Horticulture market eliminates agents
Boitshepo Majube | Tuesday March 18, 2014 11:30
In the past BHM made a 5 percent non-negotiable commission on the selling of all fresh produce, while market agents earned a negotiable 7.5 percent commission on the selling price of all produce.
De Graaf explained that during the old model, BHM was where producers delivered their produce to market agents who then sold the produce to buyers or directly to wholesalers.
“Under the new wholesale model, farmers would bring their products/produce to the market and they would be paid for it,” he said, adding that there won’t be any commission paid to any agent unlike in the past, as BHM would be the wholesale that buys directly from the farmers.
He further stated that they would buy whatever produce farmers bring to the market. “It would depend on what the farmer brings to the wholesale,” he said, further stating that the wholesale model would start operating very soon.
In the past, BHM served as a point of distribution where local horticultural producers sent their produce for sale by independent market agents and wholesalers directly to traders, retailers and the public.
Unlike in the past where all produce sold by market agents remained the property of the producer until sold, and BHM never owned the produce, and neither do the agents, in the new model BHM would own the produce. The fixed 5 percent commission that was received by BHM was meant for managing and maintaining a competitive marketing system and infrastructure that makes fresh produce trading possible, including a computerised sales system, cash collections, cold storage facilities, cleaning and security. All activities and operations where regulated through a code of conduct enforced by market management.
Botswana Horticultural Market is the largest of its kind in the country, and is located in Gaborone, Broadhurst Industrial area. The market hall has capacity for 3,600 tonnes of produce while cold storage facilities can accommodate 320 tonnes of fresh produce.
BHM has adopted a ‘one-stop fresh produce centre’ principle where there are businesses such as wholesale and retailing in farm inputs, packaging materials as well as a cafeteria and ample parking space.
De Graaf however denied allegations that P100 million grant has been set aside to buy produce from local farmers, regardless of whether BHM makes a profit or not, a move observers say is meant to boost local horticultural farmers.