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Abstract
In contrast to the centralised fresh produce procurement systems of South African
retailers relying on preferred commercial suppliers, this paper draws on an in-depth
analysis of the innovative procurement schemes of two rural-based supermarket chain
stores in the Limpopo Province to source fresh vegetables locally from small-scale
farmers. The objective is to derive lessons to guide public and private sector actors in
promoting greater participation of small-scale producers in dynamic supply chains,
through the exposure of the key drivers and success factors affecting the inclusion of
small-scale vegetable farmers.
The critical factors affecting the up-scaling and / or replication of this type of
procurement relates to operation in a remote, emerging market, franchise stores with
flexible procurement options, small-scale farmers with potential and land in close
proximity to the supermarket, good communication and coordination, long term
commitment, technical support, interest-free farm loans and diversity in product
supply among farmers.
Key indicators of mutually beneficial engagement are consolidated farming systems,
improved farming income, low cost procurement of fresh vegetables (short supply
chain), as well as fostering of the stores' broader community involvement strategy.
Up-scaling/replicating the scheme would probably require the involvement of external
actors and the definition and establishment of public private partnerships. These
should be tailored to the specific local conditions and capacities of the different
stakeholders. Specific emphasis should be put on support towards the development of
critical skills at local community level to empower small-scale farmers to sustain
beneficial participation in the market.