FACTSHEET                                                                                                  7 May 2002

EPPING FRESH PRODUCE MARKET 

Ø      Before deregulation of the fresh produce industry in 1992, national fresh produce markets had a useful role to play and fulfilled a complementary role to private sector wholesalers.

Ø      This ended with deregulation when national fresh produce markets found themselves in head-on competition with the private sector.

Ø      When run by a local authority, a market does not have the same capacity for risk-taking and competition.

Ø      The Epping Fresh Produce Market is owned and run by the City of Cape Town and is the third biggest of the 17 national markets.

Ø      In terms of the Constitution, local authorities are not obliged to manage and operate markets.

Ø      Due to changing conditions, markets need to be diversified to meet the needs of powerful wholesalers and retailers.

Ø      The huge investments in technology required to meet these needs falls outside the scope of the services that local authorities are obliged to deliver.

Ø      Several investigations at national level have indicated that fresh produce markets should operate in a commercial environment.

Ø      A comprehensive study of the market, undertaken by Organisation Development Africa, has recommended that the business operations of the market be sold and that the land and buildings be leased to the private sector operator on a long-term basis. The City has accepted this recommendation.

Ø      Staff at the market will either be transferred as part of a going concern or absorbed into other Council departments.

Ø      A Transaction Adviser will be appointed to oversee the sale process.

Ø      Under the current method of operation, the Epping Fresh Produce Market is expected to become non-viable by 2004.

Ø      The proposed sale will have a “transaction value” of about R67 million.

Ø      The City will engage the labour unions in consultations over the decision to sell.

Ø      The proposed sale is seen by the consultants as offering the maximum advantages with the minimum risk to the City.

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