UK-based company VFM has set up a joint venture company with Dimension Data to provide e-commerce on the internet for SA`s fruit and vegetable industry.
The new company, VFM SA, started to serve the southern African region last month. "The initial market response has been overwhelmingly positive," says the company`s MD, Craig Henry.
"We believe this product will not only improve export opportunities of fresh produce from SA, but will lead to changes in the way trade is conducted." Dimension Data spokesman Neil Clark says that by combining systems integration, business consulting and the marketing potential of the internet, VFM SA will provide a powerful e-commerce solution to the fruit and vegetable market in SA.
The system caters for buyers and sellers of perishable food products and is expected to boost imports and exports of all fresh products.
Buyers, typically national wholesalers, will be able to access offers around the clock. Users pay a sign-up fee and a percentage of sales, while buyers are subjected to a stringent credit check, VFM SA said.
The system is expected to lead to better margins and prices as agents are eliminated.
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