Prokon, as a non-profit company, operates on a cost recovery basis for the purpose of its Ministerial appointment as assignee on 17 May 2016 in terms of section 2(3)(a) of the Agricultural Products Standards Act, 1990 (Act 119 of 1990) for the application of section 3(1)(a) and (b), 3A(1), 4A(1), 7 and 8 in respect of inspection of fresh vegetables, fruits and flowers. The determination of the new inspection fees has been determined according to the income and expenses specific to the business unit in question, and will thus be fair and reasonable for all stakeholders in the supply chain.

Cognisance must also be taken of the fact that the data used in determining the inspection fees are based on the actual volumes in the past year of a broad spectrum of produce and quality sold on fresh produce markets, as well as the fact that it is publicly available. The statistics on volumes handled by the other stakeholders are confidential and Prokon unfortunately has no access to it.