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Abstract
Agri-food markets are restructuring, characterised by an increased consolidation and
concentration of the industry, as supermarkets continue to expand at an exponential rate
throughout the region. Unlike the global phenomenon where the formal markets are replacing
informal markets, this is not so in the region. The informal sector is also expanding
characterised by a significant level of restructuring. The major supermarkets have
restructured their procurement strategies through the introduction of private standards,
centralised procurement systems and distribution centres. Despite the increase in agri-food
commodities emanating from the expansion of the retail sector, there have been little or no
opportunities for smallholder farmers. The restructuring process is likely to exclude farmers
from food markets in two ways; firstly through displacement of traditional markets by formal
food chains; and secondly, the restructuring process will exclude farmers through the
introduction of private standards. Previous studies have ascertained that smallholder farmers
prefer informal markets such as hawkers as there are fewer complications with these markets.
Informal markets are therefore integral for the survival of smallholder farmers. To redress the
negative effects of the restructuring process certain issues need to be addressed. This calls for
different stakeholders (public and private sectors and producers) to harmonise their objectives
and visions for the sake of smallholder farmers in order for the great potential there is in
harnessing the benefits of the restructuring process to be realised.