Market Strategies and Equity-Driven Reform

The country’s fresh produce sector, while a cornerstone of the economy, reflects persistent inequalities. Large-scale commercial farms continue to dominate, while many small-scale black farmers face systemic barriers to entry, limiting their growth and ability to compete.

Barriers to market access

Emerging farmers struggle with access to suitable land and affordable financing, which hinders their ability to invest in essential inputs such as fertilisers, seeds, and equipment. As a result, productivity remains low and integration into formal supply chains becomes difficult.

Strict certification and quality standards required by major retailers and wholesalers often exclude small-scale producers, reinforcing the power imbalance in favour of larger buyers. This limited access further weakens the bargaining power of emerging farmers.

Infrastructure and anti-competitive practices

Poor rural infrastructure — including limited storage facilities and underdeveloped transport links — contributes to high post-harvest losses. These losses reduce profitability and discourage further investment, creating a cycle of low productivity and market exclusion.

Meanwhile, anti-competitive behaviour and market concentration distort the sector further. When a small number of large players dominate market share, pricing power, and market access become even more elusive for small producers.

Proposed interventions

A systemic, collaborative approach between government, private sector actors, and civil society organisations is seen as critical to addressing these challenges. Key interventions include:

• Policy reform: Enforcing competition law and supporting smallholder-friendly regulation.• Infrastructure investment: Improving rural roads, storage, and market facilities to reduce losses and improve access.• Inclusive market development: Encouraging alternative channels such as farmers’ markets and community-supported agriculture.• Equity and inclusion: Promoting gender equity and ensuring marginalised groups, especially women, have access to land, finance, and markets.

Kagiso Trust's approach

"At Kagiso Trust, we believe transforming South Africa’s fresh produce sector requires a systemic approach," says Quinton Naidoo, head of socio-economic Development at Kagiso Trust.

"Through our SED work, we support emerging farmers via policy engagement, aggregator partnerships, catalytic funding, and inclusive infrastructure solutions. We are enabling access and building towards a more inclusive and resilient food system."

With the right policy, investment, and inclusive frameworks, South Africa’s fresh produce sector could become a more equitable and thriving space — one that feeds the nation and empowers its most vulnerable producers.