Producers take over Market City

The $135.5 million sale of WA's primary trading centre for fruit and vegetables, the Perth-based Market City, will be a bonus for growers in the South West, according to industry leaders.

The State Government sold the markets to the Perth Markets consortium, led by the Chamber of Fruit and Vegetable Industries, which will take control of the Canning Vale operation on March 31.

Perth Markets chairman Paul Omodei said the sale was a good outcome for growers and farmers in the South West.

"There was always the risk that Market City could have gone to a property developer," he said.

"It was almost imperative that the industry made a bid and this is a win for the horticultural industry."

Mr Omodei said there were a number of investors in the South West who put money into the bid.

"It's an important part of the industry and for medium-sized retailers, it's a one-stop shop," he said. "We will connect with growers around WA including in the South West and with organisations like the Southern Forests Food Council."

Grower group Vegetables WA chief executive officer John Shannon said it was a positive move for the markets to be owned by the industry.

"The wholesale markets are one of the most important pieces of infrastructure within the industry," he said.

"I think it's telling that a significant portion of the capital raised for the bid came from growers who saw an opportunity to invest."

Mr Shannon said the sale of the markets could also be a good outcome for consumers.

"If you don't have a central market it can create distortions in the supply chain, which might mean higher prices for consumers," he said.

WA Treasurer Mike Nahan said the sale marked a major achievement as the first completed sale under the State Government's asset sales program, and affirmed that State-owned assets presented a great investment opportunity to the private sector.

"Perth Markets Limited has demonstrated a strong commitment to the continuation of the market function," he said.

"The consortium's experience in local and interstate markets will be a key to the ongoing success of Market City and WA's fruit and vegetable industry."