An analyses of fresh produce market trends in KwaZulu-Natal to enhance decision making.

Abstract

A lack of access to market information remains one of the key contributors to higher costs of transacting that are faced by small-scale farmers in South Africa. Access and participation in formal agricultural markets remains low amongst this group of farmers, despite government’s investment in marketing infrastructure through establishment and refurbishment of national fresh produce markets in various regions of the country. There are two national fresh produce markets located in the KwaZulu-Natal province, these are the Pietermaritzburg fresh produce market and the Durban fresh produce market. The aim of this study was to analyze trends in KwaZulu-Natal Fresh Produce Markets (KZN FPMs) over the period of five years from 2012 to 2016. From these trends the study will calculate and present simple price elasticity of supply for both fruits and vegetables traded in these markets. This research will also propose ways in which the quarterly fresh produce market bulletins that are produced and published by the KwaZulu-Natal Department of Agriculture and Rural Development (KZN DARD) can be improved in both content and ways of distribution of information. This research used a quantitative approach for data analysis, utilizing descriptive statistics on fresh produce market volumes and price records that are obtainable from the KZN Department of Agriculture and Rural Development on a monthly basis. Descriptive statistics provided trends for the markets’ data and the annual price elasticity of supply for the top five traded fruits and vegetables for both markets was calculated for the five year period 2012 to 2016. The results show that vegetables in both markets are largely price inelastic except for tomatoes which were price elastic with respect to supply. Majority of the top five traded fruits in both markets also show price inelasticity of supply except for apples and pears in the Durban market and organs and peaches in the Pietermaritzburg market which were estimated to be price elastic. The recommendation from the study is that the KZN Department of Agriculture and Rural Development can enhance its market information services by including the calculated price elasticities of supply in their quarterly fresh produce market information bulletins. It is further recommended that the department of agriculture considers other means of market information distribution such as using information and communication technology tools like cellular phones and visual media.