Steenhuisen Urges Action Over Payment Crisis at Matlosana Fresh Produce Market

“The inconsistent payments by the municipality have destabilised operations at the Matlosana Fresh Produce Market,” said the Minister.

Agriculture, Land Reform and Rural Development Minister John Steenhuisen has sounded the alarm over persistent financial irregularities and delayed payments at the Matlosana Fresh Produce Market, warning that the ongoing crisis threatens producers, agents, and food security in the North West province.

The Minister expressed deep concern over the Matlosana Local Municipality’s failure to comply with a High Court order issued in March 2021, which mandates that 95% of daily produce sales revenue be transferred to registered market agents within 48 hours. The municipality’s continued non-compliance has led to mounting arrears, operational instability, and growing uncertainty within the agricultural sector.

“The inconsistent payments by the municipality have destabilised operations at the Matlosana Fresh Produce Market,” said the Minister. “At one point, arrears owed to market agents had climbed to R7 million in August 2025. This situation has become untenable.”

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A Crisis Rooted in Non-Compliance

According to the Department of Agriculture, the municipality’s failure to transfer funds timeously has left market agents struggling to pay producers within the five-day statutory period required by the Agricultural Produce Agents Act, 1992 (Act No. 12 of 1992).

As a result, agents have been forced to advance payments to producers from their own trust accounts, effectively subsidising the municipality’s debt to keep the market operational.

This practice places agents at risk of regulatory violations, undermines trust in the fresh produce market system, and exposes producers—especially small-scale farmers—to financial hardship.

“Market agents are being forced to pay the municipality’s debt in advance to producers from their own trust accounts,” the department noted. “This is unsustainable and places agents in breach of their statutory obligations.”

The problem has already led major suppliers to withdraw produce worth millions, threatening the continuity of market operations and regional food supply chains.

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National Intervention and Regulatory Escalation

In response to the escalating crisis, Minister Steenhuisen has formally escalated the matter to the Agricultural Produce Agents Council (APAC), the national regulatory authority responsible for overseeing compliance in the agricultural markets sector.

He has requested an urgent regulatory review and intervention, including:

• An assessment of the municipality’s continued role in administering trust monies, given its repeated legal and financial breaches.

• Consideration of protective measures for agents and producers, such as temporary oversight or direct administration of the Freshmark payment system.

• Recommendations for enforcement actions or legislative amendments under the Agricultural Produce Agents Act to prevent future recurrences.

“We require immediate, decisive action from the regulatory body to protect our producers and agents,” Steenhuisen said. “The integrity of our fresh produce markets depends on compliance, transparency, and trust.”

APAC has acknowledged receipt of the Minister’s request and indicated that it will respond soon with a proposed way forward.

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Government Coordination to Resolve the Crisis

To ensure a coordinated government response, Minister Steenhuisen has also written to:

• Minister of Trade, Industry and Competition Parks Tau, and

• Minister of Cooperative Governance and Traditional Affairs (COGTA) Velenkosini Hlabisa,

alerting them to the City of Matlosana’s failure to comply with the High Court order and its potential impact on national market regulation.

According to the Department of Agriculture, Minister Hlabisa’s office confirmed that COGTA’s Directorate: Local Government Operations and Support (LGOS) met with representatives of the Matlosana Fresh Produce Market on 29 September 2025 to discuss the issue.

“Minister Hlabisa has indicated that he expects a detailed report from LGOS by the end of the week,” the department said.

The Ministry of Agriculture expects this report to clarify the municipality’s financial management capacity, identify compliance gaps, and propose corrective measures to restore order at the market.

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Economic and Agricultural Implications

The Matlosana Fresh Produce Market is one of several regional hubs that connect farmers, wholesalers, and retailers in South Africa’s agricultural value chain. A breakdown in its operations could have far-reaching consequences for:

• Producers, who depend on prompt payments to maintain cash flow and production cycles;

• Consumers, who rely on steady market supplies for affordable fresh produce; and

• Investors, whose confidence in the agricultural trade system depends on sound governance and regulatory oversight.

Minister Steenhuisen cautioned that allowing the market’s dysfunction to persist would undermine national confidence in the regulated market system that underpins South Africa’s agricultural economy.

“The collapse of a regulated market system such as Matlosana would not only harm producers and consumers in the region but also erode confidence in the broader national fresh produce market framework,” he said.

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Restoring Market Integrity and Confidence

The Department of Agriculture, in coordination with APAC and COGTA, is expected to develop a remediation plan to stabilise the market and restore compliance with the High Court order. This may include direct financial oversight, external auditing of trust accounts, or temporary administrative intervention.

Sector experts have warned that this situation highlights the fragility of municipal management in key agricultural markets, and the need for national standards and stronger accountability mechanisms.

The crisis also underscores broader governance challenges in local municipalities across South Africa, many of which are struggling with financial mismanagement, poor oversight, and non-compliance with national legislation.

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A Call for Accountability and Reform

Minister Steenhuisen’s decisive stance sends a clear message that agricultural market governance must not be compromised by local government inefficiencies.

“Our producers, agents, and consumers depend on these markets functioning effectively,” he said. “Government will not tolerate financial mismanagement that undermines food security and the livelihoods of farmers.”

The final report from COGTA’s Directorate: LGOS and APAC’s regulatory findings will shape the next phase of intervention—including potential disciplinary or legal actions against officials responsible for the non-compliance.

For now, the Minister’s priority remains clear: protecting producers, ensuring accountability, and restoring faith in South Africa’s fresh produce market system.