Producers purchase equity in Cape Town Market

September 1, 2006 No Comments

In September 2006 consortium of producers and growers associations have concluded an agreement with Cape Fresh International, the owners of the Cape Town Market, under which the consortium will purchase 26% of the equity and voting rights in the Cape Town Market

Under the terms of the agreement the consortium, which comprises Du Toit Vrugte, Lebombo, Philippi Farmers Association, Potato South Africa, Tomato Growers Association, Wilde Klaver and ZZ2, will appoint two non-executive directors to the Board of the Cape Town Market and will be represented on the various committees of the Board

Cape Fresh International and the consortium will collectively develop and manage the Cape Town Market as a commission market where the pivotal role of the Market Agent continues to be recognized and entrenched. The Cape Town Market has committed itself to the Producers Charter which mandates that the market be developed, managed and coordinated to ensure that price formation based on free market principles be maintained and developed to the benefit of producers and consumers alike

Cape Fresh International will retain its BEE status and all shareholders remain committed to the provision of opportunity for the historically disadvantaged citizens of Cape Town

Announcing the agreement, Philé Van Zyl, spokes person for the consortium, said

            “The national fresh produce markets are controlled by the local authorities. It is long overdue for these institutions to become privately owned and commercially managed”

Rob Lowe, CEO of the Cape Town Market, said

            “This agreement is an extremely important step in the complete transformation of the Cape Town Market.  Our objective is to restore the market as an attractive route to market for our producer customers. I look forward to the wisdom and guidance that our new shareholders will provide and I am very excited that we are the first major market to have given the opportunity of ownership to our clients”

Rob Lowe, CEO of Cape Town Market and Mr Philé Van Zyl from ZZ2