Fresh produce agents

Fresh produce agents

Fresh produce agents - FAQ

What is fresh produce agent?

These are agents who act on behalf of producers. Their income is based on a rate, scale, commission, e.t.c,  paid by the producer for the services rendered and the commission is not fixed and is negotiated between the agent and the producer.

 How do I become a fresh produce agent?

One of the provisions of the Act is that “…no persons shall perform any act as a fresh produce agent unless he or she is the holder of a valid FIDELITY FUND CERTIFICATE.” (Section 16(1) (a)).
An applicant must apply for vacant space from the municipality market of his or her choice or have an appropriate space where he or she will be selling the produce and must then contact the Registrar, Deputy Registrar or Secretary of APAC who, upon request will issue:

• An application form to apply for registration as an agent and registration for your sales personnel;
• A fidelity guarantee form for a bank to supply a bank guarantee on behalf of the applicant;
• A form for the applicant’s banker indicating at which bank the agent’s Trust Account will be held.

(NB: The above mentioned forms can also be downloaded from the website.)
The security or guarantee required is a minimum of R25 000.00, depending on the estimated annual turnover in excess of R1 million.

The aforementioned forms must be completed together with all other relevant information and submitted to APAC which in turn will issue the Fidelity Fund Certificate.

Will the security or guarantee be returned should I discontinue acting as fresh produce market agent?

Yes it will be returned within six months after the lapse of the fidelity fund certificate of that agent, provided that there were no claims against it or cost cover for inspections.

Why do I have to open trust account, why not savings or cheque account?
The produce does not belong to the agent, it belongs to the producer. The agent is selling it on behalf of the producer.  In the trust account the agent will control and administer the producer’s money on his or her behalf. All the produce the agent has under his or her control belongs to the trust account and the agent needs to have auditors who will do an interim and annual audit and submit the report to APAC. Trust reconciliations have to be submitted to APAC on a monthly basis.

Are the any other organisations or institutions where fresh produce market agents have to register?
Yes, you can voluntarily register with Institute of Market Agents of South Africa (IMASA).