In a statement issued last week, Agriculture Minister John Steenhuisen expressed concern over the Matlosana Local Municipality’s inconsistent payments to fresh produce market agents, which had reportedly destabilised the market’s operations and led to arrears of R7 million in August this year.
This is despite a March 2021 high court order mandating the municipality to transfer 95% of daily produce sales revenue to registered agents within 48 hours.
According to the statement, the municipality’s continued non-compliance has led to market agents being forced to use their own trust accounts to cover municipal shortfalls.
Legal and financial predicaments
This has created a legal and financial dilemma for the agents. Under the Agricultural Produce Agents Act, 1992 (No. 12 of 1992), trust accounts may only be used to pay farmers whose produce was sold and to cover related authorised costs, such as agreed commission. At the same time, failing to pay producers within five business days puts agents in breach of the Act.
The statement said that the crisis had already prompted major suppliers to withdraw produce worth millions of rands, raising concerns about the market’s long-term viability and local food security.
As part of the efforts to resolve the matter, Steenhuisen wrote to Minister of Trade, Industry and Competition Parks Tau and Minister of Cooperative Governance and Traditional Affairs Velenkosini Hlabisa, alerting them to the municipality’s ongoing failure to comply with the court order.
According to the statement, Hlabisa indicated that the Department of Cooperative Governance and Traditional Affairs’ Directorate for Local Government Operations and Support met with Matlosana Fresh Produce Market representatives on 29 September 2025, and he expected to receive a report from the directorate soon.
Attempts to resolve the crisis
Steenhuisen also escalated the matter to the Agricultural Produce Agents Council (APAC), requesting an urgent and comprehensive regulatory response.
This includes assessing the municipality’s continued role in administering trust monies given its repeated breaches, implementing measures to protect agents and producers from further financial harm, and advising on potential enforcement actions or amendments under the Act.
However, speaking to Farmer’s Weekly, Francois Knowles, registrar at APAC, said the council’s hands were tied, as it only had jurisdiction over agricultural produce market agents, not municipalities.
“At this point, there is only one thing we can do, which we are already doing, and that is to ask nicely again and again, and beg for the municipality to make payments within 48 hours,” he said.
Knowles added that the Institute of Market Agents of South Africa took the municipality to court earlier this year as a matter of urgency, but despite the request, the court only scheduled the hearing for February.
Clive Garrett, marketing manager at ZZ2, said ZZ2 withdrew from the Matlosana market in August when they did not receive payment for produce sold for several weeks.
“We started sending produce to the market again about a month later, when it became evident that the situation had improved. But payments are still not as fast as they should be yet, but they are more regular,” he added.
Leonard Hattingh, market agent at Garfield Market Agents, confirmed that payment delays had now been shortened to about a week.
“Agents are in a difficult spot because of the delayed payments, but the saddest part of all of this to me is the damage the negative publicity will do to the market. People will read these stories and lose their trust in the market, even though it is not an isolated problem but also affects other municipal markets,” he said.
Knowles added that one of the problems with late payments was that they were often accompanied by neglect.
“Markets need good security; infrastructural maintenance of roads, floors, buildings, and equipment; good hygiene; and a strong management team to oversee operations and liaise with the municipality.
“Unfortunately, municipalities that struggle financially usually also have difficulties upholding these basic prerequisites for a well-functioning market,” he explained.
