Acting CEO Jan Mocke talks to Ian Armitage about Africa’s largest fresh produce market and an ambitious strategy to improve competitiveness.

The Joburg Market, formerly known as the Johannesburg Fresh Produce Market, is the largest market of its kind in Africa. It has an annual throughput of over a million tons and an annual turnover of more than R3.5 billion, dealing typically in fruit and vegetables, on sale to the public at wholesale prices. The produce comes straight from the suppliers, so the goods are fresh.

“Joburg Market serves thousands of farmers from across South Africa who send their produce to be traded daily, ” says Jan Mocke, acting CEO.

“We perform very well, earning producers billions of rand each year.”

It is a commission market: farmers deliver their produce to market agents who then sell it to buyers. “The market and agents earn a commission,” Mocke says. About 15,000 farmers make use of this distribution channel. “We have adopted a one-stop shop principle: our premises host a number of businesses dealing in a variety of goods, banking facilities are available within the complex, and there are things like fast food outlets.”

Joburg Market is the place of price discovery of products sold and a distribution point for fresh produce, Mocke adds. The price is determined by the availability of produce for sale and how much produce buyers demand for purchase.

‘MARKET OF THE FUTURE’
As well as being the acting CEO of the Joburg Market, a wholly owned entity of the City of Johannesburg, Mocke is also responsible for the ‘Market of the Future’ programme. “We are working towards a new vision and are investing R350 million in the refurbishment and upgrade of market infrastructure,” Mocke says. “The ‘Market of the Future’ utilises new state-of-the-art technology and modern facilities that will dramatically increase the quality of produce sold, through things like rapid cooling units, optimisation of floor space, modern reach trucks and new technology to improve tracking and selling of produce.”

It is a positive development that will address a number of key issues and will transform the way Joburg Market does business. Crucially, the programme will offer wider benefits to the farming and retail industry across the country and beyond.

ONLINE SHOPPING
Joburg Market’s online shopping system continues to transform the way the market operates and is enabling it to compete on a global platform and enhance its reach.

“We have been a highly successful and a leading player in the local fresh produce sector for many years, but to compete on a global platform, the company has had to explore new ways of trading to enhance its global reach,” says Mocke. “The web is enabling us to do that.”

Joburg Market became the first produce market in the continent to offer buyers the opportunity to place an order for fresh produce online, he says. “They can buy, view prices with all the grading and sizes, and choose preferred shipping method virtually, without having to visit the market.”

“The system is a very useful tool for buyers in neighbouring countries and beyond, who want access quality affordable fresh produce.

“The online ordering system is targeted mainly at international bulk buyers and offers secure online shopping. We have an expanding export component and the Internet and IT plays a role in that.”

CARBON FOOTPRINT
Efficiency and energy use is another focus. The market is committed to reducing its carbon footprint and energy use and has recently installed ECUBE devices throughout its cold storage facilities. Significant savings are projected.

“This is part of an ongoing commitment,” says Mocke.

“Another area we focus on is security,” he continues. “The Joburg Market sees thousands of buyers daily and deals in a variety of goods. To ensure maximum safety for buyers, we have a number of security measures in place and continually train our staff and service providers so that they are on high alert for suspicious looking people. We regard security as being vital and have been very successful in curbing crime incidents.

“We are implementing a new CCTV system including the installation of more cameras to improve technical security system and are confident that the measures we’ve put in place are up to standard to ensure that the market premises are at all times safe and secure for our customers, traders and all market users.”

A smart card system for customers has helped security, he adds. “Transactions are all handled via a smart debit card system provided by the market.

“We have been using smart cards instead of cash and it helps a lot in the sense that it takes most of the cash off the floors. We have banking facilities; people go to those points, if they have cash, to deposit it into their smart card account: all the buying would then take place with that smart card. It is also possible for buyers to electronically transfer money to their smart cards.”

Mocke says Joburg Market is working on ways to further improve this service. “We are always looking at ways to streamline further, reducing the amount of cash on the market, and the next thing we plan is to have one centralised cashiering facility, which will be almost like a drive-in bank: people with large amounts of cash will be able to drive into it, to make deposit via the car window. That will further reduce risk.”

There is a lot of positive and constructive change that the Joburg Market is undergoing and the company continues to enhance its service offering. It is an exciting time, despite current oversupply issues, and Mocke is bullish about the future: “We are excited about the future and being in the forefront in revolutionising the way fresh produce business is done.”


From South Africa Magazine, Issue 10.