Regulated versus Unregulated?

May 4, 2012 No Comments

The Cape Town Market is a commission fresh produce market regulated by statute. The commission is set at 12½% for all produce except potatoes, which attract a lower commission.

Cape Town Market has many competitors, none of which are regulated but mimic the Cape Town Market model, but for a lesser commission.

Customers need to be clear about the advantages of dealing with a regulated entity and that dealing with a competitor of the Cape Town Market is not necessarily the cheapest or sensible option

Headline issues that deserve consideration include:

  • Cape Town Market is regulated by statute and by the Agricultural Producer Agents Council (APAC)
  • APAC protects the interests of the farmer by:
  1. Registering market agents and salesmen and ensuring that they are fit and proper individuals
  2. Require market agents to process all financial transactions through a trust account and to submit monthly returns to APAC for inspection
  3. Require market agents to submit reports to the farmer if fresh produce is not sold within 3 days of receipt
  4. Require market agents to account to the farmer with the sale proceeds within 5 days of sale of the consignment
  5. Operating a fidelity fund that will reimburse a farmer for losses as a result of dishonesty by a market agent or salesman
  • Cape Town Market is a commission market where the price of fresh produce is established through supply and demand and where every transaction is transparent to the farmer
  • Cape Town Market has tracked prices over defined periods and more often than not over the period achieves superior prices to its competitors
  • Cape Town Market pays its farmers infinitely more quickly than its competitors thus substantially reducing the cost of absent money to the farmer
  • Cape Town Market conducts daily stock and static stock checks in order to ensure that fresh produce is carefully monitored and secure
  • Cape Town Market is a secure and pleasant environment for everyone and probably the only fresh produce facility in the region offering a full basket of fresh produce to buyers
  • Buyers at the Cape Town Market include the national supermarkets, wholesalers, shop keepers, restaurants and hawkers
  • Cape Town Market is obsessed with service to the farmer and was the first fresh produce market in the world to introduce Service Level Agreements during 2010
  • Cape Town Market will be introducing Service Level Agreements between the market agent and farmer during 2012
  • Farmers are shareholders in the Cape Town Market and sit on its board of directors