‘Poor management has led to Tshwane market deterioration’
The market was established in 1918 on Church Square, formerly Strydom Square, then moved to 250 President Burger Street in 1964 where it is today.
The Institute for Market Agents of SA (Imasa) has blamed the decline of the Tshwane fresh produce market on poor management.
Imasa chairperson Julian van der Nat said over the past 10 years, the 100-year-old market has spiralled downwards on “mostly health, safety and maintenance” issues.
The market was established in 1918 on Church Square, formerly Strydom Square, then moved to 250 President Burger Street in 1964 where it is today.
He said leaking toilets at the market posed “a severe health risk for a place that sells food” and Imasa believed its management and ownership must be separated to optimise operations.
“The market must have its own board of directors, all money ring-fenced and used for the market’s upkeep and future capital expenditure requirements. The remaining profit can be paid to the council.”
Van der Nat said the market was a huge business generating about R170-million a year, yet the metro treated it “like any other department”.
“A few large buyers already left the market for other markets, and still more are threatening to leave.”
He said the current management had to focus on growing the market.
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“We estimate, conservatively, that it could take at least R500-million a year turnover more if we are to have proper clean and well-maintained facilities.”
He said the R500-million would translate to a R25-million income to the metro.
“The market is beneficial to the metro as it supplies most of the community; however, it is more beneficial nationally.”
“It’s the second largest market in the country and an integral part of the national price-forming mechanism. If it does not function well, the whole fresh produce industry suffers. Countless farmers, their workers and families, buyers and the general public will suffer,” he said.
He said currently the market was earning a stable income because of agents’ hard work.
“They bend over backwards to accommodate their buyers and farmers in an environment that is dilapidated and very unsupportive for good business.”
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Metro spokesperson Lindela Mashigo, however, said because the metro was working on a turnaround strategy for the market, it did not mean it was suffering and on the verge of collapse.
“Turnaround strategies are not only meant to rescue institutions or companies that are showing signs of collapse,” he said.
“It can be done to enhance performance and get institutions to be better responsive to clients’ or stakeholders’ requirements.”
“That is the case with the market.”
Mashigo said the metro intended to get the market fully compliant with legislation and perform at its optimum.
He said the turnaround strategy would, amongst others, focus on compliance with occupational health standards, repairs and maintenance, safety and security as well as consignment control.
Mashigo said the market promoted access to food for locals and therefore supported food security.
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“Over 1 000 people are employed by different businesses operating in the market. This figure excludes council employees, making it a key contributor to employment in the metro.”
He said there were a number of businesses dependent on the market such as fresh produce retailers and hawkers, packaging retailers, informal waste recyclers, caddies (trolleys and pallet jack operators) and forklift mechanics.
He said the in the 2018/19 financial year, the market turned over R3.3-billion.
Mashigo said there were no immediate plans to upgrade the facility, however, “the market management has expressed the need to consider expansion of the facility in the medium to long term”.
He said the metro had not included such expansion in its approved plans.
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