Alternative marketing options for small-scale farmers in the wake of changing agri-food supply chains in South Africa

TLDR

South Africa’s rapidly urbanising population has made supermarkets and fast‑food chains dominant food system actors that now bypass spot markets, sourcing fresh produce through in‑house procurement firms that favour selected suppliers. The study aims to expose how market changes may continue to exclude small producers from mass consumer markets. Using a series of case studies, the authors show how small‑scale farmers can be integrated into urban retail markets and how the challenges of the evolving food system can be addressed. The case studies demonstrate initiatives that integrate small‑scale farmers and agribusinesses into mainstream agri‑food systems, serving as models for profitable inclusion, and underscore the need for a multi‑actor approach enabling farmers to join the supply chain at any channel point.

Abstract

Abstract With South Africa's urban population approaching 60%, supermarkets and fast food chains have become important players in the South African food system. These large players in the food sector have systematically modified their procurement practices especially with regard to fresh fruit and vegetables and are now circumventing spot markets in favour of sourcing via in-house sourcing companies who mainly procure from preferred supplier producers. This paper draws extensively from a global research programme which seeks to highlight the market changes that potentially contribute to continued exclusion of the small producers from mass consumer markets. This paper illustrates, through a series of case studies, how integration of small-scale farmers into the urban retail market can be facilitated and how the challenges posed by the changing food system could possibly be overcome. The case studies illustrate various initiatives through which small-scale farmers and agribusinesses can be integrated into mainstream agri-food systems and may be used as models for an innovative approach to include small-scale farmers while still maintaining profitable business operations. They highlight the need for a multi actor approach for the successful participation of smallholder farmers in order to allow them to join the supply chain at any point within the channel.