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Abstract
National Fresh Produce Markets
(NFPMs) in South Africa are
an integral, although diminishing
part, of the price-making,
distribution and marketing of
fresh produce in South Africa.
There are 19 commissiondriven
NFPMs in South Africa,
with the Johannesburg Fresh
Produce Market (FPM) being
the largest (35% market share).
It should be noted that the four
largest NFPMs (Johannesburg,
Tshwane, Cape Town and Durban) represent more than
74% of turnover and volume
throughput at all NFPMs. Since
deregulation in 1996/1997, very
little volume growth has occurred
on NFPMs.
However, over the same
period, overall production of
fresh produce has increased
substantially. National production
figures for potatoes
show that NFPMs, including
Johannesburg FPM, have
steadily lost market share
since 1996/1997. However, the
most significant market share
loss for NFPMs has occurred in
the fruit sector. The performance
of NFPMs relative to
the production growth in the
agricultural sector indicates
that NFPMs are finding it difficult
to grow their operations
and respond to the challenges
of a deregulated agricultural
sector. Throughputs of most
of the smaller NFPMs indicate
downward trends.
1. Introduction
Fresh produce markets
within South Africa’s borders
fall under the management
of the respective municipalities
and are governed by the
laws of each. As the pressure
mounts for the need for modern
fresh produce marketing,
it is gradually impacting
on the FPMs. The necessary
changes that were essential,
did not take place, and it
became clear that the markets
did not have the incentives
or effort needed, in terms of
management (political bosses),
to enforce change. Privatization
became even more crucial
as it was now perceived as the
only answer to the problem. It
seemed logical that a privately
run market would not
be hamstrung by bureaucracy
and political inertia (Louw
et al, 2005; HSRC, 1990). South
African fresh produce markets
(FPMs) started out as meeting
places between producers and
consumers, where they could
trade under the control of a
government body or official.
These places were centrally
located and aimed at serving a
town and its hinterland. Economic development
led to the urbanization of
a large portion of the rural
population. This, in turn, led
to the development of central
markets that replaced local
markets serving a limited
geographical area. A central
market usually served two or
more towns. In 1967, a Department
of Agricultural Economics
report recommended the
formation of national markets
to separate markets of national
interest from those of local
interest. Fresh produce markets
include National Fresh
Produce Markets (NFPM) as
well as privately owned markets
not controlled in terms of
bylaws (NAMC, 2005; DoA, 2005).
The four largest markets of
fresh produce in South Africa
are Durban, Johannesburg,
Cape Town and Pretoria. The
four medium markets include
Bloemfontein, East London,
Pietermaritzburg and Port
Elizabeth, and the six smaller
markets are Kimberly, Klerksdorp,
Springs, Uitenhage,
Vereeniging and Welkom.
The fourteen markets were
controlled by the various
local authorities, who obtained
their powers to run the
markets from the provincial or
the central government. The
central meeting place was thus
replaced by an economic institution
that became the pivot
of South Africa’s distribution
network of perishable products.
At the moment, the large
majority of FPMs in South Africa
are owned and managed
by local authorities whom
seem to lack a clear vision in
terms of taking this business
forward.
While the larger FPMs are
still wholly owned by the
council, the smaller FPMs
have private companies in
top management and they
have all been ‘privatised’ to
some extent. All fresh produce
markets in South Africa are,
however, not driven by profit
motives, but rather to be a service
to communities (homes,
farms and the industry) (NAMC,
2000; HSRC, 1991). The role of
the fresh produce market
was (and still is) to provide
the necessary and obvious
facilities to compensate for
and cover the growing gap in
the market that was emerging.
The provision of these FPMs
was to allow for equal trade
opportunities for large scale,
commercialized producers and
smallholder farmers producing
small quantities of produce.
The implementation of these
markets started as a government
act.
They are legally bound to
allow anyone to engage in
trade without discrimination
based on size, colour or
origin. The FPMs have allowed
for small scale producers to
find a market and sell their
product easily, as the barriers
to entry into the market would
otherwise be near impossible,
as large corporate buyers
and marketing agents are not
interested in procuring small,
fluctuating quantities and/or
varying quality fresh produce
from these smallholders
(NAMC, 2000).
However, smallholder farmers
as well as the ‘previously
disadvantaged’ find it difficult
to supply to the NFPMs
because of lack of quality and
sustainable volumes. The topic
will highlights a number of
possible models with regard to
ownership and management
of NFPMs, namely:
• Department/business unit
option
• Corporatization
–Municipal entities
• Public entities
• Divestiture/private entity
• Municipal public–private
partnerships (PPPs)
• A combination of the above
2. Description
National and international
trends point towards the need
to separate ownership (land
ownership) and the management
(business) of fresh
produce markets in order
to achieve efficient business
practices. The rationale
underpinning this argument
is that research shows that
since 1999, very little volume
growth has occurred in
National Markets throughput,
despite substantial growth in
overall fresh produce production.
Therefore fresh produce
markets did not keep up with
the growth in the industry and
lost market share.
While the number of open
markets is increasing with
rising per capita incomes,
urbanization, and foreign and
domestic investment, there are
a number of transformations
are occurring in the Mexican
fresh fruit and vegetable marketing
system.
There are a number of new
entrants and new forces which
traditional marketing channels
have to adapt to. The past
decade has seen liberalization,
which has presented
participants in fresh produce
marketing with challenges and
opportunities. Retail chain
stores from the United States
and Europe such as Wal-Mart,
Price Club and others have
entered the Mexican market
often in partnership with
existing Mexican supermarket
chains.
The market environment
is changing. Small, specialized
shops and stalls —corner
stores, public markets, and
street stalls— that procure
produce from governmentbuilt
central wholesale
markets still account for a big
portion of total produce purchases.
But things are changing
rapidly, especially in the
northern Mexican states. The
supermarket chain format
embodies economies of scale,
improved quality standards,
cold chain management, and
centralized inventory optimization.
Supermarkets also
attempt to purchase produce
directly from producing regions, bypassing, and thus
threatening, the dominant
role of traditional wholesale
markets. Generally wholesale
markets are owned and managed
by the local authorities
and their staff.
In Brazil, the traditional
fresh produce market comprises
of a primarily physical
market channel served by a
large number of geographically-
dispersed small farmers; a
large number of wholesalers
who are based in the public
wholesale markets and work
in close proximity to one another
and are often inclined to
specialize their trade in their
in particular products; and
many small traditional retailers
including open-air market
vendors, corner markets, small
and medium-sized supermarkets
and food service firms.
Although government constructed
centralized facilities
for fresh produce procurement,
in recent times procurement
has shifted away from
the public wholesale markets
towards direct purchases
from production regions and
instituted more formal governance
of relationships with
suppliers (Farina and Machado,
1999). Firms are able to reduce
the marginal search costs of
produce acquisition as the
volumes of throughput grow
through subsequent economies
of scale even though
these investments involve
high startup costs (Mainville,
2004). The change in procurement
strategies has led to a
proliferation in the number
of specialized wholesalers,
working independently of the
traditional wholesale markets
and based in these areas.
These wholesalers are
known as classifiers and supply
retailers with differentiated
products and services at competitive
prices. South Africa
adopted the British markets
system in the early 1900s thus
there are many similarities
with regard to management
and ownership in the UK. All
wholesale markets in the UK
and many parts of Europe began
as a municipal institutions
and majority have remained
as such. There are however a
number of ownership models
and combinations. For
instance most of the local
authorities maintain ownership
of the buildings and the
market management is appointed
by them and on their
payroll. Almost all services on
the markets are outsourced
and most of the markets’ management
only consists of four
to ten persons.
The ownership of markets
varies but in all the cases the
owners of the land, buildings
and the management
remains in the hands of the
local authority. A few small
private markets have appeared
on the scene in the
last few years but not much is
known about them. Almost all
of the markets have private
shareholders. Some markets
have restricted shareholder
to wholesalers on the market
but other markets have sold
shares to the general public.
In most cases the market
owners retain the majority/
controlling shareholding.
Market agents act on behalf
of the producer and operate
freely on the market floor. The
market agents trade according
to the provisions of the Agricultural
Produce Agents Act
(No. 12 of 1992). A market agent
renders marketing advice and
services to the producers. The
agent is responsible for payment,
via a trust account, to
the producer for fresh produce
sold. The market agent is in
turn remunerated by the producers
on an ad valorem basis,
which may be up to 7.5% of
the gross value of the produce
sold. With regards to buyers,
i.e. retailers, wholesalers
and exporters, market agents
ensure suitable quantity, and
adequate and consistent supply
of produce is available for
each of the buyer categories.
In addition, agents assist with
the loading of bulk purchases.
Ownership and management.
National Fresh Produce
Markets (NFPMs) fall within
the sphere of local government
and are functional areas
of exclusive and administrative
municipal competence.
Since most of the municipal
services or functions contained
in Part B of Schedules
4 and 5 of the Constitution
(with the exception of basic
municipal services) appear to
be services or functions which
municipalities may elect to provide, it is also possible for
a municipality to decide not to
undertake a particular function
or service.
Due to the complicated
nature of the legislation and
the uncertainty around the
process and applicability of
Section 78 of the Municipal
Systems Act investigations
to various services, it has
been suggested that a Senior
Advocate be approached for
an opinion on this particular
matter. Municipal participation
in NFPMs. Section 156
of the Constitution provides
that a municipality may make
and administer bylaws for
the effective administration
of matters listed in part B
of Schedules 4 and 5 of the
Constitution. The view of a
number of stakeholders is that
current NFPM bylaws are archaic
and do not take account
of legislative and institutional
changes, and accordingly their
effectiveness is questioned It
is thus suggested that a new
set of bylaws be drafted in
terms of the current legislative
environment. Should a coordinating
body or institution
for NFPMs be established (as
recommended by the Section
7 Committee), the drafting of a
common set of bylaws for the
regulation of NFPMs by municipalities
throughout South
Africa would be an effective
way to regulate the industry
while ensuring a consistent
and uniform approach to
the regulation of NFPMs and
the implementation of the
coordinating body. In order to
achieve this it would be necessary
to undertake a nationwide
rationalization.
3. Benchmarking
with other countries
In Vietnam the dominant
marketing chain in Vietnamese
cities is the unstructured
and unregulated wholesalers
catering for retail markets
and hawkers that form the
major part of the fresh food
market structure. Vietnamese
consumers prefer to buy their
fresh foods in public “wet”
street markets or from street
hawkers. Despite the growing
market share of supermarket
chains in South East Asian
cities, fresh food purchases are
still done in wet retail markets
and Vietnam is no different as
wet markets are still very competitive
in terms of price and
freshness (Cadilhon, 2003).
However, there is evidence
of coexisting forms of different
marketing channels rather
than substitution of one by
the other. The government
program to regulate the market
by banning old wholesale
markets and through recent
frequent raids of hawkers in
wet markets has generally
contributed positively to the
growth of modern retailers in
Vietnam (Tam, 2004).
Previously, wholesale markets
were under state control
as government built and regulated
their activities. However,
the past 12 years have seen
the declining share of state
involvement in the retail sector
(Tam, 2004).
However, although the
rules and laws are important
constraints, informal constraints
may also explain some
aspects of economic activities
in Vietnam. Cultural and
social factors form part of the
latter institutions but have
been overlooked by fresh food
marketing studies in South
East Asia although they are
recognized as determinant
factors in other sub-sectors.
In the food markets of South
East Asian countries, trust is
an important component of
transactions and contracts between
parties to secure transactions
are rare and although
the courts exist, they are
powerless to enforce existing
agreements or are mistrusted
(Cadilhon, 2003).
Trading objectives of fresh
produce companies have
changed over the last few
years. Marketing and exporting
of fresh products is no longer to
obtain revenue for the nation
or hard currency for the whole
economy. It is now becoming
focused on meeting customer
needs and make profits for the
companies. Target markets are
being selected and some marketing
research is being done
in-house or by commissioning
marketing research agencies.
Marketing departments are
also being formed. Attention is
increasingly paid towards optimizing
the profitability of the
product mix and brand names
are becoming valuable. Europe
(including the UK) has several
kinds of markets including
Wholesale markets, Markets of
origin/distribution and street/
flea/retail markets. These are
reviewed in the subsequent
text. Unlike the situation in
RSA, traders on British fresh
produce wholesale markets are
all wholesalers.
The commission agent system
currently used in RSA (adopted
from similar European
systems in the 1900s) stopped
operating on their largest market
(New Covent Market) in
the early 1960s. Wholesalers’
operations include procuring
(taking possession of) produce,
placing them on their stands
in the market and reselling for
a profit. This stock of produce
is acquired from a wide range
of sources including direct orders,
through agents, brokers,
and importers. The produce is
mainly composed of vegetable
imports from Holland &
Belgium and fruits from USA,
Australia, South Africa and
South America.
To be continued
An essay does not have to be just words. You can add
photos, graphs, tables and even data straight from
Excel.
One of the great advances in computer programs was the
ability to insert information from one program into another.
If you write an essay in Microsoft Word, you can insert work
directly from an Excel spreadsheet where your data is. You
simply select the area that you want to insert, copy it, and
then paste it into your Word essay. It is simple.
Very few students actually do this. Seriously, inserting part
of an Excel spreadsheet into a Word essay should be extremely
common. Here are some examples...
Insert a table of
data that you
prepared in
Excel. The data
is much easier
to read in table
format. So instead
of just trying to explain the
table in your essay, include the
table. It makes it so much easier
for the reader to understand what
you are writing.
Insert any type of graph made in Excel. Just select the graph,
copy it and paste it into your essay.
Select the results of a regression analysis and just copy and paste
it directly into the essay.
Excel gives wonderful formats for tables,
which include borders and colors. They will
look great in your essays.
When we are part of a
group of students or a
group of employees and they
tell us that we have to work
with this or that document,
and we read it, we begin to
listen to colleagues who say:
Did you understand what the
article says? And answers like:
I read it several times and
nothing is understood.
To read a scientific document
there are methods such
as the American PQRST: Preview,
Question, Read, Speak,
Test by T. Staton and the
Spanish PLEMA: Pre-reading,
Reading, Outline, Memory,
Self-evaluation.
Someone out there will say:
the document what it says is
this, that and the other. In the
case of groups of students,
some student appears saying:
I already have everything
that had to be done. Many
ask themselves, deep inside:
What did he do to understand
everything said there?
Simple; Scientific documents
have structures that are
rarely taught and students and
employees learn as a result of
school or work.
We can ask ourselves. Why
during the studies they don’t
teach us to work with scientific
documents and they’re
expected we learn it only
by reading what we have to
study? The answer is that
many skills that are necessary
in learning are considered
acquired as a consequence
and they are not identified as
the first objective. There are
different intelligences, so that
each person has differences
with the others.
Given the situation that
occurs in learning, the United
Nations Educational, Scientific
and Cultural Organization
(UNESCO) formed an international
Commission to analyze,
in a general way, what
happened in it. The commission
was directed by Jacques
Delors and was officially
established in 1993.
The Report to UNESCO of
this International Commission
on Education can be seen
in the work published with the title: Learning treasure
within. From the study of this
Commission emerged very
important concepts such as
those that they called
The four pillars of education:
a) Learning to know
b) Learning to do
c) Learning to live together
d) Learning to be
They also established the
concept of Education
throughout life.
Pedagogy and Psychology,
at the end of the twentieth
century, were focused
on evaluation as a means of
obtaining the rapid results of
the educational process for
the development needed by
globalization or world trade.
Thus with world trade, the
problem of differences in educational
processes or curricular
designs of countries where
some enjoy better means than
others to achieve graduates
with greater scientific
knowledge arises immediately.
Therefore the study of the
UNESCO commission regarding
the Four Pillars that they
established and the concept
of Education for life was very
important.
As you have to learn to
learn one of the skills of learning
to learn is to learn to study
and learn to study is based on:
learning to read a scientific
document to explain and apply
that knowledge.
To read a scientific document
there are methods such
as the American PQRST: Preview,
Question, Read, Speak,
Test by T. Staton and the
Spanish PLEMA: Pre-reading,
Reading, Outline, Memory,
Self-evaluation.
We propose some elements
of the two methods that we
believe give better results, in
addition to what experience in
scientific work has allowed us
to identify.
1. Preview
a) See the titles and subtitles
of the document. Review the
prologue, index, graphs, reference
notes, bibliography and
the Scientists mentioned there
as to who they are.
b) Read the first line of
each paragraph and relate the
knowledge that we have about
the subject with those we are
reading.
c) Read what is the purpose
or objective of the
document that will be read
to guide thinking or rational
operations.
d) Read paragraph by paragraph
and underline the main
ideas.
e) Express in oral form the
ideas of the paragraphs that
we have already outlined.
f) Prepare diagrams or summaries
according to what we
are most capable of.
g) Read the underlined.
2. Read
Read paragraph by paragraph
relating the graphs, statistics
and conceptual maps,
if any.
3. Write
As an essay
a) Elaborate the central part
of the essay or body of the
work explaining each of the
concepts that we underline in
the Preview paragraphs.
b) Introduce the references
that we consider necessary
in the central part or body of
the work. Enter them in the
order in which they appear in
Preview.
In the references we must
choose one form of the four
in which they can be worked;
AIU suggests the APA Model
(American Psychological
Association).
c) Prepare, after finishing
the essay body, what will be
our introduction: explain in a
general way what the work is
about, mention the authors we
saw, mention in a general way
their contribution, write about
the difficulties we find, if is
that there were.
d) Write the bibliography
regarding the document that
we work with in the same
model chosen for the direct
or indirect quotations that we
work with.
We can think that doing all
these activities will take a long
time; it may be that this is the
case with the first document,
but with the exercise carried
out every time we have
to work on a document we
become experts and feel better
and better because of the
results we obtain.
If you are student your work
will be better every day and
you will feel more freely because
you learn not to depend
on others, you learn to be free,
independent and you will
feel very useful in supporting
them when you hear they say:
I don’t understand what this
document says.
You have to learn to
learn to be free from fear of
evaluations.
Learn to read and your
student life will be extraordinary
and you will become
part of the people who learn
throughout life enjoying the
pleasure of learning instead of
suffering.
BIBLIOGRAPHY. Delors, J. (2000). La Educación Encierra un
Tesoro. México: Correo de la UNESCO. | Banco Mundial. Comunicado
de prensa, septiembre 26, 2017. El Banco Mundial advierte
sobre una “Crisis del aprendizaje” en la educación a nivel Mundial.
http://www.bancomundial.org/es/news/press-release/2017/09/26/
world-bank-warns-of-learning-crisis-in-global-education | García -
Huidobro B. C. y otros (2005). A estudiar se aprende. Metodología
de estudio sesión por sesión. México: Alfaomega. | Olave – Arias,
G. y otros. (2014). Cómo escribir la investigación académica. Desde
el proyecto hasta la defensa. Bogotá: Ediciones de la U. | Organización
de las Naciones Unidas para la Educación, la Ciencia
y la Cultura (UNESCO), página oficial. Educación. http://unesdoc.
unesco.org/images/0024/002472/247234s.pdf