Overseas markets are different

In the past, I’ve highlighted the differences between our markets and overseas ones – for example, commission selling versus wholesaling. There are other differences too.
Issue date:9 January 2009

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In the past, I’ve highlighted the differences between our markets and overseas ones – for example, commission selling versus wholesaling. There are other differences too.
Over the years, many of our market officials and agents have visited markets around the world to observe, learn and gather information. As I listened to Jan Mocke’s presentation (see last week’s column) on the proposed Premium Hall at Johannesburg Fresh Produce Market (JFPM), it was clear he’d paid the obligatory visits abroad.
Much of what he showed in his PowerPoint presentation reminded me of the Mechelse Veiling in Belgium, Europe’s largest vegetable auction. This state-of-the-art market is really impressive. Many who’ve been there ask, “Why can’t we have something like that in South Africa?”
That would be wonderful, but let’s consider a few things before we get carried away. The Mechelse Veiling is located in the heart of a main production area. It draws its products from a relatively small, highly productive region – a lot of it under glass or plastic. This means quality standards are uniform, management is sophisticated, farms are small and mostly privately owned. I wonder if any farmer travels more than 100km to deliver his products. In fact, the 2 500 farmers who supply the Mechelse Veiling also own it through their own cooperative.
I might be wrong but I don’t see the full range of vegetables on offer, only the products grown in the region. No fruit is for sale as far as I know.
Buyers sit in banks of seats, each behind a computer and an array of communications tools, and view pictures of samples projected on to the opposite wall, along with descriptions, quantity and quality standard. A computerised clock system ensures fast and efficient pricing and sales. Buyers never come near the products on offer.
They can bid with confidence because they know those products have passed a strenuous inspection system ensuring uniformity and high standards. There are no individual farmer brands, only batches of product packed in standardised, clean plastic lug boxes, on standardised, clean pallets – all waiting in computer-controlled, clean cold rooms.
A modern, clean packing facility re-packs purchases into prepacks according to buyers’ requirements, and highly trained forklift drivers, responding to computerised instructions, deliver them to loading bays with sealed doors and trucks waiting outside.
We should certainly aspire to have such facilities in this country, but remember first-world consumers demand high standards, and can afford them. – Mike Cordes (e-mail [email protected]).     |fw