bf6727fee74a76c21c49ca1a61a9864c | Retail | Market (Economics)

Wholesale markets

Table of contents


Planning and design manual
by J. D. Tracey-White
The designations employed and the presentation of material in this
publication do not imply the expression of any opinion whatsoever on
the part of the Food and Agriculture Organization of the United Nations concerning the legal status of
any country territory, city or area or of its authorities, or concerning the delimitation of its frontiers or
boundaries
M-62
ISBN 92-5-1031 07-X
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without
the prior permission of the copyright owner. Applications for such permission, with a statement of the
purpose and extent of the reproduction, should be addressed to the Director, Publications Division,
Food and Agriculture Organization of the United Nations, Viale delle Terme di Caracalla, 00100
Rome, Italy.
© FAO 1991
Contents
Preface
Acknowledgements
Part A - Introduction
1. Changing role of wholesale markets
The function of wholesale markets
International trends in wholesale and retail marketing
Types of wholesale markets
Is It possible to standardize wholesale markets?
What are the forces for change to wholesale markets?
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2. An approach to wholesale market planning & design
Why is it it necessary to plan wholesale markets?
Development objectives
A wholesale market design methodology.
Part B - Planing and design activities
3. Project identification and pre-feasibility
Project context and data collection
Problem definition
Initlal project formulation
Project evaluation
Further actions
4. Detailed design development
Processing and analysis of initial surveys
Detailed estimates of physical requirements
Outline master plan
Site facilities
Building form
Final master plan
Detailed site planning and infrastructure design
Additional survey requirements
5. Project formulation and feasibility
Overall project design
Financial and economic analysis
Project justification
Project recommendations
6. Project implementation
Phasing of development
The contract administration system
Implementation of market operations
Part C - Management and operations
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7. Market management systems
Type of market ownership
Market management boards
Staffing the market
Management information system
Methods of financial control
8. Market operations
Transaction methods: auctions and sales
Rentals, fees and charges
Produce handling procedures
Financial management
Market information and extension
9. Regulating the market
Licensing
Market regulations
Inspection, quality control and hygiene
Part D - Technical notes
10. Project justification
Financial analysis assumptions
Terms used in financial feasibility studies
Specilalist analysis
11. Socio-economic and engineering surveys
Introduction to survey techniques
Socio-economic surveys of existing facilities
Case study of roadside survey of commodity flows (Thailand)
Engineering surveys
12. Analysing demand and estimating market turn-over
Analysis of existing trade patterns
Consumption of fruit and vegetables
Estimating future demand
Market throughput
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13. Planning and environmental design criteria
Selecting a new market site
Estimating space requirements
Site planning
Building design
External circulation and services
Environmental impact and controls
14. Engineering design criteria
Site investigations
Site preparation and development
Roads and parking
Surface-water drainage systems
Water supply
Fire-fighting systems
Sewerage
Electrical services
Telecommunication systems
Solid waste equipment
Building structures and materials
Engineering design and supervision
Bibliography
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Preface
Contents - Next
Wholesale marketing systems for fruit, vegetables and other fresh foodstuffs, such as livestock and
fish, are often inadequate. They neither maximize benefits to producers, nor to consumers. Experience
demonstrates that there are substantial benefits to be gained from giving positive encouragement to
the development of more professional approaches to the provision of marketing infrastructure where
wholesalers can purchase produce from large numbers of assembled farmers, or their agents, and in
turn sell their purchases to retailers.
Governments can address the problem of inadequate infrastructure by undertaking development
programmes which reorganize institutional marketing arrangements, create facilities at new sites or
improve existing services. The Food and Agriculture Organization of the United Nations (FAO) has
over a number of years been involved with providing technical assistance to governments to develop
improved marketing organizations.
There is a tendency that these improvement programmes become too elaborate and costly, therefore
jeopardizing their financial and economic viability The cause of this problem is mainly the poor
definition of project objectives and the preparation of an inadequate development brief. Problems also
arise because of a lack of communication between the various parties involved with development. I he
programmes, of necessity, are initiated by one group of professionals, typically agricultural
economists and planners, but implemented by a group of construction oriented professionals, such as
architects and engineers. There is substantial background technical literature on the subject of
wholesale market design, but very little guidance is available, in a concise and comprehensive form,
directly oriented to the needs of such administrators and planners, so enabling them to carry on a
constructive dialogue with design professionals.
This manual has been compiled to fill this gap and to provide a systematic methodology based on the
sequence of steps normally adopted in the development process The manual should be of practical
value, both to senior professionals and to technicians, in undertaking marketing and engineering
surveys, in the preparation of feasibility studies and master plans, and in formulating proposals for the
provision of physical facilities. Such studies may be directly undertaken by government agencies or
marketing authorities or by consultants appointed to assist them. The
manual also provides guidance on the monitoring of market improvement studies and the preparation
of appropriate terms of reference that can be used for briefing consultants.
Although the manual is not directly involved with subjects such as market institutions, management,
operations and regulation these issues are broadly outlined as they have a significant impact on the
physical environment. No development programme should be initiated without investigating these
subjects. Other matters covered in the manual include consumer demand projections, implementation
issues, financial and economic feasibility, and the justification for the provision of specialized
facilities, such as cold storage.
The manual partly replaces the previous guide prepared by FAO (H.J.Mittendorf, 1976. Planning of
urban wholesale markets for perishable food). As a background to this manual and for a
comprehensive view of the whole subject of marketing improvement the FAO Economic and Social
Development Series Bulletin No. 37 :l C. Abbott, 1986. Marketing improvement in the developing
world) should be consulted.
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Acknowledgements
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In the nature of preparing a planning and design manual which covers a number of professional
fields it is inevitable that it should draw from a wide variety of published sources, including
textbooks, official handbooks, consultants' reports and manufacturers' information. The primary
information sources are listed in a bibliography at the end of the manual and the author gratefully
acknowledges these sources. Where diagrams and other material are reproduced these are by the kind
permission of the authors. Many colleagues and friends provided material for the manual, either
directly or through published reports and working papers.
Reference material was made available by the FAO library in Rome and the libraries in London of the
Royal Geographical Society, the Royal Institution of Chartered Surveyors and the Architectural
Association. The author is particularly grateful to the following individuals for supplying information
and illustrative material: G. Schuetz (FAO Regional Office for Latin America and the Caribbean,
Santiago, Chile), K. Harrison (Agricultural Marketing Organization, Amman, Jordan), K.B. Atkins
(Director, Commercial Services, Birmingham City Council), C.Y. Lee (Korea), HJ. Mittendorf
(former Chief of the FAO Marketing and Credit Service), J. Novoa (FAO Rome) and C.
Ungkarpla-Ong (Director, Cooperative Promotion Department, Bangkok, Thailand). The author is
responsible for all editorial changes to the material used.
Continuous encouragement and constructive advice on the contents of the manual was provided by E.
Seidler and A. Shepherd of the FAO Marketing and Credit Service.
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Part A - Introduction
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The following two chapters broadly review the background to wholesale marketing, how it is evolving
and the design approaches that can be adopted in formulating projects for the construction of new
markets and the improvement of existing markets.
Although much has been written on the subject of wholesale marketing, there is a dearth of
information on the practical aspects of market planning. There is a particular need for a simplified
methodology for planning and design which would act as a "drawing-board aid" and provide a
systematic approach to the preparation of development proposals. For general application, a manual
needs to be very broad in scope, taking into account the wide range of issues (economic, social,
environmental, planning, engineering and management) that are involved with any market expansion
and improvement programme.
1. Changing role of wholesale markets
Food is the most basic of human needs In less-developed countries any improvement in food
marketing will have a significant impact on the poorer sections of the community. The proportion of
the household budget spent on food for lower income families tends to be much higher than for the
wealthy and may be between 50 - 60 percent of the total family income. For the very poor,
expenditure on food may rise to 70 - 80 percent.
The function of wholesale markets
The consumption and production of marketed food are spatially separated. Production is generally in
rural areas and consumption primarily in urban areas. Marketing is the process that overcomes this
separation, allowing produce to be moved from an area of surplus to one of need. The concern of this
manual is the planning and design of physical infrastructure that will be required for part of this
process, the wholesale marketing of fresh produce, primarily fruits and vegetables.
The purpose of wholesaling. Food reaches the consumer by a complex network, involving
production, assembly, sorting, reassembly, distribution and retail stages. A simplified diagram
showing this process is illustrated in Figure 1. The social institution or mechanism that forms the
linkage between the producer (farmer) and the retailer is the assembly and wholesale trading system,
which enables farmers to sell in small quantities and purchasing by traders and wholesalers to be
made in bulk.
Fige 1he opeaio of a foo makeig ssem
Figure 2 illustrates how this process operates. Without wholesalers, retailer would need to purchase
directly from farmers, involving many minor transactions. With both rural assembly and wholesale
markets, the number of transactions is reduced and the marketing process simplified. In this case, the
retailer does not need to concern himself with any of the sorting, reassembly or distribution functions
and concentrates solely on selling to consumers.
Wholesaling facilitates the economic function of buying and selling (usually termed as "price
formation") by allowing the forces of supply and demand to converge to establish a single price for a
commodity. The assembler or wholesaler may also perform a storage and warehousing function, as
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well as allowing economies of scale to be obtained in the transportation of produce from farm to
market. The people involved in wholesaling can act simply as merchants, buying and selling produce,
be brokers dealing in orders rather than goods, be commission agents (or factors) acting for the
producers (and without title to the produce) or be export/import agents, only dealing in foreign trade.
e ac of oea
How food reaches consumers. In a rural subsistence economy the source of food mainly comes from
what is grown on the farmers' own land, supplemented if possible by purchases in local rural markets.
For urban areas the sources of food are more diverse and will vary greatly depending on economic
and cultural factors. The most obvious source will be market stallholders or conventional retailers
operating from fixed premises, who will receive their supply from wholesalers and, perhaps, directly c
from producers.
In less-developed economies, sources of supply other than from formal retailers are frequently of
equal significance and are particularly important for the urban poor. There is often a petty commodity
or informal sector, which is largely carried out by hawkers, who typically supply fresh and cooked
produce. There is usually also subsistence production within the city from household or backyard
gardens.
Production from household gardens. In some Chinese cities over 85 percent of the food consumed is
grown within the municipal boundaries (although these cities do have extensive administrative areas).
These are rather extreme cases but figures of 10 - 30 percent are quite common. In Jakarta, for
instance, the household's own production accounts for around 18 percent of the total consumed,
although this varies with income and occupation of the household head. Surveys in Western countries
have also concluded that production from kitchen gardens makes a significant contribution to the
household diet, with 10 -20 percent of the domestic plot area often being given over to food
production.
International trends in wholesale and retail marketing
Wholesale markets develop in a number of of stages. They start as general markets, then become more
specialized by trading in a limited range of produce. A later stage is to deal with samples of produce
and finally to transact only graded produce. A recent trend in Western Europe and the USA is to
by-pass the wholesale market system. Direct links are created between producers and supermarket
chains, usually by means of contract farming arrangements.
Very few new wholesale markets have been created in developed countries in the last decade,
although old markets have been relocated to new sites. Those that already exist have tended to also
attract warehouses for integrated food distribution, changing their role to "food centers" (in the USA)
and including other non-fresh food products. Wholesale markets still have a role in the marketing of
horticultural produce but the traditional fresh meat and fish wholesale markets, particularly those
dealing with live produce, are generally being closed down in major urban centres. rends in retailing.
In less developed countries the retail sector will Lend to be located in traditional markets and
small-scale shops, but with the growth of integrated food distribution systems the use of these
facilities is likely to decrease. Supermarkets and hypermarkets will become more important sources of
supply. A typical example of the changes in food distribution that are likely to occur with economic
development is illustrated in Figure 3.
Urbanization. and trends in consumption . With rapid urbanization and increases in income, the
general long-term trend in food distribution of less-developed countries will be for per caput
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consumption of horticultural produce to rise, accompanied by changes in dietary preferences, often
along Western lines. Expenditure on food becomes increasingly elastic, allowing discretionary
purchases of non-staple, often imported, foodstuffs.
Changes in work patterns, particularly the employment of women, and the impact of technological
innovations in post-harvest handling, food processing and storage, including the use of domestic
refrigerators, tends to encourage the development of one-stop shopping at supermarkets, usually on a
once-a-week basis. In Hong Kong, for example, the number of supermarkets grew from 62 in the mid
1970s to 655 by the mid 1980s, when they accounted for around 55 percent of retail food sales. This
rejects what has occurred in Western Europe. In Sweden supermarket sales of vegetables in 1990
accounted for 90 percent of the total, whilst in England, France and the Netherlands they were around
55 percent. Supermarket sales in Spain were only around 30 percent on average, but higher for
imported produce and lower for local produce.
Types of wholesale markets
Markets can be viewed in economic terms by the degree of competition that exists within them. This
ranges from "perfect" competition when there is a large number of buyers and sellers who have a
perfect knowledge of demand, supply and prices, to "imperfect" markets when a single firm or
individual is dominating the market, either by "monopoly" (a single seller) or "monopsony" (a single
buyer). A more common situation is one of "oligopoly" (few sellers) or "oligopsony" (few buyers).
Markets can also be viewed by their degree of public intervention. This ranges from unregulated
markets to fully regulated markets which trade in accordance with rules and regulations (see Chapter
9).
This manual is, however, primarily concerned with the physical location and functioning of the
wholesale marketing system. The kinds of markets considered can be broadly classified into two
types: Secondary and Terminal Wholesale Markets. These markets are exclusively, or at least
predominantly, involved with wholesale produce and transactions for the sale of incoming produce are
generally between farmers or traders and wholesalers.
Fige Eoio of foo isibio ssems
Secondary wholesale markets. These markets are located in district or regional cities and take the
bulk of their produce from rural assembly markets located in production areas, where the transactions
are small scale and usually take place between farmers and traders. The distinction between rural
assembly markets and secondary wholesale markets is often not clear. The difference is that
secondary wholesale markets are in permanent operation (rather than being seasonal in nature or
dealing in specialized produce), larger volumes of produce are traded than at the rural assembly
markets and specialized functions may be present, such as commission agents and brokers.
Terminal wholesale markets. These markets are located in major metropolitan areas, where produce
is finally channelled to consumers through trade between wholesalers and retailers. Produce may also
be assembled for export. The merchants tend to be well organized and a commodity exchange may
exist for forward trading. A variant on terminal markets are markets located at major ports (or a
border railroad or sometimes an airport) dealing exclusively with import and export of produce.
Nature of market design problems. Markets may share a number of characteristics. They may act as
the terminal market for a regional city but also provide facilities for the assembly of produce destined
for other locations, both within the same province or district, or other parts of the country or for
export. Although the scale of secondary and terminal wholesale markets, in terms of the volumes of
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produce traded, may be different there are many resemblances. They both perform similar wholesale
functions, the distinction between them being their location and the scale of their catchment areas.
Secondary wholesale markets are essentially rural or located in a small city, with local catchment
areas, while terminal wholesale markets are urban, with regional or national catchment areas.
Design problems that are unique to secondary wholesale markets may be related to seasonal peaks in
production and the provision of farmers' markets, aimed at a specific group of users (and often
introduced to change the operation of existing marketing channels). To tackle the problems of
secondary wholesale markets requires a full understanding of their local context, including the
regional road system, the location of production areas, the seasonal variation in production volumes
and their relationship to primary assembly markets in rural areas.
The problems of terminal wholesale markets are usually ones of congestion caused by an unsuitable
location or by an inappropriate mixture of wholesale and retail functions. Traditionally, wholesale
markets were built adjacent to city centres, located at a focal point of the inter-city transport facilities
and close to the main retailing areas. Population growth, changes in urban land-use patterns and the
development of modern transport systems have all had an influence on the suitability of existing and
proposed wholesale market sites. A recognition of urban planning problems is therefore essential to
understand the growth of terminal wholesale markets.
However, from a planning point of view secondary and terminal wholesale markets can be treated in a
similar way. They tend to share common problems in the types of data that need to be collected in
order to analyse them and in the methodology that is used in preparing layouts and designing
facilities. This applies whether a new location is being proposed or an improvement to existing
services is being undertaken.
Is it possible to standardize wholesale markets?
It would be very convenient if a standard model for wholesale market development was available for
use in less-developed countries. This is generally possible if you look at other specialised
contemporary building types, such as international air passenger or cargo terminals, medical operating
theatres, industrial laboratories or warehouses using mechanical handling equipment. Although the
design approach will depend on the climate of a particular region, the space standards used for
designing such building types will generally be the same whether the facility is in Alaska or Calcutta.
The overall organization will be broadly similar and so will be the level of sophistication of
equipment. The use of modern management techniques will also be broadly applicable, irrespective of
the location.
Special characteristics of wholesale markets. Although differences may exist, say between London
and Rome, modern wholesale markets in developed countries have much in common. In terms of
layout and circulation they are similar to hypermarkets or to large-scale distribution warehouses. They
need to handle efficiently the input and output of large volumes of produce and to provide facilities
for the sale of that produce. So why are wholesale markets in less-developed countries different? The
distinction is largely that neither the inputs into nor outputs from the market, in terms of the types of
produce, how it is transported and its quality and quantity can be standardized in the manner that is
possible in a developed country. This has a significant impact on both the planning of the market site
and on the design of its buildings.
"Ideal markets" There are a number of general principles by which "ideal" markets should be
conceptualized. Textbooks on marketing economics often refer to them as the "golden rules". The
reality of wholesale markets in less-developed countries is that most of these principles have not been
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fulfilled. It is necessary to invert the principles in order to understand what occurs in such markets:
· produce is not cleaned before it is brought to the market;
· different qualities of produce are not sold separately;
· produce is not graded before being sold;
· produce is not sold by standard weights or in standard packages;
. produce is sold with a lack of price information, creating an atmosphere of uncertainty;
and
· storage facilities are not used or arc not available and immediate sales have to be made.
The main concern of a market development programme should therefore be to attempt to reverse a
number of these factors in order that improved conditions can be obtained for both producers and
consumers. As discussed in the section on international trends, markets need to develop in a number
of stages. They start as general-purpose markets, then become more specialized by dealing with a
limited range of produce and only later trade in graded produce, selling by samples as in Western
Europe and the USA.
It is virtually impossible to move rapidly to more sophisticated practices when the producers arc
small, the buyers arc not organized and the management skills for running a complex marketing
system are not available.
What are the forces for change to wholesale markets?
Although the intention may be to develop private sector market institutions, the main forces for
change in wholesale marketing in less-developed countries, except in very exceptional circumstances,
will come from central or municipal government agencies. A basic cause for this is often the
weakness of the national wholesale fruit and vegetable marketing system and related marketing
information networks.
Relationship to national programmes. Marketing interventions, particularly for assembly and/or
secondary wholesale markets, are often related to targets for achieving increased production from
government-assisted horticultural projects and form part of an agriculture sector component of
national plans and basic needs programmes. The main aim may be to improve incomes for fruit and
vegetable producers, constrained by the lack of an expanding market for the sale of their produce.
National programmes related to terminal wholesale markets are more likely to be concerned with
efficiently meeting the food needs of rapidly expanding urban populations, particularly those in the
lower income groups. Existing consumption of fruit and vegetables may be relatively low and a
government may have identified marketing as a major constraint in increasing consumption to provide
better nutrition, while providing improved incomes to rural producers.
Physical changes. Changes in marketing systems will be influenced by a whole range of factors, of
which the main one is likely to be the growth in demand for produce because of demographic
changes.
Within existing markets this is usually seen in the inability of existing marketing systems to cope with
the increased demand, causing congestion and delays. Space for efficient handling of produce is
inadequate and the market area is overcrowded, frequently leading to activities spilling over into the
adjacent streets. Parking facilities are usually limited and provision for waste disposal is often lacking.
Other physical factors that might influence the need to expand or relocate a market are changes to
transport modes and new communications facilities, such as the construction of access roads to
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production areas, a new urban highway system or a new port, enabling improvements to be made in
the marketing of produce both for domestic and export markets.
Improvements in storage facilities may also allow producers to market their produce in a more
flexible and cost-effective manner.
Institutional and political changes. Institutional changes that might occur include the growth in
banking and credit infrastructure, allowing producers a greater freedom in how they market their
produce; increased political stability and liberalization of pricing systems, bringing about changes in
support policies for both producers and traders; and the development of traders' associations and
wholesaling skills, which may enable more sophisticated marketing organizations to be developed.
Public intervention may play a part in bringing about changes, such as through the introduction of
rules for regulated markets, including modifications to sales methods. Often this intervention is taken
as an opportunity to introduce an open-auction method to encourage the marketing and prompt
disposal of better quality produce, with immediate payment. Traditional practices, which are often
banned, include the method of bid
ding "under a cloth", which is seen as providing many opportunities for cheating. There is often
resistance to adopting auctions, however, as they can be time consuming if there is wide variation in
the quality of produce. There may be pressure to combine lots, leading to a buyers' market.
Outside forces. Changes can also occur because of factors outside the control of a marketing authority
but which may have a significant impact on market development. The most common of these is likely
to be planning pressures from municipal authorities to relocate an existing market because of a desire
to redevelop an area of a city or make mayor land-use or environmental changes to the structure of a
city. Of all forces for change to an existing market this is likely to be the most common. However,
market authorities need to be conscious of the negative effects that relocating a market might cause.
Traders may not be willing to move, people working within the existing market may experience
difficulties in moving their place of employment and the poorer sections of the urban population
served by the market may lose access to cheap supplies.
Another outside force can be the introduction of new health and safety regulations. An example of
this, currently applying to markets in Europe is the effect of new European Economic Community
directives on the marketing of fresh meat and fishery products. This is likely to lead to radical changes
in the organization of existing markets in Europe, requiring more stringent control of temperatures
and the exclusion of vehicles from within market buildings.
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2. An approach to wholesale market planning & design
Contents - Previous - Next
This manual for wholesale market planning and design is aimed at a wide range of users. These may
include policy-makers charged with decision making about markets, senior administrators, planners
and, in some ways most importantly, technical staff, many of whom may be relatively inexperienced
in market development. Although local planning guidance and regulations may be available the
manual can act as a supplement to this information, as well as providing material for use by
participants of training programmes. Consultants engaged by market authorities may find the manual
particularly useful as a check list of the range of issues involved with market development .
Why is it it necessary to plan wholesale markets?
The main purpose in preparing master plans and designs for market facilities is to find solutions which
are both functional and efficient, as well as meet budgetary constraints. This means essentially that the
employment of consultants to assist in the planning process should make the reaching of appropriate
solutions easier as well as saving money for a market authority. A good measure of success would be
if the savings in capital and recurrent costs are at least equal to the professional designer's fees.
Economic and appropriate solutions. It is thus important that market developments provide a
balanced and affordable programme, applicable to the scale of the particular market, its likely growth
and its expected revenues. Emphasis should be placed on finding solutions which are applicable to the
resources and construction technology available in the country, minimizing the use of foreign
exchange and reliance on technologies which might be difficult to maintain.
Consultation procedures. As well as fulfilling the needs of the market authority, the design solutions
will have to be acceptable to all the parties who might be affected by the development. These will
include government agencies, producers, market organizations, traders and local communities. During
the design process, frequent discussions will need to be held with all the interested parties in order to
define development priorities and to evolve a list of facilities which the market might require
(which will form an "accommodation brief" for the designers). Practical operating procedures will
need to be formulated and discussions will need to be held to set viable and acceptable levels for the
rental, parking and commission charges that the market should adopt. Caution is required in these
consultations with traders so that they do not become acrimonious by concentrating too greatly on the
financial relationship, to the exclusion of involving them with planning and design issues.
Development objectives
An essential step in evolving the market development programme is to define a clear set of objectives
or "goals" which will guide both the policy makers and designers. It is essential that this step is not
omitted as only by undertaking full discussions on the project's objectives will the often conflicting
needs of the users of the market be resolved. Objectives are likely to be at two distinct levels:
national/sectoral and project.
National and sectoral development objectives. These goals are concerned with the benefits of the
project to the nation as a whole and to the agricultural and commercial sectors. The goals will tend to
be simple statements of national policy, measured by indicators such as: greater per caput
consumption of fruits and vegetables; increased production of fruits and vegetables and related
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increases in producers' incomes; lower consumer prices, with a less variation in seasonal price
fluctuations; and reductions in post-harvest losses due to improved marketing and handling practices.
Project-level design objectives. These goals will be concerned with optimization of the operational
system and physical design of the proposed market. Typical criteria that are used in assessing the
success of a market project are: whether it meets defined minimum physical-space standards; whether
it can be constructed within defined cost limits and budgets; and project evaluation criteria, which will
relate by means of financial and economic analysis, the project's capital and recurrent costs to the
potential returns from tolls and rentals.
Other project-level criteria include whether there are potential savings in market operating costs, for
producers, traders and wholesalers, by the introduction of new or improved facilities. These savings
can occur from lower handling and equipment costs or more favourable rates for insurance and
cartage. Demonstration that such savings might occur will be critical in persuading market users that
higher rents and/or market relocation are justifiable.
The development programme should also show that defined levels of operational flexibility can be
obtained. These include: immediate needs for day-to-day operational changes; short-range flexibility,
reflecting seasonal variations in trade; and long-range flexibility, providing the opportunity for easily
extending and changing facilities.
A wholesale market design methodology.
This manual bases the problem of market planning and design on a clear design methodology. Figure
4 provides a diagrammatic summary of the overall process, emphasizing how the stages of the design
methodology are part of a linked system. The interactions between the activities are critical. No aspect
of the programme should be designed in isolation from the design of other facilities nor be undertaken
without the collection of basic data. All aspects of the design should be subject to the same overall
planning and financial constraints.
Fige A esig mehoog
A process approach. In preparing a market master plan a process approach needs to be adopted, with
distinct outputs occurring at each stage. Within each stage a systematic procedure must be followed.
This is essential so that the various professionals involved can have a clear understanding of the roles
of others participating in the design process. There are a number of ways in which the overall design
process can be viewed: by design stages; functions; levels; or activities.
Design stages. The most convenient way to look at the design process is by the sequence (or stages)
in which a design is developed. The first step would usually be a project identification and
pre-feasibility study. If the project appears feasible this would be followed by a second stage of
detailed design development and a third stage of project formulation and feasibility analysis. The
second and third stages are to a large extent interdependent and are likely to be carried out in parallel
as they both rely on collection and analysis of survey data, particularly of the actual volumes traded at
the market. The fourth stage is project implementation, either for upgrading or relocating an existing
market or for the construction of a new market. Chapters 3 - 6 of the manual follow this sequence.
Design functions. Another way of looking at the design process is by identifying the functions and
types of professionals who would be involved in the development. The project formulation and
feasibility stages are primarily the concern of individuals with backgrounds in socio-economic,
institutional or management aspects. Design development is the concern of physical planners and
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engineers, whilst project implementation will involve project management, architectural, surveying
and engineering skills.
Design levels. The stages of the design methodology also reflect various design levels. Project
identification is primarily concerned with the broader issues, starting with national policy matters and
then considering the sub-regional planning context of the market. In the case of secondary wholesale
markets this will be the rural hinterland scale. For terminal wholesale markets the main consideration
will be the traffic and land-use problems of the area of the town in which the market is situated. At the
detailed design and feasibility stages the planning of the market site and overall building design
become important. At the implementation stage the main concerns will be the detailed design of
buildings and infrastructure and the procurement of fixed and mobile facilities.
Design activities. For each design stage it is possible to develop a detailed flow chart or check-list,
reflecting the design functions and levels mentioned above. These will define the activities that need
to be followed in order to arrive at the final plans, budgets and implementation programmes. The
pattern of activities that will need to be carried out at each design stage will follow a framework
similar to the following:
· data collection, which might be from organizations such as government departments,
consultants' studies or other published sources;
· socio-economic, marketing and engineering surveys;
· data processing, by manual and computer methods;
· data analysis and synthesis;
· the preparation of outline recommendations and sketch designs;
· the development of detailed recommendations and designs, including consultations with
interested parties. This might entail further data collection, processing, analysis and
synthesis, leading to a modification of outline plans and the production of draft final
designs; and
· after a period of further consultation and final revision the preparation of the final
recommendations, budgets and master plans . The output of this final stage might also
include the need for further studies and surveys on issues identified during design.
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Part B - Planing and design activities
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This is the core of the manual and is based on the stages of project design described in Part A. It
proceeds from project identification through to implementation. With a simple project these stages
may not need to be rigidly separated, but with a more complex project the structure will help to clarify
the process of project development. Within each stage the other aspects of the design process are also
reflected: the design levels, functions and activities. The section does not go into much detail, but
defines what should be broadly achieved at each of the design stages and what are likely to arise as
key concerns and problems. In order to avoid repetition there is cross-referencing to the technical
appendices in Part D.
An important issue that needs to be mentioned before describing the details of project formulation is
that the process is likely to be lengthy. It can often take 6 8 years from reviewing the need for a new
market to its occupation. To undertake any of this work requires that staff are identified to be involved
with the project formulation and that a separate advance budget is available for the funding of design
studies and surveys.
Fige Sage I Pojec Ieificaio a Pefeasibii
3. Project identification and pre-feasibility
The first stage in project preparation is to undertake an identification and pre-feasibility study. The
purpose of this is to identify if there are problems with the existing marketing system which might be
solved by a planning and infrastructure project. An initial analysis should be made of facilities and
accommodation requirements, alternative site development scenarios should be considered and an
outline master plan and action programme prepared. A flow chart illustrating the overall process is
represented in Figure 5.
Project context and data collection
Unless full records have been kept by a market authority it is usual to start any study of existing or
proposed markets with virtually no information. A thorough review of all available background data
will therefore need to be made. Information will be required on the general planning context, the
levels of agricultural production, marketing channels and the existing consumption of fruits and
vegetables and, if applicable, poultry, fish and livestock. This will be largely a desk study, assembling
information from published sources. Information sources will include the following:
· national marketing and agricultural policies and strategies, contained in government
sectoral plans (typically from a ministry of agriculture) and district reports;
· records of previous and current development activities and existing commitments,
compiled by planning and public works departments;
. local and regional demographic and planning studies, including those undertaken by
consultants and universities;
· official maps and air photos; and
· legislation and regulations on the institutional and legal framework for markets,
including public health and safety regulations.
A site visit to both existing markets and production areas will also be necessary to get a feel for the
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present conditions. Techniques such as "rapid rural appraisal", using the experience of
multi-disciplinary teams (described in Chapter 11), will help to establish information on conditions as
efficiently as possible. It is important to visit markets during peak trading periods and not just during
government working hours.
Problem definition
Reviewing and analysing data collected on the general institutional and management context and on
the existing site conditions and facilities should allow the overall shortcomings of the present system
to be identified. The types of analysis that can be attempted will be limited by the availability of data,
but should include, at least, a description of the existing market channels and an overall idea of the
volume of trade that is passing through an existing market or might pass through a proposed market.
Techniques for data analysis arc contained in Chapter 12.
Typical problems. The typical problems that might be identified at this stage include economic and
institutional problems, such as the existence of monopolies and unfair trading practices, financial
constraints, inadequate market management and lack of staff training. Other problems might include
seasonality of demand and lack of storage space, high produce losses and other costs associated with
physical constraints, such as, poor infrastructure, inadequate space in relation to through-put, traffic
congestion and lack of modern equipment.
With an existing market the major problem will be whether to relocate the market and, if so, whether
the existing market should also be retained. It does not always follow that one market per city is
necessarily the optimum solution, particularly for those with high-density centres.
Definition of project goals and beneficiaries. On the basis of the problems that have been identified
with the existing marketing system an attempt should then be made to define the project's goals and
the likely beneficiaries. At this stage this will tend to be a very simple statement of national or
regional policy. A typical example might be as follows: to improve marketing facilities so that
producers of fruits and vegetables in area "x" can obtain a ready market for increased horticultural
production and a wider range of fruits and vegetables, in greater quantities and al competitive prices,
can be available to consumers in city "y".
Alternatively, the project-goals could be specified in terms of the benefits that might accrue to a
particular market authority by, for example, improved efficiency gained from the upgrading of present
facilities or additional revenues created from the development of a new market.
Initial project formulation
The next step will be to formulate an overall programme which will meet the project's goals and solve
the problems that have been identified. Simple methods for making projections of space requirements
are discussed in Chapters 4 and 13. The main difficulty at this stage will be how to match any
budget limits against the physical facilities that might be needed to improve the marketing situation.
Although probably only limited survey data is available it is necessary to define a simple procedure
that can help to conceptualism the problems. This can be refined later when further surveys are
undertaken.
Physical requirements. A first approximation of the physical requirements and budget costs for the
development should always be attempted, as this will form a basis for discussion with all the
interested parties. It may not be possible to prepare even a diagrammatic layout at this stage. The
basic design parameters on which the projections should be based do not need to imply any
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preconceived notion about the spatial organization of a market. They should assume, however, that
the market would be a modern facility, organized with minimum obstructions in the system and a
maximum grouping of functions. It is likely to bear very little relation, therefore, to a traditional
market. Different approaches should be adopted for secondary wholesale markets than that for
terminal urban wholesale markets.
Terminal wholesale markets. The fundamental issue to address with a terminal wholesale market will
be whether an existing site is suitable and the degree to which outside planning forces should be
allowed to influence any decision to relocate to a new site. Basic estimates of demand and trade
volumes arc essential at an early stage in order that sensible decisions can be made about whether the
existing market site and size are adequate, particularly if institutional and traffic management
improvements could be made which might allow it to remain at its present location. These estimates
will be tentative and need to be adjusted later when more reliable survey data on consumption patterns
becomes available. The location factors that should be considered in the selection of a new market site
are discussed in Chapter 13. Critical to this selection process is that a new site is chosen in
consultation with all interested parties.
Secondary wholesale markets. Improvements to secondary wholesale markets, particularly those
serving large hinterlands, may be similar in nature to those for terminal markets. Often, however,
they are part of a programme for changes to a network of local assembly markets and collection
centres. The programmes are frequently based on the development of packages of facilities for each
market, the range of facilities provided being based on the overall site area of the market yards. There
are major limitations to using this approach as the sole criterion as it is often an arbitrary figure, based
on historical events, not necessarily reflecting the present level of economic activity. It is important
not to over-simplify the problem and ignore other criteria which may be more reliable indicators.
A crude ranking system can be evolved which compares the existing physical conditions of the
markets to a list of "basic needs". This approach assumes that the first priority of a market
development plan will be to make up the deficiency in the present provision, rather than impose a
standardized package of improvements. Almost invariably this will mean that the main part of any
budget should be allocated to the provision of key infrastructure, particularly roads and paving,
including off-site facilities, rather than to the construction of new buildings.
Project evaluation
At this early stage in design there will probably not be sufficient information to undertake even a
preliminary financial analysis. The project will have to be evaluated on the basis of its overall global
impact.
Project Impact. A project's major impact is likely to be on the system of marketing of fruits and
vegetables. It may lead to higher production and more stable consumer prices. The potential benefits
are, therefore, to producers and consumers. It is usually possible to accurately define the target
beneficiaries of a project, based on production and demographic data.
Other aspects of a project's impact should also be identified. A typical impact would be a significant
reduction in produce losses and an efficiently operating market for both producers and traders. This
will serve to reduce marketing costs which will ultimately benefit consumers. On a broader front, by
incorporating the development of a market information system a project may have an influence on the
overall price mechanism, which might have a national impact on marketing efficiencies. The effect of
a project on any possible private enterprise efforts in market development should be assessed to see
whether it would deter or encourage these initiatives. A negative effect could be unnecessary
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competition for private markets, while a positive effect would be the growth of smallscale traders and
wholesalers.
Project benefits. It is important in assessing a project's impact to be clear how benefits might arise.
The mere provision of new or improved physical facilities will not guarantee any benefits, if not
accompanied by appropriate institutional and management changes. In many cases, the operating
performance of markets can be improved with virtually no physical change, other than, possibly, the
provision of new equipment or the application of a traffic management scheme.
Project risks. Risks which could influence the overall design of a project need to be identified at this
stage. These risks should to be described, and an estimate made of their probability (high, medium or
low) and whether they are of a short or medium-term nature, or are long- term strategic problems.
A typical short-term risk is that agreement has not been reached on the market's institutional
framework and management method, including the establishment of a project advisory committee or
management board. This may lead to potential delays in the appointment of consultants to undertake
surveys and feasibility studies and to prepare detailed designs and tender documents. Other common
problems are that action is delayed because of difficulties in purchasing suitable land and that the
source of funding or loans is not clarified. The subject of risks is discussed further in Chapter 5.
Where an existing market is to be improved or extended, problems may also arise if it is not possible
for the construction operations at the market site to be phased in a way that enables the market to
continue to operate during the construction period.
Further actions
The definition of project risks will provide the basis for clarifying the issues that will need to be
resolved before progress can be made with project development. The intention should be that, before
proceeding further, the risks are either eliminated or arc reduced .The typical types of issues that will
need to be resolved arc:
- management and institutional;
- financial and loan requirements; and
- provision of land.
Initial surveys to be undertaken. The main conclusion that will be drawn at the end of the project
identification stage is almost certainly that the collection of further data will be required. In order to
refine the preliminary estimates of throughput, data will need to be collected on the number and size
of existing markets, their daily trading patterns and the variations in trade between seasons, both in
terms of the type of produce and the quantities marketed.
Ideally data should be available before any further detailed design development occurs, but the timing
of surveys will also be influenced by factors such as the need to collect data during peak production
seasons or to avoid logistic problems caused by working in a wet season. It is essential, however, that
design should be based on adequate data and it will be necessary, if they have not already been
undcrtakcn, to carry out surveys of:
· volumes and types of produce transacted at different times in the year;
· surveys of traders and market channels;
· traffic modes and volumes; and
· investigations of a site's engineering and physical characteristics.
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Further details of survey methodologies and typical examples of survey pro-forma sheets are given in
Chapter 11.
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4. Detailed design development
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The second stage in the preparation of a project is detailed design development. This will result in a
final master plan, outline building designs and cost estimates. The overall design process is shown in
Figure 6.
The second-stage designs will provide the basis for the evaluations undertaken in the third-stage
feasibility study, which may lead to design modifications. The second and third design stages are,
therefore, to a large extent interdependent and can be carried out in parallel. Both stages will rely on
the collection and analysis of survey data, particularly of the actual volumes of produce traded.
Processing and analysis of initial surveys
The first step in preparing a detailed design will be to undertake and analyse the surveys which were
outlined at the end of Chapter 3. Apart from surveys of existing facilities and engineering
investigations, the most important of these will be the surveys of produce flow (see Chapter 11).
ae
Roadside surveys. These surveys should, ideally, be undertaken over an extended period, covering all
produce flows into a city (including both wholesale markets and retail outlets). The best method, if
resources are available, is to carry out a complete roadside survey, using fixed checkpoints. However,
as such road-blocks are often also used to control "illegal" trade and to extract gratuities from traders,
the traders may be reluctant to cooperate in providing accurate information. The agreement of
municipal authorities and police to assist in the surveys may also be difficult to obtain
As well as quantifying the volumes of produce flow, roadside surveys provide useful data on the
transport modes used by farmers and traders, including the key role often played by public transport.
The surveys should provide an understanding of how the existing marketing system operates,
including the roles played by the various functionaries who are participating in the marketing channels
and the origin and destination of produce flows. More details of the types of analysis that should be
undertaken are provided in Chapter 12.
Fige Sage eaie esig eeopme
Estimate of demand and trade volume. The next step is to make a detailed projection of the potential
demand for produce. In preparing the demand estimates a series of assumptions will need to be made.
There are a number of models used by economists which take account of income-elasticity
coefficients, relating changes in income to spending behaviour. Because of lack of data it is rarely
possible to use these techniques and reliance usually has to be placed on estimates of present supply,
matching these to available data on per caput consumption of fruits and vegetables. Using this
approach the substitution effect between different produce is assumed to be zero.
Per caput consumption. Consumption data should ideally be derived from detailed local nutritional
surveys of the daily intake of fruits, vegetables, fish and meat, for a range of income groups. From
such surveys, estimates can be made of annual consumption, which is expressed in terms of
kilogrammes per head (or "caput") of population.
FAO has undertaken regional food balance sheet studies of per caput consumption, taking into
account factors such as production levels, imports, exports and processing requirements (see Chapter
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12). These are likely to be the most easily available data, but need to be used with some caution as the
figures are national averages. They tend to disguise substantial variations in consumption between
different seasons, locations, income groups and between urban and rural areas, particularly if there is
also a large tourist trade.
Detailed estimates of physical requirements
Before the preparation of an outline master plan it is necessary to ensure that there is sufficient space
at an existing or proposed market site to accommodate the range of facilities required for the
operational procedures envisaged.
Throughput The first step in this procedure is to make projections of the likely throughput of the
market. A simple approach to projecting throughput is to develop scenarios for the peak monthly
throughput of the market based on estimates of demand at specific design dates for the likely
population to be served, using projections from previous studies of population growth and migration
trends.
At least three possible design scenarios should be developed for a range of design populations. The
first should be a minimum size, corresponding to present immediate demand and based on the results
of roadside surveys, if available. The second should be a size corresponding with likely demand in the
near future (say within 5 years) and the third an ultimate size which would accommodate the growth
in demand over the expected life of the market (usually taken as 20 to 30 years).
Estimating assumptions. In making throughput projections, two key assumptions need to be made.
The first is the extent to which peak production and the sales of fruits and vegetables could vary by
season. A peak season may be as much as 2.5 times the annual monthly average and perhaps 5 times
as much as the minimum month. Second, the percentage of the wholesale trade going through the
market will also vary depending on the operation of existing marketing channels and how they might
realistically change in the future.
Data from roadside and retail surveys will provide a basis for establishing these factors, but the data
should be treated with some caution as they may not be representative of the whole year. The figures
are also likely to be overestimates, as not all produce reported as being traded is actually sold and
substantial losses are likely to occur. This does not affect the input volume, as the market must still be
designed to accommodate it. However, any calculations that use output volumes (such as retailers'
parking requirements) may need to be adjusted to reflect this. The overall output trading volume
should therefore be reduced by say 5 percent.
A reasonable throughput target for when a market is fully operational should also be projected.
However the extent to which trade might switch from present markets and other channels, such as
direct sales to supermarkets, must be evaluated carefully. This is essential bearing in mind the degree
to which some produce will by-pass the market system, particularly that from home gardens within
the city. The volume of this trade will not appear in roadside surveys, but will form part of the overall
per caput consumption. A conservative basis for planning, commonly applicable when existing
markets are not going to be closed down, is that a new market will gain the new trade and existing
markets and other channels will broadly retain their present level of trade. In that case the 1st phase of
a new market could be sized to meet an initial (5 year) growth.
Space requirements. In estimating space requirements for markets very simple techniques should be
used. Two estimating methods can be adopted, which are explained in detail in Chapter 13:
· an approach based on overall annual through-put. A range of 10 - 20 tons per square
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metre (m²) of covered sales space is desirable;
· an approach based on the "ideal" space standards that need to be allocated to
accommodate the various activities required to handle the average (or in some cases
maximum) daily throughout of commodities.
Fige iagammaic ao of pica hoesae make
There is usually a reasonable degree of agreement between these two methods. The estimates provide
a basis on which to allocate floor space for the primary, commercial or sales activities that will be
undertaken in the main market buildings. These activities would include the unloading of produce, its
display by producers or traders, its sale to wholesalers (by private treaty or auction) and its short-term
storage and display by the wholesalers before being sold and dispatched to retailers.
Simple assumptions also need to be made about the space requirements for ancillary uses, such as
offices, additional storage, and other facilities. A crude rule-of-thumb basis for estimating this would
be to allow 50 - 100 percent in addition to that already estimated for the main commercial floor space.
For a recent FAO study in Thailand long-term wholesalers' stores (including cool storage) were
assumed to require an additional space equivalent to 40 percent of the commercial sales space.
However, this figure may vary quite radically. One extreme might be a secondary wholesale market in
a rural area where the market's essential function is to assemble produce for immediate despatch (in
which case virtually no long-term storage is required). At the other extreme might be an urban
terminal market, without auction facilities, which provides a large amount of medium to long-term
storage (possibly including cold stores) for produce such as onions, potatoes and fruits.
Washing, packing and grading might require additional space of around 1m² per ton of throughput.
Offices for market management staff (whether private or public enterprise) and for basic support
facilities (such as security and toilets) will each need an area equivalent to at least 5 percent of the
commercial sales space. Other facilities, such as banking, post offices, extension services and farm
input sales will need a further area of around 10 percent of the commercial sales space.
Outline master plan
An outline or draft master plan is a physical representation of a market's development programme,
broadly setting-out the space and circulation requirements related to an existing or proposed site. I he
plan will be very diagrammatic at this stage, as illustrated in Figure 7.
The purpose of preparing the plan is to provide a basis for the consultations which will be needed to
develop the project further at the feasibility and implementation stages. Adequate time must be
provided at those stages in order that full consultation can occur and potential design conflicts can be
resolved. The plan also provides a rationale for the approximate cost estimates that are used in the
financial and economic analysis described in Chapters 5 and 10. A background to the planning
process and further details of typical planning criteria are discussed in Chapter 13.
Function of the plan. The main function of a plan must be to maximize the throughput of a market,
providing the most efficient access and traffic circulation system, whilst minimizing costs. The
success of a plan in the long term will depend on whether it allows the market's users to mould and
adapt the market to their particular requirements. Although the influence of a site is important, the
essentially functional nature of markets leads to compact and regular layouts, using standardized
building forms and also resulting in lowest development costs. Architectural quality is not of
paramount interest but should not be forgotten, as through geometry and landscaping the layout will
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provide a visual clarity to the users and, if properly considered, will relate the market to its
surroundings, ensuring that it provides a positive contribution to the built environment.
Planning and land use criteria Important factors to be considered in preparing an outline plan are
how the construction of the market might be phased and the extent to which separation of more
permanent uses from those which are of a transient nature is needed, so that future growth and
changes can be accommodated without disruption.
As roads and parking areas are a major part of total capital costs and are elements that can be varied
substantially in both extent and standard of construction they will be important in determining the
outline plan. The key issue will be to evolve an arrangement with a satisfactory relationship between
the site access, the internal circulation system, unloading and loading areas, general parking and the
main market buildings.
After preparing the draft plan, the distribution of land uses should be reviewed. As a rough
rule-of-thumb the portion of the site covered by buildings should be around 20 - 30 percent, road
space and parking between 50 - 60 percent and other uses, including drain reserves, some 10 20
percent of the total area. Examples of the distribution of land uses are given in Chapter 13. Values for
land uses at a typical small scale terminal
market (Kalimati market, Kathmandu, Nepal) are as follows:
Land use Area

% of
total
- Buildings 6 060 29.8
- Farmers' market area 710 3.5
- Roads 5 955 29.2
- Parking areas 3 570 17.5
- Footpaths & landscaped areas 3 495 17.2
- Drainage & other reserves 580 2.8-
- Total site area 20370 100.0
Access and circulation. Markets obviously need to be located adjacent to main highways, but a direct
approach off a heavily used route or close to an intersection could cause problems. These problems
will become more difficult with future traffic build-up, thus making planning approval unlikely. The
layout, therefore, should have its own segregated access.
Within the market, incoming produce should also be strictly segregated from outgoing. The usual
technique is to adopt a one-way circulation system using a continuous peripheral road, with the main
buildings located within the centre of the block. An advantage of this approach is that it enables
drivers to search for parking spaces and to correct mistakes. As a basic principle it is also desirable to
avoid cross roads within the lay-out. To reduce the number of conflict points as many of the junctions
as possible should be T-junctions (3-way). If cross roads are essential they should be created by using
roundabouts (rotaries)
One of the most difficult features to achieve in any market-site layout is to obtain sufficient road
length al the site entry so that incoming trucks can slow down and be checked-in at the entry-gate
without causing backing-up onto the public highway. 'I his problem also occurs on leaving the site. A
layout with more than one exit would have obvious advantages in terms of traffic control, although
this may create problems of extra staffing for security, the collection of lolls and the management of
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sale documentation.
Parking. The turnover of vehicles in a market, particularly those of retailers is rapid and it is desirable
that parking spaces are generous. A minimum of around 32 m² per truck parking space should be
used, excluding the main circulation. As a general rule an overall standard for the provision of parking
places (trucks, pick-ups and private cars) of 3 spaces per 100 m² Of sales area is reasonable. This
should also allow unloading and loading facilities to be directly adjacent to the main market building.
For peak periods, however, this needs to be increased to around 5 spaces per ]00 m², which may
require the provision of an overspill parking area a little remote from the market facilities. More
elaborate methods For estimating parking requirements are given in Chapter 13.
Fige Compaiso of pes of hoesae pemises
Engineering services Engineering services other than roads need not be considered in any detail at
this stage but, as the site layout is gradually defined, consideration will need to be given to the
location of other service networks. In tropical areas, because of the scale of open drainage systems
and the significant run-off from paved market areas, surface water drainage is likely to be the most
important service to consider.
The majority of other services are likely to be placed underground, but these networks need to be
coordinated with each other for ease and economy of construction and in order that future
maintenance does not disrupt the working of the market. The easiest way to understand the
distribution of services is to prepare a series of typical cross sections, which resolve both the vertical
and horizontal relationship of the services. Engineering services are summarized al the end of this
chapter and discussed in detail in Chapters 13 and 14.
Site facilities
The type of buildings that the market might accommodate needs to be considered at this stage in the
design because it will affect the site layout.
Types of market but/dings. There arc four basic types of market buildings which can accommodate
the main commercial floor space. The choice of an appropriate type will depend on the operating
system and method of sales to be adopted at the market. Figure 8 illustrates the basic types in
cross-section, using the same roof form so that comparison is simpler:
i) garage type
With this type of market premises the wholesalers' stalls run the full depth of the building, with access
platforms on both sides. One side (3 metres width) is sometimes used for unloading from rail wagons,
while the other may be wider (say 7 metres) and used for both unloading and loading into trucks.
This type of building is suitable for the sorts of large-scale wholesalers found in North America and
where retailers use large trucks, typically with pallet loading.
ii) back-to-back type
This is a variant on the garage type, the essential difference being that it has a central wall dividing the
wholesalers' premises. By varying the position of the dividing wall, different sizes of premises can be
obtained. Only one access point is provided for the purchase, display and sale of produce as these
activities normally take place at different times of the day. It is usually better if the platform is at the
same level as the road if the majority of the market users have small pick-ups, cars or animal carts, or
if larger trucks with side-loading are going to be used.
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This type of premises is an ideal form for medium and small-scale wholesalers and is particularly
suitable for developing countries. The building type can be either used as the point where the purchase
of produce is made from commission agents and traders on a private treaty basis or can be used in
conjunction with a separate auction hall. A variant of this building type, used in Amman, is to
construct a single depth wholesalers' premises backing onto a boundary wall or fence. This makes
very effective use of the site area.
iii) central spine, with buyers' walk
This is similar to the back-to-back arrangement but also incorporates a central buyers' walk which
facilitates the appraisal of produce by buyers. The buyers' walk is typically 4 metres wide, such as at
London's New Covent Garden market, with unloading and loading of produce confined to the rear of
the premises.
Many West European countries (such as France and Spain) have adopted this type of premises, but its
use in other countries, such as Brazil, has not been entirely successful. In some cases the buyers' walk
is made much wider (more than 16 metres wide in the Paris Rungis market) to allow a wider display
of produce and the easy movement of produce to retailers vehicles. Recent public health trends have,
however, tended to discourage the entry of vehicles into the covered sections of market buildings,
particularly where they trade in meat or fish products.
iv) central spine/ball-type market building
This is an integrated facility where the sale of fruits and vegetables is undertaken in a multi-purpose
shed. The typical facilities might include producers' sales space, a buyers' walk, wholesalers' storage
facilities (often enclosed in steel cages) and, where applicable, an auction hall. Levies on produce sold
would be collected at one or more sales counters, where security facilities might also be
accommodated.
The building illustrated in Figure 8 is of a limited depth and would be suitable for medium and
small-scale wholesale markets in developing countries, particularly as it could be relatively simply
converted, if necessary, into one of the other types. Some hall-type markets are of a much wider span,
such as in Milan, (Copenhagen and some Japanese cities. Although convenient for major cities with
small-scale wholesalers and many retail customers, this building form is not necessarily appropriate in
developing countries because of the high cost of the roofing system and the potentially greater internal
handling costs.
Compact site planning. Whatever type of premises is selected it is important that a consolidated
layout is created rather than a scatter of smaller unrelated buildings. The sales spaces should be
grouped together, probably only segregating the larger wholesalers, as their building requirements will
tend to be different, The distance between buildings should be determined by "ideal" dirnensions for
parking and circulation (see Chapter 14). An approach based on grouping of facilities has distinct
advantages:
· the site is easier to manage, particularly if an auction system is used;
· the security system can be simpler;
· safer site circulation, with minimum crossing traffic and road lengths;
· flexibility in use, allowing seasonal variations in commodities to be accommodated and
allowing adjustments to be made between wholesalers' premises, auction spaces and
other uses;
· ease of routline maintenance, cleaning and solid waste collection;
· fuller building utilization at any one lime, with few redundant spaces;
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· concentration and economic provision of building services; and
· greater weather protection for both the produce and market users.
Multi-storey market buildings. Market buildings with the sales space on more than one floor should,
unless absolutely necessary, be avoided. Only offices for wholesalers, commission agents or brokers
and other uses not involving the transfer of produce should be accommodated at a mezzanine level if
there is insufficient space on the ground floor.
Non-horticultural produce markets. Fish marketing is usually undertaken in a separate building, the
plan organization of which can be similar to that of a central spine type building. Construction would
normally be to a higher standard, particularly in the provision of easily cleanable internal (wall and
floor) finishes. The building should be provided with facilities for gutting, cleaning and boxing, with a
cool room for the temporary storage of fresh fish and a freezer room for frozen fish. It is preferable
that a fish market has its own quality- control facilities, perhaps at mezzanine level, overlooking the
sales space.
Separate facilities must also be provided if it is envisaged that the market will also trade in poultry,
eggs, grains or meat. Accommodation for meat marketing can be virtually identical to that for fish
except that it is preferable that ceiling mounted rails are also provided for the easy transport of
carcasses. Flowers are often marketed in the same building as fruits and vegetables, but can be
separated if the turnover justifies it or in more temperate climates where some form of heating may be
required.
Market authority building. The site should be administered by the market authority from a central
service building, which might be of more permanent multi-storey construction, sometimes physically
linked to the main market buildings. The scale of facilities will vary depending on the size of the
market, but typically this building might contain an agricultural inputs unit, one or more banks, a post
office and public telephones. The market authority offices should ideally be located at first floor level,
overlooking the whole market. Depending on the scale of the market, their accommodation would
comprise an account's section, a general office, a director/manager's offices and a board room.
Even where the market is to be operated by private enterprise it will be essential to provide facilities
for the public bodies concerned with marketing and public health Such facilities might include a hall
for public meeting and exhibitions, accommodation for market information and extension services, an
emergency clinic or first-aid post, an environmental health laboratory and a weights and measures
office.
Ancillary site facilities. Provision should also be made on the site for public toilets, building
maintenance facilities, centralized solid waste collection and crate storage. An entrance control gate
will be required, including in most cases, a weigh-bridge. This will normally be combined with the
site security facilities. Simple produce cleaning, grading and packaging may also be needed if this
has not been undertaken at the farm level or at collection centres located in the production areas.
Other facilities that might be provided are a petrol filling station, a staff canteen or tea shop (although
these could be limited if adjacent commercial areas contain adequate services), a creche for mothers
working at the market and small-scale religious facilities (shrine, chapel or mosque).
Hostel accommodation might also be needed for farmers and hauliers who are obliged to remain in the
city overnight or for out-station market staff who might come to the city for on-the-job training.
Facilities for retailing. Retail units for the sale of packaging materials are normally required at a
market but the provision of other types of retailing facilities is a difficult issue to resolve as it will
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tend to interfere with the operation of the market. One possibility is to provide a limited number of
semi-retail shop units for the sale of specialist food stuffs, such as herbs and spices and speciality
fruits. This would only be an attractive proposition at a secondary wholesale market if it enables
buyers or wholesalers to purchase goods they would normally want to buy anyway on a "one-stop
shopping" basis. Terminal wholesale markets sometimes also include "cash and carry" facilities so
that retailers can buy non-horticultural food stuffs in bulk at the same time that they are making other
purchases.
Traditional marketing practices and land-use restrictions may dictate that a wholesale market has to
operate alongside a retail market, in which case they should ideally be managed as one unit, but
should always be physically segregated.
Farmers' markets. Another common issue is whether a market should support an associated farmers'
retail market, where producers could sell to retailers and consumers. This would also enable producers
who have not managed to sell their produce to wholesalers in the main market to dispose of their
surpluses. The strong argument against this is that selling directly to the public in the farmers' market
at times of oversupply, when prices weaken, will be in direct competition with the wholesale market.
With an auction hall, for example, the possibility that supplies might be withdrawn for sale direct to
consumers could have a disastrous effect. On balance, it would be better if this practice was
discouraged, unless confined to sales only to retailers and strictly controlled (for instance by only
allowing trading after the end of the main working day).
Specialist services. A recent trend, particularly in the USA, has been to provide a wider range of
specialist facilities on market sites so that they operate as food centres, under a single management
system.
Fige Sies of biig fom Kaimai make Kahma
Long-term wholesaler storage facilities (usually for fruits and incorporating chill rooms) and banana
ripening rooms are frequently incorporated within a market, often with some arrangement for
financing by private enterprise, the market authority providing the land for the building and a share of
the main infrastructure.
Animal slaughter, food processing, pre-cooling/drying facilities, cold storage and ice making plant
may also be accommodated. These again are normally financed by private enterprise and should
always be justified on the basis of a separate financial and economic analysis from that of the main
market buildings (see Chapter 10).
Caution is required in appraising the need for these facilities, particularly their scale and technical
specification. Optimum refrigeration conditions in cold stores, for example, are often less important
than flexibility in general operating efficiency which can result in much higher utilization rates.
Another common error is to assume that facilities will operate on a high technology basis, such as
using pallet storage and fork lift truck loading and unloading. This may not be valid or appropriate
where maintenance is poor and labour costs are low.
Fige Fia mase pa of Kaimi hoesae make Kahma
Building form
The choice of suitable building forms and materials for different types of marketing facilities is part of
the detailed design process and is discussed in Chapters 13 and 14. Figure 9 illustrates the type of
output that would be expected from studies of building form. In preparing the detailed building
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designs the following factors will need to be considered
· space standards and design modules
· external climatic controls and internal servicing requirements, including ventilation and
natural/artificial lighting
· overall building form and siting
· expansion needs
· choice of materials for foundations/sub-structure; super-structure; enclosure and
cladding methods; and appropriate internal finishes and
· choice of structural techniques, including economy and ease of construction
Final master plan
The last step of this design stage will be to prepare a final master plan drawn accurately to scale and
incorporating all the factors evolved during the process of design and consultation. I he master plan
forms the framework for the development programme, integrating the final building designs with the
vehicular and pedestrian circulation systems. A typical example of a final master plan, illustrating all
the essential components that should be included, is shown in Figure 10.
Detailed site planning and infrastructure design
Detailed site planning proposals and site infrastructure layouts can be finalised when a final master
plan has been agreed. In preparing proposals for a comprehensive site development the following
types of infrastructure (which are discussed in greater detail in Chapter 14) would typically be
included:
· site preparation, which would comprise stripping of the top soil and then cutting and
filling the site to obtain level platforms for buildings and even grades for roads.
Frequently the levels of sites have to be built up and this requires compacted fill to be
laid on a geotextile blanket. Where soil conditions arc extremely damp, horizontal and
vertical sub-soil drainage may be required. Soil conservation measures, sediment control
devices and earth or concrete retaining structures may also be needed. These works
should ideally be undertaken as a separate preparatory contract. This will allow the fill
areas to thoroughly settle before work starts on the main infrastructure and buildings;
· the road and footpath system will be the main component of the site infrastructure,
constructed as either a concrete pavement or a flexible bituminous pavement. Roads
should be provided with kerbs and integral gutters. Paved off-site connections to existing
main roads, including improvements to junctions, may also be required;
· car and lorry parking facilities will be needed, designed to accommodate peak-hour
traffic flows, and using a similar type of construction;
· a surface water drainage system will be needed, designed to cope with storm-water
flows, possibly with some on-site storage for peak discharge conditions. Drains will be a
very important infrastructure component in the tropics. Except in very low rainfall areas,
storm water is usually carried in open channels, which are either covered with steel
grating or concrete slabs. Because of the large amount of impervious roof and road
surfaces in markets it is also likely that any existing site outlet to a natural drainage
course will need to be improved;
- water mains connection will be required, either from an existing public supply or from
a bore hole. To provide adequate on-site storage, the supply should feed either an
underground water reservoir or a main overhead service tank, or a combination of both.
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The main tanks would service a reticulation network, supplying overhead tanks in
individual buildings and a system of fire hydrants;
· a piped sewerage system is needed, going either to septic tanks, with partially treated
effluent going to surface water drains, or preferably directly to a main sewer, if this is
available and economically viable;
· an electrical supply will be required to the site (usually an 11 kV overhead line) going
to a transformer unit and main switch room. This will serve an earthed distribution
lighting and power network, preferably located underground and a street/site lighting
system; and
· a main telephone system which is an increasingly important component of market
infrastructure. As well as providing facilities for sellers and buyers to arrange deliveries
directly by telephone it can also form a major element of a market price information
system, using facsimile machines and computer modems.
Additional survey requirements
At the end of the detailed design stage the need for further surveys may have been identified (see
Chapter 11). These might include additional socio-economic surveys as part of the project feasibility
studies (see Chapter 5), including repeating previous surveys for different seasons.
Further topographic, material suitability and geo-technical engineering surveys may also be required
for project implementation purposes (see Chapter 6).
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5. Project formulation and feasibility
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The third stage of project design is a project formulation and feasibility study, which will confirm
whether the project is viable. Projections of demand and cost information derived during the second
stage detailed design will form the basis of a financial and economic evaluation of the proposals. The
overall process that needs to be followed at this stage is shown in Figure 11.
The function of the third stage will be to critically examine the various physical design options
(outline and foal master plans) that might meet the objectives set for the project. Different institutional
and management strategies should also be examined and their requirements in terms of staffing,
equipment and infrastructure evaluated. This may lead to design modifications, requiring the work
undertaken in the second stage to be reviewed and revised. It might not be possible to complete the
last phases of the second stage (the final master plan, detailed site planning and infrastructure designs)
until the third stage has also been completed.
Fige Sage III Pojec fomaio a Feasibii
Overall project design
On the basis of studies already undertaken in the previous stages the objectives of the project should
have been clarified. An end-of-project-status will have been be defined and the purpose of Stage 111
will be to confirm that the project conditions and overall goals can be achieved.
It should be clear that the project can achieve benefits for the main target groups of beneficiaries and
that functioning market information and management systems can be established (see Chapter 6). At
the start of Stage 111 it is necessary, therefore, to draw together all the previous data and findings into
a form which will allow this evaluation. This process is usually termed "project design". Aid agencies,
such as UNDP, often have their own methodologies for undertaking this (see Bibliography).
Assembling information. To evaluate a project it is first necessary to review the project context and
assessment of the project's global impact prepared during the first design stage (see Chapter 3) and
then to systematically assemble the surveys, plans and programmes derived in the previous detailed
design stage (see Chapter 4) so that the proposed physical changes to a market can be both quantified
and costed.
Recommendations
Eaaio of opios In assembling the project design many alternatives may be available which
might meet the projects objectives. These will have been examined to see whether they are still viable
and if they will need to be tested in the financial and economic analysis. These options, which may all
have different operational and cost implications, might include:
· alternative institutional strategies;
· different approaches to setting revenue levels;
· alternative packages for management, operations and staffing; and
· alternative physical requirements, which might include: options for the final master plan
or circulation system; different standards of building construction; and varying off-site
infrastructure requirements
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In outlining the options, it is usual to select the most likely one to represent the "basic case", which
can then be modified to represent the other alternatives. In the case of an existing market the basic
case may be to do nothing, that is to neither improve the facilities at an existing location nor to
relocate the market to a new site.
Financial analysis assumptions There are a number of techniques for evaluating projects and these
are outlined in Chapter 10. The most usual of these techniques is to prepare a financial analysis, where
the costs and revenues of a project are represented as a financial statement as cash flows. To do this,
all the physical inputs required over a project's life will need to be phased and then costed on an
annual basis, in present-day prices.
Typical inputs, which would be compiled in a tabulated form, may include: civil works (buildings and
infrastructure); equipment; technical assistance and professional fees of design and supervision
consultants; furniture and fittings; land purchase, and temporary rental of accomodation. Recurrent
costs will include staff wages and salaries and other operating expenditure, such as interest payments,
insurances, office overheads, utilities, repairs and maintenance, audit fees and depreciation. These
costs are set against the anticipated revenues derived from renting space to wholesalers, parking fees,
commission on auctions and other charges.
Accurate cost estimates of capital works, recurrent expenditure and anticipated revenues for a project
are often not possible at this stage and, in preparing the cash flows, assumptions will need to be
made. These are again described in Chapter 10.
Financial and economic analysis
The expected returns of a project should be initially analysed on the basis of the projected cash flow
for the "basic case". This will produce a financial "internal rate of return" (IRR), represented as a
percentage and a "net present value" of the project, represented as a monetary sum.
Project returns and methods of calculation. As markets are often fully or partially financed by central
or local government funding (see Chapter 7) they have to compete with other projects for this
financing. It is usual, therefore, to expect that a project will have a return at least equal to what might
be expected from comparable investments. A typical range of values would be between 10 -20
percent. Net present values should always be positive and exceed the total capital outlay on the
project.
Internal rates of return and net present values are discussed in Chapter 10. They can be calculated
manually but it is more usual to use either the financial functions on a desk calculator or to enter the
cash flows into a spreadsheet program on a personal computer. The latter is most convenient, as
variations can be calculated most easily.
Sensitivity analysis. As well as estimating the returns from the "basic case" a project should be further
tested by undertaking a sensitivity analysis. This technique allows alternative physical design options
to be considered, as well as the effect of likely variations in revenues and in the share of total produce.
that might pass through" a market. Typically, the sensitivity analysis might test a substantial reduction
in overall revenues, either from lower rents or rates of commission (perhaps 3 percent rather than 5
percent) or a decrease in turnover or an increase in recurrent costs from, say, over-staffing of the
market. Another technique for looking at a project in a critical manner is to compare it to the costs and
returns of not undertaking it at all ("do-nothing" or "without project"). This is a useful method when
trying to assess whether to either build a new market or whether to improve an existing market.
Economic analysis. A financial analysis looks at a project only from the point of view of the operating
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costs and revenues of the market's owner. It will ignore any indirect economic benefits of a project,
such as transport cost savings and reductions in wastage and deterioration of produce. These effects
can be reflected in an economic analysis, which will give an estimate of the project's benefits to the
whole economy.
To calculate an economic analysis requires a number of adjustments to the financial cash flow.
Depreciation should be omitted as well as land acquisition and taxes, as these are both transfer
payments. Shadow pricing of labour, if had been included in the financial analysis, should be omitted.
If management training and other forms of government or donor assistance is provided the estimated
costs of these should be added to the cash flow.
Estimating the net economic benefits of marketing projects in developing countries is difficult as
many of the benefits are unquantifiable. Some benefits are indirect, including improved supplies of
better quality produce, greater market transparency and more competitive trader participation. The
direct benefits of a market project include reduced handling costs, lower transport costs because of an
easing in traffic congestion and reductions in produce losses.
The latter is often the most convenient method of estimating overall benefits. If, for example, the
reported losses for vegetables are around 25 percent and the economic analysis assumes that losses
can be limited to an overall 20 percent as the result of market improvements, then the benefits would
be based on the value in monetary terms of a 5 percent saving in produce.
It is usual to expect that the economic returns of a marketing project will look better than the financial
returns. As with the financial analysis, though, it is advisable to examine the returns critically by
applying a sensitivity analysis.
Looking at the distribution of benefits it might also be apparent that those from part of a project (such
as a cold store) are low compared with the benefits obtained from other sources. The economic
viability of this part of a project should be looked at separately, strictly reviewing whether all the
storage is necessary and if a proportion of the accommodation might, for example, be better provided
in conventional naturally ventilated stores.
Project justification
The justification for a project will be based on a description of its benefits, backed-up, as far as
possible, with the quantified results from the financial and economic analysis. In discussing project
justification in Chapter 3 the main method of analysis was to look at a project's global impact and the
short-term risks which would affect its progress during the later design stages. The project
justification should again examine these issues to ensure that the project will still benefit the target
beneficiaries and that the short term risks have been eliminated.
At the formulation stage, however, it is also necessary to determine all the factors which, although
they do not have to be resolved before project design can proceed, could cause major delays in the
effective operation of a market. Physical improvements to a market cannot be looked at in isolation
and if it doubtful whether the appropriate institutional and non-physical changes will be achieved then
the whole project's viability is likely to be in jeopardy.
Immediate risks to achieving financial targets. These risks include the postponement in the
appointment of the market manager and the full complement of market operations staff; delays in the
setting of regulations for the level of fees and the administration of the market; shortage of working
capital for operation, staff salaries and recurrent maintenance; and the lack of suitable training courses
for market staff. It will be essential to resolve these matters before the market starts to operate.
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Long-term risks. Even at this stage and despite rigorous analysis, long-term risks may still be present
which might prevent achievement of a project's output, raising doubts about its overall viability or
about the design parameters used in its preparation. The most likely of these risks is that the basic
assumptions for achieving agricultural sector targets are not realistic. There may not, for example, be
a guaranteed market for fresh fruits and vegetables and demand may not necessarily rise in line with
increased production from horticultural projects. Realistic per caput consumption targets are needed to
provide the basis for this assessment.
Another common mistake is to be too optimistic about a market's performance in terms of the
percentage of the total potential wholesale trade that will pass through it. This is often justified on the
basis that using the facilities of the improved or newly located market will be mandatory, but despite
this it still remains only an assumption and one which has caused the failure of many projects. The
reduction of these risks will depend on the adequacy of the surveys undertaken at the design and
feasibility stages and the effective long-term monitoring of the project, starting at the implementation
stage(see Chapter 6).
Environmental aspens. As well as its general benefits and its financial and economic performance, a
project should also be assessed as to whether it might have any negative impact on the environment.
The negative environmental impact of a project normally relates to the development of the market site
itself. If this not undertaken properly and in conformity with an agreed master plan the development
could: increase traffic congestion in the vicinity of the market site, particularly if the site entry is
poorly located;
· cause flooding to adjacent land, because of increased surface water run-off, a restricted
site outlet or lack of on-site storage; and
· produce glare and noise impact on adjacent land uses if insulation, screening and
planting proposals are not carefully integrated into the development programme. These
issues are discussed in further detail in Chapter 13.
Project recommendations
At the end of this design stage, assuming that a project has been found to be it is viable, the preferred
design option should have been selected and the final shape of a project determined, including its
management and institutional arrangements. In summary, the issues that should have been resolved
include:
· project outputs- the expected results from a project;
· project activities- the tasks to be undertaken to achieve these outputs;
· project inputs- the components that must be included in a project to allow the activities
to be undertaken:
- physical (civil works and equipment);
- manpower and technical assistance; and -further survey and study requirements;
· project budget- what it will cost to provide the inputs; and the
· project work plan - when the project activities are likely to take place.
Further issues to be resolved. The financial and economic analysis of a project and the types of
project risks, outlined in the project justification above, will provide a basis for defining issues that
may need to be addressed before progress can be made with project development. Before proceeding
further there should be clear policies and action programmes available to eliminate or reduce risks to a
low level, possibly requiring adjustments to the project design.
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Check list of typical project issues. The types of institutional, financial and physical issues that may
need to be considered at this stage are likely to be as follows:
· the purchase or transfer of land for new sites;
· Iease-back arrangements between government and private enterprise;
· the finalization of financial and institutional arrangements;
· the clarification of legal and tax issues;
· agreements with statutory authorities on solid waste collections, surface water drainage,
sanitation, water supply and other environmental issues;
· agreement on boundary and environmental matters with adjoining owners;
· foalisation of facility requirements, planning criteria and a detailed design brief which
will form the basis for the preparation of tender documents at the project implementation
stage;
· finalization of training requirements and programmer; and
· agreement with the market's users on lease conditions, acceptable levels for rents, rates
for commission on auction sales and other revenues.
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6. Project implementation
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The fourth stage in project preparation is implementation which, although not directly influencing the
broad policy-making aspects of the planning process, does have an impact on the detailed design of
projects, Faulty assumptions on implementation are as much to blame for the failure of market
projects as the adoption of erroneous design parameters, A flow chart of the overall implementation
process is shown in Figure 12.
Before implementation can commence a wide range of issues needs to be considered, These are
discussed further in this chapter and in Chapter 14. The issues include:
· the availability of finance for construction;
· establishment of a monitoring and performance evaluation system;
· the phasing of development and provision for market operation during the construction
period;
. role of the parties participating in implementation;
· trader and public participation;
· technical assistance requirements. for both design and construction supervision and for
the management and operations staff;
Fige Sage IJ Pojec impemeaio
· preparation of tender/bid documents; and
· choice of an appropriate type of construction contract
Phasing of development
As a basis for construction management a bar chart showing the project's implementation should be
prepared, defining phasing targets for the entire development of the market. A typical example of such
a bar chart is shown in Figure 13. For more complex projects, when the overall details have been
broadly agreed, a critical-path network should be prepared to guide the project implementation
process.
The programme should incorporate practical time-frames for the construction contract lengths and the
periods required for the pre-contract stages. Sufficient time should be allowed for: detailed design, the
preparation of tender documents; tendering and tender analysis, recommendations and acceptance;
and the contractor's mobilization. Other matters requiring careful consideration will include packaging
the works into separate construction contracts and scheduling of equipment procurement.
ecoeaoaco
Existing markets. Although construction operations should ideally be undertaken without a market
continuing in operation this will rarely be practical unless temporary accomodation at another site is
easily available A common problem in expanding or upgrading an existing market, therefore, is the
need to adjust the programme realistically so that the market can stay in operation over the whole
development period. This will mean making the maximum use of existing buildings until new
accommodation is prepared and allowing a staged handover of facilities to the market's operators.
Pace of development Any market development is likely to take a number of years and a common
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error is to assume that this process can be easily compressed. In order to accelerate implementation
some activities can, however, be initiated before the real start of a project,. These initial actions will
include the pre-qualification and selection of design and supervision consultants and the preparation
of tender documents for any site-preparation works in advance of the main construction contract.
Initial development needs and overall programme The first year of the development will usually be a
preparatory year, often involving the installation of sub-soil and temporary drainage, retaining-wall
construction and the provision of compacted earthworks. A temporary construction-site access road
may be required, particularly if an existing operating market is involved, and a new main
surface-water drainage outlet may need to be installed.
These works will be followed by a main construction period, often lasting up to three years. This will
commence with the installation of the main site infrastructure, including the off-site roads and drains
and be followed by construction of the main buildings.
The contract administration system
Design and supervision consultants, either from the private or public sectors (see Chapter 14) will
normally be appointed to oversee the works. Apart from day-to-day supervision of the project, their
responsibilities will also cover the preparation of the tender (or "bid") documents, including working
details, tender drawings, specifications and bills of quantities, an overall cost plan and procurement
schedules for obtaining equipment.
Fige Pojec impemeaios ba cha Kaimai make Aepa
Contract administration issues. Before initiating construction operations, a number of issues related
to construction supervision and monitoring procedures will need to be resolved:
· definition of responsibility of the employer's (client's) representatives;
· who will have responsibility for setting out the works; . who will have authority for
giving instructions on the site; . the scope of any materials-testing programme;
· the frequency and chairing of site progress meetings;
· who will be responsible for preparing a schedule of defects at the end of the contract
period;
· the date for '"practical completion" of the works, when the client can occupy the market.
Stages of completion with partial possession by the client can occur with large-scale
developments; and
· the length of the "defects-liability period", within which the contractor is responsible for
making good any defects. This is normally one year.
Financial management. The administration and financial management of payments to contractors
will normally be the responsibility of the design and supervision consultants, who will undertake
valuations of the work completed (including unfixed materials on-site) and then prepare a certificate
showing the amount for interim payment by the employer. An amount of around 5 percent is normally
deducted or "retained" from the valuations to cover the making good of defects.
On completion of the works the consultants will also prepare a final account, which will form the
basis of the final payment, including the release of the retention moneys. With a contract based on
measured quantities (rather than a fixed price) the final account will adjust the tender sum amount to
correspond to the actual works completed.
Local contracting capacity. To achieve the desired phasing the construction works will need to be
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broken up or packaged so that they can be handled by the local construction industry. The abilities of
local contractors will, therefore, need to be reviewed.
Most countries have a system of licensing of contractors. In order to be registered they have to satisfy
a range of minimum requirements. These criteria are related to the technical personnel they employ,
the construction equipment they possess, their experience in terms of projects completed and their
financial assets. Normally, contractors are graded into classes (typically, three or four grades) and
what needs to be considered in packaging contracts is the suitability of particular grades for different
sections of the work.
Selection and pre-qualification of contractors. Generally, bidding should be on a selective tendering
basis, taking into account the need for the contractors to have experience in both the installation of site
infrastructure and of fairly sophisticated buildings. Part of the works will probably require experience
in high-quality earthworks and therefore a general civil engineering contractor, with relevant plant,
would be appropriate. This might be best achieved by letting this section of the works as a separate
contract.
Minor works on the site might be undertaken by smaller-scale contractors if they are carefully short
listed and the design of the infrastructure and ancillary buildings is made sufficiently robust and
simple.
Contract conditions. For the main contracts, at least, it will be essential to have unambiguous and
easily administered contractual arrangements. Local conditions of contract are likely to exist but these
may only be appropriate for particular types of work.
The contract conditions of FIDIC (Federation Internationale des Ingenieurs-Conseils) may be an
alternative basis as they are internationally understood and, although biased towards civil engineering
types of work, do have both general and specific conditions which allow them to be tailored to local
conditions. The contracts should ideally all be on a "measure and pay" basis, tendered on the basis of
bills of quantity, for which the FIDIC conditions are ideally suited.
Affirmative action programmes. Affirmative action programmes towards local construction industries
may exist so that they can compete against international contractors. These programmes will need to
be taken into account both in selecting contractors and in the financial and economic analysis of the
project. A common approach is to exempt local contractors from any contract tax and from sales tax
levied on materials, as well as allowing them a percentage incentive on their bids.
Caution must be exercised in the tender review, however, to ensure that a combination of an
experienced local contractor in joint venture with a foreign Contractor (acting as a management
contractor) is not rejected solely on the basis of a lower bid by an inexperienced local contractor. The
normal criteria used in evaluating tenders is to select the lowest "conforming" bid, which is the one
that combines a low price matched to a proven ability to undertake the works.
An additional incentive to local contractors its often to allow a mobilization advance of say 10 percent
of the contract value. If this is contemplated, it is essential that adequate provision is made in the
contract documents for its proper utilization, so that the payments are only made against specific
project activities, such as a percentage release on the arrival of the contractor's equipment and plant,
with the balance released as the work progresses to the satisfaction of the resident engineer.
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Implementation of market operations
Assuming that the institutional framework for the market has been resolved (see Chapter 7) there are a
number of other issues with which the market staff and traders will need to involve themselves in
order that management aspects of the implementation programme are effective.
Operational matters. These include issues such as staff selection and training. Many of the
disciplines and skills required will be relatively novel and it will therefore be necessary for a training
programme to be developed appropriate to these needs. The selection of applicants for stalls and
storage space, and the setting of rents and tolls will also need to be resolved (see Chapter 8).
Post-contract administration. On completion of the construction works the market authority will
take over responsibility for looking after the physical infrastructure. A market operator is, in effect,
the manager of a major infrastructure system. To do this, the market authority will have to consider
how the periodic operation and maintenance of the market will be undertaken. Apart from day-to-day
maintenance, which is likely to be the responsibility of "in-house" staff, this will include:
· the setting of maintenance standards for the longer-term repair and replacement of
infrastructure;
· the definition of emergency safety and security procedures; and
· obtaining public liability and accidental damage insurance.
Information systems. The setting up of market information and price systems will need to be
considered right from the outset (see Chapter 8) so that the dissemination of information can
commence with the operation of the market. A monitoring system will also need to be set up so that a
market's performance can be evaluated against predetermined physical and economic criteria,
particularly if lessons from a project are to be applied to other market developments.
Project completion. At the end of an implementation period the market should be fully operational,
market information and management systems should be functioning and it should start to be clear
whether the market will be able to achieve benefits for the main target groups of beneficiaries.
However, the impact of a market project on its beneficiaries is likely to be difficult to measure,
particularly in the short term of a project life.
Project monitoring criteria. The achievement of a project's goals will, therefore, need to be measured
by the monitoring system. A number of indicators may be used to measure the project's impact. These
might include:
increased per caput consumption of fruits, vegetables, fish and meat in line with national
basic-needs targets;
q
expanded production areas for fruits vegetables and related increases in producer's incomes;
and
q
lower consumer prices for fruits and vegetables, accompanied by a levelling-out of seasonal
fluctuations in consumer prices.
q
To verify these indicators may need regular surveys to be undertaken by the market authority or by
the responsible government departments. Surveys may include changes in per caput consumption of
produce; estimates of changes in production areas planted and yields; and consumerprice monitoring.
These data, combined with an analysis of the daily trading and receipts records maintained by the
market authority, will indicate whether the operation of a market has been successful. The foundation
of the monitoring system should be established during the implementation period by undertaking
base-line surveys.
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Contents - Previous - Next
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Part C - Management and operations
Contents - Previous - Next
In developing institutional proposals for any market it is necessary to find a legal arrangement which balances the role
of traders and other entrepreneurs, whose support will be essential if the market is to be commercially viable, with that
of government agencies who may need to intervene in the marketing process (often by providing needed services).
This part of the manual, (comprising Chapters 7, 8 and 9) gives a brief overview of the creation, operation and
regulation of marketing organizations, as a context for the development of physical master plans and building designs.
For more detailed explanations of institutional options, reference should be made to the Bibliography at the end of the
manual, in particular, the writings of Abbott, Harrison and Mittendorf.
7 market management systems
This chapter is largely concerned with the establishment or modification of larger urban terminal wholesale markets as
their complex management needs particular attention. Secondary wholesale markets can obviously operate with
simpler organizations, but the same basic principles need to be observed, including the need for a clear management
structure and for a board with a broadly similar spectrum of representation and responsibility to that required for an
urban wholesale market.
Why government intervention? Before considering alternative types of institutional strategies, the reasons why, might
be necessary for governments to intervene in the marketing process need to be clarified.
It is possible for market developments to be fully implemented by private enterprise; most of the markets in, for
example, New Zealand and Switzerland follow this pattern. In less-developed countries, however, government often
has a decisive role to play in initiating and planning market projects, as well as financing major site infrastructure
components. New markets cannot operate in a legal vacuum, and in the development of appropriate institutional
arrangements, regulations and operational procedures, it is also often necessary for government to take the lead.
Type of market ownership
Alternative institutional strategies for the ownership and management of a market will need to be fully examined
before selecting the ideal form. This might be a parastatal public enterprise, a private corporation or company, a
cooperative or traders' group, or a combination of these. The choice will determined by local socio-economic and
political factors, but the principal options are discussed here to provide a basis for evaluating their relative merits. A
joint venture is often the most appropriate form.
Marketing corporations. A traditional approach to the problem is to establish a marketing corporation or authority
(sometimes called a public benefit corporation). However, there are now pressures to reduce rather than increase
the number of parastatal corporations. Public corporation performances are frequently poor and their operation
bureaucratic. Because markets involve politically sensitive basic food commodities, such corporations cannot avoid
government participation in much of their decision-making. This might lead to excessive control and interference. For
a public corporation to implement new operational regulations commonly requires legislation, for which legal drafting
and legislative processes may be protracted. For these reasons, management by a state corporation is not generally
recommended.
Limited-liability companies. For the establishment of a limited-liability company, shareholders need to be identified
and the directors would require a share holding qualification. This might not be feasible in a management structure
where it is necessary to have a broad spectrum of expertise gathered together from both the private and public sectors.
Private companies are flexible institutions, but their formation does not completely free a venture from detailed
procedures, as it will still need to comply with the provisions of legislation.
Although a wholesale market may be set up on an alternative institutional basis, when it is fully functional and
operating at a profit there may be pressure to pass the operation to the private sector. In the short term, when there are
marginal financial returns, it may not be possible to attract willing investors. The registration as a limited company
may be the long-term aim, but not necessarily a practical solution to immediate management demands.
Cooperative societies A cooperative society is another possibility for establishing a market, but must be viewed
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critically as it may not answer the need for effective management. Cooperatives often have a poor record in the
management of markets, although it must be stressed that this varies substantially between countries, to the extent that
some of the most successful markets in the world are cooperative nun.
A cooperative of wholesale traders is the most common form, but may be counter-productive; self-interest dictating
behaviour which is detrimental to the needs of both producers or consumers. Often, a buying and selling ring is
created, keeping prices down for the producers and high for the retailers and consumers. Again, there are exceptions to
the rule and some of the most efficient markets in Europe are run by wholesalers themselves. The cooperative format
is often the most appropriate method for a grouping of producers. It facilitates the concentration of produce at
collection centres and the organization of joint transport to market. Other examples of cooperative ventures include
markets established and run by religious organizations, friendly societies charities and ex-servicemens' organizations.
Local authorities. The most usual form of market ownership is by a state, local or municipal authority. These often
have the power to establish and regulate markets, to lease space, charging fees as necessary, and to clean the market
area. Although there are a number of significant exceptions, control solely by a local authority is unlikely to be the best
management system for an urban wholesale market. Experience has shown that the main motivation of many local
authorities is to maximize local revenues. Space is often let to retailers of commodities quite unrelated to agriculture,
thus defeating the objective of a food market. However, as the relevant local authority, the municipal government will
need to be represented on any proposed management forum.
Development boards. Legislation often exists for the establishment of a development board. This particular
institutional format, one step beyond the standard government departmental organization, offers greater administrative
flexibility in the management of specific projects. The principal advantage of this form of institution is that the
authority has to be self-accounting. Staff may, however, need to be appointed in accordance with
government rules. This can allow management to remain closely tied to government for an interim development period
while, in the light of experience, the final format of the market management system is evolving.
By special statute. Markets can also be created under Special Statute, which enables an institution to be created exactly
matching particular local requirements. Such a measure could be used to establish a market authority and define the
area within which it would be the sole authorized location for wholesale produce transactions. The main components
included in a Special Statute might be a definition of the board representatives and their powers, the establishment of a
self-accounting fund, the setting of regulations and the prescribing of penalties. This approach is often an ideal
mechanism because it can accommodate the most appropriate mixture of private and public participation, allowing a
mixed form of ownership, and equally importantly, a system for joint financing.
Short-term measures. The legal form in which a marketing institution might be created will need to be examined in
detail. If appropriate measures already exist this obviates any operational delays that might occur whilst awaiting
government approval for specific enabling legislation, such as a special statute. If a project is to proceed immediately
there may be a need for such an interim institutional arrangement, but care should be taken that this will not preclude a
more satisfactory long-term arrangement. A development board is often the most flexible form of initial institution.
Market management boards
Every market requires an overall control and policy body. This is typically a management board.
Composition of the board For a central wholesale market it is usual for the membership of the board to broadly cover
the following sectors: fruit and vegetable producers; consumers including womens' groups; banks and credit
organizations; local government; central and regional administrations; traders; cooperatives; and users' organizations,
such as retailers and hoteliers.
Commercial representation on the board might be from the local chamber of commerce and from wholesale traders
who are licensed to operate in the market. These may be elected by a local association of traders, although if this does
not already exist it may need to be promoted by the market authority.
Government representatives arc usually drawn from the local ministry of agriculture, as technical advisers on food and
agricultural marketing services, on horticultural matters and on quality control. Representation is also sometimes given
to the police and public works departments, because of the importance of traffic control and waste disposal. Although
these are important issues they can best be covered by an appropriate form of liaison, thus limiting the overall size of
the board and reducing the influence of government bodies.
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Chairing the board l he election (or sometimes appointment) of the chairperson of the board is a critical step in a
market's establishment. With parastatal organizations this would normally be a prominent citizen, such as the governor
of a province or state. Normally, the general manager of the market would act as the secretary to the board and the
market's accountant would be treasurer, but neither should be voting members. They should attend all board
meetings and, using their staff, provide the board with a full range of administrative services.
Board meetings. meetings would normally be convened by the chairperson as and when required, with more in the
early years of market establishment than in subsequent years. A schedule of quarterly meetings is quite commonly
adopted, but if producers' representatives are in dispersed locations this may have to be reduced to two meetings a year.
Key appointments, the annual budget and the setting of fees and charges should require full board approval. The board
can also, however, be represented on management information committees which would meet as and when required.
Board members are usually paid attendance fees in accordance with those paid by similar institutions.
Powers of the board The overall administration of a market would be under the control of the board of director whose
general powers should include:
· establishing trading systems;
· fixing of the times for buying and selling;
· establishing storage and protection facilities;
· maintaining a system of weights and measures;
· issuing licenses to traders and retailers; . recruiting and hiring staff;
· defining staff hours and conditions;
· drafting traffic and parking regulations;
· defining the conditions of leases and contracts;
· fixing rents, transaction and parking fees; and
· imposing penalties, in the form of fines, expulsions and the withdrawal of trading licenses.
Staffing the market
The board of directors of the management board should be responsible for the direct appointment of a General
Manager (GM).
Staff appointments. Other staff appointments may be the delegated responsibility of the GM. Some of the key posts,
such as the deputy GM and an auction-hall manager, should be appointed on the basis of the GM's recommendations to
the board for its approval, as long as this does not lead to delays in decision making. The board should have power to
appoint all staff and set such conditions of service as may be appropriate. Staff may need to be appointed through
temporary or voluntary long-term transfers from government departments.
For the post of General Manager in particular, it will be essential to attract someone with entrepreneurial experience
and considerable drive, who would be prepared to make a long-term personal commitment to wholesale marketing
development. If the project is successful it may offer a model which can be replicated throughout a large country,
offering long-term career prospects for staff who acquire expertise and experience in wholesale marketing.
Staffing levels. Staffing levels should be set at the minimum needed to run the market and the experience of similar
markets is the best basis on which to approach the problem. Overstaffing can be a serious issue and establishment
levels should be thoroughly reviewed during project preparation.
Numbers of staff used can vary considerably. The Marche de Gros in Rabat, for example, employs around 35 staff to
manage the fruit and vegetable section of its wholesale market, which has a turnover of about 150,000 tons per annum.
Amman wholesale market, with a similar turnover, employs around 114 municipality staff and a further 22 Jordan
Agricultural Marketing Authority employees. Another significant difference between these two markets is in the usage
of porters, reflecting their different operating systems. Amman has only 350 porters, while Rabat has about 3,000
registered porters of which perhaps 2,000 might operate on a particular day.
Maracaibo market in Venezuela, which specializes in fish and has a similar turnover to Rabat and Amman, is able to
operate with a staff of only 22, largely because it uses modern bookkeeping methods and is well equipped. Hunts Point
market in New York, with about 32 employees, has a similar staffing level to Rabat but has an annual turnover of over
a million tons (over six times that of Rabat).
Table 7.1 Check-list of typical staff working at a major wholesale market
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General Manager Auction Hall Manager Cold Store Manager
Deputy Gen.Manager Chief Auctioneer Maintenance Manager
Management Info. Officer Auction Assistants Maintenance Engineer
Administrative Officers Auction Cashiers Mechanics
Accountant Auction Hall Clerks Electricians
Accounts Assistants Computer Operators Plumbers
Secretaries/Typists Training Officer Labourers
Clerical Assistant Packaging Supervisors Cleaners
Farmers' Market Inspector Packing Clerks Sweepers
Entry Supervisor Grading Clerks Porters
Tally Clerks Senior Security Officer Handcartmen
Toll Collectors Security Officers Car Park Attendants
Storekeepers Watchmen Gardeners
Hostel Supervisor First Aid Nurse Drivers
Guidelines on the type of staff that might be required for a medium to large wholesale market are given in Table 7.1. It
should be noted that this table includes staff for the operation of an auction hall and farmers' market. It also assumes
that the market is operating its own cold stores and that equipment and building maintenance is carried out by in-house
staff. Sub-contracting of services, including cleaning, accounts and control services, is adopted in many markets to
limit the number of permanent staff. Staff such as labourers, cleaners and porters are often employed on a casual basis.
Significant reductions in staffing levels can be achieved by adopting modern technology. Examples include the use of
special identity cards to photo-electrically operate entry gates (used in Hamburg) and the linking of weighbridges to
computers so that invoicing for tolls are immediately available and market sales records are generated automatically
(used in Thailand at the Phitsanulok Agricultural Central Market).
In addition to the management personnel the following staff are normally required, the roles being filled by
employees working directly for government departments:
· public health inspectors and laboratory assistants, employed by the ministry of health;
· price information officers and recording clerks, employed by an agricultural economics or marketing
section of the ministry of agriculture;
· post-harvest officers and extension workers, employed by an extension section of the ministry of
agriculture; and
· weights and measures inspectors, employed by the ministry of trade or commerce or by a municipal
authority.
Staff structure The best technique for developing a staff structure is to prepare a simplified organization diagram
showing a hierarchy of management responsibilities, such as is illustrated in Figure 14. Typically, a market's
management structure, excluding any specialized functions, will be divided into the following broad areas of
responsibility:
· Finance and Administration
which as well as providing secretarial facilities, legal and accountancy services, and personnel administration, also
includes security and building maintenance:
Fige Kaimai hoesae make Aepa ogaisaio sce
· Operations Sales
which covers the handling of produce within the market and all revenue collection, including any auction activities;
· Quality Control
covering post harvest activities and public health; and . Extension encompassing extension, market information
services and training.
The responsibility for the latter two functions will vary depending on the market's ownership. If the market is privately
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owned, these services are normally provided by government; the private owner often cooperating by allocating space
within the market free-of-charge so that the services can be set up.
Estimating establishment levels. Preliminary estimates of staff establishment can be derived from the scenarios of
turnover which have been prepared in designing the market (see Chapter 4) The initial step should be to estimate the
tonnage to be sold by private treaty or auctioned per day and relate this to the average size of consignment. An estimate
should then be made of how many of these consignments might be sold or auctioned per hour during the peak period,
which can be established from roadside survey data or by making assumptions about when the peak period might occur
(often between 0500 hours and 0800 hours). From the estimate of peak consignments the need for entry supervisors
and tally clerks to check and weigh consignments and, if applicable for auctioneers, can be established by making
assumptions about how many consignments each individual might handle.
As the market develops it will be reasonable to assume that the average size of consignment will increase and that the
task of entry supervisors will be adjusted from the examination and weighing of every load to one of random
inspection. The numbers of general support staff, including entry supervisors and auctioneers, will decrease in
proportion with this improved efficiency.
Training. The development of a wholesale market may be a completely new venture and while potential staff may be
graduates few will have specific training in horticultural marketing. Overseas study tours can to some extent fill this
gap, but there may still not be sufficient expertise available to undertake the management of a wholesale market
without specific additional training and continued technical support. A comprehensive training programme may need
to be set up, focussing on in country training and short-term courses in neighbouring countries.
The types of courses that might need to be organized include: commercial accounting procedures; computing;
recording of price data; packing; grading; vegetable and fruit sales; auctioning; fish marketing; building
maintenance, leasing and rentals; market operations; small-scale processing; environmental health; weights and
measures; cold storage management, operations and equipment maintenance. In designing appropriate courses full use
should be made of the staff resources of the agricultural economics and marketing departments of local universities and
agricultural colleges. Some useful material is available from the international institutions specializing in the training of
market management staff, such as those in India and Korea (see Bibliography).
Management information system
It is essential that an effective management information system (MIS) is set up. There must be a regular flow of data
upon which management can make informed and timely decisions. Data needed will include:
· monitoring of project implementation;
· a training programme, to ensure that staff acquire necessary skills;
· financial monitoring, to keep management regularly appraised of market profitability; and
· monitoring of produce demand and prices (in conjunction with government officials) to be fed back to
producers and available for evaluation against baseline projections made of the project's performance.
To ensure that only data with a practical application is collected, it is essential to determine the users of data, their
individual needs and the frequency and format for data presentation. For larger markets data storage, processing and
retrieval should be computerised.
Operational committees. A common method of maximizing the exchange of information by the market management
staff is to institute a system of operational committees, with responsibility for the collection of data. The board should
appoint observer members to each of the committees. These committees are part of the management information
structure concerned with reviewing day-to-day performance and are not board sub-committees with delegated
responsibility for policy making. The observers act as a liaison between board and management, particularly when
several months may elapse between meetings of a full board. Committees might be convened for the following subject
areas:
· operations and maintenance;
· development and finance;
· administration and personnel; and
· overall executive coordination.
The general manager or his deputy should normally chair the committee meetings and other staff members, appropriate
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to the business to be discussed, would be in attendance. Committees would meet, as required, to deal with performance
constraints but otherwise not less than monthly, to prepare a performance report covering their activities. An overall
executive committee would be concerned with general coordination of all activities and would decide which matters
should be reported to a full board meeting for information or decision.
Methods of financial control
So far as possible within the enabling legislation, a board should be self-accounting and operate upon commercial
principles. Fees and charges should be set to cover all costs, including staff, and maintenance and depreciation of
assets. For its day-to-day operation a market has a considerable number of cash transactions and a daily internal audit
should be an essential part of the accounting system. External audit on an annual basis is also essential. Profits should
be reinvested at the discretion of the board, possibly in other market improvement programmed.
Joint financing A joint-financing method is sometimes adopted in market development. A government organization or
local authority finances the main infrastructure and a traders', wholesalers' or growers' association is responsible for the
erection and maintenance of the buildings. The method of financial control will need to be more complex, where the
traders, for example, contribute to a proportion of the recurrent costs of the market.
Contents - Previous - Next
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8 Market operations
Contents - Previous - Next
The development of practical policies for the operation of a new market is critical both to the
preparation of the physical design proposals discussed in Chapter 4 and as a basis for project
formulation and feasibility testing discussed in Chapters 5 and 10. Many people are likely to approach
such a problem based on their limited experience of existing markets they may have worked in or
seen, bringing with them a variety of prejudices. It is important that such preconceived ideas do not
hamper any innovative thinking and this subject is often, therefore, more appropriately considered by
outside consultants.
Transaction methods: auctions and sales
A key factor in determining how a market will operate is the sales method it will adopt. The main
methods for sales of fresh fruit, vegetables and fish are by private treaty, by commission sales, by
auction, by pre-arranged contract, or by a telephone order (common in the USA and Europe).
Private treaty. The most common method of selling perishable produce is by private treaty between a
seller and buyer. The main physical difference between this method and auctioning is that there is no
auction hall. The farmer/traders with produce for sale rent a market stall from a market authority for
the day, week or month dependent on anticipated volume and frequency of visits to the market.
Alternatively, they may sell directly from the back of the truck or pick-up in which they brought
produce.
They display their produce on the stall or on the tail gate of the truck and await an offer from an
interested potential buyer. The bargaining begins and depending on the supply and demand situation,
coupled with the quality of the sample, the private bargaining continues until an agreement is made
between the two parties. The success of this system from the farmer's or trader's point of view is
largely dependent on his knowledge of the current market supply and price situation.
Commission sales The procedure adopted for commission sales is similar to that used in a private
treaty agreement, except that the producer is not there in person. The commission agent, who does not
have title to the goods, acts on the producers' behalf to try and obtain the best price, for which he earns
a percentage commission. For this system to work there must be a high level of trust between the
producer and agent. (Often the agent may be a relative of the farmer or be a larger-scale producer
from the same village who owns or has access to transport facilities.
Actions A common alternative method for selling produce is by auction. This aims to attract a large
number of buyers who wish to purchase goods at a competitive price. The auction method means that
the auctioneer starts at a minimum price, usually bearing some relation to the price prevailing at the
previous day's auction. If there is no bid, the "lot" is withdrawn from the sale. It may be taken away
from the market or be sold by the farmer or trader (or in some cases, the auctioneer) in a farmers'
market on a private treaty basis for the best possible price, bearing in mind the supply and current
price prevailing at the time.
On the other hand, if the opening price is taken up by a buyer at the auction, followed in turn by other
buyers, the bidding proceeds until the rising price for the "lot" eliminates all but the last bidder, who
then becomes the owner of the produce concerned. Sophisticated variants of the auction system use a
clock to indicate how the prices are changing.
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Preferred system Which sales method is adopted will depend on local custom and what type of
produce is being sold. It is not uncommon to have a number of methods operating at the same market.
Private treaty is the most flexible method, requiring the minimum of management and is typically
adopted for the sale of small lots, particularly vegetables. Auctions are almost always used in the sale
of livestock and frequently for the sale of fish. Fruit can also be sold at auction, particularly if some
form of grading system has been instituted.
The auction system has the advantage that it can avoid the development of wholesalers' rings and, if
well organized, can facilitate the sales of a large number of very small scale consignments. However,
the problems of introducing an entirely new system of sales should not be minimised and if an auction
is introduced the market authority is likely to experience some difficulties with the farmers and
traders, as well as the wholesalers, in the months following commencement of trading.
Rentals, fees and charges
It is the responsibility of the GM to recommend to the market board for their approval the following
types of charges for the use of the market's facilities:
· rent and service charges to wholesalers for storing produce in the mar ket shed or for
renting separate storage premises;
· commission to be charged to wholesalers and others purchasing produce by auction;
· tolls to farmers for using a farmers' market;
· charges for using washing, grading and repacking facilities;
· car parking charges; and
· charges for all vehicles entering the market.
The setting of rental levels and appropriate levels of auction commission is likely be one of the most
controversial subjects in which the board is involved. This issue should be investigated at the project's
feasibility stage and alternative rental levels and fee structures fully tested during the financial and
economic analysis (see chapters 4 and 10). Final resolution of this will be dependent on full
consultations with the producers, wholesalers and traders, demonstrating that they will benefit from
the market development programme.
As a guideline, commission fees for auctions can be set as low as 0.5 2 percent of the value of sales,
and figures as high as 8 - 10 percent are not uncommon. A figure of between 3 - 5 percent is probably
reasonable. Other revenues may account for a further 2 - 5 percent of the value of sales, producing an
overall revenue of 5 - 1 0 percent. if an auction system is not being used it is likely that entry and
parking fees will need to be proportionally higher to cover expenditure.
Produce handling procedures
A critical step in both determining staffing levels and in designing an appropriate physical layout is to
understand the functioning of the market as a series of operational steps. Although there are
differences in the detail of how produce is handled, the basic steps are the same.
Figure 15 illustrates a sequence of steps, based on the proposed day-to-day operational pattern for a
typical wholesale market using the auction system in Nepal. Details of this process are elaborated in
Table 8.1.
Table 8.1 The sales process at an auction market
Arrival and display of produce
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On arrival the farmer or trader is checked and registered at a gatehouse at the market entrance. If, on
checking, the produce is unacceptable (not washed, cleaned and sorted at the farm or collection
centre) he is instructed to take it to a washing and repacking shed. Once produce has been brought up
to the required standard it goes to an auction hall. The trader with produce of an acceptable standard
has it weighed and is issued with a numbered ticket detailing his name, district, type of produce,
number of units, their weight and, lastly, an identification number of the section of floor space where
he is to take his produce to await the auction. The produce is moved to a designated space on an
auction «platform" (segregated into vegetables, fruit and fish) by a porter employed by the market on
a casual basis.
The action
The auction then proceeds, supervised by a qualified auctioneer. A typical auction, in most tropical
and arid countries, commences at 0500 hours. By 0800 hours it is likely that most of the day's intake
would be sold. Where it is normal to serve the main meal of the day in the late evening as in some
Mediterranean cultures (such as Malta) the peak auction period may be during the late morning, with
sales to the retailer in the afternoon, ready for early evening shopping. Each auctioneer needs two
clerks. After each accepted bid a clerk prepares a numbered sales note (or "chit") on which he enters
the entry card number; the farmer's name and district; the product; quantity and selling price. One
copy of the chit is given to the farmer, the second and third copies are given to the buyer; and a
funkier two copies would remain in the clerk's book.
Purchase of produce by wholesalers and retailers
The wholesaler who has bought the produce must then immediately pay the farmer/trader.
Subsequently, the wholesaler presents his two copies of the chit at a cashier's counter where
commission will be calculated and paid. As the wholesaler is likely to be purchasing more than one
consignment of varying products he is not required to go to pay until he has completed all his planned
purchases. The market porters then remove the purchased consignment and take it to the
buyer/wholesalers' storage area, where it might be repacked for immediate sale or sent to cold storage.
Unsold produce might be stored temporarily at the auction shed or removed, to be sold at an adjacent
farmers' market.
Retailers and institutional users come to the market and purchase directly from buyers/wholesalers'
establishments adjacent to the auction area. When the cashier has received the sales commission he
returns a receipted copy of each sale note to the wholesaler.. On leaving the market the wholesaler
needs to show these receipts to the gateman to be counter-stamped.
For a market using a private treaty method of sales the sequence of steps are as follows:
·checking-in of produce at the entry gate. An entry toll is usually paid at this point (but
sometimes later) based on the size of the vehicle, an estimated volume or a weight
established from passing over a weighbridge. Produce may at this point be divided
between graded and ungraded, so it can be directed to different points in the market.
· unloading of produce at space allocated by the market authority, either a sales platform
within a market shed or in some cases (normally with fruit and vegetables) an open area
where sales are permitted directly from trucks. If there is a prior agreement for purchase
or a contract arrangement, produce may be taken directly to a wholesaler's premises.
· purchase of produce by whole salers by private treaty and then transfer to their
premises.
· resorting, packing and display for purchase by retailers and other users such as hotels
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and restaurants. The produce may also be stored, the storage period depending on type of
produce and whether the wholesaler has cool storage facilities.
-the retailer pays a market charge based on the type of vehicle (when he enters), or the
weight or volume of purchases (on leaving).
Fige Poce haig ihi a pica hoesae make
Financial management
Markets generate a large number of transactions within a short period, requiring simple, standard
procedures to handle them. A market accounting system operating along commercial principles is
required, based on a system of bookkeeping which will allow auditing on a daily, quarterly and
yearly basis.
Persons with recognized accounting qualifications are usually difficult to recruit and it is often
impossible to attract commercially qualified accountants, unless the salary and conditions of service
are considerably in excess of anything offered by the public service. The project often needs,
therefore, to train its own staff and, probably, traders who will use the market, in simplified
accounting procedures.
Market information and extension
A major function of a modern wholesale; market is to aid market transparency by compiling
information on market prices, quantities sold and qualities offered. This information is usually
collected by officials from the ministry of agriculture or trade and is useful for both the market's
management and for producers, so that they can choose both the location and timing of sales. It allows
producers to delay harvest or store their produce till prices are better or transport facilities are
available and helps them to make better long-term production decisions. it enables traders to decide to
which market they should deliver produce, so helping to equalize supply throughout a country and
even out price differences. The theory of improved market transparency is that it acts as a stimulus to
the economic functioning of the market, improving competition and promoting adaptations to meet
supply needs and market opportunities.
Dissemination of information The implication of introducing such procedures needs to be recognized
at the project formulation stage as extra staff will be needed for data collection. Computing and
communications equipment will be required. A notice board should be provided in the market to
display information on a regular basis. The system should ideally be connected into both a national
price collection procedure linked to the media (particularly if export produce is important) and to local
assembly markets and packing or collection centres. Facsimile or computer modem facilities are the
most appropriate method for transmitting this information. However, if telephone links are poor this
may need to be supplemented by short-wave radio connections.
Extension. Markets are a convenient location for dissemination of extension advice and information,
particularly related to marketing activities. Suitable publicity material should be provided on
grading/packing requirements and possible outlets for produce. A full-time extension officer from the
ministry of agriculture may be warranted for a larger market. Facilities for the display of extension
material and the holding of extension meetings should be made available al the market .
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9 Regulating the market
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The regulation of markets is a subject bound up with the culture within which the market will operate.
A balance will always need to be struck, between the needs of traders to operate in as free an
environment as possible and the need to provide consumer protection and impose public health and
safety rules.
Licensing
Licensing can operate at a the level of the whole market or of the individual operating within it.
Market operators' licenses. When a market is privately owned or is publicly owned and let out to a
private operator it is normal to require a license to operate. The administration of such a licensing
system will vary from country to country. Normally it will be responsibility of a trade or home affairs
ministry. Sometimes licenses are the direct responsibility of the courts and require an application to he
made to a judge or magistrate.
The basis for the license will be a written agreement with the relevant authority or the market
management board to comply with the types of regulations outlined below. To ensure compliance
with public-health standards and fair-trading practices it is often necessary for governments to appoint
inspectors who make frequent visits to markets and who have the power to revoke licenses.
Traders' licenses. All wholesalers and commission agents who wish to trade at the market should also
be licensed and required to submit an application to the board for their consideration. Accepted
applicants would be licensed to trade and be required to sign a trading agreement with the board.
Market regulations
The normal practice in all markets is to establish a set of regulations covering market hours and
practices. These will vary substantially between different countries, but will follow some general
principles. These are outlined below.
Trading bours Some markets allow trading hours to be fixed by the traders themselves. However,
although some markets function over 24 hours, it is normal to regulate this so that the market can be
completely cleaned for security purposes and, where an auction system is operated, to allow the books
to be closed for the day. Therefore, market opening times for receipt of produce, the time that
auctions, if appropriate, will commence each day and the time at which the market will be closed,
should all be clearly specified. These hours should not follow those worked by government employees
and should reflect the real needs of the market users. They may, however, vary during the week
(reflecting religious customs) and by season, if this might have a significant impact on working
temperatures or the amount of daylight hours available.
The commencement of each day's operation and termination is normally signalled by a buzzer or by
the ringing of a hand bell. At the close of each day's sales, all buyers should be required to leave the
market within a specified period, typically within one hour.
Liability and general regulations The regulations should stipulate that all goods taken into the market
would be at the sole risk of the owner and that the market authority would not be liable for any loss
or damage, other than if it failed to make "reasonable" provision for security. The rights of users of
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the market to have any claim against the market authority on matters of public-liability would also
need to be limited. Some form of public-liability insurance may be available to cover both those that
work within the market and visitors.
The regulations should require that all scales and measures used in the market should be regularly
checked for accuracy by an independent authority. No commercial publicity or handbills should be
allowed to be displayed throughout the market without the express consent of the market authority.
The users of the market would be required to keep it in a clean condition, up to a minimum specified
standard. Other general issues that might be covered by regulations include traffic and parking
regulations and limitations on access to the market without a personal or vehicle pass.
A notice board, listing the general regulations of the market, should be displayed at a prominent
position near the site entrance and within all the main buildings.
Regulation of tenants and traders. Under the provisions of their tenancy agreements all wholesalers,
commission agents and buyers, (usually referred to by the general term of "traders") would have to
undertake to respect and obey the market regulations, a copy of which would be incorporated in the
tenancy agreement.
Any violation of the market regulations should result in the cancellation of the tenancy agreement and
possible prosecution. For the first offence a verbal warning is often given; for a second, a written
warning is issued; and for a third offence the trader should be suspended from trading for a period
defined by the market authority, ranging usually from one day to one month. In specific cases legal
action should be taken against the trader involved.
The wholesaler would also be required to maintain accurate financial records (available for inspection
by the market authority on request) and pay commission due for purchases on the same day as the
purchase was made, as well as to pay all other charges on the day they were charged.
Regulation of farmers. The regulations would also cover the activities of other traders and farmers
selling goods at the market. They should be required not to sell or expose for sale any unauthorized
produce. This would normally be imposed to stop the sale of high value non-agricultural items,
typically clothes, but will probably also cover the sales of wine, liquor or spirits.
Producers and other users of the market, including retailers, should also be required not to create or
cause to be created any riot or disturbance or to remove, damage or spoil any part of the market
premises.
Inspection, quality control and hygiene
Any market must maintain a high standard of public hygiene. It will need to comply with national
public health regulations, perhaps the best known of which is the Food and Drug Act in the United
States.
The scope of such legislation may be wide ranging and include general matters relating to cleaning
and disposal of waste materials, through to detailed technical requirements for the testing of produce
for contamination. These regulations may be enforced by special officials or ones from the
government's health ministry, often using public health officers attached to the municipal
administration or a local hospital.
Cleaning fire prevention and quality control Specific local ordinances imposing standards for the
cleanliness of markets may also exist. These may be administered by either the public works
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authority's sanitary inspectors or by public-health officers. The market will also come under the
control of local authority public works officials and the fire brigade in relation to means of escape
from the market in the case of a fire breakingout and in the maintenance of fire-control facilities, such
as extinguishers and hose reels. These factors should be incorporated into the design of the market
buildings (see Chapter 14).
It will usually be necessary for the market to employ its own staff of inspectors to maintain the quality
of the produce and to ensure that public ordinances are adhered to, particularly any relating to grading
standards and to weights and measures. For larger markets, particularly those trading in meat and fish,
it will be essential to have a fully equipped and staffed laboratory. To prevent cross-infection, produce
that shows any sign of decomposition should be disposed of by the market authority in collaboration
with the public health officers. The trader concerned should normally have the right to remove the
inferior goods from the market should he so wish.
Solid waste disposal A major problem in all markets is the disposal of solid waste and although
provision may be made for depositing waste at specific points or into skips, it will also be necessary to
check that market users are not placing dirt, filth, rubbish or any other substance on the market floor,
but are using the containers provided.
A system of small fines may be necessary to achieve this. Although administration of solid waste
disposal is the responsibility of the market authority, the actual operation of the system may be the
function of the municipal authority or a private contractor. Further details on solid waste disposal are
given in Chapters 13 and 14.
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Part D - Technical notes
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This section of the manual attempts to fill in some of the technical detail touched upon in Part B where the various stages of the design process
are outlined. To make these technical notes more useful a case study approach has been adopted, primarily using illustrative material drawn
from FAO studies in Nepal, Thailand, Brazil and the Near East.
10. Project justification
The purpose of any market development programme is the promotion of an environmentally sustainable project, combining the provision of
benefits to producers and consumers with profitability of market operations. To evaluate whether this is actually achievable a systematic and
rigorous approach must be adopted in analysing a project.
The intention of this chapter is to amplify the discussion on project justification outlined in the description of project formulation and feasibility
in Chapter 5. Further background to the subject of project economics and details of appraisal techniques are contained in the publications listed
in the Bibliography.
Particular reference should be made to Price Gittinger, I (1972. Economic analysis of agricultural projects. Baltimore, The John Hopkins
University Press); Abbott, J.C & Makcham, J.P. (1979. Agricultural economics and marketing in the tropics. Harlow, Longman); and Harrison,
K. (1987. Improved food marketing and delivery Systems, in Elz, D. [ed.] Agricultural marketing strategy and pricing policy. Washington DC,
World Bank).
Financial analysis assumptions
The first step in making a financial analysis (see Chapter 5) will be to phase the inputs of materials, equipment and labour required over the
project's life and cost them, in present day prices, so that cash flow tabulations can be created. Assumptions that will need to be made in order to
prepare cost estimates of the capital works, recurrent expenditure and anticipated revenues for the project, are described in the following section.
Table 10.1 Typical cost elements for site preparation works
Item and description Unit
· Demolition and cart away lump sum
· Site preparation lump sum
. Fill earthworks, by thickness m²
· Geo-textile blanket, by type m²
· Horizontal subsoil drains, by diameter and depth number
. Vertical sub-soil drains, by diameter and length number
· Temporary drains and sediment control lump sum
· Off-site improvements to surface water drainage outfall lump sum
· Retaining walls, by type, height and thickness metro run
· Septic tanks, by volume item
· Stilling basins/trash traps and confluence structures lump sum
. Fencing/walls, by type and height metre run
· Landscaping (bollards, tree planting, etc.) lump sum
Source: FAO Project TCP/THA/8958
Table 10.2 Typical cost elements for site infrastructure
Item and description Unit
Road works:
· Road pavement (off & on-site), by type and thickness m²
· Kerbs and gutters (on-site), by type metre run
· Street signs and markings lump sum
· Parking areas, by type and thickness m²
· Sidewalks and footpaths, by type and thickocss m²
Surface Water Drainage:
· Open and Covered Drains, by width and depth metre run
· Covers/Gratings, by type and width metre run
· Culverts, by diameter and depth metre run
Water Supply:
· Mains connection, by diameter and depth metre run
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· Heading to street supply, by depth lump sum
· Connection charge lump sum
· Distribution network, by diameter (incl. thrust blocks) metre run
· Chambers, by dimensions, cover type and fittings -
hydrants, wash-outs, air valves and junctions Number
· Building connections Number
· Stand pipes, by diameter Number
· Underground tank or water tower, by capacity lump sum
Sewers:
· Unencased & encased pipework, by diameter and depth metre run
· Manholes, by dimensions, cover type and depth Number
Electrical power supply system, including street lighting
· High . tension installations:
· Cable (by voltage), jointing and poles lump sum
· Lightning arresters, etc. lump sum
· H.T. metering, UMT and earthing Number
· Low tension installations:
· Transformer, by voltage Number
· Ducting and cabling, by voltage and cable size metre run
· Main control panels and earthing Number
· Street Lights Number
Telecommunications.
· PABX exchange lump sum
· Ducting and connection metre run
Source: FAO Project TCP/THA/8958
Capital costs. Costs for civil works are usually developed on the basis of multiplying approximate quantities by global "unit rates" derived from
an analysis of similar, recent contracts. The quantities are estimated from the projected schedule of accommodation and measured off the outline
designs for buildings and infrastructure defined in the site master plan. For the purposes of this analysis the cost for buildings is usually
estimated on a simple per square metre basis, whilst for other infrastructure costs more detailed estimates will need to be made. Typical items
that might need to be included in infrastructure estimates, which are explained in detail in Chapter 14, are shown in Tables 10.1 and 10.2.
The costs of major materials might be assessed separately. These include the costs for stone, gravel and sand, which might be obtained directly
from a number of local quarries. Because the fabrication of the main structure is also likely to be a major cost component, separate budget costs
for this might also need to be obtained. In general, materials for building and infrastructure design should either be locally manufactured or
easily available as imports from local suppliers. However, a guaranteed supply and substantial saving in steel work and cement costs can
sometimes be obtained by a project if it uses imported materials in lieu of what is locally available. Equipment may also need to be imported and
cost estimates for these items should cover, if appropriate, the complete supply (c.i.f. for the destination city), including labour and materials in
installation, commissioning, maintenance and spares. Typical market equipment is shown in Table 10.3.
Table 10.3 Typical market equipment
Weighbridge Garden tools
Platform scales Maintenance tool kits
Grading equipment Platform trolleys
Pan Scales Handcarts
Labelling equipment Solid waste management skips
Cashier's listing machine Public address system
Public health lab. equipment · amplifier
Auctioneer's portable platform · speakers
Wall clocks · speakers (ceiling mounted)
Produce thermometers · microphone and stand
Computers end primers · megaphone
Source: FAO Project GCP/NEP/043/SWI
The build-up of capital costs should include provision for technical assistance and professional fees of design and supervision consultants. This
is usually estimated on a percentage basis (typically 10 percent overall) for both pre-contract services and site-supervision. Sometimes the local
custom is for the site-supervision element of fees to be charged on a time basis, but using an overall percentage is adequate for financial
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analysis.
Civil works and equipment cost estimates should include a 10 - 20 percent physical contingency. Price contingencies for inflation should not.
however, be included in cash flows (although they may form part of project budget estimates ) as the analysis is undertaken in current prices.
For furniture, fittings and minor equipment a dump sum estimate can be included, normally based on prevailing local prices for other
construction projects or by applying a factor of around 5 percent to the capital costs.
Although a market site may already be owned by a market authority or government an allowance should he included in the cash flow for land
purchase, again at current prices. Often there is a need for temporary rented accommodation for market offices or storage during the
construction period and this should be included in the cash flow as an approximate lump sum.
It is also sometimes necessary to identify separately any items requiring a major foreign exchange component, particularly if this feature is
going to be analysed in the economic analysis.
Table 10.4 shows a compilation of capital costs for a the first phase of a medium-sized market development programme. The table incorporates
all the construction costs, major equipment, technical assistance and physical contingencies.
Recurrent costs. The main operating expenditure of a market will be staff wages and salaries. These should ideally be built-up from detailed
staffing establishment figures (see Chapter 7), using prevailing pay scales in the private sector. Bonus payments, based on formulas for market
productivity, may also need to be included in the cost estimates.
Other items of recurrent expenditure should again ideally be estimated on the basis of data which may be available from similar markets in the
region. Typical items of expenditure that should be included are shown in Table 10.5. An overall percentage basis may have to be used if
insufficient detailed costs are available. A 10 percent physical contingency is usually added to the overall operating costs.
A sinking fund should also be included, calculated on a straight line or declining balance basis. Depreciation should assume a 25-years life for
civil works, with a residual value equal to acquisition costs plus site preparation, a 10-years average life for equipment and 5 years for furniture
and fittings. Most desk top calculators with financial functions or spreadsheet programmes have a facility for calculating depreciation.
Revenues. The revenues generated from wholesale markets are the most difficult components to estimate. Revenues for markets charging
market fees directly on sales or operating an auction system are the easiest. In this case it is usual to assume as a "basic" case that revenues
might be around 5 percent of the turnover, which is a fairly normal rate of commission levied in wholesale markets (see Chapter 8).
To prepare estimates of revenues on sales sensible assumptions will need to be made about the growth in turnover, as well as estimates of the
average value of produce. The latter can be derived from a combination of roadside surveys of produce types and price data.
Table 10.4 Sansai Market Centre: construction costs (Bht '000)
Item Unit cost (Bht) Total cost (Bht '000)
Buildings and Equipment:
Main Sales Space 4,500/m² 9,000
· Rentable Stores 5,000/m² 4,000
· Washing, Packing & Grading 4,500/m² 675
· Market Management Offices 6,000/m² 600
· Other Offices 6,500/m² 1,300
· Basic Support Facilities 5,000/m² 500
· Grain Dryer & Silo (15 ton/hr) Provisional sum #0
· Market Fixed Equipment Provisional sum 1,000
Site Infrastructure:
· Geotechnical/Materials Testing 5/m² 300
· Site Preparation/Landscaping 350/m² 16,430
· Grain Drying Area 500/m² 250
· Car Park - 300 pick- ups/trucks 400/m² 3,840
· Car Park - 30 cars 450/m² 180
· Roads 550/m² 14,050
· Surface Water Drainage 200/m² 10,730
· Water Supply 30/m² 1,610
· Water Supply Tower 50/gal 300
· Sewerage 10/m² 540
· Electrical Supply/Street Lighting 60/m² 3,230
· Telecoms* 110/m² 5,900
Sub-Total 74,430
Professional Fees:
· Design @ 3 5% 2,600
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· Supervision @ 2.0% 1,490
Base Cost 78,520
Physical Contingency @ 10% 7,850
TOTAL (rounded) 86,400
Source: FAO Project TCP/HA/8958 Note: # constructed in later phase
Table 10.5 Typical market operating expediture
Insurances
· buildings at 1 percept of capital
· plant and machinery at 2 percent of capital
· public liability at 0.5 percent of capital
Office overheads lump sum
Utilities:
· electricity and water lump sum
· fuel vehicle maintenance, lubricants, greasing etc. lump sum
· refuse collection lump sum
Repairs and maintenance:
· building and civil works at I percent of capital
· plant and machinery at 5 percent of capital
· office equipment and furniture at 10 per cent of capital
Debt servicing percentage of total capital requiring repayment
Annual audit fee lump sum
Source FAO Project GCP/NEP/043/SWI
Other revenues, from the monthly rental for stores, from market fines (a minimal amount) and from services such as washing, grading, packing
and parking fees, can be estimated as 30 per cent of the amounts collected as market fees or as commission on auctions. A more refined method
to estimate annual revenues (or when a market does not charge market fees or auction commission) is to use an assumed set of financial analysis
parameters. Typical examples of such parameters are shown in Table 10.6 Unit rates extrapolated from actual market rates, where these are
available (such as typical rental or parking charges), would be applied to these parameters to derive revenues.
Terms used in financial feasibility studies
Although there are many techniques for analysing projects, such as by the use of goals-achievement and social cost-benefit analyses, the
preferred method for marketing investment projects is usually one that adopts an internal rate of return as the main criterion. This basic method
for calculating financial and economic returns, using a desk-top calculator or spreadsheet, has already been outlined in Chapter 5. The following
notes amplify a number of the technical stages that are used in such an analysis.
Table 10.6 Typical financial analysis parameters
. levy on estimated average monthly throughput of sales space tons
· utilization of wholesalers' storage premises percent/m²
· monthly rental of wholesalers' offices percent/m²
· annual utilization of cold storage space percent/m²
· stored volume at cold stores tons per month
· sales of ice tons per month
· monthly rental of other facilities percent/m²
· use of washing & grading/packaging facilities percent/m²
· entry fee/short-term parking use for cars/trucks '000 spaces
· use of hostel facilities per cent bedspace occupancy per night
· annual usage of toilets '000 users
Source: FAO Project GCP/NEP/043/SWI
Projected cash flows. Cash flows arc a means of representing in a tabular form all the costs and benefits of a project that have been discussed
earlier in this chapter. Each year of a project's life is represented by a column in a cash flow table. The rows of the table represent the costs and
benefits occurring in each year. An example of a project cash flow and the resulting financial analysis is shown in Table 10.7. The analysis is
not taken beyond around 25 years as this will have little impact on a project's rate of return.
Discounted values. A market investment project is developed over a number of years and its costs must therefore be phased to reflect this. So
that the financial analysis can be undertaken in present day prices, all these costs are converted into current prices by applying discount rates,
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usually of between 10 -20 percent. The spreadsheet programme or desktop calculator will normally allow this to be automatically calculated.
Net present value. A project's capital and recurrent costs, and gross returns can be directly related in the cash flow to obtain its annual net
revenues, which arc the balance of revenues over expenditure (whether positive or negative). With the application of discount rates, these can be
converted into a single figure, the net present value, which represents the total value (or worth) of a project in present day terms. This figure is
equivalent to the sum that would be required to go out and purchase such a market
Table 10. 7 Sansai Market Centre: financial analysis (Bht. million)
item Year 1 2 3 4 5 6-8 9 10 11 12-25
Capital Investment:
Civil works & fees 20.0 38.4 28.0 17.2 0.9 0.0 21.3 1.1 0.0 0.0
Land acquisition 38.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Furniture & equip. 0.0 0.0 3.8 0.6 0.1 0.0 0.0 0.0 0.0 0.0
Recurrent Expediture
Operating costs 0.0 0.0 2.8 3.8 5.1 7.6 8.6 11.1 12.6 14.2
Depreciation 0.0 0.1 1.7 3.3 4.9 4.9 4.9 5.5 5.8 5.8
Total Expenditure 58.0 38.5 36.3 24.9 11.0 12.5 34.8 17.7 18.4 20.0
Annual revenues 0.0 0.0 14.0 21.0 28.2 42.4 47.7 61.9 70.2 78.6
Net Cash Flow (58.0) (38.5) (22.3) (3.9) 17.2 29.9 12.9 44.2 51.8 58.6
ANALYSIS:
Internal financial rate of return = 19.34 percent
Net present value = 159.34 million Bht. at a 10 per cent compound discount rate
Source FAO Project TCP/HA/8958
Internal rate of return. The return on any investment can be expressed as a percentage; the internal rate of return. This represents the average
earning power on the investment over its life, in which the total of the discounted costs and benefits (the net present value) are zero. The
calculation can be applied to the financial returns on a project or to the adjusted economic returns (see Chapter 5).
If this calculation is undertaken manually it has to be by series of approximate calculations (iterations), whilst a computer or financial calculator
will automatically produce a single value. To input data into the spreadsheet or calculator it is only necessary to specify the following: the
amount of the initial (first year) net investment;
· each successive net cash flow amount, for the remaining 24 years; and
· a discount rate equivalent to the opportunity cost of capital (in this case taken as 10 percent).
An internal rate of zero will mean that a project has covered its capital and operating costs. A higher rate will mean that it has made a profit. A
rate of return of between 15 - 18 percent is usually found acceptable in less-developed countries.
Specilalist analysis
In some cases a different approach will need to be taken in the financial and economic analysis from that discussed in Chapter 5. Examples
might include:
· integrated projects, with widely varying benefits, where the wholesale market is only a component of a larger programme, which
might also include assembly markets, storage facilities, market extension and training, collection centres and rural roads;
· partial market-improvement programmes, where only a limited investment is undertaken and the impact is confined to only a part
of the market's operation. An example of this might be the introduction of a traffic management scheme, where the benefits could
be assessed by reference to reduced transport costs; or
· the provision of specialist facilities at a market, such as large-scale grain drying and silo storage facilities, abattoirs and cold
storage.
These problems are outside the scope of this manual and should be subjected to a separate detailed justification. Because, however, cold storage
is often included as part of a comprehensive market development programme the following notes amplify the types of problems that such
infrastructure might create.
Justification for cold storage. The justification for cold storage must be thoroughly examined before entering into costly investment decisions,
which frequently turn-out to be "white elephants". In general, it is better if gluts are prevented by using production planning to allow staggered
harvesting times.
There are, however, cases when refrigerated cold storage can help the market situation. This can particularly apply with imported fruits, such as
apples, where they are being sold through the wholesale market. It can also apply to local produce at harvest time, when a large crop of a
particular produce is being harvested and a farmer becomes aware that the volume being sent to market cannot be absorbed without causing a
serious over-supply. Through refrigerated cold storage some tones of produce can be loaded into store within hours of harvest and maintained in
sound condition until supplies begin to tail off and prices improve.
Although this may justify the use of cold storage, the site does not have to be in the market and it is often more appropriately located in the
production areas. Market cold stores are needed:
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· to hold imported fruit;
· to hold truck loads coming from the off-market cold stores for sale at the market; and
· to provide temporary storage for small quantities to prepare for main market days or for holding temporary surpluses.
As a basis for evaluating the need for cold storage the types and quantities of crops that can be stored should be thoroughly reviewed, by looking
at the supply situation and the practicality of storing that type of produce. In general, the vegetable crops that may safely be cold stored are
potato, onion and carrot. No attempt should be made to store other more delicate vegetable crops until practical experience in cold storage
management has been gained. Of the fruits, orange, lemon and apple are the most practical for cold storage.
Cost estimates for cold storage. Budget prices for refrigeration and cooling equipment are difficult to estimate and assistance should be obtained
from suppliers in determining the appropriate capacity (specified in metric tons) and equipment needed. The following items should typically be
included in a budget estimate:
· Supply and installation of refrigeration machinery, typically comprising ammonia reciprocating compressor, atmospheric
condensers (1 standby), blowers, accumulator, defrosting equipment, liquid receiver, oil separator, pipework, fittings and electrical
equipment (compressor motor, air handling motors, re-circulating pumping set, 3 phase electrical supply);
· Supply and installation of ice making plant;
· Supply and installation of stand-by diesel generator;
· Supply and installation of ducting;
· Freight and insurance;
· Labour and materials in installation; and
· Commissioning, I years maintenance and spares.
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11. Socio-economic and engineering surveys
Contents - Previous - Next
Surveys are the foundation of any project and are an essential part of the design process. Some words of caution are required, however,
before launching a full-scale survey programme.
Introduction to survey techniques
Like many of the issues covered in this manual, surveys are a vast subject in their own right, which in the case of markets in
less-developed countries touches on many other areas of knowledge, including anthropology, statistical analysis, agronomy,
agricultural economics and geography. This manual can only cover the most common surveys that will be required for physical
planning purposes.
The main difficulty in setting up any survey programme is to obtain the maximum amount of information with the minimum of effort.
This may appear to be completely obvious, but there will be strong pressures from many involved in the development process to short
cut the surveys, often because of previous bad experiences of over-elaborate and costly surveys which failed to provide the data
required.
Only that information should be collected for which there are staff and facilities capable of providing analysis. I or any one day's field
work there is at least another day's work in the office. A survey team of, say, six people will generate enough work back in the office to
absorb the time of 2 or 3 people for a week, even if they arc using a desk-top computer to analyse the data.
It is essential, therefore, to observe the following principles:
· the purpose of the survey should be clearly defined;
· there should be a pilot survey before undertaking a full-scale survey;
· questionnaires should be short, clear and only cover key questions. Only factual questions should be asked and it should
be possible to answer as many of the questions as possible by simply ticking or crossing a box on the form;
· surveys should be random, either by selecting every 5th, 10th or so stallholder or lorry driver; or by superimposing a grid
over a site plan of the market. They may, however, also be stratified to ensure that all interest groups (such as wholesalers,
commission agents and retailers) are covered. To obtain statistically significant results the sample size should be as large
as possible, within the constraints of the resources available to collect and analyse the data; and
· the survey enumerators must be fully briefed. They should be trained and tested in the field before undertaking the main
survey. A team leader should be appointed to coordinate the surveys and to deal with administrative matters such as
payment of expenses and provision of seats, food, drinks and umbrellas.
Background reading on surveys are contained in the Bibliography. Particularly useful are those which deal with rapid rural appraisal
techniques, including: Holtzman, J.S. (1986. Rapid reconnaissance guidelines for agricultural marketing and food system research in
developing countries. Michigan State University, Department of Agricultural Economics, Working Paper No. 30) and McCracken, J.A,
Pretty, J.N.& Conway, G.R. (1988. An introduction to rapid rural appraisal for agricultural development. London, International
Institute for Environment and Development).
Socio-economic surveys of existing facilities
Which surveys are undertaken will depend on the type of data that is already available and the extent to which it is necessary to
supplement it. With existing markets the problem is simpler than with new facilities, where indirect methods of survey may need to be
adopted. The basic information needs, however, are similar to those needed for examining an existing market.
Scope of surveys. The types of socio-economic surveys that are needed in the design of wholesale markets are:
· quantities and types of goods traded, by season;
· types and roles of market users/functionaries;
· marketing channels, by season;
· employment characteristics of the market, by gender;
· management system and operational methods;
· rents, tolls and revenues; and
· annual turnover and profits.
In addition to the detailed engineering surveys described at the end of this chapter, broad physical surveys are also required of:
· the existing market layout and facilities;
· space utilization and availability, including stall sizes;
· degree of overcrowding/congestion; - utilization of facilities such as cold storage and silos; and
· traffic surveys of:
- frequency of trips and departure/arrival times;
- volume of goods transported and modes of transport used; and
- origin and destination of produce.
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Survey methodologies. There are three basic methods by which these types of data can be collected:
Observation. Casual (but informed) observation and limited interviews with the market functionaries can provide a wide variety of
data. The techniques of rapid rural appraisal arc very valuable in this context. A useful technique is to follow the marketing of a batch
of produce from the farm level or local assembly market up to the wholesale market and then follow it right through the market until it
is purchased by a retailer or other trader.
Interview surveys. Market users can be interviewed using a random stratified sample and the data can then be expanded to provide an
estimate for the overall market. Two methods can be used, sometimes in combination with each other:
· by stopping and questioning the drivers of vehicles entering or leaving at the market's check-point or gate house. l his
method can be used to establish the weight of deliveries, the vehicle type, its origin or destination and what type of
produce is being delivered to or taken out of the market.
· by interviewing stallholders or wholesalers on a sample basis. A questionnaire for this method, which has been used for
a number of 20 percent sample surveys is shown in Figure 16. The survey enumerator stopped at every fifth stallholder he
or she came to. A brief interview was held and a record was taken of the overall volume and types of produce that were
expected to be traded that day, the origin of the produce and the expected destination (usually based on the previous day's
trade). The survey data can be analysed using computer spreadsheets (the data in the case of a 20 percent sample
expanded by 5 times to obtain a 100 percent coverage) to provide the following information:
Fige Ieie se pofoma fo makes i Chiag Mai Poice 1haia
- total daily volumes and type of produce sold; -selling areas of stalls;
- gender and number of employees at each stall; -volume of purchases by channel;
- volume of purchases by origin of produce; and -volume of sales by destination of produce.
Roadside surveys. This is the most reliable and comprehensive method as such surveys record all the produce entering or leaving a
city or its main market within a specified time period. This technique is further discussed as a case study in the next section of this
chapter.
Case study of roadside survey of commodity flows (Thailand)
The purpose of these surveys (undertaken by FAO Project TCP/THA/8958) was to understand how the Muang Mai market in Chiang
Mai operated as a secondary wholesale market for the Northern Region of Thailand.
Scope of surveys. As the market is a private establishment, with only limited intervention by the municipal government, no records
were maintained of transactions. It was therefore necessary to undertake surveys to establish the total quantity of fruits and vegetables
both entering and leaving Muang Mai on a typical day, including recording their place of origin and the destination to which they arc
being sent. This was needed so that the catchment of the market could be defined and produce flows could be quantified by type and
mode of transport.
The surveys were undertaken over two full days at the end of the wet season (16/17 August 1990) and one full day in the middle of the
dry season (4 May 1991). Eight enumerators were located at key points in the market (see Figure 17) covering all the main entry and
exit points. The enumerators were instructed that they should ensure, as far as possible, there should be no duplication. Each vehicle
was recorded only twice: when it entered and when it exited the market. The act of unloading a vehicle was considered to be its time of
entry and the completion of loading and its departure, its time of exit.
Survey methodology. The enumerators were provided with standard survey forms (see Figure 17), one row of the form- being used for
each set of observations (either an exit or an entry of a vehicle). The enumerators were instructed to question the vehicle drivers if
there was any doubts about the origin or destination of the produce. The surveys were started promptly at 08:00 am and finished at
16:00 pm, the operating hours of the market. Actual vehicle entry and exit times were recorded and later coded on an hourly basis.
Vehicles types were recorded on the form by using a code number:
Head Load/gasket - 0
Push Cart - 1
Bicycle - 2
Rickshaw - 3
Motorbike - 4
Tuk - Tuk (3 wheeler) - 5
Pick-up (1.5 tons) - 6
Saloon Car - 7
4 Wheel Truck (6 tons) - 8
6 Wheel Truck (7.5 tons) - 9
10 Wheel Truck (13 tons) - 10
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Other Vehicles - 11
The main commodities that the vehicle was carrying were recorded and the percentage that the particular produce formed of the total
load was approximately estimated on the basis of the capacity of the type of vehicle. These data were grouped into six classes of
produce:
V1 All leafy vegetables green vegetables
V2 Bulbs, root crops and tubers
V3 Fruit-vegetables (ea. tomatoes), peppers and others
F1 Northern fruits (Iychee, langsat and longan)
F2 Southern fruits (rambutan, mangostecn and durian)
F3 Citrus, melons and others
The total load in metric tonnes was recorded based on the type of vehicle used in carrying the produce. Account was taken of partial
loads, such as 1/2 load and empty vehicles were also recorded, as well as those with non-fruit/vegetable loads. The origin or
destination of the particular loads were identified as accurately as possible (by province/district/ towns).
Particular care was taken to establish traffic that might be emanating from the Chiang Mai municipal area. The same enumerator did
not necessarily record the entry and exit of the same vehicle and vehicle licence plate numbers were also recorded to help establish
these data. For analysis purposes the origin/destination (O/D) data of vehicles was
Fige Roasie se pofoma a ocaio map of se pois Mag Mai hoesae make se Chiag Mai
Aohe 1haia
classified into thirteen groups:
0 within Muang Mai market;
1 within Chiang Mai city;
2 Chiang Mai Province;
3 -11 other provinces in the Northern Region; and
12 outside the Northern Region (Bangkok, the south or the east).
The type of trade being undertaken was also recorded, such as whether it was wholesale or retail. The same vehicle might, for example,
bring a wholesale load into the market and leave with retail commodities including non-fruit/vegetable loads.
Analysis of surveys. The coding of the data was first checked against the categories of vehicle types, produce and O/D locations
described above. The classified data for each day of the survey was then analysed on a personal computer using a standard spreadsheet
programme. Each line in the survey forms was represented by a line in the spreadsheet and was initially sorted on the computer using
time as the primary key and origin/destination as the secondary key. The data was then sorted into three basic spreadsheets as follows:
· traffic entering the market (ie. destination Muang Mai);
· traffic circulating within the market; and
· traffic leaving the market (ie. origin Muang Mai).
These three main sets of data were then further sorted, by date and whether incoming or outgoing traffic, into the following categories:
· commodity flows and type of produce by origin/destination;
· commodity flows by time of entry/exit; and
· commodity flows and number of trips by vehicle type/mode.
Results of the wet season survey This section presents an analysis of the two days of the wet season survey; a similar analysis having
also been undertaken for the dry season. Table 11.1 summarizes the commodity flows (in tons) in the wet season. There was a good
correlation in the figures, both between the two days and between the incoming and outgoing flows. The average daily commodity
flow for the rainy season was around 300 tons. The average daily commodity flow for the dry season was around 210 tons, 30 percent
less than in the wet season.
Table 11.1 Summary of commodity flows in the wet season
Commodity Flow (tons):
Type of Flow August 16 August 17 2 Day Total Av daily
Incoming - coming into market 257.15 347.93 605.08 302.54
Internal - circulating within 24.51 36.93 61.44 30.72
Outgoing - leaving market 297.02 285.26 588.28 291.14
Average 277.08 316.59 - 297.19
Further analysis of the spreadsheet data enabled a number of other summary tables to be prepared, which are given below. The first of
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these tables (11.2) presents the commodity flow by type of produce. It was clear from the figures that Muang Mai is primarily a
vegetable market, with this type of produce representing 90 percent of the trade. The most important source for vegetables during the
rainy season was found to be the upland cropping areas in the adjacent districts to Chiang Mail
Table 11.2 Volume of wet season produce by type
Type of Produce Incoming (tons) Outgoing (tons):
Av. daily % Av. daily %
V1 All leafy vegetables/ green vegetables 199.97 66.1 163.87 56.3
V2 Bulbs, root crops and tubers 52.42 8.7 36.81 12.6
V3 Fruit-vegetables, peppers and others 91.36 15.1 66.86 23.0
F1 Northern fruits (Iychee, langsat and
longan)
3.30 0.5 2. 10 0.7
F2 Southern fruits (rambutan, mangosteen
and durian)
21.72 3.6 5.07 1.7
F3 Citrus, melons/others 36.29 6 0 16.43 5.7
Total 302.54 100.0 291.14 100.0
In an analysis of commodity flows by origin and destination, contained in Table 11.3, a striking difference was found between goods
coming into the market and those going out.
Table.3 Commodity flows in the wet season by origin and destination
Origin/Destination by province Incoming (tons) Outgoing (tons)
Av. daily % Av. daily %
Chiang Mai City 6.63 2.2 25.33 8.7
Chiang Mai Province 218.52 72.2 19.92 6.8
Lamphun Province 27.03 8.9 8.00 2.8
Chiang Rai Province 5.05 1.7 32.47 11.2
Phayao Province 0.75 0.2 - 0.0
Uthai Tharu Province 0.75 0.2 - 0.0
Mae Hong Son Province 4.60 1.5 1.30 0.5
Lampang Province - - 0.25 0.1
Tak Province - - 3.00 1.0
Suko Thai Province - - - 0.0
Other Provinces 5.80 1.9 12.40 4.2
Outside the Northern Region 33.69 11.2 188.47 64.7
Total 302.54 100.0 291.14 100.0
Table 11.4 Commodity flows in the wet season by arrival/departure time
Time of entry/exit Incoming (tons): Outgoing (tons)
Av. daily % Av. daily %
08- 09 am 39.95 13.2 18.60 6.4
09- 10 am 41.37 13.7 16.40 5.6
10- 11 am 42.39 14.0 45.59 15.7
11 - 12 am 42.98 14.0 52.20 17.9
12 - 01 pm 50.29 16.6 20.19 6.9
01 - 02 pm 44.67 14.8 45.89 15.8
02 - 03 pm 23.58 7.8 68.46 23.5
03 - 04 pm 13.58 4.5 9.73 3.3
04 - 05 pm 3.75 1.2 14.08 4.9
Total 302.54 100.0 291.14 100.0
The pattern of vehicles entering and leaving the market during the day is shown in Table 11.4. For vehicles entering the market the
pattern conformed with what would be expected; a rapid build-up in flow to a mid-day peak, quickly tailing off by late afternoon. For
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vehicles leaving the market there was a completely different pattern, with two peaks in the late morning and mid afternoon,
corresponding broadly to the haulage distances for the produce.
Table 11.5 illustrates an analysis of commodity flow by vehicle type. The main mode for incoming traffic was the light 1 - 1.5 ton
pick-up, representing around two thirds of the total, with the remaining one third of the produce being brought by heavier vehicles. For
the outgoing traffic the majority of the load (around 75 percent) was carried on 7.5 - 13 ton trucks. Around 15 percent of the total was
carried on pick-ups, mostly for short: haul distances within Chiang Mai city and the adjacent districts.
Table 11.5 Commodity flows in the wet season by vehicle type
Vehicle type/mode Incoming (tons) Outgoing (tons)
Av. daily % Av. daily %
Head Load/Basket 0.04 0.0 0.12 0.0
Push Can 2.46 0.8 1.84 0.6
Bicycle - 0.0 3.&6 1.3
Rick straw 0.87 0.3 2.85 1.0
Motorbike - 0.0 1.14 0.4
Tuk - Tuk 0.11 0.0 2.06 0.7
Pick-up (1.5 T.) 198.64 65.7 43.86 15.1
Saloon Car 26.35 8.7 10.46 3.6
4 Wheel Truck (6 T.) 16.08 5.3 0.15 0.1
6 Wheel Truck (7.5 T.) 26.63 8.8 74.71 25.7
10 Wheel Truck (13 T.) 17.58 5.8 141.00 48.4
Other Vehicles 13.80 4.6 9.10 3.1
Total 302.54 100.0 291.14 100.0
Engineering surveys
Apart from the socio-economic studies and traffic surveys described above, engineering surveys will be needed for both existing or
proposed market sites . These surveys will typically include:
· basic mapping; - detailed topographic and geodetic surveys;
· preliminary and detailed site investigations of engineering soils;
· an analysis of a site's drainage problems;
· structural condition of existing buildings;
· surveys and testing of existing services
· water supply;
· electrical supply;
· sewerage disposal;
· a review of available construction materials and technologies; and
· typical construction costs.
These types of surveys are common to any medium or large-scale development project. However, because market administrators and
planners may find that they have to issue terms of reference for topographic surveys and site investigations before design and
supervision consultants are appointed (see Chapter 14) further technical details of what they might entail is given below.
Topographic and geodetic surveys. The most essential step in preparing a detailed site plan will be the preparation of a topographic
and geodetic survey of the site, at either ]:500 or 1:1,000 scale. The survey should be based on a closed traverse and related to a known
datum (defined by its height above mean sea level). To relate levels to this datum may require flying levels to be taken so that that the
site levels can be related to a fixed bench mark outside the site.
The survey should define the site's boundaries and pick up all the existing physical features, including buildings and other
infrastructure under construction. Spot level should be taken at all breaks in slope, edges and bases of drains and on a 10 metre grid
over the entire site. Techniques for undertaking the surveys will vary depending on the local surveyor's skills and availability of
equipment. This might range from simple chain traversing, plane tabling and level surveys, through to electronic distance measuring.
Advice should be sought from a national survey organization or local surveyor's professional body on the appropriate technical
specification and realistic levels of accuracy. Typical standards to be adopted (based on British Standard BS 5606) might be:
· accuracy of level values not to exceed 5mm per single sight and 10mm per kilometre relative to a permanent bench
mark;
· horizontal linear measurements to be accurate within 20mm per 100 metres (applying appropriate slope and tension
corrections); and
· angular measurements to be accurate to within 20 seconds of arc.
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Soils and foundation investigations. Detailed geotechnical investigations are required so that the foundation design of buildings, road
pavements and other structures is both safe and economic to construct. The locations of test sites should be established so as to provide
this optimum data for building and road design. The site investigations will usually be carried out by a specialist contractor, who will
undertake the field survey and laboratory analysis, as well as prepare a comprehensive report.
The scope of surveys will normally include boreholes (typically using an auger and rotary-cum-wash boring rig), dynamic cone
penetration tests and California Bearing Ratio (CBR) tests. Disturbed samples are collected from split-spoon samplers and undisturbed
samples with open tube samplers. These data will need to taken to a laboratory, where the following analyses and tests should be be
undertaken:
· standard penetration tests, related to the depth of boreholes and dynamic cone penetration tests, correlated to standard
penetration test data.
· tests on physical properties:
- natural moisture content;
- Atterberg limits (liquid limit, plastic limit and plasticity index);
- bulk density and specific gravity;
- sieve/grain size analysis (wet method); and
- particle size/hydrometer analysis for clayey soils;
· unconsolidated undrained triaxial tests on undisturbed samples, providing stress versus strain curve data;
· consolidation tests on undisturbed samples, providing compression index values;
· modified Proctor compaction tests on CBR samples;
· California bearing ratio (CBR) soaked tests;
· chemical tests, including pH and soil sulphate content; and, if appropriate,
· soil-cement stabilization tests, using triaxial compression apparatus.
The contractor should be required to prepare a detailed report of the laboratory analysis and to plot the borehole log data to give typical
site profiles, indicating the changes in soil types, depth to bed-rock and the groundwater table level. The application of these site
investigation results is described in Chapter 14.
Fige Spaia isibio of pocio aeas i Aepa b seaso
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12. Analysing demand and estimating market turn-over
Contents - Previous - Next
The purpose of this chapter is to describe how the agro-economic, demographic and survey data collected by a project can be used to
analyse existing trade patterns and form the basis for making projections of future demand at an existing or new market.
Analysis of existing trade patterns
In analysing existing trading patterns the intention should be to understand how a market relates to all the other outlets through which
production is channelled. This will vary greatly, both by type of crop and by season. In some cases, typically with fruit production,
the majority of produce may be sold at field level. This provides a guaranteed outlet and is often combined with an arrangement for
providing cash before harvesting (the crop is "bought off the tree" In other cases, crops are traded through a hierarchy of local
markets, which assemble produce for sending to a local secondary wholesale market or by-pass this market by sending directly to a
terminal wholesale market in a distant city.
This analysis is a critical stage in the preparation of a development project for understanding the impact of any intervention in the
marketing process. To describe how it can be undertaken is, however, difficult as the circumstances under which such interventions
take place will completely vary between different countries. The following notes, therefore, give an indication of the types of issues
that will need to be addressed.
Horticultural production and its spatial distribution. To understand existing trading patterns it is necessary to compare market
survey results on the origin of produce being traded with published data on production. A typical tabulation of national-level
vegetable production data for Nepal is shown in Table 12.1. The spatial distribution (by season) of these production areas is shown in
Figure 18, together with the location of the main areas for fruit, fish and potato production.
Comparable production data is normally also available at provincial and district levels. The data should be examined to see what
changes may be occurring in both the levels of production and its distribution. Agricultural production data is often very approximate
as it is frequently
prepared by adjusting a previous year's data by applying theoretical changes in yield. However, the overall throughput of existing
rural assembly markets, urban wholesale markets and retail facilities will obviously be influenced by local levels of production of
fruit and vegetables and an analysis of available production data should help to establish the broad flows through the various
marketing channels.
Table 12.1 Vegetable production and consumption targets, Nepal
1975-1976 1979-1980 1984-1985 1986-1987 1989-1990 2000
Cultivated area ('000 ha) 83 96 138 140 141 141
Production (000 m/t) 423 528 743 875 970 1,515
Yield m/t per he) 5 6 5 6 10 11
Per caput consumption not not
(kg per annum) stated stated 44.8 46.0 50.9 65.0
Source: Improved production of tropical vegetables in Nepal. 1988.
Pokhrel, M. N., Ministry of Agriculture, Nepal.
Note: excluding potato and leafy vegetables
Although the location of production areas is obviously influenced by factors such as soil fertility, moisture availability, temperature
and topography, their relationship to potential consumers is equally important. Transport costs also play a major role in influencing
the location of production areas, but there is usually a tendency for producers of a similar crop to congregate in a particular area.
This tendency to specialize can be studied as a pattern by converting the figures for the areas under crop or production levels, for
each district or sub-region, into a series of coefficients, computing them as a percentage of a provincial or regional total. The
coefficients can be grouped into, say, five different levels of productivity: very high, high, average, low and very low. These can then
be plotted on a base map to show the spatial distribution and importance of production areas by district or sub-region within the
market's catchment. From such an analysis, and by comparing the production areas in relation to the location of the main markets and
the availability of transport facilities, it should be possible to deduce the likely direction of produce flows.
The following conclusions (see Figure 19) were deduced from such an analysis undertaken in Northern Thailand:
The majority of the produce from outside Chiang Mat Province naturally by-passed the province and this pattern would not be
significantly altered by any intervention in the marketing system. Because of Chiang Mat cay's location in the centre of the province,
only a proportion of its vegetable production would be marketed through the provincial capital. Producers south of the city were
likely to sell either direct from the field or assemble their produce locally in the production area, for direct transfer to Bangkok and
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other destinations outside the province. In contrast, production areas to the north were more likely to use wholesale facilities
available in the city. The relatively small volumes of flower production in the province were concentrated around the city. The
pattern for upland and perennial crop production was found to be very similar to that for vegetables, but with probably less incentive
for producers remote from the city to use its wholesaling facilities.
Many studies in the evolution of land-use have frequently confirmed the persistence of intensive horticultural production close to
major centres of population. Market garden areas near to cities, producing high value fruit, vegetables and cut flowers, are a typical
example of this. In addition to "rings" of production around cities, a substantial amount of cultivation in most less-developed
countries may still be undertaken within the boundaries of municipal areas.
However, with urbanization, there will be increasing pressure on cultivable land within city boundaries, What generally happens is
that land such as kitchen gardens becomes more intensively used, so that production of vegetables, fruit and fish (from pond culture)
increases, while the production of other crops, such as rice, decreases. Despite its importance to low-income families, such intensive
cultivation may be actively discouraged in order to reduce the incidence of malaria. It may also be used as an excuse to limit the
operation of hawkers (who may sell both local produce and that produced outside the city) or as part of an often dubious programme
of urban "beautification".
Seasonal variations in trade. A key factor in market operations is the degree to which trade varies by season, reflecting peaks in
production. If a marketing authority maintains daily records from an existing market then a comprehensive data base will be available
for making such an assessment. Table 12.2 shows such a set of data for three wholesale markets in the Near East, the peak months
being compared to the average months using a ratio. Figure 20 illustrates the same data as a histogram, demonstrating the
comparatively small seasonal variation at the Rabat wholesale market, compared with Amman and Cairo.
Fige Jaiaios i egeabe pocio i Chiag Mai Poice 1haia
Table 12.2 Seasonal throughput variations in Near Fast markets
Month Central Market
Amman, Jordan
Rod al Farag
Cairo, Egypt
Marche de Gros Rabat, Morocco
(tons) (ratio) (tons) (ratio) (tons) (ratio)
January 15,091 1.17 23,759 0.99 11,552 0.89
February 9,642 0 75 23,420 0.98 11,305 0.87
March 13,948 1.08 22,718 0.95 12,801 0.99
April 16,683 1.29 19,721 0.82 12,432 0.96
May 11,497 0.89 27,641 1.15 13,523 1.05
June 5,582 0.43 28,210 1.18 14,323 1.11
July 4,961 0.38 25,593 1.07 14,736 1.14
August 7,813 0.60 27,909 1.16 13,729 1.06
September 12,806 0.99 25,978 1.08 11,883 0.92
October 17,024 1.32 21,978 0.92 13,118 1.02
November 20,050 1.55 19,796 0.83 12,718 0.98
December 20,244 1.56 21,202 0.88 12,973 1.00
Total 155,341 287,925 155,093
Average 12,945 1.00 23,994 1.00 12,924 1.00
Source: Market Authorities (data collected by FAO)
Fige Compaiso of seasoa aiaio i ae omes Aea Eas makes
If markets records are not available or there are no markets presently in operation, then other methods of analysis will need to be
adopted. For an existing market, the types of interview and roadside surveys outlined in Chapter 11 may give some indication of
seasonal variation. However, there may not be sufficient time-series data to draw any concrete conclusions to suggest that the trade at
a wholesale market completely reflects the seasonal variations. Peak production is often more likely to be purchased directly in the
field, at the "farm-gate" or be marketed through local assembly markets/trans-shipment points. Comprehensive official or research
data is not likely to be available on the variation in fruit and vegetable production by season, except for price data, which is virtually
impossible to use for deducing seasonal indices because of the time lags in price changes, the impact of storage and the substitution
between produce.
Fige Simpifie coppig pogamme i Si aka
Typical cropping calendars for upland/lowland, rainfed systems and off-season production in irrigated areas can provide useful
models for examining seasonal variations in horticultural production. A simplified example for Sri Lanka of such a cropping pattern
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is shown in Figure 21.
These diagrams can be interpreted by using the informed judgements of farmers and traders as to where production is coming from
and the broad distribution of volumes between seasons (ideally on a monthly basis). For semi-dry produce, such as garlic and onions,
storage and market price may have a significant effect on marketing. Curing, drying and storage extends the period of marketing and
an off-season crop may alter prices substantially. In contrast some highly perishable produce may only have a single growing season
and apart from what can be canned or dried, the main production has to be marketed during that period.
Fige Makeig chae paicipas Si aka
Fige Popoios of poce goig hogh iffee makeig chae 1oa
Marketing channels. Another consideration in understanding the existing pattern of trade is the problem of defining the channels
through which production might pass. Reference has been made in the previous sections as to how this may vary according to factors
such as the location of production areas, credit arrangements and seasonality. Other factors such as political and cultural conditions,
the level of transport facilities and the presence of a traditional network of rural markets will also influence how the channels may
operate. Figure 22 illustrates the complex pattern of channels that exists in Sri Lanka
Informal surveys of farmers, wholesalers and retailers can be used to define such a pattern. However, to understand how the pattern
might impinge on the role of a wholesale market the flows in the system need to be quantified. Figure 23 illustrates the results of
surveys undertaken in Jordan on the flow of produce through the main marketing channels.
To make such estimates it may be necessary to extend the scope of surveys to include local assembly markets so that the role that
they play can also be defined. Figure 24 illustrates the results of such a survey in Northern Thailand Some of the markets are
exclusively involved with the assembly of produce, whilst others are involved mainly with distributing produce to rural consumers
received from the nearby urban wholesale market of Muang mad, in Chiang Mail
Figure 25 is a further analysis of the data from Northern Thailand and suggests that the function of the local markets is strongly
influenced by the type of produce that is traded. Most local trade is in vegetables, with a low volume of fruit sales, confirming the
fact that fruit sales often by-pass the local market system. The reasons for this are that fruit sales are predominately for markets
outside the district and the sales of vegetables are often to local people for their own consumption. They most probably have their
own fruit trees or would buy from neighbours.
Trade volumes by-passing the wholesale market. To establish existing trade volumes, and amounts of trade that might be by-passing
an existing wholesale market, surveys of produce flow should be undertaken over an extended period, covering all flows into a city.
Table 12.3 shows the results of a typical roadside and retail outlet survey undertaken in Kathmandu over a 10-day period in April
1989.
The Kalimati market had been recently opened at the time of the survey. With such a new wholesale market, trade will only gradually
build up and produce which formerly went through other marketing channels will then transfer to the new facility. If there is a
genuine demand for a new market the increase in turnover should be quite rapid and a general trend for the volume handled to
increase each month should be observable. Roadside surveys undertaken over a number of seasons will be required to see the
longer-term effect of such changes on the pattern of trade
Fige Assemb fcio of oca makes Chiag Mia Poice
Table 12.3 Roadside survey: daily produce coming into Kathmandu (kg)
Commodity Kalimati whole- Other destinations
sale market in the city
Cabbage 8,334 5
Cauliflower 1,426 126
Onion, dry 6,648
Onion, green 369 1,794
Garlic, green 490 2,975
Chilli" green 1,044
Beans 1,108 9
Potato (incl. exports) 5,595 32,834
Tomato 12,979 591
Grass/leaf produce 427 2,251
Spinach 549 2,666
Other 2,748 1,106
Total (av. 10 days) 41,717 44,357
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Source: FAO Project GCP/NEP/043/SWI
Transport changes. Roadside surveys also provide useful data on the changes that might be occurring in the type of transport
("mode") used by farmers and traders for bringing produce to market. Before farmers become well organized, public transport often
plays a key role. In Kathmandu, for example, the importance of the wholesale market's location adjacent to a bus terminal has led to
significant amounts of produce coming long distances by bus. This is illustrated in Table 12.4. The improvement of rural roads the
availability of credit to purchase a motorbike and sidecar, the availability of low-cost pick-ups and the organization of group
marketing, can all have a significant effect on marketing practices.
Over-view of existing trade pasterns. Once an assessment has been made of all the factors influencing the pattern of trade an attempt
should be made to compile these into a complete model of the produce flows on a daily, seasonal or annual basis. Figure 26
illustrates what happens during the peak period in Northern Thailand. It assumes that the peak daily provincial production volume
was around 1,600 tons and that rural markets had an overall total turnover of 170 tons per day. From this diagram it can be seen that
most of the daily production in Chiang Mai Province is exported directly to Bangkok or other provinces. In the cool season the
pattern is broadly similar except that the quantities of fresh produce exported are perhaps half of what would be exported in the peak
period. In the hot dry season exports are more likely to be directed towards the other provinces in the Northern Region rather than to
Bangkok.
Fige Jaiaios i pe of poce so i oca assemb makes Chiag Mia Poice
Table 12.4 Mode of transport for produce coming into Kathmandu (%)
Mode of transport Kalimati whole- sale
market (%)
Other destinations in the city
(%)
Truck 37.3 28.8
Mini-bus 12.2 66.8
Bus 50.0 -
Bicycle 0.3 1.8
Farmer himself (headload) 0.2 2.6
Source: FAO Project GCP/NEP/043/SWI
Fige ai poce fos i a egioa makeig ssem Aohe 1haia
Projected patterns of trade. Unless a comprehensive horticultural plan exists, which is usually not the case, it is unlikely that the
long-term potential for increased horticultural production can be established. Such projections of future outputs, accompanied by an
overall marketing strategy for produce, are the ideal basis on which to make an assessment of changes in the patterns of trade. In their
absence, it will be necessary to make a number of broad assumptions in respect of the total volumes traded and the share that might
pass through any existing or new wholesale marketing facilities.
From the analysis of marketing channels, the spatial distribution of production and the results of origin/destination surveys it may be
concluded that to alter the present pattern of marketing would be quite difficult. In making projections for changes in a marketing
system, therefore, rather conservative assumptions may need to be adopted in relation to the potential throughput of any new market.
There would need to be substantial financial benefits to farmers to attract them away from existing market channels, particularly from
the common practice of direct purchasing at the farm level by outside traders withestablished relationships with the farmers (such as
providing inputs and credit arrangements). It would be unrealistic to presume, therefore, that a greatly enlarged proportion of the
trade can be attracted, in the short term, to use new facilities, unless an existing market is being closed down.
Long-term estimates of throughput are even more difficult to make because of the unreliability of production projections. The
agricultural sector in many developing countries is responsible for a decreasing proportion of the gross national product, although
there may at the same time have been an overall expansion of cropped areas, particularly for horticultural produce and to a lesser
extent for field crops. In many countries the potential for this rate of expansion to continue is likely to decrease as only the more
marginal areas become available.
Another common factor is likely to be the impact of urban expansion, which typically causes a loss of presently cultivated land
within and on the periphery of cities. These effects are likely to be off set, however, by increases in cropping intensity and by farmers
switching to higher-value crops. Without detailed studies of land-use change any estimates of increased production are usually very
tentative. A common working hypothesis is to assume that the production of fruit and vegetables will expand at a rate slightly higher
than that of urban population increase (say, at 3 - 5 percent per annum).
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Consumption of fruit and vegetables
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As well as understanding how an existing market system operates and can be modified, it is also essential to quantify the present level of
consumption of fruit and vegetables. There are two approaches to estimating consumption: a demand approach or a supply approach.
Demand approach. The basis for this method is the use of income elasticity coefficients, relating changes in income to spending
behaviour. The concept is represented by a formula, relating population to income:
Qn = Qo (1 + p)(1 +ey) n
where: Qn = projected consumption at year n
Qo = consumption in the base year
p = annual rate of population growth
y = projected growth of per capita disposable income
e = projected income elasticity
n = number of years from base date
Although a number of countries, for example the Philippines and Sri Lanka, have rather complete data on elasticities this is not normally
the case. Figures from other countries are not generally applicable, given different dietary and cultural habits. For example, the demand
coefficient for eggs in the Philippines is 0.68, whilst in Sri Lanka it is 0.86 and more dramatically, the coefficient for maize in the
Philippines is minus 0.61, whilst in Sri Lanka it is 0.2. There are other major difficulties in using demand elasticities as they assume that
past consumption trends will continue. This might be reasonable if historic data is available to verify this, but generally it will not be.
Another problem with the approach is in understanding the substitution effect between different vegetable and fruit crops, for which only
limited data may be available.
Adequate demographic data often exists for estimating the population effect, but other factors in the equation are unlikely to be reliable
without undertaking extensive surveys to establish income elasticities of demand, seasonal differences in trade and a profile of average
disposable income.
Supply approach. Because of the problem of estimating consumption using a demand approach, reliance usually has to be placed on
available data on per caput consumption of fruit and vegetables These are derived from estimates of present supply, making adjustments
for imports, exporls and food processing. A typical example of such an estimate is shown in Table 12.5.
Table 12.5 National food balance sheer data for Nepal -1980/81
Commodity Production
'000m/t
Import
'000m/t
Export
'000m/t
Net Supply
'000m/t
Per caput*
kg. per annum
Potato 320 1 1 331 15.57
Vegetable# 511 6 517 31.35
Fruit 271 4 - 275 15.54
Irish 4 - - 4 0.27
Source: Marketing Services Division Ministry of Agriculture Nepal 1989. Notes: assuming allowances for seed production and waste.
#including leafy vegetables but excluding pulses and tubers.
Table 12.6 Typical per caput availability of major foods 1986 - 88 (kg)
Country Cereals Roots &
tubers
Pulses & beans Fruit &
vegetables
Animal products
Developing countries
Bangladesh 1,582 29 44 22 50
China 1,867 159 29 68 239
India 1,310 38 126 67 117
Indonesia 1,789 187 18 58 71
Malaysia 1,224 75 29 105 380
Nepal 1,654 54 63 19 114
Pakistan 1,268 8 50 59 180
Philippines 1,390 109 8 104 224
Sri Lanka 1,340 73 50 103 98
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Thailand 1,399 57 34 136 179
Tonga 501 1,146 - 127 179
Developed countries
Australia 786 92 17 157 1,016
Japan 1,179 79 22 131 510
New Zealand 719 104 18 214 1,134
Source: Selected indicators of food and agricultural development in the Asia-Pacific Region 1979-89. 1990. Bangkok, FAO Regional
Office for Asia and the Pacific RAPA Publication 1990/15.
FAO has undertaken a number of regional studies of nutrition, based on food balance sheets and taking into accounl availabilily of- foods
and human energy requirements. From these studies estimates of per caput consumption can be derived. Data from one of these studies of
selected countries in the Asia-Pacific Region is shown in Table 12.6. These type of data are likely to be the most easily available, but need
to be used with some caution as the figures are national averages. They are likely to disguise substantial variations in consumption between
different seasons, locations, income groups and between urban and rural areas, particularly if there is also a large tourist trade.
Per caput consumption data should ideally be derived from detailed local surveys. An example of such an approach is a study in Thailand
which surveyed the daily intake of fruits and vegetables for a range of income classes, based on surveys in two villages over two seasons.
The range of kg per caput values in Table 12.7 demonstrates the substantial variation that can occur. However, the overall average
compares reasonably well to the FAO national figure of 136 kg per caput shown in Table 12.6. Results of a similar type of sample survey
of consumption of major food items, for selected districts in Nepal, arc given in Table 12.8.
Table 12.7 Annual consumption of fruit & vegetables in rural Thailand
location year consumption (kg per caput):
minimum maximum
Surin (North Eastern Province) 1987 38.8 63.7
1988 88.2 131.9
Average 63.5 97.8
Nakorn Ratchasima (near Bangkok) 1987 38.8 96.9
1988 50.9 204.5
Average 44.9 150.7
Source: Konjing, C. Food security at household level in rural Thailand. Bangkok, Department of Agricultural Economics and Business
Administration, Kasetsart University.
Table 12.8 Consumption in selected districts in Nepal (kg per caput)
Commodity Mustang Gorkha Jhapa Dhankuta Solokhumbu
Potato/Sweet Potato 61.83. 15.52 27.29 20.65 86.03
Vegetables (excl. legumes) 28.07 24.11 43.44 25.65 11.41
Fruit 7.67 7.60 7.08 8.70 3.15
Meat/Fish 10.18 7.87 8.12 7.98 4.44
Source: Food consumption survey, 1984/85. Nepal, Ministry of Agriculture.
Consumption estimates. The estimated consumption of fresh produce should be derived from the per caput data by relating it to estimates
of the existing and future populations for the area served by the market. The following formula summarizes the calculation method:
Annual supply (tons) = total population served x per caput consumption x 0.001
The existing demand for fruit and vegetables in a typical city of around 300,000 people using this method and on the basis of an assumed
range of kilogramme-per-caput consumption figures might be as follows:
Annual supply (tons) = 300, 000 x 150 kg. per caput x 0.001 = 45,000 tons.
Such an estimate needs to be checked against surveys of wholesale and retail markets in order to make an assessment of the quantities of
produce that might be spoilt or be by-passing the formal marketing system. Particular care is needed in reviewing survey figures, as what
may be reported as being sold at markets may also include a proportion of produce that either remains unsold at the end of the day or is
sent on to other markets and perhaps sold twice in the same day. Another common distortion arises from some produce not having been
purchased at the market and reaching the consumer through other channels. It may come from home-garden production (particularly fruits)
or have been sold directly by farmers or traders to small corner stores, supermarkets, hotels and to institutions, such as hospitals, schools
and army camps.
The values of daily throughput at a market may therefore need to be adjusted so that they can be matched with per caput consumption
estimates. Table 12.9 gives an example from Northern Thailand of such a set of adjustments, comparing the trade in Muang Mai wholesale
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market to consumption in the Chiang Mai municipal area. It uses a range of values for the daily trade in Chiang Mai, taken from surveys
(see case study in Chapter 11). The analysis assumes a constant per caput consumption and relates together possible low (dry season),
medium and high (wet season) volumes-with variations in destination of produce. The analysis highlights the large volume (around 80 per
cent of the total urban consumption) that by-passes the wholesale market, including a significant proportion coming from home-garden
production.
Table 12.9 Daily consumption of produce, Chiang Mai, Thailand
Destination of Produce Volume Traded (tons):
(Fruit and Vegetables) Low Medium High
· Daily volume leaving Muang Mai wholesale market 210 250 300
· Daily volume leaving Chiang Mai and
going to other provinces and to Bangkok 190 230 270
· Balance traded at retail markets in Chiang Mai 20 25 30
· Other trade at retail markets in Chiang Mai 80 75 70
· Volume by-passing Muang Mai wholesale market & retail markets:
going to supermarkets, institutions and hotels (including home garden
consumption)
40 40 40
Average daily urban consumption from all channels in Chiang Mai 140 140 140
Source: FAO Project - TCP/THA/8958
Estimating future demand
Future demand is always difficult to estimate as the marketing situation often alters rapidly in response to demographic and other changes.
Other factors influencing demand may include a general increase in incomes, which is often attended by changes in dietary habits and
substitution between different types of food stuffs. Frequently, such income changes lead to an increased consumption of meat, fish,
speciality food and, sometimes, higher quality grades of rice (see Table 12.6). In making projections using the supply approach, however,
the substitution effect between different produce has to be assumed to be zero.
The process by which the projections are made is to first make an assessment of how the existing pattern of trade might evolve (discussed
in the first section of this chapter) and linen to estimate what proportion of this trade may be expected to pass through a new or improved
market.
Market development policies. The first step in making the estimate of future demand is to try and set the projections in the context of a
market development programme. Existing plans and programmes may already exist, either as public sector policies or as proposals for
investment by the private sector. These will need to be reviewed to see whether they can form a realistic basis for an overall development
programme. If not, it will be necessary to make some overall assumptions on the basis of the assessment made of existing trading patterns.
Projected demand In preparing estimates of the potential demand for produce (fruit, vegetables and fish) a number of assumptions will
need to be made. The example shown in Table 12.10 from Kathmandu demonstrates the principles that might be followed in making an
approximate estimate of future demand.
Other approaches to projecting demand levels for the urban consumption of fruit and vegetables are to use income elasticities (which is
likely to pose the same problems as discussed previously) or to derive values from historical trends. Studies of per caput changes in
consumption tend to suggest that., like increases in production levels, they will match fairly closely the rate of urban population increase.
Table 12.10 Demand assumption - Kahmandu, Nepal
· The consumption of fruits, vegetables and fish for six districts in Nepal, based on consumption survey data was broadly
matched with national food balance sheet data. For example, for vegetables, the per caput consumption in 1983/84 of 42.14
kg. could be equated with an average in six districts of 27.5 kg per capita, if leafy vegetables were excluded.
· per caput consumption in the city of Kathmandu is substantially higher than the national average and an adjustment was
derived by using unpublished data on average monthly household expenditure on goods and services. This enabled ratios to be
calculated between the national average expenditure on fruits, vegetables and fish compared with that of urban Nepal and
between urban Nepal and Kathmandu.
· consumption of vegetables in Kathmandu was estimated as follows:
27.5 kg per caput x 1.43 (urban/rural ratio) x 1.05 (addition for Kathmandu) = 41.5 kg per caput
· for fruits, however, using the same basis produced a figure of 33.14 kg per caput for Kathmandu, substantially above the
national plan target. Therefore, the present consumption of 22.19 kg per caput was used.
· for fish the per caput consumption was based on the existing estimated consumption of fish in Kathmandu i.e. 5.8 kg per
caput.
· all projections of future consumption were based on survey data or official published target levels of per caput consumption.
Source: FAO Project (GCP/NEP/043/SWI
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Market throughput
After making projections of present and future demand, the next step in the preparation of an outline master plan is to ensure that there is
sufficient space to accommodate the facilities required for the operational procedure envisaged (described in Chapter 13). As a basis for
these calculations it is first necessary to make projections of the likely throughput of the market.
Design scenarios. A simple approach to projecting throughput is to develop scenarios for the peak monthly throughput of the market, using
figures on per capita consumption and the likely population served, based on crude projections from previous population growth and
migration trends (if more refined figures are not available). Possible design scenarios that often used are: a minimum size, corresponding to
present immediate demand; a median size, corresponding with likely demand in the near future (say within the next 5 years); and an
ultimate size, which would accommodate the growth in demand over the 20 -30 years of a project's life.
A typical example of a throughput calculation for Kathmandu, using the demand assumptions shown in Table 12.10 and taking into
account production by-passing the wholesale market system, is shown in Table 12.11. The calculations use projected per caput
consumption values for three types of produce at three design dates and assume an increasing share for the new market of the total
wholesale trade in the city.
Design assumptions. The projections in Table 12.11 include estimates of the throughput at peak periods, taken as 2 - 2.5 times the annual
monthly average production/sales, and arc based on the methods for assessing seasonal variations described earlier in this Chapter. It can
be assumed, however, that the ratio will decrease over time. In estimating space requirements the extent to which these seasonal differences
need to be considered is a matter of judgement. In principle, the estimating techniques described in Chapter 13 already take the peaks into
account as they are based on average values. In some circumstances, for example, where there is a short duration peak caused by a
particular crop, it may be better to calculate for the peak separately in order to make special provision for it.
Table 12.11 Kalimati wholesale market, Katmandu: design assumptions
Per caput
consumption
(kg/pa)
Urban area consumption Traded at Kalimati:
Annual
total
(tons)
Home
use
(m/t per
annum)
Volume
sold
(%)
% of
total
(tons)
Monthly
volume
Minimum size: (1988 Design Population - 411,000)
· Vegetables 41.50 17,060 3,410 13,650 30 340
· Fruit 22.19 9,120 1,820 7,300 20 120
· Fish 5.80 2,380 n/a 2,380 0 0
Total average monthly
throughput (tons)
460
Peak monthly throughput,
2.5 x average month
(tons)
1,150
Median size: (1990 Design Population - 442, 000)
. Vegetables 50.90 22,500 4,500 18,000 30 450
· Fruit 24.41 10,790 2,160 8,630 20 140
. Fish 8.00 3,540 n/a 3,540 0 0
Total average monthly throughput (tons) 590
Peak monthly throughput,
2.5 x average month
(tons)
1,480
Ultimate size: (2000 Design Population - 700, 000)
. Vegetables 65.00 45,600 9,120 36,480 60 1,820
. Fruit 35.20 24,640 4,930 19,710 60 990
· Fish 13.34 9,340 n/a 9,340 50 390
Total average monthly
throughput (tons)
3,200
Peak monthly throughput,
2.0 x average month
(tons)
6,400
Source: FAO Project- GCP/NEP/043/SWI
Another key assumption which needs to be considered in estimating throughput is that the percentage of the wholesale trade going through
the market will vary depending on the operation of existing marketing channels. Data from roadside and retail surveys may provide a basis
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for establishing how this might realistically change in the future. The figures should be treated with some caution, however, as they may
not be representative of the whole year. Adjustments may therefore be needed, similar to those used when matching estimates of existing
consumption to volumes recorded from roadside and other surveys (see estimated consumption in the previous section)
Design targets. A reasonable target for when the market is fully operational should also be projected but the extent to which trade would
switch from present markets must be evaluated carefully, bearing in mind the degree to which some produce will by-pass the market
system, particularly that from home gardens within the city. A likely eventuality is that a new market will gain the new trade and that the
existing markets and other channels will broadly retain their present level of trade.
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13. Planning and environmental design criteria
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This chapter describes the calculation methods that can be used for estimating market building
requirements and reviews the process and types of criteria that will need to be adopted in preparing
the site plan and building designs and in making an environmental assessment of a market
development project.
Selecting a new market site
In considering a site for a new market, public bodies are frequently pressured into accepting a location
which is already owned by central or local government. This obviously simplifies the problem of land
acquisition, but the justification for relocation and the characteristics of a proposed site still need to be
rigorously analysed before this solution is accepted. Full consultations will be required with all the
interested parties. The issues involved and desirable features to be reviewed in choosing a new site are
discussed below
Number of market sites. The first decision that needs to be considered is whether it is necessary to
concentrate all wholesaling activities at a single site. It may be possible for an existing market to serve
the central area of a town and for outer suburban areas to be served by a new market. Alternatively,
the scale of a city may favour more than one outer wholesale market, which may serve either the
needs of producers bringing produce from different directions or the needs of retailers in a city with
widely dispersed retail areas. The potential location of market sites to serve a city are shown in Figure
27. It may be appropriate to adopt a multiple-market solution for a city:
· if there are many small-scale retailers, with premises scattered throughout the city;
· if retailers' transport facilities arc inadequate and
· if roads are highly congested.
Size of site. The estimation of a suitable size for a new site is a difficult question as comprehensive
detail is unlikely to be available on existing trading or on the desirable range of facilities that the site
might need to accommodate. Suitable methods for estimating site size can be based on two basic
criteria: urban population and annual turnover. An approximate basis for making such an assessment
is to use a figure of 4 - 5 tons of turnover per m² of overall site area area. More detailed figures on
which to make an assessment are discussed in the next section in this chapter on estimating space
requirement (see Tables 13.1 - 13.4).
Fige ocaio of hoesae makes ihi a ci
There are, however, likely to be wide deviations between countries in what is appropriate, because of
seasonal fluctuations in supply, trading practices, cultural differences and the dissimilar natures of
markets. Some may be exclusively for terminal trade in a city, while others may have a strong export
or re-assembly orientation.
Locations A new site for a wholesale market it will need to be reviewed at two levels: its general
location within the urban area and its siting within its immediate neighbourhood.
The siting of a market should ideally be adjacent to a main road, preferably with more than one point
of access. A direct approach off a heavily used major highway or close to a major intersection may,
however, cause site planning problems, which are only likely to be become more difficult with the
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build up over time of traffic. The ideal site is one visible from the main highway but which has its
own segregated point of access not mixed up with local traffic. For many markets the produce is likely
to be brought by bus and a location near to bus routes is therefore essential. Employees at the market
and small retailers are also likely to depend on public transport, which in Asia may include bicycle
rickshaws and small-scale motorized forms of transport.
The location of the market within the urban area should be a balance between the needs of the
producers or their agents using inter-city transport routes, and those of the retailers who have to
collect produce from the market and are using intra-city transport routes. A common criterion is adopt
a maximum travel time of around 30 minutes for retailers to reach the wholesale market.
In towns and cities where the main retail area is still located in the centre there is frequently a conflict
of interests. Municipal authorities are often eager to obtain use of a vacated central area site, justifying
this on the basis of changes in the retailing structure of a city and of relieving traffic congestion. Such
a move would usually be supported by the police and traffic authorities. Government departments are
also inclined to support the relocation of markets, on the often valid basis that the move could increase
the range of facilities that are available and reduce the stranglehold of existing trading monopolies, as
well as for more dubious reasons, such as prestige and as a means of gaining control from existing
commercial interests.
Many projects involving relocation of a market have foundered on the issue of a suitable site location,
with a move from an old location being delayed or aborted because of opposition from wholesalers,
retailers and other traders. It must not be forgotten in reviewing the need to relocate a market that it is
likely to be a major employer of low-income labour. particularly of male porters and of women
traders, who could be badly affected by an unneccessary move to an urban periphery market site.
Physical characteristics of the site. Although the main criteria for relocation may be to obtain an
inexpensive and uncongested site which is of adequate size for present and future activities, the
physical characteristics of a site arc also of critical importance. The primary consideration should be
that the area is level, with stable soil conditions and not within a flood-plain. Sites with slopes of less
than one per cent tend to be difficult to drain, while it is difficult to provide road access on sites over
15 percent in gradient. The latter sites are also likely to have potential soil erosion problems. The
optimum range of gradients is 1 - 4 per cent, which should lead to the least-cost construction for
roads, services and large-span market buildings.
Fige Reaioship beee ci sie oe a make aea
The site should, ideally, already be provided with public services, particularly water and electricity
and also have a regular and compact shape, as irregular shapes will be wasteful, leaving Houseful
pockets of land. The surrounding development should be compatible with the market. A location close
to a residential area or public hospital, for example, is likely to lead to nuisance problems from the
heavy traffic using the market and the long hours of operation. An ideal location of a market is on the
edge of a light industrial area, with easy access to existing and future retail areas.
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Estimating space requirements
Contents - Previous - Next
To make an estimate of the overall sales space requirement for a new or expanded market necessitates an assessment of potential throughput using the
method described in Chapter 12.
Care should be taken to ensure that an over-provision of space is not made. This can occur either because the peak trade by-passes the wholesale
market system, typically because it is sold directly to traders at field level, or because climatic conditions during the peak season would allow produce
to be temporarily sold in the open air or under lightweight covers, thus making provision of any additional sales space unnecessary. Nevertheless, the
use of the peak factors is critical to the design of much of the engineering infrastructure, which is described in Chapter 14.
Spatial characteristícs of existing markets. The best basis for making projections of space requirements for new or improved markets is to compare
them to how existing markets operate. Table 13.1 summarises the characteristics of selected markets in countries at different stages of economic
growth. The retail structures in these countries vary from the highly developed system of supermarkets and chainstores in the USA, to the dominance
of small-scale retailers and hawkers in Thailand.
Table 13.1 Wholesale markets operating in countries at different stages of economic development (1971 data)
Wholesale mar-
ket & year of
inauguration
Per capita
income
(US$/pa)
Catchment
population
(million)
Market
turnover
('000 tons)
Wholesalers Aver.
(No.) Sales
('000 tons)
Area
(m²)
New York (1967) 3,578 18.0 1,200 70 17.1 360
Hamburg (1962) 1,682 5.0 700 150 4.7 80
Seville (1971) 663 0 6 360 70 5.1 124
Amman (1965) 249 0.7 180 36 5.0 60
Lima veg. Mkt(1955) 246 3.0 720 700 1.0 21
Bangkok (1962) 137
· Yad Piman 2.3 350 300 1.2 17
· Yak Klong 1 2 250 133 1.9 22
Source Mittendorf H.J. 1976. Planning of wholesale markets for perishable food Rome FAO
Table 13.2 Average turnover at European wholesale markets (tons/m²)
City Size
(million)
Sales (bldg)
area
('000 m²)
Site
area
('000 m²)
Volume
traded
('000 tons)
Turnover (tons/m²)
Sales
area
Site
area
under 0.1 10 56 69 6.90 1.23
0.1 - 0.2 8 34 54 6.75 1.59
0.2 - 0.3 11 56 84 7.64 1.50
0.3 - 0.4 16 72 126 7.88 1.75
0.4 - 0.5 26 107 261 10.04 2.44
0.5 - 0.6 17 137 149 8.76 1.09
0.6 - 0.7 13 94 380 29.23 4.04
0.7 - 0.8 16 118 203 12.69 1.72
0.8 - 0.9 44 171 235 5.34 1.37
0.9- 1.0 36 145 320 8.89 2.21
1.0- 1.5 26 134 5]8 ]9.90 3.87
1.5 - 2.0 74. 24] 5]6 6.97 2.14
2.0 - 3.0 72 761 328 4.56 0.43
Weighted average (rounded) 15.00 4.00
Source: World Union of Wholesale Markets. 1969. Manual on wholesale markets, The Hague, Netherlands, International Union of Local Authorities.
Table 13.2 shows the average area and wholesale market turnover values for a range of city sizes in Europe. Figure 28 illustrates these values plotted
as a graph, demonstrating that there is a reasonable relationship between city size and turnover. Table 13.3 gives an analysis of markets in the Near
East, compared to European markets and, as well as turnover by sales space, includes other indicators such as city size and the overall site area.
Figure 29 and Table 13.4 gives a similar set of values for typical Brazilian wholesale markets, indicating rather lower turnovers per m² of sales area
and site area than in Europe or the Near East.
As well as providing a basis for making detailed space projections the data in these tables can be used to make a preliminary assessment of overall
land acquisition requirements for a new market site. The figures, however, have to be used with some caution as they are both a reflection of different
social and cultural factors and of methods of management that may occur between developed and less-developed countries.
Table 13.3 Through-put analysis of Near East wholesale markets
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Characteristic Amman
Cent. Mkt
Jordan
Rod al Farag,
Cairo
Egypt
Marche de
Gros, Rabat
Morocco
Average
European
Market
Population ('000):
· City 250 n.a. 610 493
· Hinterland 1,000 n.a. 1,275 1,435
Area ('000 m²):
· Total area 28 88 50 93.5
· Sales area 9.9 26.4 7.5 17.9
Turn-over ('000 mt) 155.3 287.9 155.1 191.4
Spatial analysis (m² per '000):
· City population 112 n.a. 82 370
· Hinterland population 28 n.a. 39 89
Turn-over analysis (tons per m²):
· Total area 5.5 3.3 3.1 4.0
· Sales area 15.7 10.9 20.7 15.0
Source: FAO (1989 data)/ World Union of Wholesale Markets op cit.
Note n.a - not applicable
Fige Reaioship beee oe make aea a saes aea ai
Table 13.4 Comparative analysis of typical Brazilian wholesale markets
Market
Area ('000 m²)
Annual
Volume
Traded
(tons)
Turnover (tons/m²)
Total
Site
Area
Built-up areas
Total
Site
Bldg.
Area
Bldg.
Area
As %
Total
Alagoas 32 7.20 22.5 52,077 1.63 7.23
Amazonas 295 14.23 4.8 56,133 0.19 3.95
Campinas 500 21.95 4.4 220,470 0.44 10.04
Bahia 1000 43.00 4.3 183,733 0.18 4.27
Ceara 530 23.91 4.5 114,417 0.22 4.79
Distrito Federal 617 40.75 6.6 134,421 0.22 3.30
Espirito Santo 119 7.59 6.4 115,766 0.97 15.25
Goias 107 17.70 16.5 108,072 1.01 6.11
Maranhao 117 4.33 3.7 42,521 0.36 9.82
Minas Gerais/Unidade de Belo
Horzonte
3160 58.88 1.9 467,177 0.15 7.93
Minas Gerais/Unidade Reg. do
Triangulo
200 6.24 3.1 57,066 0.29 9.15
Paraiba/ Unidade de Joasa
Pessoa
86 11.53 13.4 50,856 0.59 4.41
Paraiba/ Unidade de Campina
Grande
106 3.25 3.1 64,712 0.61 19.91
Parana/ Unidade de Curitiba 492 28.88 5.9 238,122 0.48 8.25
Parana/Unidade de Maringa 5.9 5.90 100.0 67,659 11.47 11.47
Parana/ Unidade de Foz do
Iguacu
16 2.08 13.0 20,391 1.27 9.80
Pernambuco 250 43.40 1.7 265,111 1.06 6.11
Rio Grande do Norte 166 4.62 2.8 57,859 0.35 12.52
Rio Grande do Sul 774 56.67 7.3 317,185 0.41 5.60
Rio de Janeiro/ Unidade Sao
Goncalo
228 16.01 7.0 93,131 0.41 5.82
Santa Catarina 134 4.99 3.7 26,881 0.20 5.39
Sergipe 33 6.75 2.0 29,878 0.91 4.43
Average 408 19.54 4.8 126,529 0.31 6.48
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Source: SINAC, 1978. Brazilia.
Checking the adequacy of existing markets. Demand and demographic projections, plus average turnover data, can be used to estimate the adequacy
of an existing market site.
This can be illustrated by projections made as part of an FAO study of wholesale markets in Chiang Mai in Northern Thailand. The existing Muang
Mai wholesale market was overcrowded and unable to expand. The opening in 1990 of a new market, with a sales area of 6,400 m², at Kamtieng on
the edge of the city allowed adjustments to be made in the wholesaling pattern of Chiang Mai city. It was assumed, as part of an overall marketing
strategy, that trade at Muang Mai might in the future be restricted to largely serving the inner city (averaging around 150 tons per day) and that the
balance of the metropolitan area would be served by Kamtieng. The potential throughput at Kamtieng was projected as follows:
· Metropolitan population in year 2000, including allowance for tourists:
= say 750,000
· Annual consumption of fruits and vegetables in the year 2000:
= 750,000 x 200 kgs. per caput (maximum)
= 150,000 tons per annum or average of 420 tons per day
· Potential throughput at Kamtieng Market:
= 420 tons per day minus 150 tons per day (at Muang Mai)
= 270 tons per day or 97,000 tons per annum
· Potential turnover using the presently constructed market sheds:
= 97,000 tons per annum/6,400 m² = 15 tons per m²
The calculation confirmed that Kamtieng market would provide sufficient floorspace in the short to medium-term to accommodate a reasonable
average turnover of 15 tons/m².
Calculation methods for estimating floorspace at new markets. Projecting floorspace for a new market is a more difficult problem than assessing the
adequacy of an existing market. It is very hazardous to build up floorspace figures from a series of too-elaborate assumptions about the potential
shares of throughput that various facilities might be expected to achieve at a market. Very reliable survey data is required for such an approach,
specific to the culture and matching exactly the management conditions that will apply in the market.
A better approach is to work from the whole to the part, firstly calculating the overall sales space and then making adjustments for additional
facilities. Two simple calculation methods can be adopted, which may be used in parallel to check the basic assumptions.
The first method (Method A in Table 13.6) is an approach based on commercial criteria using, as the main parameter, an optimum overall annual
turnover per square metre of sales area, which should usually range from 10 - 25 metric tons, including an allowance for main circulation areas
(display/buyers' walk and loading platforms). These turnover figures conform with the data contained in Tables 13.1 - 13.4 and would represent
reasonable average values for fruit and vegetable markets.
The second calculation method (Method B) is an ergonomic approach based on the ideal space requirement for various activities. This method uses
the net area required to accommodate the average daily sales for each of the main commodities, plus allowances for overall circulation and for daily
fluctuations in space requirements. The factors used in the calculation method would vary depending on the methods of display and level of
sophistication of the market, which might range from traders sitting on the floor with their produce heaped in front of them to the selling from
samples of produce which is already packaged, with mechanical handling before and after sales.
Table 13.5 Typical daily space requirements: Japan and Korea (tons/m²)
Vegetables Fruits: Fish
Facility Japan Korea Japan Korea Japan
Auction halls 0.080 0.120 0.165 0.070 0.085
Middlemens' stores 0.055 0.100 0.110 0.050 0.055
Loading and unloading 0.055 0.100 0.110 0.050 0.055
Chilled/cold storage 0.500 0.800 1.000 0.400 1.000
Source NIKKEN SEKKEI, Osaka, Japan & FAO Project GCP/CPR/008/BEL
Some typical values of space used for storage and sales, that might be used in Method B. are shown in Table 13.5. The Japanese values represent
nearly optimum use of space, whilst those from Korea could be used as design targets for a new wholesale market. If aggregate areas are built up on
such a basis the values will need to be adjusted, by applying a percentage weighting factor, to make allowance for the mix of functions and extent of
usage that will occur in a main sales areas. Not all the produce, for example, may go through the auction hall and the storage needs at wholesalers'
premises may be lower than the turnover implies because loads are transferred directly between lorries. (More elaborate methods for estimating space
needs are contained in a publication of the Korea Rural Economics Institute. 1981. Project proposals on the new Seoul agricultural wholesale market
and the national marketing master plan. Seoul, Ministry of Agriculture and Fisheries).
Table 13.6 demonstrates the application of the two calculation methods using turnover projections made for a new export-oriented wholesale market
for the province of Chiang Mai, Northern Thailand. There is a reasonable degree of agreement between the two estimating methods; some variation is
inevitable given the fundamentally different basis on which the projections are made. The estimates provide a basis on which to design market
buildings, a medium-term target might be 4,000m², with a longer-term aim of 6,000m².
Table 13.6 Sansai Market Centre, Thailand: sales space projections
Throughput (tons) Space requirement:
per year (pa) per day (pa) tons/m² area - m²
Short to medium term.
Method A 56,000 15 pa 3,730
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Method B · Vegetables 45,000 125 0.05 pd 2,500
· Fruit 11,000 30 0.06 pd 500
Net Total 56,000 155 3,000
· plus loading area @ 25% - - 750
· plus peak factor @ 20% - - 600
Total (Method B) 4,350
Long term:
Method A 100,000 20 pa 5,000
Method B · Vegetables 80,000 225 0.06 pd 3,750
· Fruit 20.000 55 0.11 pd 500
Net Total 100,000 280 4,250
plus loading area 69 25% - - 1,060
plus peak factor @ 20% - - 850
Total (Method B) 6,160
Source :FAO Technical Report TCP/THA/8958
Table 13. 7 Sansai Market Centre, Thailand: space requirements
Function Space requirement (m² ):
Initial Medium-term Long-term
Main sales space 2,000 4,000 6,000
Rentable stores 800 1,600 2,400
Washing, pecking end gracing 150 150 300
Market management offices 100 200 300
Other offices 200 400 600
Basic support facilities 100 200 300
Grain dryer and silo - - 100
Total 3,450 6,750 10,000
Source FAO Technical Report - TCP/THA/8958
Table 13.7 shows how the build up of commercial floorspace could occur during a 20-year project period using the projections shown in Table 13.6
and based on some simple assumptions about the space requirements for ancillary spaces. These assumptions were:
· wholesalers' permanent stores (including chill stores) outside the main sale area would be equivalent to 40 percent of commercial sales
space;
· washing, packing and grading facilities at 1m² per ton of through-put;
· offices for private enterprise, market management and for basic support facilities (weighbridge, public toilets and site security), each at
5 percent of commercial sales space; and
· other offices (banking and credit facilities, market information system, marketing extension and cooperative outlet) at 10 percent of
commercial sales space.
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Site planning
Contents - Previous - Next
This section amplifies some of the planning principles discussed in Chapter 3 and 4. There are many publications explaining the planning
process, some of which are listed in the Bibliography. The importance of consultation with all the parties involved with this process has
been stressed on many occasions in the manual. Two useful publications which explain planning within the context of participatory
development are: Goethert, R & Hamdi, N.1988. Making microplans. and Taylor, L. & Jenkins, P. 1989. Time to listen - the human
aspect in development. (both from Intermediate Technology Publications, London).
More detail on the principles of site planning and appropriate standards that can be used in an urban context are contained in the
following publications:
· De Chiara, J & Koppelham, L.E. 1978. Site planning standards, New York, McGraw-Hill Book Company;
· Cartwright R.M. 1980. The design of urban space, London, The Architectural Press Ltd.; and
· Lynch, K. & Hack, G. 1984. Site planning, Cambridge, MIT Press.
Site planning objectives. The project goals described in Chapters 2 and 3 will provide a general basis for the preparation of a physical
master plan. These general goals need to be supplemented with more detailed objectives, which will be used both in reviewing site
planning options and in the development of a preferred option into a draft, and then final, master plan. Care needs to taken in establishing
these objectives as it is a common error of site planners to assume values which are in conflict with the values and habits of the site's
users. There are, however, a range of general objectives which provide a useful starting point for developing more appropriate objectives
suited to the conditions and culture in which a particular market is to be developed.
The most obvious of these objectives is functional adequacy; a plan must accommodate all the needs defined by a project's goals. It must
also provide optimum communications, both in the sense of traffic movement (as a market is primarily a complex transhipment point)
and social interaction (as it is a point at which sellers and buyers meet to conduct business). Choice and adaptability are important
objectives, as change is inevitable with any market and the success of a plan in the long term will depend on its provision for users to
mould and adapt it to their particular requirements. Minimum standards of public health, sanitation, accident prevention and structural
safety will also need to be considered.
Although architectural quality may not be a main interest of either the market's developers or its users, this should not be forgotten. Cost,
however, will always be the main criterion, but this must always be related to other objectives, with which it will frequently be in
conflict. The main problem will be to strike a balance between that of minimizing initial capital costs and reducing the recurrent
maintenance and operational costs of running the market.
Table 13.8 Kalimati wholesale market Nepal: space requirements (m²)
Land use/accommodation Completion by end of Phase: % of
total
at ground floor level II III IV
Buildings:
· Multi-purpose shed 1,680 2,640 3,600 17.7
· Structural bays (number) (7) (11) (15)
· Fish shed - - 336 1.7
· Cold stores - - 880 4.3
· Management and administration 560 560 560 2.8
· Retail unit and hostel - 308 308 1.5
· Security block 72 72 72 0.3
· Main gatehouse - - 24 0.1
· Washing, grading and packing 128 128 128 0.6
· Toilets 152 152 152 0.8
Sub-Total, Buildings 2,590 3,840 6,060 29.8
Site Development:
· Farmers' market area 710 710 710 3.5
· Roads (on-site only) 3,360 3,640 5,955 29.2
· Parking areas 2,020 2,190 3,570 17.5
· Pavements and landscaped areas+ 1,940 2,100 3,495 17.2
· Drainage and other reserves 150 165 230 1.1
· Areas under construction # 3,010 1,135 - 0.0
· Future expansion area (paved) - - 350 1.7
Total site area 13,780 13,780 20,370 100.0
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Source: FAO Technical Report, GCP/NEP/043/SWI
Notes: + Excluding paved areas associated with buildings, covered arcades and paving to the farmers' market area.
# Including temporary construction roads
Site planning options. As the starting point of the site planning process, different options should be generated to reflect the design
objectives.
These options, will form the basis of the draft master plan and a typical approach to reviewing them is to start with an analysis of land
uses on the site, derived from the accommodation brief. The main categories of land-use activities need to be identified and the
relationship or linkages between them established. These linkages may be of a physical nature, such as roads, or more abstract, such as a
flow of information. Linkages are more usually positive, but some may be negative. This could represent, for example, an
incompatibility between uses, such as between a refuse disposal area and on-site residential accommodation.
Different diagrams or patterns should be created for each option, which will represent a simplification of the design problem to its logical
essence. The options will need to be analysed, which will generally be based on how satisfactorily they perform in terms of cost and of
minimizing time spent within the market. Although simple physical distance will give some indication of this, the effects of congestion
in a market are critical and therefore time is a more relevant measure. The reviewing of options will provide an initial sorting out of
ideas, which will need to be developed further during detailed design. The choice of planning options can be most practically understood
by using a simple ranking system based on the site planning objectives discussed above.
Land-use analysis. The estimates prepared of space requirements for the buildings should be related to that of the whole site. Table 13.8
shows an illustration of a phased estimate of the market buildings needed for the Kalimati site in Nepal, including the space requirements
for the ancillary and service buildings, and for a 2,000 metric ton cold storage facility. In the estimate an allowance was made for the
substantial parking provision and road system which will be needed by the market at ultimate development. Although present retailers at
the market may continue with the use of small hand carts, this pattern is likely to change rapidly with the introduction of small pick-ups
and trucks.
Table 13.9 gives a comparable land use pattern for the Sansai market in Chiang Mai, where a large proportion of the site was allocated to
traffic circulation needs. As discussed in Chapter 4, the main factor to consider in land-use analysis is the proportion of a site that is
given over to roads and parking and in Table 13.10, which compares the land uses in three Near East wholesale markets, the importance
of this is evident. The extreme congestion of Rod al Farag market in Cairo, for example, is explained by its lack of road space and traffic
management, combined with restricted access in the roads leading to the market. The market is over-intensively used compared to its
overall site area, although the turnover per m² Of sales space of 15.7 tons is not that high.
Table 13.9 Sansai Market Centre, Thailand land use (m²)
Land Use Cumulative space requirement (m²):
Initial Medium-term Long-term
1. Wholesale Market 2,000 4,000 6,000
2. Offices/Other Buildings 1,450 2,750 4,000
3. Grain Drying Area 500 1,000 1,500
4. Reserve for Future Facilities 32,300 28,500 24,750
5. Car Park - 300 pick-ups/trucks 9,600 9,600 9,600
6. Car Park- 30 cars 400 400 400
7. Water Supply Tower 100 100 100
8. Landscaping/Drainage Reserves 13,500 13,500 13,500
9. Roadspace 25,550 25,550 25,550
Total 85,400 85,400 85,400
Source: FAO Technical Report - TCP/THA/8958
Table 13.10 Land-use analysis of Near East wholesale markets
Land Use Amman
Central Mkt
Rod al Farag,
Cairo
Marche de
Gros, Rabat
(m² ) (%) (m² )
(m
2
)
(m² ) (%)
1. Covered sales space 2,500 (8.9) 12,900 (14.7) 3,000 (6.o)
2. Open sales space 7,400 (26.4) 13,500 (15.3) 4,500 (9.0)
3. Parking 2,400 (8.6) 0 (0.0) 4,000 (8.0)
4. Roads 9,200 (32.9) 17,300 (19.7) 12,100 (24.2)
5. Stores 5,700 (20.3) 40,900 (46.5) 1,600 (3.2)
6. Crates 0 (0.0) 0 (0.0) 4,800 (9.6)
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7. Administration 800 (2.9) 3,400 (3 8) 1,800 (3.6)
8. Unused 0 (0.0) 0 (0.0) 18,200 (36.4)
Total 28,000 88,000 50,000
Source: FAO
Site master plan. The purpose of preparing a master plan is to provide a document, primarily a map or series of maps, supplemented by
written statements, drawing together the synthesised information from the previous design stages and providing a basis for consultation
and more refinement of the detailed design. The main function of the plan must be to maximize the throughput of the market, while
minimizing capital and operating costs.
The basic approach will be to compile all the planning data, including the land-use projections and any diagrams prepared of market
operations (such as in Figure 15) and plan options in order to draw them to scale (typically at 1:500, 1:1,000 or 1:2,000 scales), so they
can reflect the actual accommodation requirements related to the circulation pattern and can be fitted within the confines of the site
boundaries. The first draft or outline master will clarify what are the opportunities and constraints to development on a site. An example
of the evolution of such a drain master plan is shown in Figure 30.
This will be a stage at which many sketches are made so that adjustments can be made which rationalize the relationship between the
land uses and provide the most efficient access and traffic circulation system. The original neatness of sketch diagrams will often to be
lost at this juncture, as the plan gets modified to meet the site's physical conditions, climatic considerations and the evolving
requirements of the design brief. However, although the influence of the local site is important, the essentially functional nature of
markets will tend to lead to solutions in which the general form is compact and geometrically regular, using standardized building forms.
Important factors that need to be considered in the plan are how the development might be phased and how the separation of permanent
uses from those which are of a more transient nature can be used as a means of organizing the site so that future changes can be most
easily accommodated. As roads and parking areas arc likely to be a major element of the total capital cost and are elements which can be
varied substantially in both extent and standard of construction, they will be a major consideration in determining the ultimate form of
the outline plan.
The easiest way to undertake an analysis of the plan is to measure the overall site area of each of the proposed land uses and prepare a
table which relates them to the overall site area. The methods of measurement for preparing the table can vary from using a planimeter,
to counting squares on a graph paper overlay, The important issue to remember is to always compare the measurements to the known
overall area of the site. This tabulation can then be compared to Table 13.8 - 13.10 which gives typical values for the utilization of land
at a variety of market sites.
Fige Eoio of a af o oie mase pa Sasai 1haia
The difference between an outline plan and master plan is one of detail. As the consultation process continues and the detailed design
evolves the land-use pattern will be transformed by the actual designs for buildings and infrastructure. Two key issues that will need to
be addressed in developing the final master plan are:
· how to evolve an arrangement with a satisfactory relationship between the site circulation system, unloading and loading
areas, general parking and the internal arrangement of the main market buildings; and
· how to organise the site layout so that construction phasing is simplified and future growth and changes can be
accommodated without disruption.
These issues are critical to a plan's success, particularly if there is any reluctance on the part of wholesalers to move to a new location or
cooperate in the implementation of improvements to an existing market. Increased rents for premises will need to be justified on the basis
that they will be offset by a well-designed market providing other benefits, such as lower operating costs (see Chapter 5). The potential
savings from an improved or new layout include: adequate parking spaces and loading bays leading to increased vehicle turn-around,
with less time lost for both wholesalers and retailers;
· compact building layouts with less manual handling of produce, leading to lower porterage and labour costs and a more
efficient use of warehouse space;
· covered sales and handling spaces, giving protection from rain and sun, leading to reductions in deterioration of produce;
and
· introduction of controlled entries and exits, leading to reductions in pilferage.
A study by the US Department of Agriculture in 1947, for the relocation of the wholesale fruit and vegetable market from a central area
site in the middle of Atlanta (Georgia) to a new site outside the city,, estimated that the savings in annual operating costs would be
made-up as follows:
· less time lost by vehicles 14 percent
. lower porterage and labour costs 12 percent
. reductions in deterioration of produce 67 percent
· reductions in pilferage 7 percent
Another example of the level of economies that can be obtained from improved facilities is shown in Table 13.11.
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Table 13.11 Comparison of costs affected by facilites used by produce firms at the Maryland Wholesale Food Center (US $ per Imperial
ton)
Item Old
facilities
New
facilities
Change
Rent 1.89 2.61 plus 0.72
Handling costs:
· labour 18.61 12.00 minus 6.16
· equipment 0.04 1.31 plus 1.27
Cartage 10.45 2.62 minus 7.83
Insurance on contents 0.40 0.31 minus 0.09
Total 30.94 18.85 minus 12.09
Source United States Department of Agricullure/Maryland Food Center
Authority. 1989. Wholesale Food Distribution Center Growth and Development, USDA, Washington DC.
Building design
The purpose of architectural design is often forgotten in the design of functional building types such as markers. It is assumed that by
applying a simplified standard model (often copied from another site or country) an acceptable solution can be arrived at which will
avoid the necessity and expense of having to employ an architect or engineer to design the market buildings. In reality, this is most
unlikely to be satisfactory.
The only way that market buildings can be created to match the site and climatic conditions, the proposed management system, the level
of technology of the country and the cultural context is if they are consciously designed. To arrive at inexpensive and appropriate
building forms, albeit of a flexible and expandable nature, will require the market authority to involve itself with fully briefing any
design consultant.
The writings of Christopher Alexander (1977. A pattern language towns buildings construction. New York, Oxford University Press)
provide a comprehensive understanding of this design process. Examples of how architectural design principles can be applied to
building types in less-developed countries are given in: Maxwell Fry F. & Drew, J. (1956. Tropical architecture in the humid zone.
London, B.T. Batsford Ltd);
Fige Iea ao of a pica hoesae make Kaimai Aepa
Koenigsberger, O.H. et al. (1973. Manual of tropical housing and building -part 1, climatic design. London, Longman); and Saini, B.S.
(1980. Building in hot dry climates. Chichester, John Wiley & Sons).
Building form . The initial task in selecting an appropriate arrangement for the buildings will be to understand the operation of the
market, how produce will flow and how it will be managed (see Chapter 8). The designer will probably present this in the form of simple
flow charts, elaborating those prepared during the site planning stage. To give these diagrams an architectural form is a complex process
which can only be briefly touched upon in this manual.
As the first step, the market authority, preferably in conjunction with the designer, will need to prepare an accommodation schedule,
specifying the overall estimates of space requirements. The basic choice of building form will also need to be made (see Chapter 4,
Figure 8). A series of geometrical patterns, derived from ideal dimensions for the range of activities in the market, will then be applied
by the designer to the accommodation schedule. The designer will prepare a series of sketch designs which "balance" the internal space
and circulation requirements of the buildings with the need for flexibility in use and constructional simplicity. This is an iterative
process, requiring constant consultation with the market authority and traders. In this process designers use a wide range of physical
design data and techniques, including ergonomic and anthropometric standards, planning grids and structural modules (see Chapter 14).
Planning grids One of the key determinants of the planning grid will be the optimum size of sales areas and wholesalers' stalls. If they
are over-sized this is likely to lead to a low turnover (less than 15 tons m²) and an underuse of resources. As a consequence rents are
likely to be disproportionately high as cost recovery normally requires that rents should not exceed 2 - 3 percent of the value of sales. For
existing buildings the survey of facilities described in Chapter 11 should help to establish current practice by, for example, tabulating the
number of stalls of a particular size. Typical values for these modules are shown in Table 13.12 but these figures should be used with
caution as they may not match local circumstances. The ideal method is to use the minimum of fixed walls so that premises can be
defined by moveable partitions, usually constructed of steel mesh. A typical plan showing the relationship between producers' sales
areas, wholesalers' premises, a buyers' walk and supporting facilities is shown in Figure 31.
Other dimensions. As well as the horizontal or (plan) dimensions of the sales areas there are a number of other key dimensions which
will influence the building form. These include the dimension of parking bays (see Table 14.1), which should be related to both the width
of structural bays and to the dimensions of the sales areas. Vertical dimensions are also important and, if not carefully considered, may
restrict the flexibility of the building to accommodate changes in operating procedures.
The preferred minimum clear vertical dimension for market halls is 5 metres, which will allow small fork-lifts or powered pallet-trucks
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to be used in the future. If any form of racking and block storage is envisaged, a more suitable internal minimum height is 7.5 metres,
again clear of any obstructions caused by the roof structure. Minor spaces, such as offices and other ancillary uses should have a
minimum height of 2.4 metres.
Door openings through which fork lift trucks may need to pass should be a minimum of 4. 2 metres high and preferably 6 metres in
width.
Another issue that will need to be resolved is how far the floor slab of the market buildings should be raised above ground level. Market
buildings are often raised 0.9 - 1.2 metres to facilitate loading banks or platforms. This is an expensive element to construct and may lead
to cracking problems with the floor finishes. It also imposes restrictions on how the building may be used. The better solution is to have a
0.2 metre changes of level, with permanent or temporary shallow ramps.
Table 13.12 Dimensions of wholesalers' units at selected markets
Land Use Module size (metres): Most common
width depth area (m²) stall (m²)
New York 7 21 147 242
London (New Covent Garden) 5 15/21/27 75/136 -
Rotterdam 7.5 13.5 100 100
Vienna 6/12 10/18 60/216 120
Barcelona 6 12/18 72/108 -
Paris 6 14 84 84
Buenos Aires 6 12/15 72/90 72
Bogota 10-12
Source: Mittendorf H.J. 1976. Planning of wholesale markets for perishable food, Rome, FAO.
Climatic design principles The building form will also be strongly influenced by climatic design factors, relating to the general climate
of the country and to specific micro-climatic features of the site. The traditional building forms in an area will provide evidence of how
buildings have been designed in the past to cope with the climate. However, the particular problems created by the need to build a
modern wholesale market using a minimum of sophisticated technology makes a review of climatic design essential if comfortable
conditions are to be achieved for the building's users.
There are three basic types of climate that are common in less-developed countries, which will have different implications for the siting
of buildings, their internal layout and their construction.
· warm, humid climates: typical of the equatorial tropics and tropical islands, with high humidity and rainfall levels. The
main characteristic of buildings in this climate is that they should be planned to minimize solar heat gain and to maximize
air flow. The orientation of buildings should ideally be on an east-west axis, spaced at a minimum of five times the
building's height to allow breeze penetration. Rooms in the building should be single-banked to allow cross-ventilation, with
large openings (40 - 80 percent of the wall area) and positioned on the north and south elevations. Walls should have a low
thermal capacity. Roofs will need to be insulated (see Chapter 14) and should have wide overhangs to prevent sun
penetration and to give protection from heavy monsoon rains and high (sometimes hurricane force) winds.
· hot, dry (arid) climates typical of desert and steppe areas, with high temperatures and ground glare, and low rainfall levels.
The buildings in this climate should be planned as compactly as possible in a courtyard form with precautions to prevent
entry of hot dry winds.
Cross-ventilation to rooms is not essential and openings should be limited to 20 - 40 percent of the wall area. Walls and roofs should
have a high thermal capacity, with shading devices to control sun penetration.
· composite climates: typical of equatorial and tropical uplands and Mediterranean areas, combining the problems of both humid and arid
climates. Building design is ideally similar to arid areas, but with facilities to take advantage of solar radiation at cooler times of the year
and temporary provision for cross-ventilation.
Architectural elements. Other factors that will influence the form of buildings will be the positioning of internal and external fixed
elements, some of which have already been commented upon in Chapter 4, whilst others are discussed in Chapter 14. The following is a
brief check-list of these elements, which may need to be incorporated into the design:
Internal elements External elements
· canopies · fencing
· buyers' walks · bollards and barriers
· display areas · gantries
· loading ramps (max. 8% grade) · fuel and water tanks
· shutter and sliding doors · gates
· sun screens and louvres · temporary shade structures
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· fire-fighting equipment · fire hydrants
· refuse bins · solid waste skips
· directional signs · landscaping
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External circulation and services
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The access system and general circulation pattern of a market will generally be the most critical aspect of its master plan and
initially needs to be looked at as a complete entity. In reviewing external circulation components of a market development plan all
aspects of transport that might serve the site need to examined. These will include
· road transport, including small-scale electric vehicles;
· rail links;
· rivers and canals;
· air (for export markets); and
· non-vehicular transport (pedestrian head loads and animal carts).
Road patterns. The ideal practice in developing a road layout is to strictly segregate the produce coming in from that going out,
usually by adopting a one-way circulation system. Figures 7, 11 and 30 give typical site layouts of small-scale modern market
facilities which attempt to meet these general objectives.
A typical approach to establishing the road network for a market site is to provide a continuous peripheral road system or "ring
road", with the buildings located within the centre of the block. By using minor loop roads or branches (cur-de-sacs) that penetrate
within the block, the size of the area served by the ring road can be increased and individual facilities can be directly served by the
road system. An important advantage of the ring road approach is that it enables drivers to search for parking spaces and to correct
mistakes.
At this stage in the design process a hierarchy of roads should be established, reflecting the different intensity of use of facilities.
Junctions and intersections between different grades of roads will need to be looked at in detail, particularly in respect of sight-lines
and the spacing
between junctions. Grid road patterns may be used, particularly for large scale markets, but loop systems are more suitable for
simpler layouts. As a basic principle it will be better to avoid any crossroads within the layout and to make as many of the junctions
as possible 3-way (T-junctions).
Site entry and exit One of the most difficult features to achieve in any site layout is sufficient road length at the site entry so that
incoming trucks can slow down and be checked-in at the entry gate without causing backing-up onto the public highway. In larger
markets a series of entry gates are often located adjacent to each other, served by a single entry road. This problem also occurs on
leaving the site and often this is more critical as it may involve handling a peak discharge of small volume vehicles (typically
pick-ups). A layout with more than one exit has obvious advantages in terms of traffic control, although this may create problems of
security and management of documentation.
Projected traffic flows and parking requirements. The turnover of vehicles in a market, particularly those of retailers, is rapid and it
is highly desirable that a sufficient number of adequately sized parking spaces are provided. For a preliminary layout a minimum of
around Go m² per truck parking space should be used, excluding the main circulation. An overall minimum standard for the
provision of parking places (trucks, pick-ups and private cars) should be 2 - 3 spaces per 100 m² of sales area.
For peak periods, however, this could easily be increased to 4 - 6 spaces per 100 m², which may require the provision of reserve
parking areas a little remote from the market facilities. Ideally, unloading and loading facilities need to be directly adjacent to the
main market building, but this will not always be possible. In general, the desirable maximum distance from a parking space to a
market building should be 100 metres, but it may be necessary to adopt a figure of 200 metres for peak parking in overspill areas.
The use of the overspill areas should be confined to market users with small loads to carry.
In preparing more detailed proposals for a site, estimates should be made of the projected traffic flows and distribution by type of
vehicle. These may include producers' delivery vehicles, retailers' and other buyers' vehicles, transport for permanent and temporary
market staff, and the vehicles of the general public Table ]3.13 gives details for the Kalimati site in Nepal of typical parking
requirements for vehicular traffic at the peak period (assumed in this case to be the period when retailers are making their
purchases). Appropriate parking and circulation design standards are discussed in Chapter 14.
For very large market sites, traffic models, using computers, are necessary for projecting traffic flows. For smaller markets,
however, simpler techniques based on examining the pattern of traffic data from roadside and market surveys (see Chapter 11) can
be used. Of particular importance is to understand the types of vehicles that are using a market and when peak periods may occur.
Figure 32 shows the pattern of arrival for vehicles using the Birmingham (UK) wholesale market based on a 7-day survey.
13.13 Kalimati wholesale market: estimated number of vehicles per day and peak period parking requirements at ultimate
development
Type of
vehicles&
commodity
carried
Throughput:
(m/t/day)
Load
factor
(m/t)
Total
no. of
Vehicles
per day
Peak
period
ratio
Parking
spaces
required
(number)
Average
day
Peak
season
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Within market:
Retailers small trucks & pick-ups:
. Vegetables 610 122.0 1.5 81 0.3 24
. Fruit 33.0 66.0 1.0 66 0.3 20
· Fish 13.0 26.0 0.5 52 0.6 31
Sub-Total 107.0 214.0 199 75
Add 22.5% for suppliers' vehicles/contingency* 17
Truck parking spaces required (@ 8m x 4m) 92
Add for wholesaler's cars (@ 5.5m x 2.4m) 8
Total parking spaces within the market 100
Outside market:
Private cars and official vehicles:
· One parking space for each senior official 12
· Add 150 % for visitors/general public 18
Car parking spaces required (@ 5.5m x 2.4m) 30
Add 20 % for short term truck parking (e, 8.m x 4m) 6
Total parking spaces outside the market 36
Grand total 136
Source: FAO (GCP/NEP/043/SWI)
Note: * Includes allowance for longer vehicles
Other services. Services other than roads can be disregarded in the initial preparation of the overall site plan, but as the site layout is
gradually finalized, consideration will need to be given to the location of other service networks.
Because of the scale of open drainage systems and the significant runoff from paved market areas, surface water drainage is likely to
be the most important service to consider next. The alignments of channels is likely to be a major constraint on the overall site
layout because of the rigidity of design standards that will need to be applied. Invariably, the issue of off-site disposal of surface
water and how it can be related to existing natural drainage lines will also have an important influence on the detailed planning of
the site.
Fige Mea aia imes fo ehices eieig o imigham hoesae make
The majority of other services are likely to be placed underground, but these networks need to be co-ordinated with each other for
ease and economy of construction and in order that future maintenance does not disrupt the working of the market. The use of
"common" trenches for the distribution of services, which establish precisely both their vertical and horizontal relationships, is often
adopted.
Environmental impact and controls
Although the site layout should take into account the servicing requirements of the market there are a number of environmental
problems associated with site development which may need to be resolved at the detailed design stage. 1 he following notes review
the types of site-level environmental problems and the general solutions that may be encountered in market development. More
detailed engineering design criteria are described in Chapter 14.
Surface water drainage. The technical issues associated with the disposal of surface water from market sites are not difficult if
tackled properly. The surface water drainage system will need to deal with storm water flows for peak discharge conditions and the
method for estimating this is described in Chapter 14. However, severe problems may occur if a substantial amount of filling is
required to bring the site above flood level or to provide a more stable base for construction. This will need to be carefully addressed
in order to avoid impacting on the adjoining sites, causing backing-up of drainage water at upstream sites or direct flooding
downstream.
Information on actual recorded flood levels may not be readily available and an interview survey of local residents may be required
in order to establish the level and duration of previous floods and the likely "return periods,' (the time intervals between occurrence
of storms of similar intensity). Solving potential flooding problems often requires that off-site works are undertaken These will need
to be incorporated into the market development programme.
Market sites must be almost completely paved and the critical factors to take into account when calculating the drain sizes and
sections will be the gradients, the need for frequent cleansing of drains which are easily blocked by produce waste (open channels
are normally either covered with steel gratings or concrete slabs) and any potential restriction created by the existing site discharge.
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Water supply. Water supplies to markets are required for drinking and sanitation purposes, for general cleaning and, in some cases,
for the washing of produce. If an existing mains supply is available this would normally be used, although some improvement to the
mains may be required in order that the site can be served. Often, the only practical solution to the supply of potable water for a
market will be to use a pumped supply from a bored tube well, with an on-site storage tower.
To obtain a guaranteed supply, sample borings may be required. If an adjacent site is already occupied then useful information can
be obtained by discussions with the adjoining owners to investigate what problems, if any, they have experienced. A water-quality
analysis of any existing supply may be required to test for the presence of pollutants, particularly faecal coliform bacteria
(Escherichia coli).
Techniques for the construction of tube wells and other small-scale supplies, which may be appropriate for secondary wholesale
markets, are given in the Ross Institute Bulletin No. 10 (Cairacross, S. & Feachem, R. 1978. Small wafer supplies. London School
of Hygiene & Tropical Medicine). Usually a drilling or excavation permit will be required before constructing a new well or other
form of supply.
Sewage treatment. Markets, like any other facility used by the public, will require the provision of toilet facilities A conventional
water-borne sewerage system using an existing mains connections is often not available for market sites and some form of on-site
treatment will be necessary. The purpose of the system will be to remove organic (excrete) waste so as to prevent infection
transmission, pollution of receiving water courses, development of odours and breeding of files, typically Psychoda. National
effluent guidelines frequently require that markets install their own treatment systems and this is usually enforced through building
permits. Market sites, however, arc normally not large enough to justify a mini-treatment plant and there are major ¿difficulties in
the maintenance of such complex electrical and mechanical systems
Other options available include waste stabilization ponds, aerated lagoons and oxidation ditches These are unlikely to be appropriate
for the relatively small-scale requirements of a market. They may, however, be warranted if the market is to be developed in
conjunction with other facilities, in which case their economic viability will need to be assessed Suitable design criteria are given in
Overseas Building Note No. 174 (Mare, D. 1977. Sewage treatment in ho' countries. Garston, Building Research Establishment).
In many cases, a septic tank system, with leach fields and partially treated effluent going to surface water drains is likely to be the
most practical, economic and environmentally satisfactory solution. An agreement will need to be made with any local sanitary
board for the collection of solids and periodic cleaning of the septic tank. The location of the septic tank should be away from any
adjacent sensitive uses and close to the existing surface-water discharge A minimum distance of 30 metres should be maintained
from any wail, 7 5 metres from streams, 3 metres from water pipes and 1.5 metres from buildings or boundaries. Estimating the
capacity of the septic tank will depend on the numbers of sanitary fittings, which is discussed in Chapter 14.
For small secondary wholesale markets in rural areas simpler methods of excrete disposal are normally adopted. These are,
typically, pit latrines and aqua privies. A full review of these techniques is contained in the Ross Institute Bulletin No. 8 (Feachem,
R. & Cairncross, S. 1978. Small excreta disposal systems, London School of Hygiene& Tropical Medicine).
Disposal of solid waste. Refuse is potentially a major cause of environmental problems. These range from public health risks, fire
hazards, odours and nuisance from burning and the polluting of ground and surface water sources. The management of solid waste
is thus a key issue that will need to be resolved.
The waste generated at a market will have a high organic composition (minimum 50 percent), with a high moisture content (60 - 70
percent) and a low calorific value (+/- 1,000 kcal/kg.). Small-scale incineration is not practical or economic, nor advisable given the
potential environmental impact it might have on adjacent sites. On-site compaction of waste and pressing into a container is not
likely to be viable in developing countries, although it is an attractive solution for reducing transport demands and disposal facilities.
Waste should therefore be collected for disposal off-site. If the market's solid waste problems cannot be handled by the local
collection authority then it may be necessary for the market to consider setting up its own facilities, either for recycling the waste as
compost or by a controlled tipping or sanitary landfill operation. Techniques for this are reviewed in Flintoff, F. 1976. (Management
of solid wastes in developing countries.. New Delhi, WHO Regional Publications, South-East Asia Series No. 1).
Equipment options for collection and methods for calculating the volumes of waste that might need to be handled are given in
Chapter 14.
Noise nuisance. Noise levels at markets can cause a significant public nuisance, particularly given their extended hours of
operation. Data from a survey by Chiang Mai University (Paiboonslip, P. 1985. Noise monitoring in Chiang Mai) indicated that one
of the main retail markets had the highest ambient noise level, 81.16 decibels [dB(A)], of any site surveyed in the city. For this
reason market sites are usually located away from residential areas and other sensitive land uses. If an existing site is adjacent to
such uses careful design measures will need to be adopted in upgrading the market.
Community ambient noise standards may not exist and adopting those used in developed countries may be inappropriate. The Initial
study findings report of the Chaing Mai Planning Project (Louis Berger International Inc. 1991) suggested the following standards,
based on Japanese levels (but around 15 dB[A] higher), for areas where there is a special requirement for quiet conditions such as
schools, religious buildings and hospitals:
Day-time Morning/Evening Night-time
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Maximum noise level 60 dB(A) 55 dB(A) 50 dB(A)
It is usually assumed that the noise levels will apply at the property boundary. Another approach often adopted is to categorise land
uses according to their sensitivity to changes in the ambient noise level. For example, no increase above approved noise levels for
90 percent of the time in residential areas might be permitted and only a marginal increase allowed in rural areas or those of mixed
use. A significant increase in noise levels may be allowed for developments on industrial sites.
There are a number of ways the noise impact of a market development may be reduced, with different cost implications and effects
on a market's operating system. This issue will need to be carefully considered during detailed design:
· distance attenuation, by siting noisiest uses away from sensitive areas. In open air, noise decays at a rate of around 6
decibels (dbA) per doubling of distance from the sound source (the decibel scale is a relative measure on a logarithmic
base, giving a ratio of sound pressures);
· restricting the working hours of a market, so that for example the impact of heavy traffic early in the morning is
minimized;
· attenuation by screening. The construction of walling around a site will have a significant impact on noise levels,
particularly higher frequency sound. Problems that this might create in terms of pollution and climatic comfort levels
are discussed below; and
· attenuation by window design, by modifying the windows of adjacent buildings, using double glazing combined with
mechanical ventilation or by adding projecting external fins, both of which can have a considerable impact on internal
ambient noise levels.
Air pollution. In the humid tropics, if sites are fully enclosed by high walls this might have a number of detrimental effects. Air
flow will be restricted and this will hinder natural ventilation both within the market and of adjacent uses, leading to uncomfortable
internal conditions. Equally important, however, will be the problem of containment of air pollutants as the construction and
operation of any market will lead to a significant increases in pollution levels.
This may be acceptable in arid areas, as the general conditions for obtaining a reasonably comfortable working environment will
require that as much shade is obtained as possible. For the humid tropics, however, it would be better to confine environmental
improvements to the optimum siting of facilities, planted screening (which will have little impact in terms of noise attenuation) and
the upgrading of windows. Allowing vehicles to enter the market building, as in some layouts where the buyers' walk is made wide
enough for vehicles, is not considered to be acceptable in either the humid tropics or arid climates.
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14 Engineering design criteria
Contents - Previous - Next
The subject of engineering design criteria is a vast one which cannot be satisfactorily covered in a short manual. The following notes
are meant to provide a guide for non-technicians so that they can understand the scope of engineering design related to markets. The
notes should also be helpful in providing a basis for the preparation of terms of reference for consultants. Technicians may also find
the notes useful for highlighting the types of engineering problems that can be encountered in market design. Many of the subjects may
be covered by local building regulations and codes, but often these have a strong bias towards the construction of houses and may not
be appropriate for the design and construction of markets.
Site investigations
The conclusions and recommendations of the site investigation survey described in Chapter 11 should include consideration of the
following:
· the depth and appropriate standards to be adopted for the compaction of embankments and other areas of fill based on
the soil type and the type of compaction plant to be used (to be confirmed during construction by undertaking field density
tests);
· what measures should be taken for disposal of unsuitable fill material;
· the types of foundations required for different building types (described later in this chapter);
· the modulus of vertical subgrade reaction, dry density and coefficient of permeability of foundation soils;
· the maximum dry density and optimum moisture content of sub-grade soils, from modified Proctor compaction tests;
· the minimum 4-days-soaked California Bearing Ratio (CBR) value of the sub-grade soils and the recommended total
thickness of the road pavement above the sub-grade, related to the number of commercial vehicles per day;
· maximum compressive strength of cement-stabilized soils, the proportion of organic matter they contain and whether
practical problems and costs could make cement stabilization an attractive option;
· recommendations on the suitability of natural gravels and mixed soils obtained from the nearby quarry sites for use as
imported filling material and as the sub-base course for road pavements;
· comments on pore water pressure inside the void spaces of the soil mass and whether vertical or horizontal sub-soil
drains are required for the stabilization of the project site; and
· general recommendations on excavating procedures, the depth of cover, surrounds and bedding required for pipes and
standards for backfilling of trenches in graded material.
Site preparation and development
On the basis of the site investigation survey, a visual inspection of the site and detailed traverse and topographic surveys the overall
physical conditions should be assessed. The implications that this analysis may have for the site's development should then be defined,
requiring either adjustments to the site layout and building designs or special consideration to be given in the detailed design of site
preparation and infrastructure contracts. The main characteristics that should be considered in making this assessment will relate to the
site's drainage and topography.
Site drainage analysis. The analysis of drainage should assess whether a site is low lying and how the surface water is presently
drained, particularly the relationship of the outlet's invert to the present ground level. Sites with a large catchment area and discharge
flow may require the provision of an improved site outlet and on-site storage for peak period storm water flows.
The analysis should also consider whether temporary drains and sediment control structures will be needed during the construction
period and if stilling basins, cascades and trash trapping will be required as part of the permanent drainage system. This may be
applicable when a site is located at the bottom of a slope, off which there may be a substantial surface water discharge, possibly
carrying earth and other loose material which might block the market's drains. Trash trapping may also be necessary at the outlet from
the site.
Sub-soil drainage may be needed in order to accelerate primary settlement because of a high water table near the existing ground and
extremely soft ground conditions with a low bearing capacity (such as clayey-silt alluvial material). There are generally two forms of
sub-soil
drainage that are used: either horizontal "French" drains which are laid adjacent to main drains and sewers, retaining walls and ground
floor slabs of buildings; and vertical drains, often used where raft foundations are proposed.
Topographic analysts. The topographic analysis will assess whether it will be necessary for the level of the site to be raised. This may
be needed to provide stable soil conditions for new building works, to provide adequate cover to the new drains discharging through
the site and to ensure that the final level comes above high flood level. A 25-year return period is often assumed. Raising the site level
will require fill material, either obtained by excavating slopes on the site or, more usually, by importing suitable fill material from
elsewhere. This needs to be compacted by heavy plant, the usual minimum standard is 95 percent Proctor. To aid construction in soft
ground conditions the fill may be laid on a geo-textile blanket.
Moderate gradients across a site can be accommodated by sloping roads and parking areas (see Table 14.1) and by using small changes
in level within buildings, providing ramps where necessary. However, where a steep cross-slope exists, it may be necessary to form the
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site by excavating level platforms. In this case, earth retaining structures may be needed. These are typically constructed as pre-cast
concrete crib walling, reinforced concrete or masonry retaining walls or reinforced earth slopes.
Roads and parking
With the exception of areas designated to buildings, landscaping or reserves for future facilities, the entire area within a market site
will need to be paved in order to provide the maximum degree of traffic manoeuverability and to facilitate site cleaning. The main
characteristics of the road system will have been established during the site planning process described in Chapter 13 A hierarchy of
roads will have been defined and the number of parking spaces at peak periods calculated. The purpose of the detailed engineering
design will be to refine the broad assumptions used in the site plan, often necessitating layout adjustments. The road layout will form
the main base map for the construction contracts and, for this reason, it is essential to undertake the road design before other
engineering services
Table 14.1 Appropriate road design criteria
Length
(metres)
Width
(metres)
Radius
Metre
Gradient
(percent)

Roads:
· Lane width - 3.50 - 0.5 - 5.0
· Minimum road width (1 way) - 7.00 - 0.5 - 5.0
· Minimum road width (2 way) - 12.00 - 0.5 - 5.0
· Manoeuvering distance - 8.00 - -
Access ramps (no parking).
· Maximum up ramp - 5.50 - 8.0
· Maximum up/down ramps - 7.00 - 6.0
· Maximum preferred - 7.00 - 5.0
Horizontal curves:
· Outside curb (minimum) - - 10.50 -
· Outside curb (preferred) - - 15.00 -
· Solid waste vehicle (turning) - - 18.00 -
Vehicles:
· Pick-up/mini-bus 5.00 2.00 - -
· Standard truck 8.50 2.50 - -
· Articulated truck 15.00 2.50 - -
· Truck with drawbar trailer 18.50 2.50 - -
Loading bays (end-on):
· Minimum size 8.00 3.75 - -
· Preferred size 12.00 4.00 - -
Parking spaces:
. Pick-ups 8.00 3.65 - -
. Trucks 11.00 3.65 - -
· Small cars (minimum) 4.80 2.40 - 2.0 - 5.0
Sources: Mittendorf; Lynch and Hack; Tutt and Adler; De Chiara.
Geometrical design. The road system of markets will need to accommodate a wide range of vehicle types, from the smallest cars and
pick-ups to large trucks, fire appliances and refuse collection vehicles. Appropriate geometrical design criteria that can be adopted for
the design of small and medium-scale markets are illustrated in Table 14.1. The geometrical design of roads is a specialized activity
and in the case of a
complex urban market it will not be possible to develop the design without technical advice. Typical problems that will require such
assistance could be the application of traffic models to predict flows, the design of a main junction at the site entry/exit and the
detailing of complex loading bay arrangements.
Pavement design. A high standard of road construction is always required in markets and the road pavement should be designed on the
basis of the California Bearing Ratio (CBR) data for wet conditions, obtained during the site investigations, and the peak projected
traffic levels (usually expressed as standard 8,200kg axle loads). Specialist advice is generally required to determine the thickness of
the road pavement. A suitable design procedure for tropical roads is set out in the publications of the UK Department of Environment
(Technical Memorandum H6/78 and Road Notes 29 and 31).
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Where adequate supplies of local crushed stone are available "Macadem" construction would normally be adopted, with a compacted
sub-grade, sub-base and base courses, linen finished with a tack coat and surfaced with a pre-mixed bitumen based material.
Alternatively, concrete road pavements can be used, but they tend to be more expensive. Where traffic loads are light and subsoils are
suitable, soil stabilization techniques can be adopted using lime or cement as the stabilizer. Roads would be usually provided with
integral side gutters and precast concrete herbs. Parking areas may be constructed to a slightly lower standard of design.
Surface-water drainage systems
The process of preparing layouts of the surface-water drainage system will, in tropical countries at least, have a significant impact on
the detailed site planning, To prepare derailed drainage schemes there are many published technical works and it will also be critical to
employ the local knowledge of public works departments. Examples of such publications for tropical areas are the Malaysian
Department of Irrigation and Drainage's procedures and the regulations of the Singapore Drainage Department (1978. Code of Practice
on Surface Water Drainage, Ministry of the Environment, Singapore). The following notes, however, will be of use in making an
initial assessment.
Catchment and discharge The first step is to review available mapping of both the site itself and the areas immediately around it. The
direction of the site's main. outlet (or more than one outlet) to a natural water course should be identified and the catchment area of the
site should be defined (the area of land whose surface water will drain into the site). The next step is to calculate the total peak
discharge of water from the site. The most useful technique is to use the Rational Formula:
where:
C = run-off coefficient
I = rainfall intensity in mm per hour
A = catchment-area in hectares, including the site.
The run-off coefficient is selected from standard tables and will depend on the extent of paved areas and building coverage. For
markets this is normally taken as a high value, such as 0.9, because the sites are normally flat, impermeable and have fully paved
surfaces, and because the future land uses around market sites are likely to be heavily urbanized.
Rainfall intensity Comprehensive historical information on rainfall intensity is usually obtainable from agriculture or irrigation
departments, but because of the urban location of markets the best source of rainfall data is often from the local airport. An assessment
will also have to be made of the maximum recorded intensity of rainfall per hour for a range of design storm intensities, such as I in 5,
10, 25 or 100 year storms. For most public buildings a level of service of at least 1 in 25 years return period would be appropriate. This
should ensure that during major storms there is no inundation of the market buildings and that road access is still possible.
With complex catchment-area shapes and where it is necessary to allow for some degree of storage within the channels a version of the
Rational Formula modified to meet local conditions should be used.
Drain design. Covered or uncovered reinforced concrete rectangular drains are typically adopted, with a small dry weather flow
channel in the bed of the larger drains to cater for a self-cleansing velocity. A freeboard of 10 per cent of the channel depth is often
used in design as a safety margin to cope with high intensity short duration storms. The calculation of drain sizes is usually based on
the use of the Continuity of Flow Formula:
Q (run-off:) = A x V
where:
A - cross-sectional area of channel in m²
V = velocity of flow in m per second (taken as maximum of 3 and minimum of 1.8 m per second for self cleansing)
and Manning's Formula:
where:
R = hydraulic radius of the channel in metres
S = gradient of the channel as a percentage
n = Manning's roughness coefficient (which can be assumed as 0.014 for normal insitu concrete lining to the channels).
Cut-off drains on the site boundaries may need to be provided to control the inlet of water into the site. The alignment of other main
drains is likely to follow the pattern of buildings and roads, with a minimum of crossings. Some drains are likely to have only a
minimal slope and wider cross-sections need to be provided, particularly at the site outlet, to cater for back-water effects if the existing
outlet is constricted and to provide a level of on-site storage at times of peak discharge.
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At the detailed design stage it may be necessary to fully investigate the possibility of improving the site outlet by increasing the size of
the existing outlet or by introducing a new outlet.
Water supply
The majority of the water use at a market will be for washing purposes. The water will need to be to a similar standard to that for
drinking water. Local standards may exist for calculating demand which reflect climatic conditions and cultural habits. These should
be used if available.
An approximate estimate for water demand at ultimate development of a typical 10,000 m² market, based on Nepal Water and
Sewerage Board standards (Drinking water installation and drainage requirements in buildings in Nepal, page 88), is as follows:
· Basic requirement assuming a "medium" demand of 4 litres per m² of
effective floor area for covered markets: = floor area of 10,000 m² x 4
litres/m²
= 40,000 litres
· Cool storage requirements at 20 litres per ton:= say 500 tons x 20
litres per ton
= 10,000 litres
Basic requirement = 50,000 litres
Add 50% contingency, incl. produce washing = 25,000 litres
· Estimated Total Daily Demand = 75,000 litres
From this calculation it will be possible to estimate the size of any incoming mains or borehole by converting the water demand into a
flow rate. Assuming that the market in the example above operates over a 16 hour day then the flow rate would be equivalent to 1.3
litres per second. Because the calculation has been based on the total floor space the flow rate is broadly equivalent to a peak flow On a
net site this would require a 50 mm diameter polythene pipeline.
Tabulations of pipe diameters for different flow rates, materials and gradients are given in the Ross Institute Bulletin No. 10
(Cairocross, S. & Feachem, R. 1978. Small water supplies. London School of Hygiene and Tropical Medicine). Specialist advice
should be sought for the design of pipelines on very net sites (less than 1 in 50 gradient) or where there are high water pressures.
Depending on available pressures and the reliability of the supply the site may need to be served by an underground reservoir or a
high-level tank (in pressed steel or concrete shell). Pumping may be required to raise the water to the tank level, so that the site can be
served by a gravity distribution system. Any tank or reservoir should hold at least one full day's supply. The main tank would serve a
reticulation system of ring loops, which will make maintenance simpler as parts of the system can be cut-off. Distribution should be to
overhead tanks in individual buildings, stand pipes and to a separate fire hydrant system.
Fire-fighting systems
The large amount of organic material in markets means that they present a substantial fire risk and special provision should be made. A
number of markets have been completely burnt to the ground in major fires.
Fire hydrants. The market site should be served by a series of above ground fire hydrants, spaced at approximately 30 metres intervals
in loop systems encircling the main building and around the site periphery. The hydrants should be located in the pavement areas to
protect them from damage by vehicles and be served by connections from a gravity fed overhead storage tank, thus guaranteeing
a water supply for fire fighting. In designing the water supply system a minimum fire-fighting flow of 34 litres per second (450
gallons per minute) should be aimed for.
Fire prevention in buildings. Smoke detection and alarm systems should be installed in all the main market buildings. In order to
avoid the need for a costly overhead sprinkler system the buildings should be compartmented by limiting the distance between
fireproof walls to a maximum of 60 metres and to an area of less than 1,000 m². Key buildings with a higher fire risk should be
provided with secondary alternative means of escape in case of fire and compartmented to a higher standard of fire resistance. Cold
storage buildings should also be fitted with gas detection equipment.
All buildings should be provided with internal emergency equipment to the following minimum standards:
· 1 fire bucket per 100 m² of floor area (or part thereof);
· 1 fire extinguisher per 600 m² of floor area (or part);
· first aid kits and tools (asbestos blanket, hatchet, gloves, etc.) for each building or compartmented section; and
· internal fire hydrants to open-market sheds, served from overhead gravity fed tanks to a minimum pressure of 3 kg/cm².
The hydrants should be provided with wall-mounted hose reels to serve a maximum radius of 30 metres.
These fire safety requirements have been generally based on the Indian Code of Practice for fire safety of industrial buildings: general
storage and warehousing, including cold storage (IS: 3594, 1967) and Recommendations for providing first aid - fire fighting
arrangements in public buildings (IS:2217, 1963). These principles should provide a reasonable basis for design, but local codes may
exist and adjustments to meet these standards should be made. Consultation with the local fire brigade is always essential. The
enclosed nature of market sites may make it necessary for the fire brigade to have special facilities for access.
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Sewerage
For most sites it should be possible to use a water-borne gravity system (typically 150 - 200mm diameter pipework) but in some cases,
where the site is very flat and where suitable locations for the treatment plant are limited, it may be necessary to pump the sewage.
Local methods for estimating the peak sewage flow and the hydraulic design of the sewers should be available. On very flat sites it
may be necessary to use a pressurized pumping mains. The design of this can be based on the Colebrook-White equation, which is
published in the design tables of the UK Hydraulic Research Station. As new markets are often on filled sites with potential long-term
differential settlement problems, it is desirable to be cautious in the structural design of pipelines, particularly their bedding, surround
and relationship to rigid structures.
Septic tanks. Assuming that a mains sewerage system is not available then sewage would normally be taken to one or more septic
tanks located within the site boundary. An appropriate method in tropical areas for estimating their size, is given in the Indian Code of
Practice for the design and construction of septic tanks, part 11, large installations, (IS:2470, 1971). A typical size for a market with
an annual turn-over of 40,000 tons might be around 26m³ capacity (7.7 x 3.4 x 1.7m depth). The partially treated effluent would be
discharged into the main surface water drain at the outlet from the site.
Sanitary fittings The provision of sanitary fittings can be estimated on the basis of the Indian Code of Practice for drainage and
sanitation (IS: 1172, 1971) and Layout for regulated market yards for fruits and vegetables (IS:1787, 1961). These standards are
shown in Table 14.2.
To estimate the total number of fittings it is necessary to make a number of assumptions about the usage of facilities. The following
calculation is based on the requirements for a medium-size wholesale market yard:
· assuming that the average out-going transaction size is a small pick-up load of one ton, the average number of people
involved with each transaction is 1.5 (0.25 sellers, 1 buyer and 0.25 market staff) and market users are 75 per cent male,
then the maximum number of market users per fitting at ultimate development would be:
· number of water closets:
= 280 tons (daily throughout) x 1.5 (usage factor) x 2 per 50 users
= 17 water closets
· number of urinals:
= 280 tons (daily throughout) x 1.5 x 0.75 (males) x 2 per 50 users
= 13 urinals
Table 14.2 Standards for the provision of sanitary fittings at markets
Fitting Male Female Market yards
water closets 1 per 25 persons 1 per 15 persons 2 minimum plus
1 per 50 persons
ablution taps 1 per we plus 1 per wc plus 2 minimum plus
1 per 50 persons 1 per So persons 1 per 50 persons
urinals 0 - 6 persons = 0 not applicable 2 per 50 persons
7 - 20 persons = 1
21- 45 persons = 2
46 - 70 persons = 3
71-100 persons = 4
wash band basins 1 per 25 persons 1 per 15 persons not specified
drinking fountains 1 per 100 persons 1 per 100 persons not specified
clearer's sinks 1 per floor not specified
Source: Indian Codes of Practice
Electrical services
The provision of power, particularly artificial lighting, is an important infrastructure component as it enables the fullest and safest use
to be made of the market's facilities. Larger market sites will need to be served with their own high-tension supply (usually 11kV),
which for economic reasons is often an overhead supply mounted on pylons. A transformer is normally required, typically 300 kVA,
which can be a double-pole mounted type or one located within a building.
The transformed low voltage supply should run in encased cable ducts to a main switch board, with distribution cables to sub-switch
boards in the individual buildings. For ease of maintenance all external cables should be ducted through cable trenches and internal
wirings should be concealed in conduit wherever possible.
External lighting, For security reasons and so that the effective working period of the market can be extended, all internal roads and
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paved areas need to be adequately lighted by means of high level luminaires, either tungsten halogen, high-pressure mercury or sodium
vapour. The best arrangement of lighting is to mount lamps or floodlights on the face of the market buildings, with pole mounted
lamps on the site perimeter. Large open areas, such as parking areas, may require cable-suspended fittings.
The spacing of the lanterns will depend on the height at which they are mounted and whether they overhang the road area. For
example, lanterns mounted at 8 metres and overhanging 2 metres would be spaced 25 - 30 metres apart. preferably in a staggered
arrangement. Detailed design criteria are contained in the British Standard BS 5489 (1980. Code of Practice for street lighting London,
BSI).
As an alternative, the German guidelines (DIN 57528) recommend the following standards of averagè illuminance and uniformity:
· parking areas, with high turnover
E = 12 lux/u
2
= 0.17
· dual carraigeways and A roads
E = 12 lux/u
2
= 0.08
· B roads
E - 12 lux/u
2
= 0.08
· outside stairs and ramps
E = 15 lux/u
2
= 0.33
Building lighting Internal lighting levels to buildings need to be to a high standard of illuminance, with a minimum of 500 lux and
preferably 1,000 lux to counteract the brighter natural lighting likely to be found outside. To minimize heat gain high-efficiency
fluorescent fittings should be used for artificial lighting, with the building's ventilation arranged so as to draw heated air out. For food
displays the colour of the tubes should preferably be warm, but some cultures have a strong preference for the use of cool tubes.
Mechanical ventilation. Although the correct location of buildings on their sites (see Chapter 13) and the choice of an appropriate
building form and roofing material (see later in this chapter) will assist in the establishment of a satisfactory internal climate,
mechanical ventilation may still be required.
In the humid tropics and coastal areas market buildings will tend to have completely open sides to maximize air movement. This may
still not be sufficient to provide comfortable conditions if wind speed is low and solar radiation high. In arid, desert climates the
frequent occurrence of sandstorms may prevent natural ventilation systems, such as cooling towers, from being used.
Roof extract fans are, therefore, usually provided for the main market sheds, typically reducing the internal temperature by 3° - 5° C.
For offices and other facilities ceiling fans are often installed, although wall-mounted fans tend to be more effective. Air conditioning,
even for just the market's offices, is not likely to be economically viable in most less-developed countries. Design standards for
ventilation are contained in the British Standard BS 5720 (1979 Code of Practice for ventilation and air conditioning London, BSI).
Telecommunication systems
The telephone is essential for a modern wholesale market. In the USA, for example, around 40 percent of all transactions are made
directly by phone. It allows rapid communication between wholesalers, retailers and exporters and also acts a management and
extension tool. With the development of market information systems the telephone is the major means by which price information is
transmitted to producers.
A major market will require the installation of its own switchboard (PABX system) which would be housed in the main management
office. It should have sufficient external lines for the installation of computer modems and facsimile equipment. Public telephones will
be required within a market, often accommodated at a post office, which may also provide telegram facilities.
Solid waste equipment
The local or municipal authority is already likely have a system for collection and disposal of solid waste. but this may be oriented to
the collection of small-scale domestic waste, probably using compression type refuse vehicles. For markets this is not usually an
appropriate system as it may involve the refuse collection staff of the market in additional handling.
Container interchange An ideal system often used in markets is one using container interchange, based around skip lifting vehicles.
Skip volumes can vary from around 3 - 9 cubic metres The skips should be located at strategic locations in the market for gradual
filling, usually from hand cart loads. They should be collected at the end of the working day and empty skips left For the next
collection.
The best method for estimating waste generation is to base the calculations on local survey data, if this available. If not, the following
method of calculation (based on projections made for the Sansai market in Chiang Mai, Thailand) provides a reasonable basis for
estimating the number of skips that might be required:
· Assume Sansai's rate of waste generation is similar to existing markets in Chiang Mai (overall density ranging from 180 - 260 kg/m³,
average density 220 kg/m³, market waste density 200 kg/m³)
· Total daily waste arising (1991) = 754 m³x 220 kg. = 166 tons
· Markets account for 11.3% of total = 166 t. x 11.3% = 18.8 tons
Average daily market turn-over in Chiang Mai = 370 tons
· Existing market waste - Chiang Mai = 18.8/370 tons = 5 %
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· Projected average daily turnover at Sansai = 280 tons
· Projected waste generation at Sansai = 280 t. x 5 % = 14 tons
· Average specific weight of refuse = 200 kg/m³
· Volume of waste generation, Sansai = 14 t./200 kg = 70 m³
· Add 20 percent for grading/packing = 70 m³ x 1.2 = 84 m³
· Average capacity of existing skips = 6 - 8 m³
· Number of skip loads per day = 84 m³/7 m³ = 12 loads
· Assumed collection Rota per day = 2 times
· Number of skips required = 12 loads/2 = 6 skips
· Allowance [or container interchange = 6 skips x 2 = 12 skips
Other types of solid waste equipment Another method for handling solid waste collection, popular in European markets, is to use
metal or plastic containers (paladins) on castors. However, these only have a limited volume (around 1 cubic metre) and require the
refuse collection vehicles to be equipped with a lift and tilt mechanism. Medium-size containers of 2-3 cubic metres capacity are also
sometimes used, but again require special fork lifts attached to the refuse vehicle. Keeping the paladins and containers clean can also
cause a major problem, unless special facilities are available for automatic cleansing.
The general cleaning of road and floor surfaces within a market is also very important. In most less-developed countries the only
economic solution is to use a combination of manual cleaning with brooms and small-wheeled collection carts. Where labour costs are
high, mechanical methods should be used, either small, hand-operated cleaning machines or vacuum-operated vehicles equipped with
brushes for kerb cleaning.
For small secondary wholesale markets the most convenient collection vehicle may be a tractor and trailer combination. In this case
refuse would be collected in the market at fixed enclosures (usually constructed of rendered masonry or concrete) and then manually
transferred into the trailers. Often this service can be arranged with a local contractor, typically a farmer who already owns the
equipment.
Contents - Previous - Next
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Building structures and materials
Contents - Previous - Next
The subject of building and structural design is, like that of civil works design, not something that can be adequately
covered in a short manual. The following notes may assist administrators in understanding the types of issues that will
need to be considered by the projects architects and engineers when they are developing the design of the market.
Selection of building materials. In less-developed countries the selection of appropriate building materials is as
important for the construction of markets as for any other building type. The term appropriate in this context means
that, in selecting construction materials, there should be a balance struck between cost, utility and the optimum use of
resources. It is generally preferable that local materials and technology are used, but this should not be at the expense
of providing the most functional solution. The use of traditional or intermediate technologies does not mean that design
will be simpler; the opposite may often be the case.
Reviews of suitable intermediate technologies are contained in Spence, RJ.S. 1983. (Building Materials in Developing
Countries. Chichester, John Wiley and Sons) and Stulz, R. 1981 (Appropriate Building Materials Zurich, Swiss Centre
for Appropriate Technology)
Typical construction. The typical construction of a low-cost market building would be a steel sheet or brick clad
reinforced concrete (RCC) frame, completely open on the sides, providing unloading facilities for producers and a
raised loading platform for wholesalers and retailers The roof would generally be of steel trusses, insulated and clad
with colour bonded pressed-steel sheeting or, if available, some form of lightweight fibre sheeting. To provide
comfortable and well-lit conditions in the centre of the building, high level pressed steel or timber louvre ventilators
and "clerestorey" glazing should be provided at ridge level. Glazing in northern latitudes should be "north lights", in
southern latitudes "south lights" and near to the equator by completely shaded unglazed openings.
Other facilities on a site might be of a more permanent nature. Construction of the building might be of conventional
masonry, with a light RCC frame, or of calculated load-bearing brickwork, with steel roof trusses, clad with clay tiles
or colour-bonded, pressed-steel sheeting. The construction of specialized facilities such as cold storage, would be
basically similar to the main sheds, except that raft foundations may be required because of high loading. Insulation
should be provided to the entire ground floor, chamber walls and roof.
Foundation design, The main criteria for structural design of foundations will be established from the site
investigation survey. This will determine the appropriate bearing pressure that should be adopted in design and the
types of foundations that will be required for different building categories, such as strip or raft foundation or isolated
footing supported by long or short piles. The site investigation will also give recommendations for the depth of strip
and raft foundation; the minimum length of pile foundations; and, if the site falls within an active seismic (earthquake)
zone, measures which should be taken in the design of column footings and their inter-connection by tie-beams.
Depending on soil conditions, the foundations should ideally be conventional isolated pads under the main columns,
with connecting strip footings, except for sections of the building where a raft foundation may be required because of
higher loadings, such as under a main water tower or tank.
Structural design of buildings. Market buildings are essentially simple sheds and in their design the most important
element to consider in the structure will be the choice of an appropriate system of roof construction. The selection of
cladding materials is discussed below, but equally influential will be the decisions made about how the roof is to be
supported. Ideally the span and width of structural bays should be as large as possible to provide an unobstructed
operating space. Spans can range from 8 metres up to 24 metres, with bays at spacings of 6 metres to 12 metres.
Buildings with depths greater than the maximum practical spans can be obtained by providing intermediate supports,
often coinciding with a break in the roof plane for ventilation Although the shed form may be simple there are many
opportunities for refinement in its detailing and elegant and economic structural forms are possible.
Structural loading assumptions. It is usual for national standards to exist for standard loadings and these will need to
be adopted in design. The following figures (based on British Standard CP3: Chap V: Part 1:1967) may provide a
useful supplement to these standard figures:
Dead loading
· Steel roof cladding 480 N/m²
· Steel trusses 100 N/m²
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· False ceilings 140 N/m²
Distributed imposed - live loading
· Pitched roof 0.75 kN/m²
· Produce display/sales 4.00 kN/m²
· Cold stores 5 00 kN/metre height (minimum 15 kN)
· Other stores 2.40 kN/metre of height
· General offices 2.50 kN/m²
· Hostels 1.50 kN/m²
· Public halls (fixed seats) 4.00 kN/m²
Roof structures. Common construction materials for roof structures are steel or timber trusses and reinforced concrete,
supported on masonry, concrete, steel or timber columns. Practical and cost considerations will, however, restrict the
range of options that are available. The presence of termites and wood-boring beetles, for example, may limit the use
of structural timber. The modules required for sales spaces and storage areas and the geometry created by the parking
bays will need to be studied in selecting suitable dimensions for the structural bays.
The ultimate decision, however, will be determined by a number of external factors. This will include the capacity and
level of local technology what materials are available, the ability of local fabrication workshops, transport constraints
and site erection facilities. In some regions the need to cope with seismic. movement or hurricane force winds will be
the major determinant of the roof form. The final choice will invariably be made on economic grounds. For spans over
6 metres steel trusses will tend to be the most economic solution.
Roof cladding. For markets, the most important building component that will need to be considered is the cladding
material selected for the roof. Roofs will account for the largest proportion of the total building costs and are likely to
be the most complex technical problem encountered in the building design. Market roofs must be durable,
noncombustible, easily maintainable and must be able to perform under all the internal and external climatic conditions
imposed on the buildings.
Hot arid and composite climates will require roofs with a high thermal mass (9 - 12 hours time lag and a U value of not
less than 0.85 W/m² °C). Tropical upland climates will require pitched roofs of a similar thermal mass, but a lower
time lag of around 8 hours. In the warm humid tropics the need to cope with high levels of rainfall will tend to favour
lightweight pitched roofs, insulated to achieve a thermal mass time lag of less than 3 hours (U value of not less than 1.1
W/m² °C).
The choice of roof materials is very wide and needs to be considered with the structural design. For flat or pitched
roofs in arid climates, in-situ or pre-cast reinforced concrete finished in hot mastic asphalt or a cold-applied bituminous
compound are the usual choice. Other options, which may be particularly applicable for secondary markets in rural
areas, include fibre-reinforced soil roofs with animal dung waterproofing and reinforced brickwork finished with
asphalt or tiles. Traditional pitched roof materials that might also be appropriate for rural markets include thatch, which
has fireproofing problems, and clay or stone tiles, which are heavy and thus only generally suitable for short-span
structures.
Most modem urban markets favour the use of light-weight corrugated sheet materials, such as galvanised steel which
has a poor performance thermally, low surface reflectivity and is not very durable, particularly in coastal areas. Other
options include plastic coated sheet stell aluminium
and asbestos cement. These perform more satisfactorily, but generally require foreign exchange for their purchase.
Local production of corrugated, asphaltic or fibre-reinforced cement sheets may exist and these should be investigated.
None of the sheet materials can be used on their own and roof insulation will be required. Fibreglass, aluminium foils
and polyurethane boards are very effective but may be too expensive. Locally produced insulating boards, using waste
straw or other residues, are the ideal materials if available.
Materials supply. Before making any decisions on basic construction methods, a review should be undertaken of
materials availability and supply. It is normal and desirable to design a market on the basis of the maximum use of
locally available and manufactured materials and components. Certain items, however, will invariably need to be
imported and the responsibility for their import should be considered in the preparation of project documents.
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Cement is a material which is often in short supply and notwithstanding the existence of cement factories, it may need
to be imported so as to guarantee a supply. Because of the difficulties of quality control the import should always be
made the sole responsibility of the main contractor. The import of specialized fittings, such as street lights and fire
hydrants, should also be made the sole responsibility of the main contractor.
The construction of market buildings often assumes a large steel component, or roof trusses, window frames, louvres,
gratings, frames, partitions, water tanks and roof cladding. Although there may be a high level of capability for
fabricating these components locally, steel shortages may have a significant impact on a project's progress. Significant
cost and time savings can be made through the bulk purchase of steel internationally. It can then be supplied to
selectively tendered local sub-contractors for the fabrication of components.
Where there are likely to be wide variations in the quality of locally available materials (such as earth-fill material,
sand and gravel) and components (such as bricks and tiles) the tender documents should incorporate a sub-contract for
a local firm to undertake geotechnical and materials testing.
Geotechnical and materials testing programmes. Geotechnical and materials testing should also be undertaken during
the construction period so that the settlement of a site during filling can be monitored and appropriate adjustments can
be made to infrastructure design, depending on the variations in site conditions and the different properties of materials
being used on the site.
A typical list of the types of investigations that might be undertaken during construction is shown in Table 14.3.
Table 14.3 Geotechnical & materials testing during construction
Site preparation
Field density test by sand replacement method
Modified Proctor test in laboratory
Laboratory CBR tests
Field CBR tests
Mackintosh probes (for building foundations)
Consolidation test for primary settlement (T90)
Plate load test
Materials testing
Cement setting times
Cement soundness test
Cement compressive strength
Concrete cube tests
Concrete mix design (28 days strength)
Brick compressive strength
Brick moisture absorption
Los Angeles abrasion test/impact test
Tests on materials from sand and aggregate sources
Engineering design and supervision
Final design, preparation of tender documents and tendering procedures is the responsibility of a government public
works department or a locally appointed firm of architect/engineers. Either could also act as the design and supervision
(D&S) consultants for the project's duration and be responsible for management of the construction contracts.
Appointment of consultants. Although government staff might be appointed without any formalities it would take
around 4 - 6 months for the mobilization of a consultant D & S team. Assuming that there are sufficient, experienced
local consultancy firms to take on the role, the following steps would need to be followed for their appointment:
· preparation of D & S terms of reference;
· short-listing of local consultancy firms, including visits to their offices and to work for which they have
been responsible;
· invitation to bid, including newspaper advertisements;
· review and evaluation of bids; and
· recommendations and approval to appointment by client body
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In some countries there are variants on this procedure where the practice is to use contractors for both design and build.
This is sometimes referred to as, a turn-key contract. This method usually has the advantage of faster construction
periods and may allow greater financial control during the contract, but it does require that the client body has
thoroughly worked out what it wants. A common method to ensure that the client's interests are protected is to appoint
an independent project manager.
Scope of design and supervision activities. For large-scale projects, such as an urban wholesale market, a high level of
on-site control will be needed. A full-time resident engineer is necessary on the site, assisted by inspectors and a site
architect. The following activities would be undertaken by the D & S team and, if they are to be a private firm of
consultants, would form the basis for their terms of reference:
· topographic surveys and geotechnical investigations, if not already undertaken by other consultants or
government department;
· review of designs undertaken in previous design stages;
· final design and preparation of tender documents (specifications, drawings and bills of quantities) for site
construction;
· advertising contracts and pre-qualifying contractors;
· tendering by short-listed contractors (local competitive bidding), reviewing of bids and letting of the
contract packages;
· site supervision of construction contracts, including checking of setting out, general quality and financial
control, valuations, certification for interim payments and preparation of final accounts;
· preparation of bid documents for materials and equipment procurement, followed by tendering
(international and local competitive bidding), reviewing and letting of the contracts;
· submission of monthly technical progress reports on construction design, contract budgeting, equipment
procurement and physical progress; and
· preparation and agreement of final construction accounts and handing over of building and sites to client
body at the end of the defects liability/warranty period.
Contents - Previous - Next
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Contents

2. An approach to wholesale market planning & design
Why is it it necessary to plan wholesale markets? Development objectives A wholesale market design methodology.

Part B - Planing and design activities
3. Project identification and pre-feasibility
Project context and data collection Problem definition Initlal project formulation Project evaluation Further actions

4. Detailed design development
Processing and analysis of initial surveys Detailed estimates of physical requirements Outline master plan Site facilities Building form Final master plan Detailed site planning and infrastructure design Additional survey requirements

5. Project formulation and feasibility
Overall project design Financial and economic analysis Project justification Project recommendations

6. Project implementation
Phasing of development The contract administration system Implementation of market operations

Part C - Management and operations

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Contents

7. Market management systems
Type of market ownership Market management boards Staffing the market Management information system Methods of financial control

8. Market operations
Transaction methods: auctions and sales Rentals, fees and charges Produce handling procedures Financial management Market information and extension

9. Regulating the market
Licensing Market regulations Inspection, quality control and hygiene

Part D - Technical notes
10. Project justification
Financial analysis assumptions Terms used in financial feasibility studies Specilalist analysis

11. Socio-economic and engineering surveys
Introduction to survey techniques Socio-economic surveys of existing facilities Case study of roadside survey of commodity flows (Thailand) Engineering surveys

12. Analysing demand and estimating market turn-over
Analysis of existing trade patterns Consumption of fruit and vegetables Estimating future demand Market throughput

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Planning and environmental design criteria Selecting a new market site Estimating space requirements Site planning Building design External circulation and services Environmental impact and controls 14.htm (4 of 4) [2004-12-21 01:15:04] .Contents 13. Engineering design criteria Site investigations Site preparation and development Roads and parking Surface-water drainage systems Water supply Fire-fighting systems Sewerage Electrical services Telecommunication systems Solid waste equipment Building structures and materials Engineering design and supervision Bibliography http://www.org/docrep/T0521E/T0521E00.fao.

directly oriented to the needs of such administrators and planners. Planning of urban wholesale markets for perishable food). such as livestock and fish. Abbott.Ch01 Preface Contents .org/docrep/T0521E/T0521E01. financial and economic feasibility. Governments can address the problem of inadequate infrastructure by undertaking development programmes which reorganize institutional marketing arrangements. 1986. but implemented by a group of construction oriented professionals. or their agents. in the preparation of feasibility studies and master plans. of necessity. but very little guidance is available. operations and regulation these issues are broadly outlined as they have a significant impact on the physical environment. and in turn sell their purchases to retailers.htm (1 of 2) [2004-12-21 01:15:05] . are often inadequate. in a concise and comprehensive form. This manual has been compiled to fill this gap and to provide a systematic methodology based on the sequence of steps normally adopted in the development process The manual should be of practical value. There is a tendency that these improvement programmes become too elaborate and costly. create facilities at new sites or improve existing services. are initiated by one group of professionals. such as cold storage. They neither maximize benefits to producers. implementation issues. The Food and Agriculture Organization of the United Nations (FAO) has over a number of years been involved with providing technical assistance to governments to develop improved marketing organizations.J. Such studies may be directly undertaken by government agencies or marketing authorities or by consultants appointed to assist them. http://www. nor to consumers.Mittendorf. I he programmes. vegetables and other fresh foodstuffs. both to senior professionals and to technicians. Marketing improvement in the developing world) should be consulted. The manual also provides guidance on the monitoring of market improvement studies and the preparation of appropriate terms of reference that can be used for briefing consultants. in undertaking marketing and engineering surveys. and the justification for the provision of specialized facilities. Other matters covered in the manual include consumer demand projections. such as architects and engineers. management. so enabling them to carry on a constructive dialogue with design professionals. As a background to this manual and for a comprehensive view of the whole subject of marketing improvement the FAO Economic and Social Development Series Bulletin No. therefore jeopardizing their financial and economic viability The cause of this problem is mainly the poor definition of project objectives and the preparation of an inadequate development brief. No development programme should be initiated without investigating these subjects. Problems also arise because of a lack of communication between the various parties involved with development. 1976. and in formulating proposals for the provision of physical facilities. There is substantial background technical literature on the subject of wholesale market design. typically agricultural economists and planners.Next Wholesale marketing systems for fruit.fao. 37 :l C. Experience demonstrates that there are substantial benefits to be gained from giving positive encouragement to the development of more professional approaches to the provision of marketing infrastructure where wholesalers can purchase produce from large numbers of assembled farmers. Although the manual is not directly involved with subjects such as market institutions. The manual partly replaces the previous guide prepared by FAO (H.

Next http://www.org/docrep/T0521E/T0521E01.fao.Ch01 Contents .htm (2 of 2) [2004-12-21 01:15:05] .

Amman. Many colleagues and friends provided material for the manual. K. Commercial Services. including textbooks. Continuous encouragement and constructive advice on the contents of the manual was provided by E.Next In the nature of preparing a planning and design manual which covers a number of professional fields it is inevitable that it should draw from a wide variety of published sources. Contents Previous . Seidler and A. Thailand).Ch02 Acknowledgements Contents Previous .htm [2004-12-21 01:15:06] .Next http://www. The primary information sources are listed in a bibliography at the end of the manual and the author gratefully acknowledges these sources. Santiago.fao. Reference material was made available by the FAO library in Rome and the libraries in London of the Royal Geographical Society. K. consultants' reports and manufacturers' information. Cooperative Promotion Department. The author is particularly grateful to the following individuals for supplying information and illustrative material: G. Jordan). Where diagrams and other material are reproduced these are by the kind permission of the authors. Mittendorf (former Chief of the FAO Marketing and Credit Service).Y. Schuetz (FAO Regional Office for Latin America and the Caribbean. The author is responsible for all editorial changes to the material used.B. Harrison (Agricultural Marketing Organization. Lee (Korea). the Royal Institution of Chartered Surveyors and the Architectural Association. HJ. Ungkarpla-Ong (Director. official handbooks. Bangkok. Chile). J. Novoa (FAO Rome) and C. Birmingham City Council). either directly or through published reports and working papers.org/docrep/T0521E/T0521E02. Shepherd of the FAO Marketing and Credit Service. Atkins (Director. C.

reassembly. The function of wholesale markets The consumption and production of marketed food are spatially separated. the number of transactions is reduced and the marketing process simplified. The purpose of wholesaling. Figure 1 The operation of a food marketing system Figure 2 illustrates how this process operates.Ch03 Part A . the wholesale marketing of fresh produce. The social institution or mechanism that forms the linkage between the producer (farmer) and the retailer is the assembly and wholesale trading system.fao. engineering and management) that are involved with any market expansion and improvement programme. For the very poor.org/docrep/T0521E/T0521E03. The concern of this manual is the planning and design of physical infrastructure that will be required for part of this process.Next The following two chapters broadly review the background to wholesale marketing. Changing role of wholesale markets Food is the most basic of human needs In less-developed countries any improvement in food marketing will have a significant impact on the poorer sections of the community. Wholesaling facilitates the economic function of buying and selling (usually termed as "price formation") by allowing the forces of supply and demand to converge to establish a single price for a commodity. The proportion of the household budget spent on food for lower income families tends to be much higher than for the wealthy and may be between 50 . Although much has been written on the subject of wholesale marketing. which enables farmers to sell in small quantities and purchasing by traders and wholesalers to be made in bulk. assembly. The assembler or wholesaler may also perform a storage and warehousing function. the retailer does not need to concern himself with any of the sorting. Food reaches the consumer by a complex network. Marketing is the process that overcomes this separation. social. Production is generally in rural areas and consumption primarily in urban areas.Introduction Contents Previous .80 percent. involving production. taking into account the wide range of issues (economic. For general application. there is a dearth of information on the practical aspects of market planning. sorting. involving many minor transactions. primarily fruits and vegetables. allowing produce to be moved from an area of surplus to one of need. There is a particular need for a simplified methodology for planning and design which would act as a "drawing-board aid" and provide a systematic approach to the preparation of development proposals.60 percent of the total family income. as http://www. In this case. planning. a manual needs to be very broad in scope. retailer would need to purchase directly from farmers. Without wholesalers. With both rural assembly and wholesale markets. distribution and retail stages. expenditure on food may rise to 70 . environmental. how it is evolving and the design approaches that can be adopted in formulating projects for the construction of new markets and the improvement of existing markets. A simplified diagram showing this process is illustrated in Figure 1.htm (1 of 6) [2004-12-21 01:15:09] . 1. reassembly or distribution functions and concentrates solely on selling to consumers.

directly c from producers. Urbanization. For urban areas the sources of food are more diverse and will vary greatly depending on economic and cultural factors. With rapid urbanization and increases in income. Production from household gardens. although this varies with income and occupation of the household head. particularly those dealing with live produce.fao. They start as general markets. changing their role to "food centers" (in the USA) and including other non-fresh food products.htm (2 of 6) [2004-12-21 01:15:09] . rends in retailing. be brokers dealing in orders rather than goods. A later stage is to deal with samples of produce and finally to transact only graded produce. perhaps. There is often a petty commodity or informal sector. the general long-term trend in food distribution of less-developed countries will be for per caput http://www. The people involved in wholesaling can act simply as merchants. who will receive their supply from wholesalers and. supplemented if possible by purchases in local rural markets. for instance. Surveys in Western countries have also concluded that production from kitchen gardens makes a significant contribution to the household diet. the household's own production accounts for around 18 percent of the total consumed. International trends in wholesale and retail marketing Wholesale markets develop in a number of of stages. A recent trend in Western Europe and the USA is to by-pass the wholesale market system. although old markets have been relocated to new sites. who typically supply fresh and cooked produce. The most obvious source will be market stallholders or conventional retailers operating from fixed premises. In Jakarta. Those that already exist have tended to also attract warehouses for integrated food distribution. usually by means of contract farming arrangements. In some Chinese cities over 85 percent of the food consumed is grown within the municipal boundaries (although these cities do have extensive administrative areas). Wholesale markets still have a role in the marketing of horticultural produce but the traditional fresh meat and fish wholesale markets.30 percent are quite common. which is largely carried out by hawkers. Very few new wholesale markets have been created in developed countries in the last decade. are generally being closed down in major urban centres. only dealing in foreign trade. and trends in consumption . with 10 -20 percent of the domestic plot area often being given over to food production. Figure 2 Impact of wholesaling How food reaches consumers. A typical example of the changes in food distribution that are likely to occur with economic development is illustrated in Figure 3. be commission agents (or factors) acting for the producers (and without title to the produce) or be export/import agents. These are rather extreme cases but figures of 10 . In less-developed economies. In a rural subsistence economy the source of food mainly comes from what is grown on the farmers' own land. sources of supply other than from formal retailers are frequently of equal significance and are particularly important for the urban poor. Direct links are created between producers and supermarket chains. buying and selling produce.org/docrep/T0521E/T0521E03. In less developed countries the retail sector will Lend to be located in traditional markets and small-scale shops. then become more specialized by trading in a limited range of produce. Supermarkets and hypermarkets will become more important sources of supply. There is usually also subsistence production within the city from household or backyard gardens.Ch03 well as allowing economies of scale to be obtained in the transportation of produce from farm to market. but with the growth of integrated food distribution systems the use of these facilities is likely to decrease.

Supermarket sales in Spain were only around 30 percent on average. Terminal wholesale markets. Types of wholesale markets Markets can be viewed in economic terms by the degree of competition that exists within them. either by "monopoly" (a single seller) or "monopsony" (a single buyer). tends to encourage the development of one-stop shopping at supermarkets. The distinction between rural assembly markets and secondary wholesale markets is often not clear. allowing discretionary purchases of non-staple. Figure 3 Evolution of food distribution systems Secondary wholesale markets. particularly the employment of women. A variant on terminal markets are markets located at major ports (or a border railroad or sometimes an airport) dealing exclusively with import and export of produce. such as commission agents and brokers. involved with wholesale produce and transactions for the sale of incoming produce are generally between farmers or traders and wholesalers. They may act as the terminal market for a regional city but also provide facilities for the assembly of produce destined for other locations. The merchants tend to be well organized and a commodity exchange may exist for forward trading. the number of supermarkets grew from 62 in the mid 1970s to 655 by the mid 1980s. both within the same province or district. whilst in England. and the impact of technological innovations in post-harvest handling. This manual is. This ranges from "perfect" competition when there is a large number of buyers and sellers who have a perfect knowledge of demand. This rejects what has occurred in Western Europe. often along Western lines.htm (3 of 6) [2004-12-21 01:15:09] . or at least predominantly. This ranges from unregulated markets to fully regulated markets which trade in accordance with rules and regulations (see Chapter 9). food processing and storage. Markets may share a number of characteristics. A more common situation is one of "oligopoly" (few sellers) or "oligopsony" (few buyers). Nature of market design problems. These markets are located in district or regional cities and take the bulk of their produce from rural assembly markets located in production areas. primarily concerned with the physical location and functioning of the wholesale marketing system.fao. Changes in work patterns. Although the scale of secondary and terminal wholesale markets. including the use of domestic refrigerators. for example. larger volumes of produce are traded than at the rural assembly markets and specialized functions may be present. France and the Netherlands they were around 55 percent. accompanied by changes in dietary preferences. where the transactions are small scale and usually take place between farmers and traders. usually on a once-a-week basis.Ch03 consumption of horticultural produce to rise. In Hong Kong. Markets can also be viewed by their degree of public intervention.org/docrep/T0521E/T0521E03. Expenditure on food becomes increasingly elastic. In Sweden supermarket sales of vegetables in 1990 accounted for 90 percent of the total. however. often imported. The difference is that secondary wholesale markets are in permanent operation (rather than being seasonal in nature or dealing in specialized produce). supply and prices. in terms of the volumes of http://www. or other parts of the country or for export. Produce may also be assembled for export. to "imperfect" markets when a single firm or individual is dominating the market. These markets are exclusively. The kinds of markets considered can be broadly classified into two types: Secondary and Terminal Wholesale Markets. These markets are located in major metropolitan areas. but higher for imported produce and lower for local produce. foodstuffs. where produce is finally channelled to consumers through trade between wholesalers and retailers. when they accounted for around 55 percent of retail food sales.

irrespective of the location. The reality of wholesale markets in less-developed countries is that most of these principles have not been http://www. the seasonal variation in production volumes and their relationship to primary assembly markets in rural areas. aimed at a specific group of users (and often introduced to change the operation of existing marketing channels). Although the design approach will depend on the climate of a particular region. medical operating theatres. Traditionally. To tackle the problems of secondary wholesale markets requires a full understanding of their local context. This is generally possible if you look at other specialised contemporary building types. located at a focal point of the inter-city transport facilities and close to the main retailing areas. with local catchment areas. wholesale markets were built adjacent to city centres. The use of modern management techniques will also be broadly applicable. how it is transported and its quality and quantity can be standardized in the manner that is possible in a developed country. This has a significant impact on both the planning of the market site and on the design of its buildings.Ch03 produce traded. with regional or national catchment areas. So why are wholesale markets in less-developed countries different? The distinction is largely that neither the inputs into nor outputs from the market. changes in urban land-use patterns and the development of modern transport systems have all had an influence on the suitability of existing and proposed wholesale market sites.org/docrep/T0521E/T0521E03. "Ideal markets" There are a number of general principles by which "ideal" markets should be conceptualized. The problems of terminal wholesale markets are usually ones of congestion caused by an unsuitable location or by an inappropriate mixture of wholesale and retail functions. They need to handle efficiently the input and output of large volumes of produce and to provide facilities for the sale of that produce. the space standards used for designing such building types will generally be the same whether the facility is in Alaska or Calcutta. say between London and Rome. This applies whether a new location is being proposed or an improvement to existing services is being undertaken. Textbooks on marketing economics often refer to them as the "golden rules". the distinction between them being their location and the scale of their catchment areas. industrial laboratories or warehouses using mechanical handling equipment. The overall organization will be broadly similar and so will be the level of sophistication of equipment. Secondary wholesale markets are essentially rural or located in a small city.htm (4 of 6) [2004-12-21 01:15:09] . such as international air passenger or cargo terminals. In terms of layout and circulation they are similar to hypermarkets or to large-scale distribution warehouses. They tend to share common problems in the types of data that need to be collected in order to analyse them and in the methodology that is used in preparing layouts and designing facilities. Design problems that are unique to secondary wholesale markets may be related to seasonal peaks in production and the provision of farmers' markets. A recognition of urban planning problems is therefore essential to understand the growth of terminal wholesale markets. However. modern wholesale markets in developed countries have much in common. in terms of the types of produce. may be different there are many resemblances.fao. Although differences may exist. from a planning point of view secondary and terminal wholesale markets can be treated in a similar way. Special characteristics of wholesale markets. They both perform similar wholesale functions. Population growth. while terminal wholesale markets are urban. including the regional road system. Is it possible to standardize wholesale markets? It would be very convenient if a standard model for wholesale market development was available for use in less-developed countries. the location of production areas.

· different qualities of produce are not sold separately. It is virtually impossible to move rapidly to more sophisticated practices when the producers arc small. National programmes related to terminal wholesale markets are more likely to be concerned with efficiently meeting the food needs of rapidly expanding urban populations. Physical changes. Parking facilities are usually limited and provision for waste disposal is often lacking.fao. selling by samples as in Western Europe and the USA. They start as general-purpose markets. except in very exceptional circumstances. will come from central or municipal government agencies. of which the main one is likely to be the growth in demand for produce because of demographic changes. · produce is not graded before being sold. Marketing interventions. The main concern of a market development programme should therefore be to attempt to reverse a number of these factors in order that improved conditions can be obtained for both producers and consumers. Existing consumption of fruit and vegetables may be relatively low and a government may have identified marketing as a major constraint in increasing consumption to provide better nutrition. creating an atmosphere of uncertainty. Space for efficient handling of produce is inadequate and the market area is overcrowded. constrained by the lack of an expanding market for the sale of their produce.htm (5 of 6) [2004-12-21 01:15:09] . particularly for assembly and/or secondary wholesale markets. are often related to targets for achieving increased production from government-assisted horticultural projects and form part of an agriculture sector component of national plans and basic needs programmes. the main forces for change in wholesale marketing in less-developed countries. It is necessary to invert the principles in order to understand what occurs in such markets: · produce is not cleaned before it is brought to the market. A basic cause for this is often the weakness of the national wholesale fruit and vegetable marketing system and related marketing information networks. particularly those in the lower income groups. then become more specialized by dealing with a limited range of produce and only later trade in graded produce. while providing improved incomes to rural producers. markets need to develop in a number of stages. · produce is not sold by standard weights or in standard packages. .org/docrep/T0521E/T0521E03. and · storage facilities are not used or arc not available and immediate sales have to be made. Within existing markets this is usually seen in the inability of existing marketing systems to cope with the increased demand. Other physical factors that might influence the need to expand or relocate a market are changes to transport modes and new communications facilities. Relationship to national programmes. frequently leading to activities spilling over into the adjacent streets. As discussed in the section on international trends. produce is sold with a lack of price information. the buyers arc not organized and the management skills for running a complex marketing system are not available. Changes in marketing systems will be influenced by a whole range of factors. The main aim may be to improve incomes for fruit and vegetable producers. What are the forces for change to wholesale markets? Although the intention may be to develop private sector market institutions. such as the construction of access roads to http://www. causing congestion and delays.Ch03 fulfilled.

enabling improvements to be made in the marketing of produce both for domestic and export markets. requiring more stringent control of temperatures and the exclusion of vehicles from within market buildings. There is often resistance to adopting auctions. Often this intervention is taken as an opportunity to introduce an open-auction method to encourage the marketing and prompt disposal of better quality produce. An example of this. Traditional practices. Changes can also occur because of factors outside the control of a marketing authority but which may have a significant impact on market development. This is likely to lead to radical changes in the organization of existing markets in Europe. Improvements in storage facilities may also allow producers to market their produce in a more flexible and cost-effective manner. market authorities need to be conscious of the negative effects that relocating a market might cause. allowing producers a greater freedom in how they market their produce. Outside forces. However. currently applying to markets in Europe is the effect of new European Economic Community directives on the marketing of fresh meat and fishery products. increased political stability and liberalization of pricing systems. including modifications to sales methods. a new urban highway system or a new port.Next http://www. include the method of bid ding "under a cloth". Institutional and political changes. which may enable more sophisticated marketing organizations to be developed. Traders may not be willing to move. leading to a buyers' market.Ch03 production areas. which are often banned. people working within the existing market may experience difficulties in moving their place of employment and the poorer sections of the urban population served by the market may lose access to cheap supplies. There may be pressure to combine lots. with immediate payment. bringing about changes in support policies for both producers and traders. Institutional changes that might occur include the growth in banking and credit infrastructure.fao. such as through the introduction of rules for regulated markets. and the development of traders' associations and wholesaling skills. The most common of these is likely to be planning pressures from municipal authorities to relocate an existing market because of a desire to redevelop an area of a city or make mayor land-use or environmental changes to the structure of a city. Another outside force can be the introduction of new health and safety regulations. Public intervention may play a part in bringing about changes. Of all forces for change to an existing market this is likely to be the most common.org/docrep/T0521E/T0521E03.htm (6 of 6) [2004-12-21 01:15:09] . as they can be time consuming if there is wide variation in the quality of produce. which is seen as providing many opportunities for cheating. Contents Previous . however.

fao. minimizing the use of foreign exchange and reliance on technologies which might be difficult to maintain. An approach to wholesale market planning & design Contents Previous . Objectives are likely to be at two distinct levels: national/sectoral and project. Caution is required in these consultations with traders so that they do not become acrimonious by concentrating too greatly on the financial relationship.Next This manual for wholesale market planning and design is aimed at a wide range of users. These goals are concerned with the benefits of the project to the nation as a whole and to the agricultural and commercial sectors. Economic and appropriate solutions. Although local planning guidance and regulations may be available the manual can act as a supplement to this information. Consultants engaged by market authorities may find the manual particularly useful as a check list of the range of issues involved with market development . These may include policy-makers charged with decision making about markets. Development objectives An essential step in evolving the market development programme is to define a clear set of objectives or "goals" which will guide both the policy makers and designers. producers. Emphasis should be placed on finding solutions which are applicable to the resources and construction technology available in the country. frequent discussions will need to be held with all the interested parties in order to define development priorities and to evolve a list of facilities which the market might require (which will form an "accommodation brief" for the designers). These will include government agencies. Why is it it necessary to plan wholesale markets? The main purpose in preparing master plans and designs for market facilities is to find solutions which are both functional and efficient. traders and local communities. senior administrators. parking and commission charges that the market should adopt.org/docrep/T0521E/T0521E04. applicable to the scale of the particular market. As well as fulfilling the needs of the market authority. its likely growth and its expected revenues. market organizations. increased production of fruits and vegetables and related http://www. in some ways most importantly. the design solutions will have to be acceptable to all the parties who might be affected by the development.Ch04 2. National and sectoral development objectives. The goals will tend to be simple statements of national policy. This means essentially that the employment of consultants to assist in the planning process should make the reaching of appropriate solutions easier as well as saving money for a market authority. to the exclusion of involving them with planning and design issues. measured by indicators such as: greater per caput consumption of fruits and vegetables. as well as providing material for use by participants of training programmes. as well as meet budgetary constraints. A good measure of success would be if the savings in capital and recurrent costs are at least equal to the professional designer's fees. It is essential that this step is not omitted as only by undertaking full discussions on the project's objectives will the often conflicting needs of the users of the market be resolved. planners and. Consultation procedures. technical staff. It is thus important that market developments provide a balanced and affordable programme.htm (1 of 3) [2004-12-21 01:15:10] . many of whom may be relatively inexperienced in market development. Practical operating procedures will need to be formulated and discussions will need to be held to set viable and acceptable levels for the rental. During the design process.

All aspects of the design should be subject to the same overall planning and financial constraints. short-range flexibility. by the introduction of new or improved facilities. Other project-level criteria include whether there are potential savings in market operating costs. either for upgrading or relocating an existing market or for the construction of a new market.Ch04 increases in producers' incomes.org/docrep/T0521E/T0521E04. Design stages.6 of the manual follow this sequence. institutional or management aspects. The second and third stages are to a large extent interdependent and are likely to be carried out in parallel as they both rely on collection and analysis of survey data.fao. These savings can occur from lower handling and equipment costs or more favourable rates for insurance and cartage. lower consumer prices.htm (2 of 3) [2004-12-21 01:15:10] . If the project appears feasible this would be followed by a second stage of detailed design development and a third stage of project formulation and feasibility analysis. These include: immediate needs for day-to-day operational changes. the project's capital and recurrent costs to the potential returns from tolls and rentals. Design development is the concern of physical planners and http://www. This is essential so that the various professionals involved can have a clear understanding of the roles of others participating in the design process. The most convenient way to look at the design process is by the sequence (or stages) in which a design is developed. There are a number of ways in which the overall design process can be viewed: by design stages. The development programme should also show that defined levels of operational flexibility can be obtained. No aspect of the programme should be designed in isolation from the design of other facilities nor be undertaken without the collection of basic data. providing the opportunity for easily extending and changing facilities. and reductions in post-harvest losses due to improved marketing and handling practices. Within each stage a systematic procedure must be followed. and project evaluation criteria. with a less variation in seasonal price fluctuations. traders and wholesalers. Figure 4 A design methodolgy A process approach. The interactions between the activities are critical. whether it can be constructed within defined cost limits and budgets. reflecting seasonal variations in trade. levels. with distinct outputs occurring at each stage. Typical criteria that are used in assessing the success of a market project are: whether it meets defined minimum physical-space standards. and long-range flexibility. or activities. A wholesale market design methodology. This manual bases the problem of market planning and design on a clear design methodology. The first step would usually be a project identification and pre-feasibility study. Design functions. These goals will be concerned with optimization of the operational system and physical design of the proposed market. Project-level design objectives. particularly of the actual volumes traded at the market. Chapters 3 . Demonstration that such savings might occur will be critical in persuading market users that higher rents and/or market relocation are justifiable. The project formulation and feasibility stages are primarily the concern of individuals with backgrounds in socio-economic. Another way of looking at the design process is by identifying the functions and types of professionals who would be involved in the development. functions. In preparing a market master plan a process approach needs to be adopted. The fourth stage is project implementation. emphasizing how the stages of the design methodology are part of a linked system. Figure 4 provides a diagrammatic summary of the overall process. which will relate by means of financial and economic analysis. for producers.

Ch04 engineers. budgets and master plans . Project identification is primarily concerned with the broader issues. · the preparation of outline recommendations and sketch designs. · socio-economic. marketing and engineering surveys. These will define the activities that need to be followed in order to arrive at the final plans. The pattern of activities that will need to be carried out at each design stage will follow a framework similar to the following: · data collection. Table Contents Previous . For each design stage it is possible to develop a detailed flow chart or check-list. leading to a modification of outline plans and the production of draft final designs. surveying and engineering skills. by manual and computer methods.fao. Design activities. · the development of detailed recommendations and designs. For terminal wholesale markets the main consideration will be the traffic and land-use problems of the area of the town in which the market is situated. Design levels. and · after a period of further consultation and final revision the preparation of the final recommendations. architectural. which might be from organizations such as government departments. The output of this final stage might also include the need for further studies and surveys on issues identified during design. budgets and implementation programmes. The stages of the design methodology also reflect various design levels. In the case of secondary wholesale markets this will be the rural hinterland scale.htm (3 of 3) [2004-12-21 01:15:10] . analysis and synthesis. At the implementation stage the main concerns will be the detailed design of buildings and infrastructure and the procurement of fixed and mobile facilities.org/docrep/T0521E/T0521E04. At the detailed design and feasibility stages the planning of the market site and overall building design become important. This might entail further data collection. whilst project implementation will involve project management.Next http://www. processing. · data processing. starting with national policy matters and then considering the sub-regional planning context of the market. including consultations with interested parties. · data analysis and synthesis. reflecting the design functions and levels mentioned above. consultants' studies or other published sources.

alternative site development scenarios should be considered and an outline master plan and action programme prepared. but defines what should be broadly achieved at each of the design stages and what are likely to arise as key concerns and problems. Figure 5 Stage I . An initial analysis should be made of facilities and accommodation requirements. but with a more complex project the structure will help to clarify the process of project development. The section does not go into much detail. A flow chart illustrating the overall process is represented in Figure 5. · records of previous and current development activities and existing commitments. fish and livestock. . Project context and data collection Unless full records have been kept by a market authority it is usual to start any study of existing or proposed markets with virtually no information. An important issue that needs to be mentioned before describing the details of project formulation is that the process is likely to be lengthy. including those undertaken by consultants and universities.htm (1 of 5) [2004-12-21 01:15:13] .fao.Ch05 Part B . marketing channels and the existing consumption of fruits and vegetables and. In order to avoid repetition there is cross-referencing to the technical appendices in Part D. and · legislation and regulations on the institutional and legal framework for markets. including public health and safety regulations. Information will be required on the general planning context.Planing and design activities Contents Previous . It proceeds from project identification through to implementation. if applicable. contained in government sectoral plans (typically from a ministry of agriculture) and district reports.Project Identification and Pre-feasibility 3. · official maps and air photos. A site visit to both existing markets and production areas will also be necessary to get a feel for the http://www. functions and activities. With a simple project these stages may not need to be rigidly separated. poultry. assembling information from published sources. Project identification and pre-feasibility The first stage in project preparation is to undertake an identification and pre-feasibility study. This will be largely a desk study. It can often take 6 8 years from reviewing the need for a new market to its occupation. the levels of agricultural production.Next This is the core of the manual and is based on the stages of project design described in Part A. The purpose of this is to identify if there are problems with the existing marketing system which might be solved by a planning and infrastructure project. To undertake any of this work requires that staff are identified to be involved with the project formulation and that a separate advance budget is available for the funding of design studies and surveys. compiled by planning and public works departments. Information sources will include the following: · national marketing and agricultural policies and strategies. A thorough review of all available background data will therefore need to be made. local and regional demographic and planning studies. Within each stage the other aspects of the design process are also reflected: the design levels.org/docrep/T0521E/T0521E05.

traffic congestion and lack of modern equipment. improved efficiency gained from the upgrading of present facilities or additional revenues created from the development of a new market. A typical example might be as follows: to improve marketing facilities so that producers of fruits and vegetables in area "x" can obtain a ready market for increased horticultural production and a wider range of fruits and vegetables. whether the existing market should also be retained. Definition of project goals and beneficiaries. Problem definition Reviewing and analysing data collected on the general institutional and management context and on the existing site conditions and facilities should allow the overall shortcomings of the present system to be identified. can be available to consumers in city "y". inadequate space in relation to through-put. With an existing market the major problem will be whether to relocate the market and. Techniques for data analysis arc contained in Chapter 12. such as the existence of monopolies and unfair trading practices. as this will form a basis for discussion with all the interested parties.htm (2 of 5) [2004-12-21 01:15:13] . A first approximation of the physical requirements and budget costs for the development should always be attempted. The main difficulty at this stage will be how to match any budget limits against the physical facilities that might be needed to improve the marketing situation. Techniques such as "rapid rural appraisal". if so. Typical problems. Simple methods for making projections of space requirements are discussed in Chapters 4 and 13. Other problems might include seasonality of demand and lack of storage space. such as. Physical requirements. Although probably only limited survey data is available it is necessary to define a simple procedure that can help to conceptualism the problems. This can be refined later when further surveys are undertaken. It does not always follow that one market per city is necessarily the optimum solution. It is important to visit markets during peak trading periods and not just during government working hours.org/docrep/T0521E/T0521E05. poor infrastructure. The basic design parameters on which the projections should be based do not need to imply any http://www. At this stage this will tend to be a very simple statement of national or regional policy. It may not be possible to prepare even a diagrammatic layout at this stage. On the basis of the problems that have been identified with the existing marketing system an attempt should then be made to define the project's goals and the likely beneficiaries. Initial project formulation The next step will be to formulate an overall programme which will meet the project's goals and solve the problems that have been identified. the project-goals could be specified in terms of the benefits that might accrue to a particular market authority by. The typical problems that might be identified at this stage include economic and institutional problems. using the experience of multi-disciplinary teams (described in Chapter 11). in greater quantities and al competitive prices. a description of the existing market channels and an overall idea of the volume of trade that is passing through an existing market or might pass through a proposed market. for example. Alternatively. but should include. The types of analysis that can be attempted will be limited by the availability of data. financial constraints. particularly for those with high-density centres. inadequate market management and lack of staff training.Ch05 present conditions. at least. will help to establish information on conditions as efficiently as possible.fao. high produce losses and other costs associated with physical constraints.

however. therefore. rather than impose a standardized package of improvements. including off-site facilities. This will serve to reduce marketing costs which will ultimately benefit consumers. that the market would be a modern facility. Different approaches should be adopted for secondary wholesale markets than that for terminal urban wholesale markets. they are part of a programme for changes to a network of local assembly markets and collection centres. Improvements to secondary wholesale markets.org/docrep/T0521E/T0521E05. not necessarily reflecting the present level of economic activity.fao.Ch05 preconceived notion about the spatial organization of a market. The effect of a project on any possible private enterprise efforts in market development should be assessed to see whether it would deter or encourage these initiatives. They should assume. Secondary wholesale markets. therefore. A project's major impact is likely to be on the system of marketing of fruits and vegetables. The programmes are frequently based on the development of packages of facilities for each market. which might have a national impact on marketing efficiencies. It may lead to higher production and more stable consumer prices.htm (3 of 5) [2004-12-21 01:15:13] . It is likely to bear very little relation. Critical to this selection process is that a new site is chosen in consultation with all interested parties. The fundamental issue to address with a terminal wholesale market will be whether an existing site is suitable and the degree to which outside planning forces should be allowed to influence any decision to relocate to a new site. The project will have to be evaluated on the basis of its overall global impact. Project evaluation At this early stage in design there will probably not be sufficient information to undertake even a preliminary financial analysis. It is important not to over-simplify the problem and ignore other criteria which may be more reliable indicators. A typical impact would be a significant reduction in produce losses and an efficiently operating market for both producers and traders. These estimates will be tentative and need to be adjusted later when more reliable survey data on consumption patterns becomes available. Almost invariably this will mean that the main part of any budget should be allocated to the provision of key infrastructure. based on historical events. A crude ranking system can be evolved which compares the existing physical conditions of the markets to a list of "basic needs". On a broader front. It is usually possible to accurately define the target beneficiaries of a project. however. particularly roads and paving. by incorporating the development of a market information system a project may have an influence on the overall price mechanism. may be similar in nature to those for terminal markets. based on production and demographic data. Basic estimates of demand and trade volumes arc essential at an early stage in order that sensible decisions can be made about whether the existing market site and size are adequate. the range of facilities provided being based on the overall site area of the market yards. organized with minimum obstructions in the system and a maximum grouping of functions. Other aspects of a project's impact should also be identified. The potential benefits are. particularly if institutional and traffic management improvements could be made which might allow it to remain at its present location. A negative effect could be unnecessary http://www. rather than to the construction of new buildings. particularly those serving large hinterlands. There are major limitations to using this approach as the sole criterion as it is often an arbitrary figure. This approach assumes that the first priority of a market development plan will be to make up the deficiency in the present provision. Often. Project Impact. to a traditional market. The location factors that should be considered in the selection of a new market site are discussed in Chapter 13. to producers and consumers. Terminal wholesale markets.

It is essential.management and institutional. and . This may lead to potential delays in the appointment of consultants to undertake surveys and feasibility studies and to prepare detailed designs and tender documents. including the establishment of a project advisory committee or management board. other than. A typical short-term risk is that agreement has not been reached on the market's institutional framework and management method.financial and loan requirements. and an estimate made of their probability (high. Project risks.Ch05 competition for private markets. the risks are either eliminated or arc reduced . It is important in assessing a project's impact to be clear how benefits might arise.provision of land.fao.The typical types of issues that will need to be resolved arc: . while a positive effect would be the growth of smallscale traders and wholesalers. Ideally data should be available before any further detailed design development occurs. data will need to be collected on the number and size of existing markets. the operating performance of markets can be improved with virtually no physical change. In order to refine the preliminary estimates of throughput. . that design should be based on adequate data and it will be necessary. if not accompanied by appropriate institutional and management changes. Other common problems are that action is delayed because of difficulties in purchasing suitable land and that the source of funding or loans is not clarified. but the timing of surveys will also be influenced by factors such as the need to collect data during peak production seasons or to avoid logistic problems caused by working in a wet season.term strategic problems.htm (4 of 5) [2004-12-21 01:15:13] . Risks which could influence the overall design of a project need to be identified at this stage. These risks should to be described. the provision of new equipment or the application of a traffic management scheme. The subject of risks is discussed further in Chapter 5. In many cases. Initial surveys to be undertaken. problems may also arise if it is not possible for the construction operations at the market site to be phased in a way that enables the market to continue to operate during the construction period.org/docrep/T0521E/T0521E05. The main conclusion that will be drawn at the end of the project identification stage is almost certainly that the collection of further data will be required. Further actions The definition of project risks will provide the basis for clarifying the issues that will need to be resolved before progress can be made with project development. The intention should be that. Project benefits. http://www. or are long. to carry out surveys of: · volumes and types of produce transacted at different times in the year. possibly. however. both in terms of the type of produce and the quantities marketed. Where an existing market is to be improved or extended. before proceeding further. their daily trading patterns and the variations in trade between seasons. medium or low) and whether they are of a short or medium-term nature. if they have not already been undcrtakcn. and · investigations of a site's engineering and physical characteristics. · traffic modes and volumes. The mere provision of new or improved physical facilities will not guarantee any benefits. · surveys of traders and market channels.

Next http://www. Contents Previous .htm (5 of 5) [2004-12-21 01:15:13] .fao.Ch05 Further details of survey methodologies and typical examples of survey pro-forma sheets are given in Chapter 11.org/docrep/T0521E/T0521E05.

covering all produce flows into a city (including both wholesale markets and retail outlets). However. The best method. matching these to available data on per caput consumption of fruits and vegetables. Because of lack of data it is rarely possible to use these techniques and reliance usually has to be placed on estimates of present supply. The agreement of municipal authorities and police to assist in the surveys may also be difficult to obtain As well as quantifying the volumes of produce flow. FAO has undertaken regional food balance sheet studies of per caput consumption. including the key role often played by public transport. The overall design process is shown in Figure 6. estimates can be made of annual consumption. Using this approach the substitution effect between different produce is assumed to be zero. roadside surveys provide useful data on the transport modes used by farmers and traders.detailed design development Estimate of demand and trade volume. Consumption data should ideally be derived from detailed local nutritional surveys of the daily intake of fruits. ideally. relating changes in income to spending behaviour. be undertaken over an extended period. which is expressed in terms of kilogrammes per head (or "caput") of population. fish and meat. The second-stage designs will provide the basis for the evaluations undertaken in the third-stage feasibility study.htm (1 of 10) [2004-12-21 01:15:20] . In preparing the demand estimates a series of assumptions will need to be made. Figure 6 Stage 11. if resources are available. More details of the types of analysis that should be undertaken are provided in Chapter 12. to a large extent interdependent and can be carried out in parallel. vegetables. outline building designs and cost estimates. the most important of these will be the surveys of produce flow (see Chapter 11).org/docrep/T0521E/T0521E06. particularly of the actual volumes of produce traded. Apart from surveys of existing facilities and engineering investigations.Next The second stage in the preparation of a project is detailed design development. Processing and analysis of initial surveys The first step in preparing a detailed design will be to undertake and analyse the surveys which were outlined at the end of Chapter 3. taking into account factors such as production levels. the traders may be reluctant to cooperate in providing accurate information. imports.Ch06 4. for a range of income groups.fao. Table Roadside surveys. There are a number of models used by economists which take account of income-elasticity coefficients. including the roles played by the various functionaries who are participating in the marketing channels and the origin and destination of produce flows. exports and processing requirements (see Chapter http://www. The second and third design stages are. which may lead to design modifications. This will result in a final master plan. is to carry out a complete roadside survey. Both stages will rely on the collection and analysis of survey data. as such road-blocks are often also used to control "illegal" trade and to extract gratuities from traders. Detailed design development Contents Previous . Per caput consumption. using fixed checkpoints. The surveys should provide an understanding of how the existing marketing system operates. From such surveys. therefore. The next step is to make a detailed projection of the potential demand for produce. These surveys should.

Estimating assumptions.20 tons per square http://www. if available. The first is the extent to which peak production and the sales of fruits and vegetables could vary by season.fao. Throughput The first step in this procedure is to make projections of the likely throughput of the market. In that case the 1st phase of a new market could be sized to meet an initial (5 year) growth. The overall output trading volume should therefore be reduced by say 5 percent. the percentage of the wholesale trade going through the market will also vary depending on the operation of existing marketing channels and how they might realistically change in the future. commonly applicable when existing markets are not going to be closed down. In making throughput projections.5 times the annual monthly average and perhaps 5 times as much as the minimum month. A reasonable throughput target for when a market is fully operational should also be projected. A conservative basis for planning. corresponding to present immediate demand and based on the results of roadside surveys. This is essential bearing in mind the degree to which some produce will by-pass the market system. locations. Second. At least three possible design scenarios should be developed for a range of design populations. as the market must still be designed to accommodate it. The figures are also likely to be overestimates. A range of 10 . This does not affect the input volume. The second should be a size corresponding with likely demand in the near future (say within 5 years) and the third an ultimate size which would accommodate the growth in demand over the expected life of the market (usually taken as 20 to 30 years). as not all produce reported as being traded is actually sold and substantial losses are likely to occur. income groups and between urban and rural areas. such as direct sales to supermarkets. However. particularly if there is also a large tourist trade. In estimating space requirements for markets very simple techniques should be used.Ch06 12). The first should be a minimum size. Space requirements. Detailed estimates of physical requirements Before the preparation of an outline master plan it is necessary to ensure that there is sufficient space at an existing or proposed market site to accommodate the range of facilities required for the operational procedures envisaged. particularly that from home gardens within the city. but will form part of the overall per caput consumption.org/docrep/T0521E/T0521E06. These are likely to be the most easily available data. but the data should be treated with some caution as they may not be representative of the whole year. but need to be used with some caution as the figures are national averages. using projections from previous studies of population growth and migration trends. They tend to disguise substantial variations in consumption between different seasons. The volume of this trade will not appear in roadside surveys.htm (2 of 10) [2004-12-21 01:15:20] . Two estimating methods can be adopted. must be evaluated carefully. However the extent to which trade might switch from present markets and other channels. any calculations that use output volumes (such as retailers' parking requirements) may need to be adjusted to reflect this. Data from roadside and retail surveys will provide a basis for establishing these factors. which are explained in detail in Chapter 13: · an approach based on overall annual through-put. A peak season may be as much as 2. two key assumptions need to be made. is that a new market will gain the new trade and existing markets and other channels will broadly retain their present level of trade. A simple approach to projecting throughput is to develop scenarios for the peak monthly throughput of the market based on estimates of demand at specific design dates for the likely population to be served.

Outline master plan An outline or draft master plan is a physical representation of a market's development programme. this figure may vary quite radically. One extreme might be a secondary wholesale market in a rural area where the market's essential function is to assemble produce for immediate despatch (in which case virtually no long-term storage is required). without auction facilities. A crude rule-of-thumb basis for estimating this would be to allow 50 . Function of the plan. such as offices. which provides a large amount of medium to long-term storage (possibly including cold stores) for produce such as onions.Ch06 metre (m²) of covered sales space is desirable. The main function of a plan must be to maximize the throughput of a market. Offices for market management staff (whether private or public enterprise) and for basic support facilities (such as security and toilets) will each need an area equivalent to at least 5 percent of the commercial sales space. Although the influence of a site is important. The success of a plan in the long term will depend on whether it allows the market's users to mould and adapt the market to their particular requirements.htm (3 of 10) [2004-12-21 01:15:20] . commercial or sales activities that will be undertaken in the main market buildings.100 percent in addition to that already estimated for the main commercial floor space. However. as through geometry and landscaping the layout will http://www. its sale to wholesalers (by private treaty or auction) and its short-term storage and display by the wholesalers before being sold and dispatched to retailers. potatoes and fruits.org/docrep/T0521E/T0521E06. The plan also provides a rationale for the approximate cost estimates that are used in the financial and economic analysis described in Chapters 5 and 10. The purpose of preparing the plan is to provide a basis for the consultations which will be needed to develop the project further at the feasibility and implementation stages. Adequate time must be provided at those stages in order that full consultation can occur and potential design conflicts can be resolved. Other facilities. Simple assumptions also need to be made about the space requirements for ancillary uses. Washing. the essentially functional nature of markets leads to compact and regular layouts. I he plan will be very diagrammatic at this stage. Figure 7 Diagrammatic layout of typical wholesale market There is usually a reasonable degree of agreement between these two methods. as illustrated in Figure 7. providing the most efficient access and traffic circulation system. The estimates provide a basis on which to allocate floor space for the primary. Architectural quality is not of paramount interest but should not be forgotten. At the other extreme might be an urban terminal market. These activities would include the unloading of produce. broadly setting-out the space and circulation requirements related to an existing or proposed site. · an approach based on the "ideal" space standards that need to be allocated to accommodate the various activities required to handle the average (or in some cases maximum) daily throughout of commodities. post offices. its display by producers or traders. additional storage. For a recent FAO study in Thailand long-term wholesalers' stores (including cool storage) were assumed to require an additional space equivalent to 40 percent of the commercial sales space. whilst minimizing costs. and other facilities. packing and grading might require additional space of around 1m² per ton of throughput. A background to the planning process and further details of typical planning criteria are discussed in Chapter 13.fao. extension services and farm input sales will need a further area of around 10 percent of the commercial sales space. using standardized building forms and also resulting in lowest development costs. such as banking.

A layout with more than one exit would have obvious advantages in terms of traffic control. If cross roads are essential they should be created by using roundabouts (rotaries) One of the most difficult features to achieve in any market-site layout is to obtain sufficient road length al the site entry so that incoming trucks can slow down and be checked-in at the entry-gate without causing backing-up onto the public highway.org/docrep/T0521E/T0521E06. the internal circulation system. the distribution of land uses should be reviewed.htm (4 of 10) [2004-12-21 01:15:20] . The usual technique is to adopt a one-way circulation system using a continuous peripheral road.5 17. should have its own segregated access. The key issue will be to evolve an arrangement with a satisfactory relationship between the site access. unloading and loading areas. Kathmandu. To reduce the number of conflict points as many of the junctions as possible should be T-junctions (3-way). therefore. Planning and land use criteria Important factors to be considered in preparing an outline plan are how the construction of the market might be phased and the extent to which separation of more permanent uses from those which are of a transient nature is needed. Markets obviously need to be located adjacent to main highways.Buildings . 'I his problem also occurs on leaving the site.30 percent.8 3.Parking areas .Roads . although this may create problems of extra staffing for security.5 29.Ch06 provide a visual clarity to the users and.8100.2 17. ensuring that it provides a positive contribution to the built environment.Total site area Area m² 6 060 710 5 955 3 570 3 495 580 20370 % of total 29.0 Access and circulation. with the main buildings located within the centre of the block.2 2.Footpaths & landscaped areas .60 percent and other uses. but a direct approach off a heavily used route or close to an intersection could cause problems. some 10 20 percent of the total area. including drain reserves. The layout. will relate the market to its surroundings. general parking and the main market buildings. As a rough rule-of-thumb the portion of the site covered by buildings should be around 20 . so that future growth and changes can be accommodated without disruption. road space and parking between 50 . After preparing the draft plan. These problems will become more difficult with future traffic build-up. Within the market. thus making planning approval unlikely. the collection of lolls and the management of http://www. Examples of the distribution of land uses are given in Chapter 13. incoming produce should also be strictly segregated from outgoing. if properly considered. Values for land uses at a typical small scale terminal market (Kalimati market. As a basic principle it is also desirable to avoid cross roads within the lay-out. An advantage of this approach is that it enables drivers to search for parking spaces and to correct mistakes. Nepal) are as follows: Land use .Farmers' market area .Drainage & other reserves .fao. As roads and parking areas are a major part of total capital costs and are elements that can be varied substantially in both extent and standard of construction they will be important in determining the outline plan.

typically with pallet loading. The easiest way to understand the distribution of services is to prepare a series of typical cross sections.Ch06 sale documentation. different sizes of premises can be obtained. Parking. surface water drainage is likely to be the most important service to consider. One side (3 metres width) is sometimes used for unloading from rail wagons. pick-ups and private cars) of 3 spaces per 100 m² Of sales area is reasonable. particularly those of retailers is rapid and it is desirable that parking spaces are generous. Figure 8 illustrates the basic types in cross-section. http://www. There arc four basic types of market buildings which can accommodate the main commercial floor space. ii) back-to-back type This is a variant on the garage type. display and sale of produce as these activities normally take place at different times of the day. with access platforms on both sides. The choice of an appropriate type will depend on the operating system and method of sales to be adopted at the market. but these networks need to be coordinated with each other for ease and economy of construction and in order that future maintenance does not disrupt the working of the market. This should also allow unloading and loading facilities to be directly adjacent to the main market building. which may require the provision of an overspill parking area a little remote from the market facilities. as the site layout is gradually defined. cars or animal carts. This type of building is suitable for the sorts of large-scale wholesalers found in North America and where retailers use large trucks. however. As a general rule an overall standard for the provision of parking places (trucks.org/docrep/T0521E/T0521E06. The majority of other services are likely to be placed underground. the essential difference being that it has a central wall dividing the wholesalers' premises. consideration will need to be given to the location of other service networks. In tropical areas. More elaborate methods For estimating parking requirements are given in Chapter 13. which resolve both the vertical and horizontal relationship of the services.htm (5 of 10) [2004-12-21 01:15:20] .fao. Figure 8 Comparison of types of wholesale premises Engineering services Engineering services other than roads need not be considered in any detail at this stage but. because of the scale of open drainage systems and the significant run-off from paved market areas. A minimum of around 32 m² per truck parking space should be used. Types of market but/dings. or if larger trucks with side-loading are going to be used. By varying the position of the dividing wall. Engineering services are summarized al the end of this chapter and discussed in detail in Chapters 13 and 14. For peak periods. this needs to be increased to around 5 spaces per ]00 m². Only one access point is provided for the purchase. excluding the main circulation. Site facilities The type of buildings that the market might accommodate needs to be considered at this stage in the design because it will affect the site layout. It is usually better if the platform is at the same level as the road if the majority of the market users have small pick-ups. using the same roof form so that comparison is simpler: i) garage type With this type of market premises the wholesalers' stalls run the full depth of the building. while the other may be wider (say 7 metres) and used for both unloading and loading into trucks. The turnover of vehicles in a market.

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This type of premises is an ideal form for medium and small-scale wholesalers and is particularly suitable for developing countries. The building type can be either used as the point where the purchase of produce is made from commission agents and traders on a private treaty basis or can be used in conjunction with a separate auction hall. A variant of this building type, used in Amman, is to construct a single depth wholesalers' premises backing onto a boundary wall or fence. This makes very effective use of the site area. iii) central spine, with buyers' walk This is similar to the back-to-back arrangement but also incorporates a central buyers' walk which facilitates the appraisal of produce by buyers. The buyers' walk is typically 4 metres wide, such as at London's New Covent Garden market, with unloading and loading of produce confined to the rear of the premises. Many West European countries (such as France and Spain) have adopted this type of premises, but its use in other countries, such as Brazil, has not been entirely successful. In some cases the buyers' walk is made much wider (more than 16 metres wide in the Paris Rungis market) to allow a wider display of produce and the easy movement of produce to retailers vehicles. Recent public health trends have, however, tended to discourage the entry of vehicles into the covered sections of market buildings, particularly where they trade in meat or fish products. iv) central spine/ball-type market building This is an integrated facility where the sale of fruits and vegetables is undertaken in a multi-purpose shed. The typical facilities might include producers' sales space, a buyers' walk, wholesalers' storage facilities (often enclosed in steel cages) and, where applicable, an auction hall. Levies on produce sold would be collected at one or more sales counters, where security facilities might also be accommodated. The building illustrated in Figure 8 is of a limited depth and would be suitable for medium and small-scale wholesale markets in developing countries, particularly as it could be relatively simply converted, if necessary, into one of the other types. Some hall-type markets are of a much wider span, such as in Milan, (Copenhagen and some Japanese cities. Although convenient for major cities with small-scale wholesalers and many retail customers, this building form is not necessarily appropriate in developing countries because of the high cost of the roofing system and the potentially greater internal handling costs. Compact site planning. Whatever type of premises is selected it is important that a consolidated layout is created rather than a scatter of smaller unrelated buildings. The sales spaces should be grouped together, probably only segregating the larger wholesalers, as their building requirements will tend to be different, The distance between buildings should be determined by "ideal" dirnensions for parking and circulation (see Chapter 14). An approach based on grouping of facilities has distinct advantages: · the site is easier to manage, particularly if an auction system is used; · the security system can be simpler; · safer site circulation, with minimum crossing traffic and road lengths; · flexibility in use, allowing seasonal variations in commodities to be accommodated and allowing adjustments to be made between wholesalers' premises, auction spaces and other uses; · ease of routline maintenance, cleaning and solid waste collection; · fuller building utilization at any one lime, with few redundant spaces;
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· concentration and economic provision of building services; and · greater weather protection for both the produce and market users. Multi-storey market buildings. Market buildings with the sales space on more than one floor should, unless absolutely necessary, be avoided. Only offices for wholesalers, commission agents or brokers and other uses not involving the transfer of produce should be accommodated at a mezzanine level if there is insufficient space on the ground floor. Non-horticultural produce markets. Fish marketing is usually undertaken in a separate building, the plan organization of which can be similar to that of a central spine type building. Construction would normally be to a higher standard, particularly in the provision of easily cleanable internal (wall and floor) finishes. The building should be provided with facilities for gutting, cleaning and boxing, with a cool room for the temporary storage of fresh fish and a freezer room for frozen fish. It is preferable that a fish market has its own quality- control facilities, perhaps at mezzanine level, overlooking the sales space. Separate facilities must also be provided if it is envisaged that the market will also trade in poultry, eggs, grains or meat. Accommodation for meat marketing can be virtually identical to that for fish except that it is preferable that ceiling mounted rails are also provided for the easy transport of carcasses. Flowers are often marketed in the same building as fruits and vegetables, but can be separated if the turnover justifies it or in more temperate climates where some form of heating may be required. Market authority building. The site should be administered by the market authority from a central service building, which might be of more permanent multi-storey construction, sometimes physically linked to the main market buildings. The scale of facilities will vary depending on the size of the market, but typically this building might contain an agricultural inputs unit, one or more banks, a post office and public telephones. The market authority offices should ideally be located at first floor level, overlooking the whole market. Depending on the scale of the market, their accommodation would comprise an account's section, a general office, a director/manager's offices and a board room. Even where the market is to be operated by private enterprise it will be essential to provide facilities for the public bodies concerned with marketing and public health Such facilities might include a hall for public meeting and exhibitions, accommodation for market information and extension services, an emergency clinic or first-aid post, an environmental health laboratory and a weights and measures office. Ancillary site facilities. Provision should also be made on the site for public toilets, building maintenance facilities, centralized solid waste collection and crate storage. An entrance control gate will be required, including in most cases, a weigh-bridge. This will normally be combined with the site security facilities. Simple produce cleaning, grading and packaging may also be needed if this has not been undertaken at the farm level or at collection centres located in the production areas. Other facilities that might be provided are a petrol filling station, a staff canteen or tea shop (although these could be limited if adjacent commercial areas contain adequate services), a creche for mothers working at the market and small-scale religious facilities (shrine, chapel or mosque). Hostel accommodation might also be needed for farmers and hauliers who are obliged to remain in the city overnight or for out-station market staff who might come to the city for on-the-job training. Facilities for retailing. Retail units for the sale of packaging materials are normally required at a market but the provision of other types of retailing facilities is a difficult issue to resolve as it will
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tend to interfere with the operation of the market. One possibility is to provide a limited number of semi-retail shop units for the sale of specialist food stuffs, such as herbs and spices and speciality fruits. This would only be an attractive proposition at a secondary wholesale market if it enables buyers or wholesalers to purchase goods they would normally want to buy anyway on a "one-stop shopping" basis. Terminal wholesale markets sometimes also include "cash and carry" facilities so that retailers can buy non-horticultural food stuffs in bulk at the same time that they are making other purchases. Traditional marketing practices and land-use restrictions may dictate that a wholesale market has to operate alongside a retail market, in which case they should ideally be managed as one unit, but should always be physically segregated. Farmers' markets. Another common issue is whether a market should support an associated farmers' retail market, where producers could sell to retailers and consumers. This would also enable producers who have not managed to sell their produce to wholesalers in the main market to dispose of their surpluses. The strong argument against this is that selling directly to the public in the farmers' market at times of oversupply, when prices weaken, will be in direct competition with the wholesale market. With an auction hall, for example, the possibility that supplies might be withdrawn for sale direct to consumers could have a disastrous effect. On balance, it would be better if this practice was discouraged, unless confined to sales only to retailers and strictly controlled (for instance by only allowing trading after the end of the main working day). Specialist services. A recent trend, particularly in the USA, has been to provide a wider range of specialist facilities on market sites so that they operate as food centres, under a single management system. Figure 9 Studies of building form - Kalimati market, Kathmandu Long-term wholesaler storage facilities (usually for fruits and incorporating chill rooms) and banana ripening rooms are frequently incorporated within a market, often with some arrangement for financing by private enterprise, the market authority providing the land for the building and a share of the main infrastructure. Animal slaughter, food processing, pre-cooling/drying facilities, cold storage and ice making plant may also be accommodated. These again are normally financed by private enterprise and should always be justified on the basis of a separate financial and economic analysis from that of the main market buildings (see Chapter 10). Caution is required in appraising the need for these facilities, particularly their scale and technical specification. Optimum refrigeration conditions in cold stores, for example, are often less important than flexibility in general operating efficiency which can result in much higher utilization rates. Another common error is to assume that facilities will operate on a high technology basis, such as using pallet storage and fork lift truck loading and unloading. This may not be valid or appropriate where maintenance is poor and labour costs are low. Figure 10 Final master plan of Kalimti wholedsale market, Kathmandu

Building form
The choice of suitable building forms and materials for different types of marketing facilities is part of the detailed design process and is discussed in Chapters 13 and 14. Figure 9 illustrates the type of output that would be expected from studies of building form. In preparing the detailed building
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is shown in Figure 10.org/docrep/T0521E/T0521E06.Ch06 designs the following factors will need to be considered · space standards and design modules · external climatic controls and internal servicing requirements. and using a similar type of construction. illustrating all the essential components that should be included. super-structure. either from an existing public supply or from a bore hole. Detailed site planning and infrastructure design Detailed site planning proposals and site infrastructure layouts can be finalised when a final master plan has been agreed. horizontal and vertical sub-soil drainage may be required. Drains will be a very important infrastructure component in the tropics. enclosure and cladding methods. Roads should be provided with kerbs and integral gutters. Soil conservation measures. · a surface water drainage system will be needed. A typical example of a final master plan. In preparing proposals for a comprehensive site development the following types of infrastructure (which are discussed in greater detail in Chapter 14) would typically be included: · site preparation. Frequently the levels of sites have to be built up and this requires compacted fill to be laid on a geotextile blanket. which are either covered with steel grating or concrete slabs. Where soil conditions arc extremely damp. http://www. storm water is usually carried in open channels. including improvements to junctions. I he master plan forms the framework for the development programme.water mains connection will be required.htm (9 of 10) [2004-12-21 01:15:20] . · car and lorry parking facilities will be needed. . may also be required. and appropriate internal finishes and · choice of structural techniques.fao. or a combination of both. designed to accommodate peak-hour traffic flows. the supply should feed either an underground water reservoir or a main overhead service tank. possibly with some on-site storage for peak discharge conditions. including ventilation and natural/artificial lighting · overall building form and siting · expansion needs · choice of materials for foundations/sub-structure. To provide adequate on-site storage. · the road and footpath system will be the main component of the site infrastructure. which would comprise stripping of the top soil and then cutting and filling the site to obtain level platforms for buildings and even grades for roads. including economy and ease of construction Final master plan The last step of this design stage will be to prepare a final master plan drawn accurately to scale and incorporating all the factors evolved during the process of design and consultation. This will allow the fill areas to thoroughly settle before work starts on the main infrastructure and buildings. Except in very low rainfall areas. constructed as either a concrete pavement or a flexible bituminous pavement. designed to cope with storm-water flows. Because of the large amount of impervious roof and road surfaces in markets it is also likely that any existing site outlet to a natural drainage course will need to be improved. These works should ideally be undertaken as a separate preparatory contract. integrating the final building designs with the vehicular and pedestrian circulation systems. sediment control devices and earth or concrete retaining structures may also be needed. Paved off-site connections to existing main roads.

preferably located underground and a street/site lighting system. · a piped sewerage system is needed.Next http://www.Ch06 The main tanks would service a reticulation network.htm (10 of 10) [2004-12-21 01:15:20] . As well as providing facilities for sellers and buyers to arrange deliveries directly by telephone it can also form a major element of a market price information system. These might include additional socio-economic surveys as part of the project feasibility studies (see Chapter 5). This will serve an earthed distribution lighting and power network. Further topographic. with partially treated effluent going to surface water drains. if this is available and economically viable. material suitability and geo-technical engineering surveys may also be required for project implementation purposes (see Chapter 6). and · a main telephone system which is an increasingly important component of market infrastructure. including repeating previous surveys for different seasons.fao.org/docrep/T0521E/T0521E06. Additional survey requirements At the end of the detailed design stage the need for further surveys may have been identified (see Chapter 11). Contents Previous . using facsimile machines and computer modems. or preferably directly to a main sewer. supplying overhead tanks in individual buildings and a system of fire hydrants. · an electrical supply will be required to the site (usually an 11 kV overhead line) going to a transformer unit and main switch room. going either to septic tanks.

requiring the work undertaken in the second stage to be reviewed and revised.Ch07 5. To evaluate a project it is first necessary to review the project context and assessment of the project's global impact prepared during the first design stage (see Chapter 3) and then to systematically assemble the surveys. An end-of-project-status will have been be defined and the purpose of Stage 111 will be to confirm that the project conditions and overall goals can be achieved.org/docrep/T0521E/T0521E07. Recommendations Evaluation of options. Aid agencies. · alternative packages for management. This may lead to design modifications. In assembling the project design many alternatives may be available which might meet the projects objectives. operations and staffing.Next The third stage of project design is a project formulation and feasibility study. to draw together all the previous data and findings into a form which will allow this evaluation. and varying off-site infrastructure requirements http://www. equipment and infrastructure evaluated. The function of the third stage will be to critically examine the various physical design options (outline and foal master plans) that might meet the objectives set for the project. These options. It should be clear that the project can achieve benefits for the main target groups of beneficiaries and that functioning market information and management systems can be established (see Chapter 6). therefore. which will confirm whether the project is viable. such as UNDP. different standards of building construction. · different approaches to setting revenue levels. Different institutional and management strategies should also be examined and their requirements in terms of staffing. detailed site planning and infrastructure designs) until the third stage has also been completed. At the start of Stage 111 it is necessary. which might include: options for the final master plan or circulation system. Figure 11 Stage III Project formulation and Feasibility Overall project design On the basis of studies already undertaken in the previous stages the objectives of the project should have been clarified. Project formulation and feasibility Contents Previous . The overall process that needs to be followed at this stage is shown in Figure 11. and · alternative physical requirements. plans and programmes derived in the previous detailed design stage (see Chapter 4) so that the proposed physical changes to a market can be both quantified and costed. Projections of demand and cost information derived during the second stage detailed design will form the basis of a financial and economic evaluation of the proposals. might include: · alternative institutional strategies. It might not be possible to complete the last phases of the second stage (the final master plan. These will have been examined to see whether they are still viable and if they will need to be tested in the financial and economic analysis. This process is usually termed "project design". which may all have different operational and cost implications. often have their own methodologies for undertaking this (see Bibliography). Assembling information.fao.htm (1 of 5) [2004-12-21 01:15:23] .

A financial analysis looks at a project only from the point of view of the operating http://www. This is a useful method when trying to assess whether to either build a new market or whether to improve an existing market. in present-day prices. represented as a percentage and a "net present value" of the project. technical assistance and professional fees of design and supervision consultants.fao. Internal rates of return and net present values are discussed in Chapter 10. Accurate cost estimates of capital works. that might pass through" a market. Financial analysis assumptions There are a number of techniques for evaluating projects and these are outlined in Chapter 10. These costs are set against the anticipated revenues derived from renting space to wholesalers. Net present values should always be positive and exceed the total capital outlay on the project. Another technique for looking at a project in a critical manner is to compare it to the costs and returns of not undertaking it at all ("do-nothing" or "without project"). This technique allows alternative physical design options to be considered. Recurrent costs will include staff wages and salaries and other operating expenditure. The latter is most convenient. assumptions will need to be made. to expect that a project will have a return at least equal to what might be expected from comparable investments. office overheads.htm (2 of 5) [2004-12-21 01:15:23] . Typical inputs. These are again described in Chapter 10. utilities. Project returns and methods of calculation. A typical range of values would be between 10 -20 percent. say. In the case of an existing market the basic case may be to do nothing. all the physical inputs required over a project's life will need to be phased and then costed on an annual basis. It is usual.Ch07 In outlining the options. it is usual to select the most likely one to represent the "basic case". The most usual of these techniques is to prepare a financial analysis. insurances. may include: civil works (buildings and infrastructure). the sensitivity analysis might test a substantial reduction in overall revenues. commission on auctions and other charges. therefore. in preparing the cash flows. repairs and maintenance. where the costs and revenues of a project are represented as a financial statement as cash flows. over-staffing of the market. land purchase. equipment. As well as estimating the returns from the "basic case" a project should be further tested by undertaking a sensitivity analysis. As markets are often fully or partially financed by central or local government funding (see Chapter 7) they have to compete with other projects for this financing. furniture and fittings. represented as a monetary sum. as variations can be calculated most easily. Sensitivity analysis. audit fees and depreciation. that is to neither improve the facilities at an existing location nor to relocate the market to a new site. This will produce a financial "internal rate of return" (IRR). such as interest payments.org/docrep/T0521E/T0521E07. recurrent expenditure and anticipated revenues for a project are often not possible at this stage and. parking fees. either from lower rents or rates of commission (perhaps 3 percent rather than 5 percent) or a decrease in turnover or an increase in recurrent costs from. which can then be modified to represent the other alternatives. Financial and economic analysis The expected returns of a project should be initially analysed on the basis of the projected cash flow for the "basic case". which would be compiled in a tabulated form. Typically. as well as the effect of likely variations in revenues and in the share of total produce. Economic analysis. To do this. They can be calculated manually but it is more usual to use either the financial functions on a desk calculator or to enter the cash flows into a spreadsheet program on a personal computer. and temporary rental of accomodation.

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costs and revenues of the market's owner. It will ignore any indirect economic benefits of a project, such as transport cost savings and reductions in wastage and deterioration of produce. These effects can be reflected in an economic analysis, which will give an estimate of the project's benefits to the whole economy. To calculate an economic analysis requires a number of adjustments to the financial cash flow. Depreciation should be omitted as well as land acquisition and taxes, as these are both transfer payments. Shadow pricing of labour, if had been included in the financial analysis, should be omitted. If management training and other forms of government or donor assistance is provided the estimated costs of these should be added to the cash flow. Estimating the net economic benefits of marketing projects in developing countries is difficult as many of the benefits are unquantifiable. Some benefits are indirect, including improved supplies of better quality produce, greater market transparency and more competitive trader participation. The direct benefits of a market project include reduced handling costs, lower transport costs because of an easing in traffic congestion and reductions in produce losses. The latter is often the most convenient method of estimating overall benefits. If, for example, the reported losses for vegetables are around 25 percent and the economic analysis assumes that losses can be limited to an overall 20 percent as the result of market improvements, then the benefits would be based on the value in monetary terms of a 5 percent saving in produce. It is usual to expect that the economic returns of a marketing project will look better than the financial returns. As with the financial analysis, though, it is advisable to examine the returns critically by applying a sensitivity analysis. Looking at the distribution of benefits it might also be apparent that those from part of a project (such as a cold store) are low compared with the benefits obtained from other sources. The economic viability of this part of a project should be looked at separately, strictly reviewing whether all the storage is necessary and if a proportion of the accommodation might, for example, be better provided in conventional naturally ventilated stores.

Project justification
The justification for a project will be based on a description of its benefits, backed-up, as far as possible, with the quantified results from the financial and economic analysis. In discussing project justification in Chapter 3 the main method of analysis was to look at a project's global impact and the short-term risks which would affect its progress during the later design stages. The project justification should again examine these issues to ensure that the project will still benefit the target beneficiaries and that the short term risks have been eliminated. At the formulation stage, however, it is also necessary to determine all the factors which, although they do not have to be resolved before project design can proceed, could cause major delays in the effective operation of a market. Physical improvements to a market cannot be looked at in isolation and if it doubtful whether the appropriate institutional and non-physical changes will be achieved then the whole project's viability is likely to be in jeopardy. Immediate risks to achieving financial targets. These risks include the postponement in the appointment of the market manager and the full complement of market operations staff; delays in the setting of regulations for the level of fees and the administration of the market; shortage of working capital for operation, staff salaries and recurrent maintenance; and the lack of suitable training courses for market staff. It will be essential to resolve these matters before the market starts to operate.
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Long-term risks. Even at this stage and despite rigorous analysis, long-term risks may still be present which might prevent achievement of a project's output, raising doubts about its overall viability or about the design parameters used in its preparation. The most likely of these risks is that the basic assumptions for achieving agricultural sector targets are not realistic. There may not, for example, be a guaranteed market for fresh fruits and vegetables and demand may not necessarily rise in line with increased production from horticultural projects. Realistic per caput consumption targets are needed to provide the basis for this assessment. Another common mistake is to be too optimistic about a market's performance in terms of the percentage of the total potential wholesale trade that will pass through it. This is often justified on the basis that using the facilities of the improved or newly located market will be mandatory, but despite this it still remains only an assumption and one which has caused the failure of many projects. The reduction of these risks will depend on the adequacy of the surveys undertaken at the design and feasibility stages and the effective long-term monitoring of the project, starting at the implementation stage(see Chapter 6). Environmental aspens. As well as its general benefits and its financial and economic performance, a project should also be assessed as to whether it might have any negative impact on the environment. The negative environmental impact of a project normally relates to the development of the market site itself. If this not undertaken properly and in conformity with an agreed master plan the development could: increase traffic congestion in the vicinity of the market site, particularly if the site entry is poorly located; · cause flooding to adjacent land, because of increased surface water run-off, a restricted site outlet or lack of on-site storage; and · produce glare and noise impact on adjacent land uses if insulation, screening and planting proposals are not carefully integrated into the development programme. These issues are discussed in further detail in Chapter 13.

Project recommendations
At the end of this design stage, assuming that a project has been found to be it is viable, the preferred design option should have been selected and the final shape of a project determined, including its management and institutional arrangements. In summary, the issues that should have been resolved include: · project outputs- the expected results from a project; · project activities- the tasks to be undertaken to achieve these outputs; · project inputs- the components that must be included in a project to allow the activities to be undertaken: - physical (civil works and equipment); - manpower and technical assistance; and -further survey and study requirements; · project budget- what it will cost to provide the inputs; and the · project work plan - when the project activities are likely to take place. Further issues to be resolved. The financial and economic analysis of a project and the types of project risks, outlined in the project justification above, will provide a basis for defining issues that may need to be addressed before progress can be made with project development. Before proceeding further there should be clear policies and action programmes available to eliminate or reduce risks to a low level, possibly requiring adjustments to the project design.

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Check list of typical project issues. The types of institutional, financial and physical issues that may need to be considered at this stage are likely to be as follows: · the purchase or transfer of land for new sites; · Iease-back arrangements between government and private enterprise; · the finalization of financial and institutional arrangements; · the clarification of legal and tax issues; · agreements with statutory authorities on solid waste collections, surface water drainage, sanitation, water supply and other environmental issues; · agreement on boundary and environmental matters with adjoining owners; · foalisation of facility requirements, planning criteria and a detailed design brief which will form the basis for the preparation of tender documents at the project implementation stage; · finalization of training requirements and programmer; and · agreement with the market's users on lease conditions, acceptable levels for rents, rates for commission on auction sales and other revenues. Contents Previous - Next

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the preparation of tender documents.org/docrep/T0521E/T0521E08. when the overall details have been broadly agreed. therefore. a critical-path network should be prepared to guide the project implementation process. A typical example of such a bar chart is shown in Figure 13. For more complex projects. although not directly influencing the broad policy-making aspects of the planning process. Before implementation can commence a wide range of issues needs to be considered. · the phasing of development and provision for market operation during the construction period. recommendations and acceptance. Project implementation Contents Previous . · trader and public participation.htm (1 of 5) [2004-12-21 01:15:26] . role of the parties participating in implementation. Pace of development Any market development is likely to take a number of years and a common http://www. Recommendation/action Existing markets. and the contractor's mobilization. The issues include: · the availability of finance for construction. tendering and tender analysis. Figure 12 Stage IV.fao. Although construction operations should ideally be undertaken without a market continuing in operation this will rarely be practical unless temporary accomodation at another site is easily available A common problem in expanding or upgrading an existing market. . and · choice of an appropriate type of construction contract Phasing of development As a basis for construction management a bar chart showing the project's implementation should be prepared.Project implementation · preparation of tender/bid documents. These are discussed further in this chapter and in Chapter 14. does have an impact on the detailed design of projects. Sufficient time should be allowed for: detailed design. Other matters requiring careful consideration will include packaging the works into separate construction contracts and scheduling of equipment procurement. is the need to adjust the programme realistically so that the market can stay in operation over the whole development period. Faulty assumptions on implementation are as much to blame for the failure of market projects as the adoption of erroneous design parameters. · establishment of a monitoring and performance evaluation system. The programme should incorporate practical time-frames for the construction contract lengths and the periods required for the pre-contract stages. · technical assistance requirements. defining phasing targets for the entire development of the market. A flow chart of the overall implementation process is shown in Figure 12.Next The fourth stage in project preparation is implementation which. This will mean making the maximum use of existing buildings until new accommodation is prepared and allowing a staged handover of facilities to the market's operators. for both design and construction supervision and for the management and operations staff.Ch08 6.

· the date for '"practical completion" of the works. a number of issues related to construction supervision and monitoring procedures will need to be resolved: · definition of responsibility of the employer's (client's) representatives. including the release of the retention moneys. In order to accelerate implementation some activities can. particularly if an existing operating market is involved. including working details. retaining-wall construction and the provision of compacted earthworks. These works will be followed by a main construction period. be initiated before the real start of a project. . Nepal) Contract administration issues. who will have authority for giving instructions on the site. · who will be responsible for preparing a schedule of defects at the end of the contract period. within which the contractor is responsible for making good any defects.fao. The contract administration system Design and supervision consultants. Before initiating construction operations. including the off-site roads and drains and be followed by construction of the main buildings. who will undertake valuations of the work completed (including unfixed materials on-site) and then prepare a certificate showing the amount for interim payment by the employer. tender drawings. These initial actions will include the pre-qualification and selection of design and supervision consultants and the preparation of tender documents for any site-preparation works in advance of the main construction contract. With a contract based on measured quantities (rather than a fixed price) the final account will adjust the tender sum amount to correspond to the actual works completed. Financial management. Local contracting capacity. Initial development needs and overall programme The first year of the development will usually be a preparatory year.. and · the length of the "defects-liability period". On completion of the works the consultants will also prepare a final account. To achieve the desired phasing the construction works will need to be http://www. · the frequency and chairing of site progress meetings. which will form the basis of the final payment. their responsibilities will also cover the preparation of the tender (or "bid") documents. Stages of completion with partial possession by the client can occur with large-scale developments. A temporary construction-site access road may be required.org/docrep/T0521E/T0521E08. An amount of around 5 percent is normally deducted or "retained" from the valuations to cover the making good of defects. either from the private or public sectors (see Chapter 14) will normally be appointed to oversee the works. however. the scope of any materials-testing programme. Apart from day-to-day supervision of the project. . an overall cost plan and procurement schedules for obtaining equipment. and a new main surface-water drainage outlet may need to be installed. often lasting up to three years.htm (2 of 5) [2004-12-21 01:15:26] . This is normally one year. · who will have responsibility for setting out the works. This will commence with the installation of the main site infrastructure.Ch08 error is to assume that this process can be easily compressed. often involving the installation of sub-soil and temporary drainage. Figure 13 Project implementations bar chart (Kalimati market. specifications and bills of quantities. The administration and financial management of payments to contractors will normally be the responsibility of the design and supervision consultants. when the client can occupy the market.

the construction equipment they possess.htm (3 of 5) [2004-12-21 01:15:26] . Affirmative action programmes. Part of the works will probably require experience in high-quality earthworks and therefore a general civil engineering contractor. it is essential that adequate provision is made in the contract documents for its proper utilization. bidding should be on a selective tendering basis.Ch08 broken up or packaged so that they can be handled by the local construction industry. therefore. Most countries have a system of licensing of contractors. For the main contracts. http://www. Minor works on the site might be undertaken by smaller-scale contractors if they are carefully short listed and the design of the infrastructure and ancillary buildings is made sufficiently robust and simple. such as a percentage release on the arrival of the contractor's equipment and plant.fao. A common approach is to exempt local contractors from any contract tax and from sales tax levied on materials. An additional incentive to local contractors its often to allow a mobilization advance of say 10 percent of the contract value. which is the one that combines a low price matched to a proven ability to undertake the works. Affirmative action programmes towards local construction industries may exist so that they can compete against international contractors. Normally. Generally. These programmes will need to be taken into account both in selecting contractors and in the financial and economic analysis of the project. contractors are graded into classes (typically. The abilities of local contractors will. tendered on the basis of bills of quantity. as well as allowing them a percentage incentive on their bids. so that the payments are only made against specific project activities. do have both general and specific conditions which allow them to be tailored to local conditions. Contract conditions. Local conditions of contract are likely to exist but these may only be appropriate for particular types of work. their experience in terms of projects completed and their financial assets. Selection and pre-qualification of contractors.org/docrep/T0521E/T0521E08. three or four grades) and what needs to be considered in packaging contracts is the suitability of particular grades for different sections of the work. although biased towards civil engineering types of work. The contracts should ideally all be on a "measure and pay" basis. it will be essential to have unambiguous and easily administered contractual arrangements. need to be reviewed. for which the FIDIC conditions are ideally suited. These criteria are related to the technical personnel they employ. If this is contemplated. at least. In order to be registered they have to satisfy a range of minimum requirements. to ensure that a combination of an experienced local contractor in joint venture with a foreign Contractor (acting as a management contractor) is not rejected solely on the basis of a lower bid by an inexperienced local contractor. The contract conditions of FIDIC (Federation Internationale des Ingenieurs-Conseils) may be an alternative basis as they are internationally understood and. The normal criteria used in evaluating tenders is to select the lowest "conforming" bid. with the balance released as the work progresses to the satisfaction of the resident engineer. This might be best achieved by letting this section of the works as a separate contract. would be appropriate. however. Caution must be exercised in the tender review. taking into account the need for the contractors to have experience in both the installation of site infrastructure and of fairly sophisticated buildings. with relevant plant.

this will include: · the setting of maintenance standards for the longer-term repair and replacement of infrastructure.fao. need to be measured by the monitoring system. On completion of the construction works the market authority will take over responsibility for looking after the physical infrastructure. Information systems.org/docrep/T0521E/T0521E08. The achievement of a project's goals will. The foundation of the monitoring system should be established during the implementation period by undertaking base-line surveys. Project completion. q expanded production areas for fruits vegetables and related increases in producer's incomes. To do this. http://www. will indicate whether the operation of a market has been successful. · the definition of emergency safety and security procedures. therefore. However. in effect. the market authority will have to consider how the periodic operation and maintenance of the market will be undertaken. and q lower consumer prices for fruits and vegetables. These might include: q increased per caput consumption of fruits. fish and meat in line with national basic-needs targets. To verify these indicators may need regular surveys to be undertaken by the market authority or by the responsible government departments. which is likely to be the responsibility of "in-house" staff. the impact of a market project on its beneficiaries is likely to be difficult to measure. and consumerprice monitoring. Post-contract administration. These data. market information and management systems should be functioning and it should start to be clear whether the market will be able to achieve benefits for the main target groups of beneficiaries. Operational matters. vegetables. estimates of changes in production areas planted and yields. particularly in the short term of a project life. Surveys may include changes in per caput consumption of produce.Ch08 Implementation of market operations Assuming that the institutional framework for the market has been resolved (see Chapter 7) there are a number of other issues with which the market staff and traders will need to involve themselves in order that management aspects of the implementation programme are effective. particularly if lessons from a project are to be applied to other market developments. A monitoring system will also need to be set up so that a market's performance can be evaluated against predetermined physical and economic criteria. The selection of applicants for stalls and storage space. At the end of an implementation period the market should be fully operational. the manager of a major infrastructure system. These include issues such as staff selection and training.htm (4 of 5) [2004-12-21 01:15:26] . Many of the disciplines and skills required will be relatively novel and it will therefore be necessary for a training programme to be developed appropriate to these needs. A number of indicators may be used to measure the project's impact. accompanied by a levelling-out of seasonal fluctuations in consumer prices. Project monitoring criteria. and the setting of rents and tolls will also need to be resolved (see Chapter 8). The setting up of market information and price systems will need to be considered right from the outset (see Chapter 8) so that the dissemination of information can commence with the operation of the market. A market operator is. and · obtaining public liability and accidental damage insurance. Apart from day-to-day maintenance. combined with an analysis of the daily trading and receipts records maintained by the market authority.

htm (5 of 5) [2004-12-21 01:15:26] .Ch08 Contents - Previous .fao.Next http://www.org/docrep/T0521E/T0521E08.

Private companies are flexible institutions. 7 market management systems This chapter is largely concerned with the establishment or modification of larger urban terminal wholesale markets as their complex management needs particular attention. or a combination of these. This might be a parastatal public enterprise. For a public corporation to implement new operational regulations commonly requires legislation. for which legal drafting and legislative processes may be protracted. government often has a decisive role to play in initiating and planning market projects.htm (1 of 6) [2004-12-21 01:15:32] . A traditional approach to the problem is to establish a marketing corporation or authority (sometimes called a public benefit corporation). New markets cannot operate in a legal vacuum. with that of government agencies who may need to intervene in the marketing process (often by providing needed services). Public corporation performances are frequently poor and their operation bureaucratic.Management and operations Contents Previous . Cooperative societies A cooperative society is another possibility for establishing a market. 8 and 9) gives a brief overview of the creation. such corporations cannot avoid government participation in much of their decision-making. The choice will determined by local socio-economic and political factors. but not necessarily a practical solution to immediate management demands. the reasons why. For the establishment of a limited-liability company.fao. Why government intervention? Before considering alternative types of institutional strategies. but their formation does not completely free a venture from detailed procedures. the writings of Abbott. Harrison and Mittendorf.org/docrep/T0521E/T0521E09. most of the markets in.Ch09 Part C . regulations and operational procedures. Because markets involve politically sensitive basic food commodities. when it is fully functional and operating at a profit there may be pressure to pass the operation to the private sector. but must be viewed http://www. The registration as a limited company may be the long-term aim. management by a state corporation is not generally recommended. and in the development of appropriate institutional arrangements. as it will still need to comply with the provisions of legislation. a cooperative or traders' group. it is also often necessary for government to take the lead. Secondary wholesale markets can obviously operate with simpler organizations. but the principal options are discussed here to provide a basis for evaluating their relative merits. Limited-liability companies. but the same basic principles need to be observed. Although a wholesale market may be set up on an alternative institutional basis. for example. whose support will be essential if the market is to be commercially viable. It is possible for market developments to be fully implemented by private enterprise. (comprising Chapters 7. as well as financing major site infrastructure components. However. This might lead to excessive control and interference. This might not be feasible in a management structure where it is necessary to have a broad spectrum of expertise gathered together from both the private and public sectors. however. For more detailed explanations of institutional options. as a context for the development of physical master plans and building designs. Marketing corporations. it may not be possible to attract willing investors. including the need for a clear management structure and for a board with a broadly similar spectrum of representation and responsibility to that required for an urban wholesale market.Next In developing institutional proposals for any market it is necessary to find a legal arrangement which balances the role of traders and other entrepreneurs. in particular. For these reasons. operation and regulation of marketing organizations. shareholders need to be identified and the directors would require a share holding qualification. In the short term. A joint venture is often the most appropriate form. there are now pressures to reduce rather than increase the number of parastatal corporations. In less-developed countries. might be necessary for governments to intervene in the marketing process need to be clarified. when there are marginal financial returns. reference should be made to the Bibliography at the end of the manual. New Zealand and Switzerland follow this pattern. This part of the manual. Type of market ownership Alternative institutional strategies for the ownership and management of a market will need to be fully examined before selecting the ideal form. a private corporation or company.

keeping prices down for the producers and high for the retailers and consumers. However. Although these are important issues they can best be covered by an appropriate form of liaison. traders. consumers including womens' groups. thus limiting the overall size of the board and reducing the influence of government bodies. the final format of the market management system is evolving. A development board is often the most flexible form of initial institution. thus defeating the objective of a food market. and equally importantly. Often. The principal advantage of this form of institution is that the authority has to be self-accounting. A cooperative of wholesale traders is the most common form. Again. These often have the power to establish and regulate markets. Composition of the board For a central wholesale market it is usual for the membership of the board to broadly cover the following sectors: fruit and vegetable producers. central and regional administrations. however. This can allow management to remain closely tied to government for an interim development period while. which enables an institution to be created exactly matching particular local requirements. a system for joint financing. need to be appointed in accordance with government rules. Commercial representation on the board might be from the local chamber of commerce and from wholesale traders who are licensed to operate in the market. The legal form in which a marketing institution might be created will need to be examined in detail. control solely by a local authority is unlikely to be the best management system for an urban wholesale market. such as retailers and hoteliers. the municipal government will need to be represented on any proposed management forum. but care should be taken that this will not preclude a more satisfactory long-term arrangement. local government. to lease space. a buying and selling ring is created. Other examples of cooperative ventures include markets established and run by religious organizations. banks and credit organizations. the setting of regulations and the prescribing of penalties. and to clean the market area. such as a special statute. http://www. The most usual form of market ownership is by a state. in the light of experience. If a project is to proceed immediately there may be a need for such an interim institutional arrangement. It facilitates the concentration of produce at collection centres and the organization of joint transport to market. Staff may. This approach is often an ideal mechanism because it can accommodate the most appropriate mixture of private and public participation.org/docrep/T0521E/T0521E09. allowing a mixed form of ownership. Government representatives arc usually drawn from the local ministry of agriculture. Experience has shown that the main motivation of many local authorities is to maximize local revenues. Development boards. to the extent that some of the most successful markets in the world are cooperative nun. These may be elected by a local association of traders.Ch09 critically as it may not answer the need for effective management. This is typically a management board. although it must be stressed that this varies substantially between countries. because of the importance of traffic control and waste disposal. cooperatives. but may be counter-productive. Although there are a number of significant exceptions. Legislation often exists for the establishment of a development board. The cooperative format is often the most appropriate method for a grouping of producers. The main components included in a Special Statute might be a definition of the board representatives and their powers. Space is often let to retailers of commodities quite unrelated to agriculture. although if this does not already exist it may need to be promoted by the market authority. If appropriate measures already exist this obviates any operational delays that might occur whilst awaiting government approval for specific enabling legislation. friendly societies charities and ex-servicemens' organizations. Cooperatives often have a poor record in the management of markets. Short-term measures. on horticultural matters and on quality control. Representation is also sometimes given to the police and public works departments. charging fees as necessary. Local authorities.fao. the establishment of a self-accounting fund. one step beyond the standard government departmental organization. and users' organizations. local or municipal authority. there are exceptions to the rule and some of the most efficient markets in Europe are run by wholesalers themselves. Such a measure could be used to establish a market authority and define the area within which it would be the sole authorized location for wholesale produce transactions. self-interest dictating behaviour which is detrimental to the needs of both producers or consumers. as the relevant local authority.htm (2 of 6) [2004-12-21 01:15:32] . This particular institutional format. offers greater administrative flexibility in the management of specific projects. By special statute. as technical advisers on food and agricultural marketing services. Market management boards Every market requires an overall control and policy body. Markets can also be created under Special Statute.

however. · issuing licenses to traders and retailers. Normally. Staff appointments. meetings would normally be convened by the chairperson as and when required. · defining staff hours and conditions. · establishing storage and protection facilities. but if producers' representatives are in dispersed locations this may have to be reduced to two meetings a year. offering long-term career prospects for staff who acquire expertise and experience in wholesale marketing. which specializes in fish and has a similar turnover to Rabat and Amman. and · imposing penalties. Maracaibo market in Venezuela. who would be prepared to make a long-term personal commitment to wholesale marketing development.org/docrep/T0521E/T0521E09. has a similar staffing level to Rabat but has an annual turnover of over a million tons (over six times that of Rabat). Staffing the market The board of directors of the management board should be responsible for the direct appointment of a General Manager (GM). Key appointments. using their staff. · drafting traffic and parking regulations. be represented on management information committees which would meet as and when required. for example.htm (3 of 6) [2004-12-21 01:15:32] . · defining the conditions of leases and contracts. Another significant difference between these two markets is in the usage of porters. Table 7. with more in the early years of market establishment than in subsequent years. · fixing of the times for buying and selling. is able to operate with a staff of only 22.Ch09 Chairing the board l he election (or sometimes appointment) of the chairperson of the board is a critical step in a market's establishment. in the form of fines. A schedule of quarterly meetings is quite commonly adopted. should be appointed on the basis of the GM's recommendations to the board for its approval. which has a turnover of about 150. largely because it uses modern bookkeeping methods and is well equipped. Staffing levels should be set at the minimum needed to run the market and the experience of similar markets is the best basis on which to approach the problem. reflecting their different operating systems.000 might operate on a particular day. such as the deputy GM and an auction-hall manager. Amman has only 350 porters. Powers of the board The overall administration of a market would be under the control of the board of director whose general powers should include: · establishing trading systems. Some of the key posts. They should attend all board meetings and.000 tons per annum.1 Check-list of typical staff working at a major wholesale market http://www. the general manager of the market would act as the secretary to the board and the market's accountant would be treasurer. Hunts Point market in New York. . provide the board with a full range of administrative services. The board should have power to appoint all staff and set such conditions of service as may be appropriate. Amman wholesale market. it will be essential to attract someone with entrepreneurial experience and considerable drive. but neither should be voting members. Overstaffing can be a serious issue and establishment levels should be thoroughly reviewed during project preparation. For the post of General Manager in particular. The board can also. while Rabat has about 3. expulsions and the withdrawal of trading licenses. with about 32 employees. Other staff appointments may be the delegated responsibility of the GM. · fixing rents. Numbers of staff used can vary considerably. recruiting and hiring staff. Board members are usually paid attendance fees in accordance with those paid by similar institutions.fao. With parastatal organizations this would normally be a prominent citizen.000 registered porters of which perhaps 2. · maintaining a system of weights and measures. the annual budget and the setting of fees and charges should require full board approval. Board meetings. The Marche de Gros in Rabat. Staffing levels. as long as this does not lead to delays in decision making. employs around 114 municipality staff and a further 22 Jordan Agricultural Marketing Authority employees. with a similar turnover. If the project is successful it may offer a model which can be replicated throughout a large country. Staff may need to be appointed through temporary or voluntary long-term transfers from government departments. employs around 35 staff to manage the fruit and vegetable section of its wholesale market. such as the governor of a province or state. transaction and parking fees.

accounts and control services. and .Ch09 General Manager Deputy Gen. is adopted in many markets to limit the number of permanent staff. will be divided into the following broad areas of responsibility: · Finance and Administration which as well as providing secretarial facilities. legal and accountancy services.Manager Management Info. In addition to the management personnel the following staff are normally required. It also assumes that the market is operating its own cold stores and that equipment and building maintenance is carried out by in-house staff. Nepal . Sub-contracting of services. a market's management structure. cleaners and porters are often employed on a casual basis. Staff such as labourers. · post-harvest officers and extension workers. · price information officers and recording clerks. excluding any specialized functions. Typically. including cleaning. employed by an agricultural economics or marketing section of the ministry of agriculture. The responsibility for the latter two functions will vary depending on the market's ownership.org/docrep/T0521E/T0521E09. employed by the ministry of health. also includes security and building maintenance: Figure 14 Kalimati wholesale market. and · weights and measures inspectors. Staff structure The best technique for developing a staff structure is to prepare a simplified organization diagram showing a hierarchy of management responsibilities.fao. It should be noted that this table includes staff for the operation of an auction hall and farmers' market. including any auction activities. Examples include the use of special identity cards to photo-electrically operate entry gates (used in Hamburg) and the linking of weighbridges to computers so that invoicing for tolls are immediately available and market sales records are generated automatically (used in Thailand at the Phitsanulok Agricultural Central Market). If the market is privately http://www. and personnel administration. · Quality Control covering post harvest activities and public health. such as is illustrated in Figure 14. the roles being filled by employees working directly for government departments: · public health inspectors and laboratory assistants. employed by an extension section of the ministry of agriculture. Officer Administrative Officers Accountant Accounts Assistants Secretaries/Typists Clerical Assistant Farmers' Market Inspector Entry Supervisor Tally Clerks Toll Collectors Storekeepers Hostel Supervisor Auction Hall Manager Chief Auctioneer Auction Assistants Auction Cashiers Auction Hall Clerks Computer Operators Training Officer Packaging Supervisors Packing Clerks Grading Clerks Senior Security Officer Security Officers Watchmen First Aid Nurse Cold Store Manager Maintenance Manager Maintenance Engineer Mechanics Electricians Plumbers Labourers Cleaners Sweepers Porters Handcartmen Car Park Attendants Gardeners Drivers Guidelines on the type of staff that might be required for a medium to large wholesale market are given in Table 7. Significant reductions in staffing levels can be achieved by adopting modern technology.htm (4 of 6) [2004-12-21 01:15:32] . Extension encompassing extension.organisation structure · Operations Sales which covers the handling of produce within the market and all revenue collection. employed by the ministry of trade or commerce or by a municipal authority.1. market information services and training.

htm (5 of 6) [2004-12-21 01:15:32] . fish marketing. Committees might be convened for the following subject areas: · operations and maintenance. with responsibility for the collection of data. particularly when several months may elapse between meetings of a full board. · development and finance. These committees are part of the management information structure concerned with reviewing day-to-day performance and are not board sub-committees with delegated responsibility for policy making. Data needed will include: · monitoring of project implementation. market operations. their individual needs and the frequency and format for data presentation. Training. The board should appoint observer members to each of the committees. appropriate http://www. building maintenance. computing. it is essential to determine the users of data. leasing and rentals.org/docrep/T0521E/T0521E09. can be established by making assumptions about how many consignments each individual might handle.Ch09 owned. auctioning. Operational committees. The observers act as a liaison between board and management. packing. grading. these services are normally provided by government. processing and retrieval should be computerised. recording of price data. Overseas study tours can to some extent fill this gap. will decrease in proportion with this improved efficiency. Estimating establishment levels. As the market develops it will be reasonable to assume that the average size of consignment will increase and that the task of entry supervisors will be adjusted from the examination and weighing of every load to one of random inspection. The general manager or his deputy should normally chair the committee meetings and other staff members. which can be established from roadside survey data or by making assumptions about when the peak period might occur (often between 0500 hours and 0800 hours).fao. small-scale processing. From the estimate of peak consignments the need for entry supervisors and tally clerks to check and weigh consignments and. An estimate should then be made of how many of these consignments might be sold or auctioned per hour during the peak period. Some useful material is available from the international institutions specializing in the training of market management staff. such as those in India and Korea (see Bibliography). · administration and personnel. vegetable and fruit sales. A common method of maximizing the exchange of information by the market management staff is to institute a system of operational committees. · a training programme. · financial monitoring. but there may still not be sufficient expertise available to undertake the management of a wholesale market without specific additional training and continued technical support. operations and equipment maintenance. focussing on in country training and short-term courses in neighbouring countries. A comprehensive training programme may need to be set up. to keep management regularly appraised of market profitability. the private owner often cooperating by allocating space within the market free-of-charge so that the services can be set up. The development of a wholesale market may be a completely new venture and while potential staff may be graduates few will have specific training in horticultural marketing. and · overall executive coordination. including entry supervisors and auctioneers. Management information system It is essential that an effective management information system (MIS) is set up. if applicable for auctioneers. For larger markets data storage. The types of courses that might need to be organized include: commercial accounting procedures. weights and measures. Preliminary estimates of staff establishment can be derived from the scenarios of turnover which have been prepared in designing the market (see Chapter 4) The initial step should be to estimate the tonnage to be sold by private treaty or auctioned per day and relate this to the average size of consignment. The numbers of general support staff. cold storage management. to ensure that staff acquire necessary skills. There must be a regular flow of data upon which management can make informed and timely decisions. environmental health. In designing appropriate courses full use should be made of the staff resources of the agricultural economics and marketing departments of local universities and agricultural colleges. and · monitoring of produce demand and prices (in conjunction with government officials) to be fed back to producers and available for evaluation against baseline projections made of the project's performance. To ensure that only data with a practical application is collected.

wholesalers' or growers' association is responsible for the erection and maintenance of the buildings. for example. including staff. Methods of financial control So far as possible within the enabling legislation.Ch09 to the business to be discussed. Profits should be reinvested at the discretion of the board. A government organization or local authority finances the main infrastructure and a traders'. to prepare a performance report covering their activities. Joint financing A joint-financing method is sometimes adopted in market development.htm (6 of 6) [2004-12-21 01:15:32] . External audit on an annual basis is also essential. would be in attendance. as required. and maintenance and depreciation of assets. An overall executive committee would be concerned with general coordination of all activities and would decide which matters should be reported to a full board meeting for information or decision. contribute to a proportion of the recurrent costs of the market.fao. For its day-to-day operation a market has a considerable number of cash transactions and a daily internal audit should be an essential part of the accounting system. to deal with performance constraints but otherwise not less than monthly. The method of financial control will need to be more complex. where the traders.org/docrep/T0521E/T0521E09. Fees and charges should be set to cover all costs. Contents Previous . possibly in other market improvement programmed.Next http://www. a board should be self-accounting and operate upon commercial principles. Committees would meet.

Alternatively. Transaction methods: auctions and sales A key factor in determining how a market will operate is the sales method it will adopt. The farmer/traders with produce for sale rent a market stall from a market authority for the day. It is important that such preconceived ideas do not hamper any innovative thinking and this subject is often. The main methods for sales of fresh fruit. For this system to work there must be a high level of trust between the producer and agent. the "lot" is withdrawn from the sale. The bargaining begins and depending on the supply and demand situation. therefore. Many people are likely to approach such a problem based on their limited experience of existing markets they may have worked in or seen. except that the producer is not there in person. followed in turn by other buyers. Private treaty. It may be taken away from the market or be sold by the farmer or trader (or in some cases. The auction method means that the auctioneer starts at a minimum price. the auctioneer) in a farmers' market on a private treaty basis for the best possible price. coupled with the quality of the sample. or by a telephone order (common in the USA and Europe). The main physical difference between this method and auctioning is that there is no auction hall. acts on the producers' behalf to try and obtain the best price. The success of this system from the farmer's or trader's point of view is largely dependent on his knowledge of the current market supply and price situation. they may sell directly from the back of the truck or pick-up in which they brought produce. for which he earns a percentage commission. Commission sales The procedure adopted for commission sales is similar to that used in a private treaty agreement. who does not have title to the goods. week or month dependent on anticipated volume and frequency of visits to the market. (Often the agent may be a relative of the farmer or be a larger-scale producer from the same village who owns or has access to transport facilities. Sophisticated variants of the auction system use a clock to indicate how the prices are changing. the bidding proceeds until the rising price for the "lot" eliminates all but the last bidder. more appropriately considered by outside consultants. bearing in mind the supply and current price prevailing at the time. by pre-arranged contract.fao. http://www. usually bearing some relation to the price prevailing at the previous day's auction.org/docrep/T0521E/T0521E0a. vegetables and fish are by private treaty. This aims to attract a large number of buyers who wish to purchase goods at a competitive price.Next The development of practical policies for the operation of a new market is critical both to the preparation of the physical design proposals discussed in Chapter 4 and as a basis for project formulation and feasibility testing discussed in Chapters 5 and 10. The most common method of selling perishable produce is by private treaty between a seller and buyer. by auction. bringing with them a variety of prejudices. who then becomes the owner of the produce concerned. by commission sales. They display their produce on the stall or on the tail gate of the truck and await an offer from an interested potential buyer. the private bargaining continues until an agreement is made between the two parties. Actions A common alternative method for selling produce is by auction. The commission agent. if the opening price is taken up by a buyer at the auction. If there is no bid. On the other hand.htm (1 of 4) [2004-12-21 01:15:36] .Ch10 8 Market operations Contents Previous .

A figure of between 3 . · commission to be charged to wholesalers and others purchasing produce by auction. Table 8.1. Auctions are almost always used in the sale of livestock and frequently for the sale of fish. Other revenues may account for a further 2 . the basic steps are the same. based on the proposed day-to-day operational pattern for a typical wholesale market using the auction system in Nepal. can facilitate the sales of a large number of very small scale consignments.5 percent of the value of sales. if well organized. requiring the minimum of management and is typically adopted for the sale of small lots. Produce handling procedures A critical step in both determining staffing levels and in designing an appropriate physical layout is to understand the functioning of the market as a series of operational steps. grading and repacking facilities. if an auction system is not being used it is likely that entry and parking fees will need to be proportionally higher to cover expenditure. Although there are differences in the detail of how produce is handled. · charges for using washing.5 2 percent of the value of sales. Details of this process are elaborated in Table 8. wholesalers and traders. Rentals.fao. · car parking charges. particularly vegetables. demonstrating that they will benefit from the market development programme. Private treaty is the most flexible method. particularly if some form of grading system has been instituted. The auction system has the advantage that it can avoid the development of wholesalers' rings and. This issue should be investigated at the project's feasibility stage and alternative rental levels and fee structures fully tested during the financial and economic analysis (see chapters 4 and 10). and · charges for all vehicles entering the market. However. Fruit can also be sold at auction. The setting of rental levels and appropriate levels of auction commission is likely be one of the most controversial subjects in which the board is involved.5 percent is probably reasonable. in the months following commencement of trading. Figure 15 illustrates a sequence of steps.10 percent are not uncommon.Ch10 Preferred system Which sales method is adopted will depend on local custom and what type of produce is being sold. As a guideline. producing an overall revenue of 5 . fees and charges It is the responsibility of the GM to recommend to the market board for their approval the following types of charges for the use of the market's facilities: · rent and service charges to wholesalers for storing produce in the mar ket shed or for renting separate storage premises. the problems of introducing an entirely new system of sales should not be minimised and if an auction is introduced the market authority is likely to experience some difficulties with the farmers and traders.1 0 percent.1 The sales process at an auction market Arrival and display of produce http://www. commission fees for auctions can be set as low as 0. Final resolution of this will be dependent on full consultations with the producers.org/docrep/T0521E/T0521E0a.htm (2 of 4) [2004-12-21 01:15:36] . It is not uncommon to have a number of methods operating at the same market. as well as the wholesalers. · tolls to farmers for using a farmers' market. and figures as high as 8 .

Unsold produce might be stored temporarily at the auction shed or removed. One copy of the chit is given to the farmer. with sales to the retailer in the afternoon.Ch10 On arrival the farmer or trader is checked and registered at a gatehouse at the market entrance. on checking. number of units. The trader with produce of an acceptable standard has it weighed and is issued with a numbered ticket detailing his name. The produce is moved to a designated space on an auction «platform" (segregated into vegetables. Subsequently. An entry toll is usually paid at this point (but sometimes later) based on the size of the vehicle. Produce may at this point be divided between graded and ungraded. produce may be taken directly to a wholesaler's premises. lastly. By 0800 hours it is likely that most of the day's intake would be sold. the farmer's name and district. The action The auction then proceeds. As the wholesaler is likely to be purchasing more than one consignment of varying products he is not required to go to pay until he has completed all his planned purchases. · resorting. the product. their weight and. quantity and selling price. For a market using a private treaty method of sales the sequence of steps are as follows: ·checking-in of produce at the entry gate. in most tropical and arid countries. an identification number of the section of floor space where he is to take his produce to await the auction.fao. After each accepted bid a clerk prepares a numbered sales note (or "chit") on which he enters the entry card number.org/docrep/T0521E/T0521E0a. The market porters then remove the purchased consignment and take it to the buyer/wholesalers' storage area. supervised by a qualified auctioneer. the produce is unacceptable (not washed. If there is a prior agreement for purchase or a contract arrangement. Purchase of produce by wholesalers and retailers The wholesaler who has bought the produce must then immediately pay the farmer/trader.. to be sold at an adjacent farmers' market. A typical auction. When the cashier has received the sales commission he returns a receipted copy of each sale note to the wholesaler. packing and display for purchase by retailers and other users such as hotels http://www.htm (3 of 4) [2004-12-21 01:15:36] . Where it is normal to serve the main meal of the day in the late evening as in some Mediterranean cultures (such as Malta) the peak auction period may be during the late morning. so it can be directed to different points in the market. commences at 0500 hours. If. the second and third copies are given to the buyer. ready for early evening shopping. the wholesaler presents his two copies of the chit at a cashier's counter where commission will be calculated and paid. cleaned and sorted at the farm or collection centre) he is instructed to take it to a washing and repacking shed. · unloading of produce at space allocated by the market authority. district. either a sales platform within a market shed or in some cases (normally with fruit and vegetables) an open area where sales are permitted directly from trucks. fruit and fish) by a porter employed by the market on a casual basis. where it might be repacked for immediate sale or sent to cold storage. Retailers and institutional users come to the market and purchase directly from buyers/wholesalers' establishments adjacent to the auction area. Once produce has been brought up to the required standard it goes to an auction hall. type of produce. · purchase of produce by whole salers by private treaty and then transfer to their premises. and a funkier two copies would remain in the clerk's book. Each auctioneer needs two clerks. On leaving the market the wholesaler needs to show these receipts to the gateman to be counter-stamped. an estimated volume or a weight established from passing over a weighbridge.

A notice board should be provided in the market to display information on a regular basis. Extension. The system should ideally be connected into both a national price collection procedure linked to the media (particularly if export produce is important) and to local assembly markets and packing or collection centres. in simplified accounting procedures. Facsimile or computer modem facilities are the most appropriate method for transmitting this information. to train its own staff and. based on a system of bookkeeping which will allow auditing on a daily. Figure 15 Produce handling within a typical wholesale market Financial management Markets generate a large number of transactions within a short period.Ch10 and restaurants. it enables traders to decide to which market they should deliver produce. probably. This information is usually collected by officials from the ministry of agriculture or trade and is useful for both the market's management and for producers. if telephone links are poor this may need to be supplemented by short-wave radio connections. Persons with recognized accounting qualifications are usually difficult to recruit and it is often impossible to attract commercially qualified accountants. quarterly and yearly basis. Computing and communications equipment will be required. market is to aid market transparency by compiling information on market prices. particularly related to marketing activities. However. -the retailer pays a market charge based on the type of vehicle (when he enters). improving competition and promoting adaptations to meet supply needs and market opportunities. standard procedures to handle them. Contents Previous . The project often needs.Next http://www. so helping to equalize supply throughout a country and even out price differences.org/docrep/T0521E/T0521E0a.fao. quantities sold and qualities offered. the storage period depending on type of produce and whether the wholesaler has cool storage facilities. therefore. or the weight or volume of purchases (on leaving).htm (4 of 4) [2004-12-21 01:15:36] . Markets are a convenient location for dissemination of extension advice and information. traders who will use the market. The produce may also be stored. A market accounting system operating along commercial principles is required. Dissemination of information The implication of introducing such procedures needs to be recognized at the project formulation stage as extra staff will be needed for data collection. It allows producers to delay harvest or store their produce till prices are better or transport facilities are available and helps them to make better long-term production decisions. Facilities for the display of extension material and the holding of extension meetings should be made available al the market . requiring simple. The theory of improved market transparency is that it acts as a stimulus to the economic functioning of the market. A full-time extension officer from the ministry of agriculture may be warranted for a larger market. so that they can choose both the location and timing of sales. unless the salary and conditions of service are considerably in excess of anything offered by the public service. Suitable publicity material should be provided on grading/packing requirements and possible outlets for produce. Market information and extension A major function of a modern wholesale.

These are outlined below. The basis for the license will be a written agreement with the relevant authority or the market management board to comply with the types of regulations outlined below. Accepted applicants would be licensed to trade and be required to sign a trading agreement with the board. Licensing Licensing can operate at a the level of the whole market or of the individual operating within it. however. if appropriate. They may. Market operators' licenses.Ch11 9 Regulating the market Contents Previous . Normally it will be responsibility of a trade or home affairs ministry. will commence each day and the time at which the market will be closed. Traders' licenses. To ensure compliance with public-health standards and fair-trading practices it is often necessary for governments to appoint inspectors who make frequent visits to markets and who have the power to revoke licenses. other than if it failed to make "reasonable" provision for security. all buyers should be required to leave the market within a specified period. should all be clearly specified. it is normal to regulate this so that the market can be completely cleaned for security purposes and. although some markets function over 24 hours. The commencement of each day's operation and termination is normally signalled by a buzzer or by the ringing of a hand bell. These will vary substantially between different countries.fao. A balance will always need to be struck. The administration of such a licensing system will vary from country to country.htm (1 of 3) [2004-12-21 01:15:37] . When a market is privately owned or is publicly owned and let out to a private operator it is normal to require a license to operate.Next The regulation of markets is a subject bound up with the culture within which the market will operate. if this might have a significant impact on working temperatures or the amount of daylight hours available. the time that auctions. Liability and general regulations The regulations should stipulate that all goods taken into the market would be at the sole risk of the owner and that the market authority would not be liable for any loss or damage. These hours should not follow those worked by government employees and should reflect the real needs of the market users. However. Market regulations The normal practice in all markets is to establish a set of regulations covering market hours and practices. The rights of users of http://www. Trading bours Some markets allow trading hours to be fixed by the traders themselves. to allow the books to be closed for the day. At the close of each day's sales.org/docrep/T0521E/T0521E0b. vary during the week (reflecting religious customs) and by season. where an auction system is operated. between the needs of traders to operate in as free an environment as possible and the need to provide consumer protection and impose public health and safety rules. All wholesalers and commission agents who wish to trade at the market should also be licensed and required to submit an application to the board for their consideration. but will follow some general principles. typically within one hour. Sometimes licenses are the direct responsibility of the courts and require an application to he made to a judge or magistrate. Therefore. market opening times for receipt of produce.

These regulations may be enforced by special officials or ones from the government's health ministry. The wholesaler would also be required to maintain accurate financial records (available for inspection by the market authority on request) and pay commission due for purchases on the same day as the purchase was made. damage or spoil any part of the market premises. and for a third offence the trader should be suspended from trading for a period defined by the market authority. It will need to comply with national public health regulations. up to a minimum specified standard. The users of the market would be required to keep it in a clean condition. ranging usually from one day to one month. These may be administered by either the public works http://www. This would normally be imposed to stop the sale of high value non-agricultural items. a copy of which would be incorporated in the tenancy agreement. often using public health officers attached to the municipal administration or a local hospital. (usually referred to by the general term of "traders") would have to undertake to respect and obey the market regulations. Producers and other users of the market. a written warning is issued.org/docrep/T0521E/T0521E0b. should also be required not to create or cause to be created any riot or disturbance or to remove. In specific cases legal action should be taken against the trader involved.htm (2 of 3) [2004-12-21 01:15:37] . quality control and hygiene Any market must maintain a high standard of public hygiene. Regulation of tenants and traders. liquor or spirits. Any violation of the market regulations should result in the cancellation of the tenancy agreement and possible prosecution. They should be required not to sell or expose for sale any unauthorized produce. Under the provisions of their tenancy agreements all wholesalers. should be displayed at a prominent position near the site entrance and within all the main buildings. perhaps the best known of which is the Food and Drug Act in the United States. Some form of public-liability insurance may be available to cover both those that work within the market and visitors. for a second. through to detailed technical requirements for the testing of produce for contamination. No commercial publicity or handbills should be allowed to be displayed throughout the market without the express consent of the market authority. including retailers. Regulation of farmers. The regulations would also cover the activities of other traders and farmers selling goods at the market. Other general issues that might be covered by regulations include traffic and parking regulations and limitations on access to the market without a personal or vehicle pass. commission agents and buyers. typically clothes. The regulations should require that all scales and measures used in the market should be regularly checked for accuracy by an independent authority. but will probably also cover the sales of wine. Inspection. A notice board.Ch11 the market to have any claim against the market authority on matters of public-liability would also need to be limited. Cleaning fire prevention and quality control Specific local ordinances imposing standards for the cleanliness of markets may also exist. The scope of such legislation may be wide ranging and include general matters relating to cleaning and disposal of waste materials.fao. For the first offence a verbal warning is often given. listing the general regulations of the market. as well as to pay all other charges on the day they were charged.

such as extinguishers and hose reels.Next http://www. but are using the containers provided. the actual operation of the system may be the function of the municipal authority or a private contractor. Contents Previous . Although administration of solid waste disposal is the responsibility of the market authority. Further details on solid waste disposal are given in Chapters 13 and 14.fao.htm (3 of 3) [2004-12-21 01:15:37] . For larger markets. it will also be necessary to check that market users are not placing dirt. To prevent cross-infection. produce that shows any sign of decomposition should be disposed of by the market authority in collaboration with the public health officers. rubbish or any other substance on the market floor. it will be essential to have a fully equipped and staffed laboratory. It will usually be necessary for the market to employ its own staff of inspectors to maintain the quality of the produce and to ensure that public ordinances are adhered to. The trader concerned should normally have the right to remove the inferior goods from the market should he so wish.Ch11 authority's sanitary inspectors or by public-health officers.org/docrep/T0521E/T0521E0b. particularly any relating to grading standards and to weights and measures. The market will also come under the control of local authority public works officials and the fire brigade in relation to means of escape from the market in the case of a fire breakingout and in the maintenance of fire-control facilities. A system of small fines may be necessary to achieve this. particularly those trading in meat and fish. These factors should be incorporated into the design of the market buildings (see Chapter 14). Solid waste disposal A major problem in all markets is the disposal of solid waste and although provision may be made for depositing waste at specific points or into skips. filth.

Particular reference should be made to Price Gittinger. D. tree planting.1 Typical cost elements for site preparation works Item and description · Demolition and cart away · Site preparation . by type and thickness · Sidewalks and footpaths. Financial analysis assumptions The first step in making a financial analysis (see Chapter 5) will be to phase the inputs of materials. by volume · Stilling basins/trash traps and confluence structures . primarily using illustrative material drawn from FAO studies in Nepal. height and thickness · Septic tanks. Fencing/walls. equipment and labour required over the project's life and cost them. To make these technical notes more useful a case study approach has been adopted. combining the provision of benefits to producers and consumers with profitability of market operations. Washington DC. by type · Street signs and markings · Parking areas. by diameter and depth Water Supply: · Mains connection.Next This section of the manual attempts to fill in some of the technical detail touched upon in Part B where the various stages of the design process are outlined. by type · Horizontal subsoil drains. and Harrison.C & Makcham. Project justification The purpose of any market development programme is the promotion of an environmentally sustainable project. Improved food marketing and delivery Systems. Economic analysis of agricultural projects. Thailand. (1979. Baltimore. Abbott. Vertical sub-soil drains. To evaluate whether this is actually achievable a systematic and rigorous approach must be adopted in analysing a project.Ch12 Part D .Technical notes Contents Previous . K.] Agricultural marketing strategy and pricing policy. by type. Agricultural economics and marketing in the tropics. by type and height · Landscaping (bollards. I (1972. 10. J. Further background to the subject of project economics and details of appraisal techniques are contained in the publications listed in the Bibliography. are described in the following section. in Elz.htm (1 of 6) [2004-12-21 01:15:43] .org/docrep/T0521E/T0521E0c.2 Typical cost elements for site infrastructure Item and description Road works: · Road pavement (off & on-site). recurrent expenditure and anticipated revenues for the project. Fill earthworks. [ed.P.fao. Assumptions that will need to be made in order to prepare cost estimates of the capital works. in present day prices. by diameter and length · Temporary drains and sediment control · Off-site improvements to surface water drainage outfall · Retaining walls. (1987. by diameter and depth Unit m² metre run lump sum m² m² metre run metre run metre run metre run Unit lump sum lump sum m² m² number number lump sum lump sum metro run item lump sum metre run lump sum http://www. by width and depth · Covers/Gratings. Harlow. by diameter and depth . World Bank). etc. by type and thickness · Kerbs and gutters (on-site). J. The intention of this chapter is to amplify the discussion on project justification outlined in the description of project formulation and feasibility in Chapter 5. Longman). Table 10.) Source: FAO Project TCP/THA/8958 Table 10. so that cash flow tabulations can be created. by type and thickocss Surface Water Drainage: · Open and Covered Drains. by thickness · Geo-textile blanket. by type and width · Culverts. The John Hopkins University Press). Brazil and the Near East.

In general.T. recent contracts.htm (2 of 6) [2004-12-21 01:15:43] . by voltage · Ducting and cabling. Table 10. if appropriate. Sometimes the local custom is for the site-supervision element of fees to be charged on a time basis. for the destination city). by depth · Connection charge · Distribution network. whilst for other infrastructure costs more detailed estimates will need to be made. The costs of major materials might be assessed separately. thrust blocks) · Chambers.2.f. These include the costs for stone. Costs for civil works are usually developed on the basis of multiplying approximate quantities by global "unit rates" derived from an analysis of similar. including labour and materials in installation. air valves and junctions · Building connections · Stand pipes. For the purposes of this analysis the cost for buildings is usually estimated on a simple per square metre basis. the complete supply (c. including street lighting · High . jointing and poles · Lightning arresters. Equipment may also need to be imported and cost estimates for these items should cover. commissioning. Typical market equipment is shown in Table 10. which might be obtained directly from a number of local quarries. by voltage and cable size · Main control panels and earthing · Street Lights Telecommunications. materials for building and infrastructure design should either be locally manufactured or easily available as imports from local suppliers. The quantities are estimated from the projected schedule of accommodation and measured off the outline designs for buildings and infrastructure defined in the site master plan.1 and 10.fao.Ch12 · Heading to street supply. by diameter · Underground tank or water tower. by diameter and depth · Manholes.i. · PABX exchange · Ducting and connection Source: FAO Project TCP/THA/8958 lump sum lump sum metre run Number Number Number lump sum metre run Number lump sum lump sum Number Number metre run Number Number lump sum metre run Capital costs. Typical items that might need to be included in infrastructure estimates.org/docrep/T0521E/T0521E0c. by dimensions. This is usually estimated on a percentage basis (typically 10 percent overall) for both pre-contract services and site-supervision. tension installations: · Cable (by voltage). by diameter (incl. a guaranteed supply and substantial saving in steel work and cement costs can sometimes be obtained by a project if it uses imported materials in lieu of what is locally available. etc. gravel and sand. separate budget costs for this might also need to be obtained. UMT and earthing · Low tension installations: · Transformer.3. metering. wash-outs. · H. However.3 Typical market equipment Weighbridge Platform scales Grading equipment Pan Scales Labelling equipment Cashier's listing machine Public health lab. maintenance and spares. which are explained in detail in Chapter 14. equipment Auctioneer's portable platform Wall clocks Produce thermometers Computers end primers Source: FAO Project GCP/NEP/043/SWI The build-up of capital costs should include provision for technical assistance and professional fees of design and supervision consultants. by capacity Sewers: · Unencased & encased pipework. are shown in Tables 10. but using an overall percentage is adequate for financial Garden tools Maintenance tool kits Platform trolleys Handcarts Solid waste management skips Public address system · amplifier · speakers · speakers (ceiling mounted) · microphone and stand · megaphone http://www. by dimensions. cover type and fittings hydrants. cover type and depth Electrical power supply system. Because the fabrication of the main structure is also likely to be a major cost component.

610 300 540 3. Price contingencies for inflation should not. Often there is a need for temporary rented accommodation for market offices or storage during the construction period and this should be included in the cash flow as an approximate lump sum.430 2. The main operating expenditure of a market will be staff wages and salaries. fittings and minor equipment a dump sum estimate can be included. The table incorporates all the construction costs. based on formulas for market productivity. In this case it is usual to assume as a "basic" case that revenues might be around 5 percent of the turnover.300 pick. major equipment. calculated on a straight line or declining balance basis. For furniture. Table 10.300 500 #0 1. Typical items of expenditure that should be included are shown in Table 10. again at current prices.840 180 14.000 675 600 1.htm (3 of 6) [2004-12-21 01:15:43] . The latter can be derived from a combination of roadside surveys of produce types and price data.500/m² 5. It is also sometimes necessary to identify separately any items requiring a major foreign exchange component.730 1. however. Depreciation should assume a 25-years life for civil works.ups/trucks · Car Park .000 300 16.500/m² 5. Revenues.430 250 3. a 10-years average life for equipment and 5 years for furniture and fittings.20 percent physical contingency. Bonus payments.000/m² 4. be included in cash flows (although they may form part of project budget estimates ) as the analysis is undertaken in current prices.4 shows a compilation of capital costs for a the first phase of a medium-sized market development programme. may also need to be included in the cost estimates. normally based on prevailing local prices for other construction projects or by applying a factor of around 5 percent to the capital costs. which is a fairly normal rate of commission levied in wholesale markets (see Chapter 8).000/m² Provisional sum Provisional sum 5/m² 350/m² 500/m² 400/m² 450/m² 550/m² 200/m² 30/m² 50/gal 10/m² 60/m² 110/m² Total cost (Bht '000) 9. with a residual value equal to acquisition costs plus site preparation. technical assistance and physical contingencies.Ch12 analysis. Other items of recurrent expenditure should again ideally be estimated on the basis of data which may be available from similar markets in the region. particularly if this feature is going to be analysed in the economic analysis. Table 10. Most desk top calculators with financial functions or spreadsheet programmes have a facility for calculating depreciation. A sinking fund should also be included.600 @ 3 5% http://www. A 10 percent physical contingency is usually added to the overall operating costs. To prepare estimates of revenues on sales sensible assumptions will need to be made about the growth in turnover.500/m² 6.30 cars · Roads · Surface Water Drainage · Water Supply · Water Supply Tower · Sewerage · Electrical Supply/Street Lighting · Telecoms* Sub-Total Professional Fees: · Design Unit cost (Bht) 4. using prevailing pay scales in the private sector.4 Sansai Market Centre: construction costs (Bht '000) Item Buildings and Equipment: Main Sales Space · Rentable Stores · Washing.900 74.050 10.230 5.fao.org/docrep/T0521E/T0521E0c.000 4. These should ideally be built-up from detailed staffing establishment figures (see Chapter 7). Recurrent costs. The revenues generated from wholesale markets are the most difficult components to estimate. An overall percentage basis may have to be used if insufficient detailed costs are available. Although a market site may already be owned by a market authority or government an allowance should he included in the cash flow for land purchase. Revenues for markets charging market fees directly on sales or operating an auction system are the easiest. Civil works and equipment cost estimates should include a 10 .5. Packing & Grading · Market Management Offices · Other Offices · Basic Support Facilities · Grain Dryer & Silo (15 ton/hr) · Market Fixed Equipment Site Infrastructure: · Geotechnical/Materials Testing · Site Preparation/Landscaping · Grain Drying Area · Car Park .000/m² 6. as well as estimates of the average value of produce.

Each year of a project's life is represented by a column in a cash flow table.7. all these costs are converted into current prices by applying discount rates. So that the financial analysis can be undertaken in present day prices. A market investment project is developed over a number of years and its costs must therefore be phased to reflect this.5 percent of capital lump sum lump sum lump sum lump sum at I percent of capital at 5 percent of capital at 10 per cent of capital lump sum Terms used in financial feasibility studies Although there are many techniques for analysing projects.6 Unit rates extrapolated from actual market rates. An example of a project cash flow and the resulting financial analysis is shown in Table 10. using a desk-top calculator or spreadsheet. has already been outlined in Chapter 5. Table 10. tons percent/m² percent/m² percent/m² tons per month tons per month percent/m² percent/m² '000 spaces '000 users http://www.5 Typical market operating expediture Insurances · buildings · plant and machinery · public liability Office overheads Utilities: · electricity and water · fuel vehicle maintenance.850 86. levy on estimated average monthly throughput of sales space · utilization of wholesalers' storage premises · monthly rental of wholesalers' offices · annual utilization of cold storage space · stored volume at cold stores · sales of ice · monthly rental of other facilities · use of washing & grading/packaging facilities · entry fee/short-term parking use for cars/trucks · use of hostel facilities per cent bedspace occupancy per night · annual usage of toilets Source: FAO Project GCP/NEP/043/SWI Projected cash flows. The rows of the table represent the costs and benefits occurring in each year.htm (4 of 6) [2004-12-21 01:15:43] . can be estimated as 30 per cent of the amounts collected as market fees or as commission on auctions.Ch12 · Supervision Base Cost Physical Contingency TOTAL (rounded) @ 2. grading.490 78. · refuse collection Repairs and maintenance: · building and civil works · plant and machinery · office equipment and furniture Debt servicing percentage of total capital requiring repayment Annual audit fee Source FAO Project GCP/NEP/043/SWI Other revenues. from market fines (a minimal amount) and from services such as washing.520 7. The analysis is not taken beyond around 25 years as this will have little impact on a project's rate of return. A more refined method to estimate annual revenues (or when a market does not charge market fees or auction commission) is to use an assumed set of financial analysis parameters. at 1 percept of capital at 2 percent of capital at 0. where these are available (such as typical rental or parking charges). Cash flows arc a means of representing in a tabular form all the costs and benefits of a project that have been discussed earlier in this chapter.fao. This basic method for calculating financial and economic returns.0% @ 10% 1. such as by the use of goals-achievement and social cost-benefit analyses.6 Typical financial analysis parameters .400 Source: FAO Project TCP/HA/8958 Note: # constructed in later phase Table 10.org/docrep/T0521E/T0521E0c. packing and parking fees. The following notes amplify a number of the technical stages that are used in such an analysis. Typical examples of such parameters are shown in Table 10. greasing etc. the preferred method for marketing investment projects is usually one that adopts an internal rate of return as the main criterion. Discounted values. would be applied to these parameters to derive revenues. lubricants. from the monthly rental for stores.

The calculation can be applied to the financial returns on a project or to the adjusted economic returns (see Chapter 5).0 (58.0 12. these can be converted into a single figure.htm (5 of 6) [2004-12-21 01:15:43] .2 51.9 10 1. Because. · each successive net cash flow amount.0 (22. This represents the average earning power on the investment over its life. An example of this might be the introduction of a traffic management scheme.0 0. Recurrent Expediture Operating costs Depreciation Total Expenditure Annual revenues Net Cash Flow 1 20. such as large-scale grain drying and silo storage facilities. Through refrigerated cold storage some tones of produce can be loaded into store within hours of harvest and maintained in sound condition until supplies begin to tail off and prices improve.0 0. with widely varying benefits.0 0.0 28.0 0.8 20.2 17.0 78.3 24.0 11. it is better if gluts are prevented by using production planning to allow staggered harvesting times. whilst a computer or financial calculator will automatically produce a single value. cases when refrigerated cold storage can help the market situation.6 ANALYSIS: Internal financial rate of return = 19.9 34.0 58.5 42. Justification for cold storage. abattoirs and cold storage.6 58. however.5) 3 28. and gross returns can be directly related in the cash flow to obtain its annual net revenues.0 0.6 5. cold storage is often included as part of a comprehensive market development programme the following notes amplify the types of problems that such infrastructure might create. when a large crop of a particular produce is being harvested and a farmer becomes aware that the volume being sent to market cannot be absorbed without causing a serious over-supply. An internal rate of zero will mean that a project has covered its capital and operating costs. The spreadsheet programme or desktop calculator will normally allow this to be automatically calculated. storage facilities.0 0. for the remaining 24 years. which frequently turn-out to be "white elephants". This can particularly apply with imported fruits. To input data into the spreadsheet or calculator it is only necessary to specify the following: the amount of the initial (first year) net investment. It can also apply to local produce at harvest time. where only a limited investment is undertaken and the impact is confined to only a part of the market's operation. and · a discount rate equivalent to the opportunity cost of capital (in this case taken as 10 percent).1 5. such as apples.1 5.4 29.7 61.2 6-8 0.8 3. In general.1 0. where the wholesale market is only a component of a larger programme.0 14. The return on any investment can be expressed as a percentage. where the benefits could be assessed by reference to reduced transport costs. These problems are outside the scope of this manual and should be subjected to a separate detailed justification.8 18.0 (38.0 0.0 0.1 4. in which the total of the discounted costs and benefits (the net present value) are zero.0 0.0) 2 38.8 12-25 0.8 1. where they are being sold through the wholesale market.9 44.0 0. A rate of return of between 15 .7 12. Examples might include: · integrated projects. the internal rate of return.5 0. collection centres and rural roads.9 21. With the application of discount rates.2 0. 7 Sansai Market Centre: financial analysis (Bht. The justification for cold storage must be thoroughly examined before entering into costly investment decisions.0 0.9 12.4 0.Ch12 usually of between 10 -20 percent.8 47.0 0.0 0. million) item Year Capital Investment: Civil works & fees Land acquisition Furniture & equip.0 0. which arc the balance of revenues over expenditure (whether positive or negative). or · the provision of specialist facilities at a market.4 70.0 (3.7 36.3 0. which represents the total value (or worth) of a project in present day terms. the site does not have to be in the market and it is often more appropriately located in the production areas. Although this may justify the use of cold storage. Net present value.0 0.0 38. There are.0 0.fao. If this calculation is undertaken manually it has to be by series of approximate calculations (iterations).org/docrep/T0521E/T0521E0c. This figure is equivalent to the sum that would be required to go out and purchase such a market Table 10.0 0. however.6 4.6 4.8 2. the net present value.9) 5 0.0 3.18 percent is usually found acceptable in less-developed countries. Market cold stores are needed: http://www.1 38.9 0.0 0. market extension and training.9 9 21. which might also include assembly markets. A higher rate will mean that it has made a profit.34 percent Net present value = 159.34 million Bht.2 5.3 14.6 3.5 17. · partial market-improvement programmes.9 11.3) 4 17.0 7.2 11 0. at a 10 per cent compound discount rate Source FAO Project TCP/HA/8958 Internal rate of return. Specilalist analysis In some cases a different approach will need to be taken in the financial and economic analysis from that discussed in Chapter 5.0 8. A project's capital and recurrent costs.

typically comprising ammonia reciprocating compressor. accumulator. · to hold truck loads coming from the off-market cold stores for sale at the market. · Labour and materials in installation. and · to provide temporary storage for small quantities to prepare for main market days or for holding temporary surpluses. re-circulating pumping set. Of the fruits. · Supply and installation of ducting. 3 phase electrical supply). atmospheric condensers (1 standby). liquid receiver. In general.fao. by looking at the supply situation and the practicality of storing that type of produce.Ch12 · to hold imported fruit. and · Commissioning. Contents Previous . I years maintenance and spares. · Supply and installation of ice making plant. lemon and apple are the most practical for cold storage. No attempt should be made to store other more delicate vegetable crops until practical experience in cold storage management has been gained. pipework. · Freight and insurance. fittings and electrical equipment (compressor motor.org/docrep/T0521E/T0521E0c.htm (6 of 6) [2004-12-21 01:15:43] . defrosting equipment. the vegetable crops that may safely be cold stored are potato. Budget prices for refrigeration and cooling equipment are difficult to estimate and assistance should be obtained from suppliers in determining the appropriate capacity (specified in metric tons) and equipment needed. blowers. air handling motors.Next http://www. oil separator. As a basis for evaluating the need for cold storage the types and quantities of crops that can be stored should be thoroughly reviewed. onion and carrot. · Supply and installation of stand-by diesel generator. orange. The following items should typically be included in a budget estimate: · Supply and installation of refrigeration machinery. Cost estimates for cold storage.

drinks and umbrellas.volume of goods transported and modes of transport used. food. Introduction to survey techniques Like many of the issues covered in this manual. six people will generate enough work back in the office to absorb the time of 2 or 3 people for a week. A team leader should be appointed to coordinate the surveys and to deal with administrative matters such as payment of expenses and provision of seats.frequency of trips and departure/arrival times. including: Holtzman. (1986. 30) and McCracken. · surveys should be random. and · annual turnover and profits. 10th or so stallholder or lorry driver. The basic information needs. but there will be strong pressures from many involved in the development process to short cut the surveys. agronomy. An introduction to rapid rural appraisal for agricultural development. say. or by superimposing a grid over a site plan of the market. London. This manual can only cover the most common surveys that will be required for physical planning purposes. It is essential. where indirect methods of survey may need to be adopted. J. either by selecting every 5th. Particularly useful are those which deal with rapid rural appraisal techniques. Only that information should be collected for which there are staff and facilities capable of providing analysis. and · traffic surveys of: . therefore.A.origin and destination of produce.S. Socio-economic and engineering surveys Contents Previous . They may. by season. agricultural economics and geography. http://www. before launching a full-scale survey programme.R. also be stratified to ensure that all interest groups (such as wholesalers.& Conway.htm (1 of 6) [2004-12-21 01:15:50] . Socio-economic surveys of existing facilities Which surveys are undertaken will depend on the type of data that is already available and the extent to which it is necessary to supplement it. commission agents and retailers) are covered. and · the survey enumerators must be fully briefed. statistical analysis. To obtain statistically significant results the sample size should be as large as possible. · space utilization and availability. are similar to those needed for examining an existing market. · marketing channels. however. Michigan State University. including stall sizes. International Institute for Environment and Development). . In addition to the detailed engineering surveys described at the end of this chapter. broad physical surveys are also required of: · the existing market layout and facilities. within the constraints of the resources available to collect and analyse the data. by season. The types of socio-economic surveys that are needed in the design of wholesale markets are: · quantities and types of goods traded. They should be trained and tested in the field before undertaking the main survey. (1988. by gender. including anthropology.org/docrep/T0521E/T0521E0d. Only factual questions should be asked and it should be possible to answer as many of the questions as possible by simply ticking or crossing a box on the form. The main difficulty in setting up any survey programme is to obtain the maximum amount of information with the minimum of effort. Pretty. to observe the following principles: · the purpose of the survey should be clearly defined.N. Some words of caution are required. · employment characteristics of the market. This may appear to be completely obvious. Background reading on surveys are contained in the Bibliography. Department of Agricultural Economics. I or any one day's field work there is at least another day's work in the office. however. · degree of overcrowding/congestion. which in the case of markets in less-developed countries touches on many other areas of knowledge. · management system and operational methods. J. A survey team of. and . . even if they arc using a desk-top computer to analyse the data.Next Surveys are the foundation of any project and are an essential part of the design process. · questionnaires should be short. surveys are a vast subject in their own right. With existing markets the problem is simpler than with new facilities. J. · rents. Rapid reconnaissance guidelines for agricultural marketing and food system research in developing countries. however. often because of previous bad experiences of over-elaborate and costly surveys which failed to provide the data required. G. · there should be a pilot survey before undertaking a full-scale survey.Ch13 11. Scope of surveys. clear and only cover key questions.fao.utilization of facilities such as cold storage and silos. · types and roles of market users/functionaries. Working Paper No. tolls and revenues.

being used for each set of observations (either an exit or an entry of a vehicle). The act of unloading a vehicle was considered to be its time of entry and the completion of loading and its departure. The enumerators were provided with standard survey forms (see Figure 17). one row of the form. there should be no duplication. There are three basic methods by which these types of data can be collected: Observation.htm (2 of 6) [2004-12-21 01:15:50] . Market users can be interviewed using a random stratified sample and the data can then be expanded to provide an estimate for the overall market. Two methods can be used. A brief interview was held and a record was taken of the overall volume and types of produce that were expected to be traded that day.volume of purchases by origin of produce. A useful technique is to follow the marketing of a batch of produce from the farm level or local assembly market up to the wholesale market and then follow it right through the market until it is purchased by a retailer or other trader.Tuk (3 wheeler) Pick-up (1. its time of exit. A questionnaire for this method. l his method can be used to establish the weight of deliveries.fao. which has been used for a number of 20 percent sample surveys is shown in Figure 16. Casual (but informed) observation and limited interviews with the market functionaries can provide a wide variety of data. This technique is further discussed as a case study in the next section of this chapter. This was needed so that the catchment of the market could be defined and produce flows could be quantified by type and mode of transport. -volume of purchases by channel.org/docrep/T0521E/T0521E0d. including recording their place of origin and the destination to which they arc being sent. sometimes in combination with each other: · by stopping and questioning the drivers of vehicles entering or leaving at the market's check-point or gate house. and -volume of sales by destination of produce. -selling areas of stalls. . The survey enumerator stopped at every fifth stallholder he or she came to. As the market is a private establishment. as far as possible. This is the most reliable and comprehensive method as such surveys record all the produce entering or leaving a city or its main market within a specified time period. The survey data can be analysed using computer spreadsheets (the data in the case of a 20 percent sample expanded by 5 times to obtain a 100 percent coverage) to provide the following information: Figure 16 Interview survey pro-forma for markets in Chiang Mai Province. Thailand . Vehicles types were recorded on the form by using a code number: Head Load/gasket Push Cart Bicycle Rickshaw Motorbike Tuk . Each vehicle was recorded only twice: when it entered and when it exited the market. The enumerators were instructed that they should ensure.Ch13 Survey methodologies. Eight enumerators were located at key points in the market (see Figure 17) covering all the main entry and exit points. its origin or destination and what type of produce is being delivered to or taken out of the market. · by interviewing stallholders or wholesalers on a sample basis. Roadside surveys. The techniques of rapid rural appraisal arc very valuable in this context.5 tons) Saloon Car 4 Wheel Truck (6 tons) 6 Wheel Truck (7. The enumerators were instructed to question the vehicle drivers if there was any doubts about the origin or destination of the produce.5 tons) 10 Wheel Truck (13 tons) 0 1 2 3 4 5 6 7 8 9 10 http://www. the vehicle type. It was therefore necessary to undertake surveys to establish the total quantity of fruits and vegetables both entering and leaving Muang Mai on a typical day. The surveys were started promptly at 08:00 am and finished at 16:00 pm. Case study of roadside survey of commodity flows (Thailand) The purpose of these surveys (undertaken by FAO Project TCP/THA/8958) was to understand how the Muang Mai market in Chiang Mai operated as a secondary wholesale market for the Northern Region of Thailand. Interview surveys. the operating hours of the market. with only limited intervention by the municipal government.total daily volumes and type of produce sold. Scope of surveys. the origin of the produce and the expected destination (usually based on the previous day's trade). .gender and number of employees at each stall. Actual vehicle entry and exit times were recorded and later coded on an hourly basis. Survey methodology. no records were maintained of transactions. The surveys were undertaken over two full days at the end of the wet season (16/17 August 1990) and one full day in the middle of the dry season (4 May 1991).

htm (3 of 6) [2004-12-21 01:15:50] .fao. The coding of the data was first checked against the categories of vehicle types. such as whether it was wholesale or retail.72 291. Table 11. Northern Thailand classified into thirteen groups: 0 1 2 3 -11 12 within Muang Mai market.44 588. origin Muang Mai). root crops and tubers V3 Fruit-vegetables (ea. produce and O/D locations described above.59 2 Day Total 605. within Chiang Mai city.1 Summary of commodity flows in the wet season Commodity Flow (tons): Type of Flow Incoming . the south or the east). The average daily commodity flow for the rainy season was around 300 tons.org/docrep/T0521E/T0521E0d. other provinces in the Northern Region.54 30. For analysis purposes the origin/destination (O/D) data of vehicles was Figure 17 Roadside survey pro-forma and location map of survey points. · traffic circulating within the market.26 316. These data were grouped into six classes of produce: V1 All leafy vegetables green vegetables V2 Bulbs. into the following categories: · commodity flows and type of produce by origin/destination.leaving market Average August 16 257.93 36. The first of http://www. Chiang Mai. Account was taken of partial loads.14 297.1 summarizes the commodity flows (in tons) in the wet season. Muang Mai wholesale market survey.51 297. and outside the Northern Region (Bangkok. by date and whether incoming or outgoing traffic.Ch13 Other Vehicles - 11 The main commodities that the vehicle was carrying were recorded and the percentage that the particular produce formed of the total load was approximately estimated on the basis of the capacity of the type of vehicle. · commodity flows by time of entry/exit. Table 11. The data was then sorted into three basic spreadsheets as follows: · traffic entering the market (ie.coming into market Internal .93 285. and · traffic leaving the market (ie. for example. The type of trade being undertaken was also recorded.08 August 17 347. Particular care was taken to establish traffic that might be emanating from the Chiang Mai municipal area. melons and others The total load in metric tonnes was recorded based on the type of vehicle used in carrying the produce. The average daily commodity flow for the dry season was around 210 tons. Chiang Mai Province.02 277. 30 percent less than in the wet season.28 Av daily 302. These three main sets of data were then further sorted. and · commodity flows and number of trips by vehicle type/mode. mangostecn and durian) F3 Citrus. tomatoes). langsat and longan) F2 Southern fruits (rambutan. both between the two days and between the incoming and outgoing flows. which are given below.15 24. The same enumerator did not necessarily record the entry and exit of the same vehicle and vehicle licence plate numbers were also recorded to help establish these data. Results of the wet season survey This section presents an analysis of the two days of the wet season survey. The origin or destination of the particular loads were identified as accurately as possible (by province/district/ towns). peppers and others F1 Northern fruits (Iychee.19 Further analysis of the spreadsheet data enabled a number of other summary tables to be prepared. The same vehicle might. bring a wholesale load into the market and leave with retail commodities including non-fruit/vegetable loads. Analysis of surveys.circulating within Outgoing . as well as those with non-fruit/vegetable loads. There was a good correlation in the figures. destination Muang Mai). such as 1/2 load and empty vehicles were also recorded. a similar analysis having also been undertaken for the dry season. Each line in the survey forms was represented by a line in the spreadsheet and was initially sorted on the computer using time as the primary key and origin/destination as the secondary key. The classified data for each day of the survey was then analysed on a personal computer using a standard spreadsheet programme.08 61.

mangosteen and durian) F3 Citrus.7 0. a striking difference was found between goods coming into the market and those going out.7 1.0 The pattern of vehicles entering and leaving the market during the day is shown in Table 11.6 60 100.1 8.95 41.6 23.8 2.29 302.08 291.9 6.37 42.58 13.0 Table 11.75 0.9 1.97 52.36 3.00 12.42 91. daily 199.12 am 12 .0 Outgoing (tons) Av.54 2.54 13.72 36.0 0.0 0. daily % 39.92 8.10 am 10.89 68.0 0.09 am 09. a rapid build-up in flow to a mid-day peak.46 9. with this type of produce representing 90 percent of the trade.02 pm 02 .40 45. daily 25.0 Outgoing (tons): Av.47 1.11 am 11 .73 14.8 11.20 20.86 2.33 19. Table.5 0.60 5.75 4.5 1.0 4. It was clear from the figures that Muang Mai is primarily a vegetable market.69 302.org/docrep/T0521E/T0521E0d.19 45.2 100.30 21. For vehicles entering the market the pattern conformed with what would be expected.4 5.05 pm Total Incoming (tons): Av.81 66.2 72.2 13.04 pm 04 .2 100.2 Volume of wet season produce by type Type of Produce V1 All leafy vegetables/ green vegetables V2 Bulbs.14 % 8.59 52.3 4.2 0.60 16.5 1. daily 163. melons/others Total Incoming (tons) Av.7 100.1 1.87 36.9 11.25 3.2 64. For http://www.30 0.52 27.7 14.14 % 6.75 302.8 4.0 16.9 15.29 44.Ch13 these tables (11.14 % 56. quickly tailing off by late afternoon.01 pm 01 .fao.4.7 100.2 8.0 Outgoing (tons) Av. langsat and longan) F2 Southern fruits (rambutan.3 Commodity flows in the wet season by origin and destination Origin/Destination by province Chiang Mai City Chiang Mai Province Lamphun Province Chiang Rai Province Phayao Province Uthai Tharu Province Mae Hong Son Province Lampang Province Tak Province Suko Thai Province Other Provinces Outside the Northern Region Total Incoming (tons) Av.63 218.67 23.39 42. daily 18. contained in Table 11.03 5.0 In an analysis of commodity flows by origin and destination.3 12.5 3.2) presents the commodity flow by type of produce.00 32. The most important source for vegetables during the rainy season was found to be the upland cropping areas in the adjacent districts to Chiang Mail Table 11.7 15.5 3. 10 5. root crops and tubers V3 Fruit-vegetables.7 17.03 pm 03 .58 3.8 23.7 6.47 291.4 Commodity flows in the wet season by arrival/departure time Time of entry/exit 08. peppers and others F1 Northern fruits (Iychee.8 7.0 0.43 291.2 1.0 14.07 16.1 0.6 15.05 0. daily % 6.54 % 66.98 50.9 100.40 188.htm (4 of 6) [2004-12-21 01:15:50] .6 14.80 33.7 5.3.2 0.

htm (5 of 6) [2004-12-21 01:15:50] . · horizontal linear measurements to be accurate within 20mm per 100 metres (applying appropriate slope and tension corrections). corresponding broadly to the haulage distances for the produce. daily 0. at either ]:500 or 1:1.) Saloon Car 4 Wheel Truck (6 T.5 ton pick-up.35 16.7 8. However.5 T.5 Commodity flows in the wet season by vehicle type Vehicle type/mode Head Load/Basket Push Can Bicycle Rick straw Motorbike Tuk . including buildings and other infrastructure under construction.6 100.4 0.10 291.15 74.0 Engineering surveys Apart from the socio-economic studies and traffic surveys described above. engineering surveys will be needed for both existing or proposed market sites .86 10.4 3. with two peaks in the late morning and mid afternoon.1 25. For the outgoing traffic the majority of the load (around 75 percent) was carried on 7.7 15. representing around two thirds of the total. · a review of available construction materials and technologies.7 5.0 0.) 6 Wheel Truck (7.org/docrep/T0521E/T0521E0d. and · typical construction costs. · an analysis of a site's drainage problems. http://www.1 3.7 48. The main mode for incoming traffic was the light 1 . mostly for short: haul distances within Chiang Mai city and the adjacent districts. with the remaining one third of the produce being brought by heavier vehicles.13 ton trucks.0 0. Spot level should be taken at all breaks in slope. This might range from simple chain traversing. Advice should be sought from a national survey organization or local surveyor's professional body on the appropriate technical specification and realistic levels of accuracy.8 0. because market administrators and planners may find that they have to issue terms of reference for topographic surveys and site investigations before design and supervision consultants are appointed (see Chapter 14) further technical details of what they might entail is given below. · electrical supply.8 5.) 10 Wheel Truck (13 T. through to electronic distance measuring. To relate levels to this datum may require flying levels to be taken so that that the site levels can be related to a fixed bench mark outside the site.04 2. Topographic and geodetic surveys.) Other Vehicles Total Incoming (tons) Av. Around 15 percent of the total was carried on pick-ups. The survey should define the site's boundaries and pick up all the existing physical features.14 2.1.46 0.80 302. · preliminary and detailed site investigations of engineering soils.3 1.84 3.5 illustrates an analysis of commodity flow by vehicle type.14 % 0.&6 2. These types of surveys are common to any medium or large-scale development project.64 26.Ch13 vehicles leaving the market there was a completely different pattern.5 .0 0.6 1. The survey should be based on a closed traverse and related to a known datum (defined by its height above mean sea level). · surveys and testing of existing services · water supply.0 Outgoing (tons) Av.58 13. Techniques for undertaking the surveys will vary depending on the local surveyor's skills and availability of equipment.1 100. daily 0.6 0. and · angular measurements to be accurate to within 20 seconds of arc. Table 11.63 17. plane tabling and level surveys. These surveys will typically include: · basic mapping.5 T. · sewerage disposal.08 26.000 scale. Typical standards to be adopted (based on British Standard BS 5606) might be: · accuracy of level values not to exceed 5mm per single sight and 10mm per kilometre relative to a permanent bench mark. Table 11. · structural condition of existing buildings.Tuk Pick-up (1. .0 0.fao.8 4.3 0.0 0.87 0.00 9.11 198.detailed topographic and geodetic surveys.06 43.46 0.71 141.12 1. The most essential step in preparing a detailed site plan will be the preparation of a topographic and geodetic survey of the site.0 65.85 1.3 8. edges and bases of drains and on a 10 metre grid over the entire site.54 % 0.

correlated to standard penetration test data. These data will need to taken to a laboratory. and . depth to bed-rock and the groundwater table level.Ch13 Soils and foundation investigations. dynamic cone penetration tests and California Bearing Ratio (CBR) tests. . · modified Proctor compaction tests on CBR samples. including pH and soil sulphate content. . and.sieve/grain size analysis (wet method).Atterberg limits (liquid limit. Disturbed samples are collected from split-spoon samplers and undisturbed samples with open tube samplers. who will undertake the field survey and laboratory analysis. if appropriate. The contractor should be required to prepare a detailed report of the laboratory analysis and to plot the borehole log data to give typical site profiles. plastic limit and plasticity index). Detailed geotechnical investigations are required so that the foundation design of buildings.fao.Next http://www. where the following analyses and tests should be be undertaken: · standard penetration tests.natural moisture content.particle size/hydrometer analysis for clayey soils. · tests on physical properties: . using triaxial compression apparatus. · unconsolidated undrained triaxial tests on undisturbed samples. The locations of test sites should be established so as to provide this optimum data for building and road design. road pavements and other structures is both safe and economic to construct. The scope of surveys will normally include boreholes (typically using an auger and rotary-cum-wash boring rig). · soil-cement stabilization tests. providing stress versus strain curve data. providing compression index values. The application of these site investigation results is described in Chapter 14.bulk density and specific gravity. · chemical tests.htm (6 of 6) [2004-12-21 01:15:50] . indicating the changes in soil types. Figure 18 Spatial distribution of production areas in Nepal (by season) Contents Previous .org/docrep/T0521E/T0521E0d. · consolidation tests on undisturbed samples. The site investigations will usually be carried out by a specialist contractor. . · California bearing ratio (CBR) soaked tests. as well as prepare a comprehensive report. related to the depth of boreholes and dynamic cone penetration tests.

high. however. computing them as a percentage of a provincial or regional total. The following notes. therefore. typically with fruit production. for direct transfer to Bangkok and http://www. the overall throughput of existing rural assembly markets. Horticultural production and its spatial distribution. 1988. which assemble produce for sending to a local secondary wholesale market or by-pass this market by sending directly to a terminal wholesale market in a distant city. the majority of produce may be sold at field level. Agricultural production data is often very approximate as it is frequently prepared by adjusting a previous year's data by applying theoretical changes in yield. low and very low. Comparable production data is normally also available at provincial and district levels. Transport costs also play a major role in influencing the location of production areas. Analysing demand and estimating market turn-over Contents Previous ..1.0 Source: Improved production of tropical vegetables in Nepal. give an indication of the types of issues that will need to be addressed. Ministry of Agriculture. both by type of crop and by season. The spatial distribution (by season) of these production areas is shown in Figure 18. The coefficients can be grouped into. Table 12. for each district or sub-region. their relationship to potential consumers is equally important.9 141 1. it should be possible to deduce the likely direction of produce flows. but there is usually a tendency for producers of a similar crop to congregate in a particular area. only a proportion of its vegetable production would be marketed through the provincial capital.fao. However. To describe how it can be undertaken is. and by comparing the production areas in relation to the location of the main markets and the availability of transport facilities.0 141 970 10 50. Producers south of the city were likely to sell either direct from the field or assemble their produce locally in the production area. A typical tabulation of national-level vegetable production data for Nepal is shown in Table 12. This provides a guaranteed outlet and is often combined with an arrangement for providing cash before harvesting (the crop is "bought off the tree" In other cases.Ch14 12. together with the location of the main areas for fruit. The following conclusions (see Figure 19) were deduced from such an analysis undertaken in Northern Thailand: The majority of the produce from outside Chiang Mat Province naturally by-passed the province and this pattern would not be significantly altered by any intervention in the marketing system.515 11 65. urban wholesale markets and retail facilities will obviously be influenced by local levels of production of fruit and vegetables and an analysis of available production data should help to establish the broad flows through the various marketing channels. demographic and survey data collected by a project can be used to analyse existing trade patterns and form the basis for making projections of future demand at an existing or new market. five different levels of productivity: very high.org/docrep/T0521E/T0521E0e. Analysis of existing trade patterns In analysing existing trading patterns the intention should be to understand how a market relates to all the other outlets through which production is channelled.1 Vegetable production and consumption targets. To understand existing trading patterns it is necessary to compare market survey results on the origin of produce being traded with published data on production.8 140 875 6 46. temperature and topography. fish and potato production. say. In some cases. The data should be examined to see what changes may be occurring in both the levels of production and its distribution. Note: excluding potato and leafy vegetables Although the location of production areas is obviously influenced by factors such as soil fertility. into a series of coefficients. moisture availability. N. crops are traded through a hierarchy of local markets.Next The purpose of this chapter is to describe how the agro-economic. This analysis is a critical stage in the preparation of a development project for understanding the impact of any intervention in the marketing process. average. From such an analysis. Nepal. Nepal 1975-1976 1979-1980 1984-1985 1986-1987 1989-1990 2000 Cultivated area ('000 ha) Production (000 m/t) Yield m/t per he) Per caput consumption (kg per annum) 83 423 5 not stated 96 528 6 not stated 138 743 5 44.htm (1 of 4) [2004-12-21 01:15:54] . Because of Chiang Mat cay's location in the centre of the province. difficult as the circumstances under which such interventions take place will completely vary between different countries. Pokhrel. These can then be plotted on a base map to show the spatial distribution and importance of production areas by district or sub-region within the market's catchment. This tendency to specialize can be studied as a pattern by converting the figures for the areas under crop or production levels. M. This will vary greatly.

99 1. A key factor in market operations is the degree to which trade varies by season.55 1. Many studies in the evolution of land-use have frequently confirmed the persistence of intensive horticultural production close to major centres of population.60 0. For an existing market. with urbanization.00 Rod al Farag Cairo.305 12.05 1.98 1.341 12.050 20.523 14. Table 12. at the "farm-gate" or be marketed through local assembly markets/trans-shipment points. A simplified example for Sri Lanka of such a cropping pattern http://www.813 12.118 12.11 1.08 1.210 25.024 20. then other methods of analysis will need to be adopted. Despite its importance to low-income families. In addition to "rings" of production around cities.00 Marche de Gros Rabat. fruit and fish (from pond culture) increases.801 12.721 27.883 13.973 155. the peak months being compared to the average months using a ratio. Comprehensive official or research data is not likely to be available on the variation in fruit and vegetable production by season.978 21.2 shows such a set of data for three wholesale markets in the Near East.89 0.683 11. so that production of vegetables. Figure 21 Simplified cropping programme in Sri Lanka Typical cropping calendars for upland/lowland.08 0. producing high value fruit. the impact of storage and the substitution between produce.99 0. except for price data.552 11. Egypt (tons) (ratio) 23.2 Seasonal throughput variations in Near Fast markets Month Central Market Amman. It may also be used as an excuse to limit the operation of hawkers (who may sell both local produce and that produced outside the city) or as part of an often dubious programme of urban "beautification". reflecting peaks in production. Jordan (tons) (ratio) 15.17 9.00 1.95 0. Morocco (tons) 11.07 1.htm (2 of 4) [2004-12-21 01:15:54] .641 28.16 1. but with probably less incentive for producers remote from the city to use its wholesaling facilities. production areas to the north were more likely to use wholesale facilities available in the city.87 0.642 0 75 13. such intensive cultivation may be actively discouraged in order to reduce the incidence of malaria. compared with Amman and Cairo.806 17. However.88 1.924 (ratio) 0.56 1. Thailand Table 12.497 5.96 1.945 1.29 0. Seasonal variations in trade. while the production of other crops.718 19. vegetables and cut flowers.89 0. What generally happens is that land such as kitchen gardens becomes more intensively used.978 19. which is virtually impossible to use for deducing seasonal indices because of the time lags in price changes. The relatively small volumes of flower production in the province were concentrated around the city. there may not be sufficient time-series data to draw any concrete conclusions to suggest that the trade at a wholesale market completely reflects the seasonal variations.909 25. The pattern for upland and perennial crop production was found to be very similar to that for vegetables. In contrast.593 27. Figure 20 illustrates the same data as a histogram. such as rice.718 12.796 21.32 1.420 0. Market garden areas near to cities. demonstrating the comparatively small seasonal variation at the Rabat wholesale market.43 0. the types of interview and roadside surveys outlined in Chapter 11 may give some indication of seasonal variation.093 12. decreases.961 7.org/docrep/T0521E/T0521E0e.091 1.99 23.98 22.202 287.92 1.15 1.38 0.736 13.18 1.925 23.582 4.759 0. Figure 19 Variations in vegetable production in Chiang Mai Province.00 January February March April May June July August September October November December Total Average Source: Market Authorities (data collected by FAO) Figure 20 Comparison of seasonal variation in trade volumes (Near East markets) If markets records are not available or there are no markets presently in operation.432 13.14 1.83 0.729 11.244 155. If a marketing authority maintains daily records from an existing market then a comprehensive data base will be available for making such an assessment.82 1.323 14.92 0. However.994 0. are a typical example of this. a substantial amount of cultivation in most less-developed countries may still be undertaken within the boundaries of municipal areas. Peak production is often more likely to be purchased directly in the field.948 16.02 0. rainfed systems and off-season production in irrigated areas can provide useful models for examining seasonal variations in horticultural production.06 0. there will be increasing pressure on cultivable land within city boundaries.Ch14 other destinations outside the province.fao.

979 427 549 2. Another consideration in understanding the existing pattern of trade is the problem of defining the channels through which production might pass. green Chilli" green Beans Potato (incl.106 44. Chiang Mia Province Table 12. covering all flows into a city. For semi-dry produce. storage and market price may have a significant effect on marketing.975 9 32. Table 12. 10 days) Kalimati wholesale market 8. wholesalers and retailers can be used to define such a pattern. Trade volumes by-passing the wholesale market. Reference has been made in the previous sections as to how this may vary according to factors such as the location of production areas.334 1. Figure 22 Marketing channel partícípants. exports) Tomato Grass/leaf produce Spinach Other Total (av.fao.Ch14 is shown in Figure 21.044 1. such as garlic and onions. in Chiang Mail Figure 25 is a further analysis of the data from Northern Thailand and suggests that the function of the local markets is strongly influenced by the type of produce that is traded.org/docrep/T0521E/T0521E0e. They most probably have their own fruit trees or would buy from neighbours. Sri Lanka Figure 23 Proportions of produce going through different marketing channel (Jordan) Marketing channels. Curing.htm (3 of 4) [2004-12-21 01:15:54] . Figure 22 illustrates the complex pattern of channels that exists in Sri Lanka Informal surveys of farmers. Most local trade is in vegetables.748 41. If there is a genuine demand for a new market the increase in turnover should be quite rapid and a general trend for the volume handled to increase each month should be observable.666 1.3 shows the results of a typical roadside and retail outlet survey undertaken in Kathmandu over a 10-day period in April 1989. dry Onion.251 2. In contrast some highly perishable produce may only have a single growing season and apart from what can be canned or dried. trade will only gradually build up and produce which formerly went through other marketing channels will then transfer to the new facility.426 6. and amounts of trade that might be by-passing an existing wholesale market. These diagrams can be interpreted by using the informed judgements of farmers and traders as to where production is coming from and the broad distribution of volumes between seasons (ideally on a monthly basis).595 12.3 Roadside survey: daily produce coming into Kathmandu (kg) Commodity Cabbage Cauliflower Onion.717 Other destinations in the city 5 126 1.834 591 2. the main production has to be marketed during that period. The reasons for this are that fruit sales are predominately for markets outside the district and the sales of vegetables are often to local people for their own consumption.794 2. The Kalimati market had been recently opened at the time of the survey. Other factors such as political and cultural conditions. credit arrangements and seasonality.648 369 490 1. to understand how the pattern might impinge on the role of a wholesale market the flows in the system need to be quantified.108 5. drying and storage extends the period of marketing and an off-season crop may alter prices substantially. With such a new wholesale market. Roadside surveys undertaken over a number of seasons will be required to see the longer-term effect of such changes on the pattern of trade Figure 24 Assembly function of local markets. To make such estimates it may be necessary to extend the scope of surveys to include local assembly markets so that the role that they play can also be defined. Figure 23 illustrates the results of surveys undertaken in Jordan on the flow of produce through the main marketing channels. However. with a low volume of fruit sales.357 http://www. the level of transport facilities and the presence of a traditional network of rural markets will also influence how the channels may operate. green Garlic. whilst others are involved mainly with distributing produce to rural consumers received from the nearby urban wholesale market of Muang mad. To establish existing trade volumes. Figure 24 illustrates the results of such a survey in Northern Thailand Some of the markets are exclusively involved with the assembly of produce. surveys of produce flow should be undertaken over an extended period. confirming the fact that fruit sales often by-pass the local market system.

It assumes that the peak daily provincial production volume was around 1. therefore. In many countries the potential for this rate of expansion to continue is likely to decrease as only the more marginal areas become available. however. Unless a comprehensive horticultural plan exists. Before farmers become well organized. can all have a significant effect on marketing practices. although there may at the same time have been an overall expansion of cropped areas. at 3 . The agricultural sector in many developing countries is responsible for a decreasing proportion of the gross national product. particularly from the common practice of direct purchasing at the farm level by outside traders withestablished relationships with the farmers (such as providing inputs and credit arrangements). are the ideal basis on which to make an assessment of changes in the patterns of trade. This is illustrated in Table 12.8 2. These effects are likely to be off set. particularly for horticultural produce and to a lesser extent for field crops.fao.2 50. which typically causes a loss of presently cultivated land within and on the periphery of cities. Over-view of existing trade pasterns. rather conservative assumptions may need to be adopted in relation to the potential throughput of any new market. In Kathmandu.4 Mode of transport for produce coming into Kathmandu (%) Mode of transport Kalimati whole. it will be necessary to make a number of broad assumptions in respect of the total volumes traded and the share that might pass through any existing or new wholesale marketing facilities. Chiang Mia Province Table 12. therefore. by increases in cropping intensity and by farmers switching to higher-value crops. it is unlikely that the long-term potential for increased horticultural production can be established.4. the availability of low-cost pick-ups and the organization of group marketing.sale market (%) 37. unless an existing market is being closed down. Once an assessment has been made of all the factors influencing the pattern of trade an attempt should be made to compile these into a complete model of the produce flows on a daily. the importance of the wholesale market's location adjacent to a bus terminal has led to significant amounts of produce coming long distances by bus. From the analysis of marketing channels.600 tons and that rural markets had an overall total turnover of 170 tons per day. to use new facilities. in the short term. seasonal or annual basis. public transport often plays a key role.8 1. which is usually not the case. The improvement of rural roads the availability of credit to purchase a motorbike and sidecar. Figure 26 illustrates what happens during the peak period in Northern Thailand.2 Other destinations in the city (%) 28. Such projections of future outputs.0 0. In the hot dry season exports are more likely to be directed towards the other provinces in the Northern Region rather than to Bangkok. Without detailed studies of land-use change any estimates of increased production are usually very tentative.8 66.6 Truck Mini-bus Bus Bicycle Farmer himself (headload) Source: FAO Project GCP/NEP/043/SWI Figure 26 Daily produce flows in a regional marketing system (Northern Thailand) Projected patterns of trade.5 percent per annum). A common working hypothesis is to assume that the production of fruit and vegetables will expand at a rate slightly higher than that of urban population increase (say. the spatial distribution of production and the results of origin/destination surveys it may be concluded that to alter the present pattern of marketing would be quite difficult. Roadside surveys also provide useful data on the changes that might be occurring in the type of transport ("mode") used by farmers and traders for bringing produce to market. In making projections for changes in a marketing system. Figure 25 Variations in type of produce sold in local assembly markets. Another common factor is likely to be the impact of urban expansion. It would be unrealistic to presume.3 12. From this diagram it can be seen that most of the daily production in Chiang Mai Province is exported directly to Bangkok or other provinces. In the cool season the pattern is broadly similar except that the quantities of fresh produce exported are perhaps half of what would be exported in the peak period. accompanied by an overall marketing strategy for produce.htm (4 of 4) [2004-12-21 01:15:54] . There would need to be substantial financial benefits to farmers to attract them away from existing market channels.Ch14 Source: FAO Project GCP/NEP/043/SWI Transport changes. for example. Long-term estimates of throughput are even more difficult to make because of the unreliability of production projections.Next http://www. that a greatly enlarged proportion of the trade can be attracted.org/docrep/T0521E/T0521E0e.3 0. Contents Previous . In their absence.

268 1.68. seasonal differences in trade and a profile of average disposable income.27 Source: Marketing Services Division Ministry of Agriculture Nepal 1989. Demand approach.fao. whilst in Sri Lanka it is 0. given different dietary and cultural habits.654 1. Figures from other countries are not generally applicable. relating population to income: Qn = Qo (1 + p)(1 +ey) n where: Qn = projected consumption at year n Qo = consumption in the base year p = annual rate of population growth y = projected growth of per capita disposable income e = projected income elasticity n = number of years from base date Although a number of countries. but generally it will not be.224 1.86 and more dramatically.310 1. exporls and food processing. whilst in Sri Lanka it is 0. The basis for this method is the use of income elasticity coefficients.88 (kg) Country Cereals Roots & tubers Pulses & beans Fruit & vegetables Animal products Developing countries Bangladesh China India Indonesia Malaysia Nepal Pakistan Philippines Sri Lanka 1.35 15.390 1. relating changes in income to spending behaviour. reliance usually has to be placed on available data on per caput consumption of fruit and vegetables These are derived from estimates of present supply.5. the demand coefficient for eggs in the Philippines is 0.6 Typical per caput availability of major foods 1986 . For example.org/docrep/T0521E/T0521E0f. but other factors in the equation are unlikely to be reliable without undertaking extensive surveys to establish income elasticities of demand. it is also essential to quantify the present level of consumption of fruit and vegetables. the coefficient for maize in the Philippines is minus 0. There are other major difficulties in using demand elasticities as they assume that past consumption trends will continue.789 1. Adequate demographic data often exists for estimating the population effect. for which only limited data may be available. per annum Potato Vegetable# Fruit Irish 320 511 271 4 1 6 4 - 1 - 331 517 275 4 15.5 National food balance sheer data for Nepal -1980/81 Commodity Production '000m/t Import '000m/t Export '000m/t Net Supply '000m/t Per caput* kg.61. A typical example of such an estimate is shown in Table 12.340 29 159 38 187 75 54 8 109 73 44 29 126 18 29 63 50 8 50 22 68 67 58 105 19 59 104 103 50 239 117 71 380 114 180 224 98 http://www. This might be reasonable if historic data is available to verify this. The concept is represented by a formula. Supply approach. #including leafy vegetables but excluding pulses and tubers. Notes: assuming allowances for seed production and waste.57 31. have rather complete data on elasticities this is not normally the case.Next As well as understanding how an existing market system operates and can be modified.Ch15 Consumption of fruit and vegetables Contents Previous . Table 12. making adjustments for imports.582 1. Because of the problem of estimating consumption using a demand approach. Table 12. There are two approaches to estimating consumption: a demand approach or a supply approach. Another problem with the approach is in understanding the substitution effect between different vegetable and fruit crops.2.54 0.htm (1 of 5) [2004-12-21 01:15:58] .867 1. for example the Philippines and Sri Lanka.

65 25.67 10.9 204.07 7. They are likely to disguise substantial variations in consumption between different seasons.9 97.399 501 786 1.08 8.41 3. the overall average compares reasonably well to the FAO national figure of 136 kg per caput shown in Table 12.44 7. supermarkets.03 11.7 Source: Konjing. The values of daily throughput at a market may therefore need to be adjusted so that they can be matched with per caput consumption estimates. Results of a similar type of sample survey of consumption of major food items.60 7.65 8.7 demonstrates the substantial variation that can occur.001 The existing demand for fruit and vegetables in a typical city of around 300.org/docrep/T0521E/T0521E0f. Food security at household level in rural Thailand.179 719 57 1. 000 x 150 kg.5 150. arc given in Table 12. However. Data from one of these studies of selected countries in the Asia-Pacific Region is shown in Table 12. Bangkok. schools and army camps. FAO Regional Office for Asia and the Pacific RAPA Publication 1990/15. 1984/85.98 Solokhumbu 86.8 96. such as hospitals. legumes) Fruit Meat/Fish Mustang 61.foods and human energy requirements. 1990. FAO has undertaken a number of regional studies of nutrition.8 88.001 = 45.11 7.2 63. Table 12. based on surveys in two villages over two seasons. The range of kg per caput values in Table 12.9 44. for selected districts in Nepal. Consumption estimates. It may come from home-garden production (particularly fruits) or have been sold directly by farmers or traders to small corner stores.htm (2 of 5) [2004-12-21 01:15:58] .6. Table 12. Bangkok.000 people using this method and on the basis of an assumed range of kilogramme-per-caput consumption figures might be as follows: Annual supply (tons) = 300. Nepal. locations. These type of data are likely to be the most easily available.6.83. C.8. particularly if there is also a large tourist trade. The following formula summarizes the calculation method: Annual supply (tons) = total population served x per caput consumption x 0. based on food balance sheets and taking into accounl availabilily of.8 50.146 92 79 104 34 17 22 18 136 127 157 131 214 179 179 1.5 38. Department of Agricultural Economics and Business Administration.9 gives an example from Northern Thailand of such a set of adjustments.134 Source: Selected indicators of food and agricultural development in the Asia-Pacific Region 1979-89. income groups and between urban and rural areas. From these studies estimates of per caput consumption can be derived.8 Consumption in selected districts in Nepal (kg per caput) Commodity Potato/Sweet Potato Vegetables (excl. but need to be used with some caution as the figures are national averages.Ch15 Thailand Tonga Developed countries Australia Japan New Zealand 1.000 tons. Ministry of Agriculture. The estimated consumption of fresh produce should be derived from the per caput data by relating it to estimates of the existing and future populations for the area served by the market.7 131. Table 12.18 Gorkha 15.9 maximum 63.29 43.016 510 1. Kasetsart University.12 Dhankuta 20.7 Annual consumption of fruit & vegetables in rural Thailand location Surin (North Eastern Province) year 1987 1988 Average Nakorn Ratchasima (near Bangkok) 1987 1988 Average consumption (kg per caput): minimum 38. An example of such an approach is a study in Thailand which surveyed the daily intake of fruits and vegetables for a range of income classes. Particular care is needed in reviewing survey figures. per caput x 0.52 24. as what may be reported as being sold at markets may also include a proportion of produce that either remains unsold at the end of the day or is sent on to other markets and perhaps sold twice in the same day. comparing the trade in Muang Mai wholesale http://www.87 Jhapa 27.70 7. hotels and to institutions. Such an estimate needs to be checked against surveys of wholesale and retail markets in order to make an assessment of the quantities of produce that might be spoilt or be by-passing the formal marketing system.fao. Per caput consumption data should ideally be derived from detailed local surveys. 28. Another common distortion arises from some produce not having been purchased at the market and reaching the consumer through other channels.44 Source: Food consumption survey.15 4.

sometimes. based on consumption survey data was broadly matched with national food balance sheet data. higher quality grades of rice (see Table 12. If not..TCP/THA/8958 140 140 140 Estimating future demand Future demand is always difficult to estimate as the marketing situation often alters rapidly in response to demographic and other changes.Ch15 market to consumption in the Chiang Mai municipal area.9 Daily consumption of produce. fish.43 (urban/rural ratio) x 1. substantially above the national plan target. if leafy vegetables were excluded. It uses a range of values for the daily trade in Chiang Mai.10 Demand assumption .5 kg per capita. The process by which the projections are made is to first make an assessment of how the existing pattern of trade might evolve (discussed in the first section of this chapter) and linen to estimate what proportion of this trade may be expected to pass through a new or improved market. including a significant proportion coming from home-garden production. The first step in making the estimate of future demand is to try and set the projections in the context of a market development programme. they will match fairly closely the rate of urban population increase.19 kg per caput was used. Chiang Mai. Frequently. either as public sector policies or as proposals for investment by the private sector.org/docrep/T0521E/T0521E0f. Market development policies. The analysis assumes a constant per caput consumption and relates together possible low (dry season). For example.14 kg. the per caput consumption in 1983/84 of 42.05 (addition for Kathmandu) = 41. Existing plans and programmes may already exist. the substitution effect between different produce has to be assumed to be zero. however. Projected demand In preparing estimates of the potential demand for produce (fruit. · all projections of future consumption were based on survey data or official published target levels of per caput consumption. institutions and hotels (including home garden consumption) 190 20 80 40 230 25 75 40 270 30 70 40 Volume Low 210 Traded (tons): Medium 250 High 300 Average daily urban consumption from all channels in Chiang Mai Source: FAO Project . such income changes lead to an increased consumption of meat.e. These will need to be reviewed to see whether they can form a realistic basis for an overall development programme. taken from surveys (see case study in Chapter 11). Other approaches to projecting demand levels for the urban consumption of fruit and vegetables are to use income elasticities (which is likely to pose the same problems as discussed previously) or to derive values from historical trends. could be equated with an average in six districts of 27.fao.8 kg per caput. however.Kahmandu. The example shown in Table 12. · for fish the per caput consumption was based on the existing estimated consumption of fish in Kathmandu i. vegetables and fish for six districts in Nepal. 5.14 kg per caput for Kathmandu. like increases in production levels. using the same basis produced a figure of 33.htm (3 of 5) [2004-12-21 01:15:58] . Nepal · The consumption of fruits. vegetables and fish) a number of assumptions will need to be made. · consumption of vegetables in Kathmandu was estimated as follows: 27. medium and high (wet season) volumes-with variations in destination of produce. speciality food and. Table 12.6). Source: FAO Project (GCP/NEP/043/SWI http://www. Table 12.5 kg per caput x 1. the present consumption of 22. Studies of per caput changes in consumption tend to suggest that. it will be necessary to make some overall assumptions on the basis of the assessment made of existing trading patterns. for vegetables. Other factors influencing demand may include a general increase in incomes. The analysis highlights the large volume (around 80 per cent of the total urban consumption) that by-passes the wholesale market.5 kg per caput · for fruits. In making projections using the supply approach.10 from Kathmandu demonstrates the principles that might be followed in making an approximate estimate of future demand. · per caput consumption in the city of Kathmandu is substantially higher than the national average and an adjustment was derived by using unpublished data on average monthly household expenditure on goods and services. vegetables and fish compared with that of urban Nepal and between urban Nepal and Kathmandu. Thailand Destination of Produce (Fruit and Vegetables) · Daily volume leaving Muang Mai wholesale market · Daily volume leaving Chiang Mai and going to other provinces and to Bangkok · Balance traded at retail markets in Chiang Mai · Other trade at retail markets in Chiang Mai · Volume by-passing Muang Mai wholesale market & retail markets: going to supermarkets. which is often attended by changes in dietary habits and substitution between different types of food stuffs. This enabled ratios to be calculated between the national average expenditure on fruits. Therefore.

000 8.790 3. is shown in Table 12.400 Another key assumption which needs to be considered in estimating throughput is that the percentage of the wholesale trade going through the market will vary depending on the operation of existing marketing channels.410 1.5 times the annual monthly average production/sales.442. it may be better to calculate for the peak separately in order to make special provision for it.500 10.120 4. corresponding with likely demand in the near future (say within the next 5 years). In some circumstances. The calculations use projected per caput consumption values for three types of produce at three design dates and assume an increasing share for the new market of the total wholesale trade in the city.41 8. Data from roadside and retail surveys may provide a basis http://www.90 24. 2. Design scenarios. Fish 50. In principle. Katmandu: design assumptions Per caput consumption (kg/pa) Urban area consumption Annual total (tons) Home use (m/t per annum) 3.480 19. using figures on per capita consumption and the likely population served. A simple approach to projecting throughput is to develop scenarios for the peak monthly throughput of the market.300 2. Table 12.380 13. 2. for example.GCP/NEP/043/SWI 65. Vegetables · Fruit .2.10 and taking into account production by-passing the wholesale market system.11 Kalimati wholesale market. 2.540 4.11.19 5.5 x average month (tons) Median size: (1990 Design Population . The projections in Table 12.org/docrep/T0521E/T0521E0f.150 Total average monthly throughput (tons) Peak monthly throughput. Possible design scenarios that often used are: a minimum size.700.50 22.htm (4 of 5) [2004-12-21 01:15:58] .930 n/a 36. and an ultimate size.630 3. using the demand assumptions shown in Table 12. a median size.0 x average month (tons) Source: FAO Project. which would accommodate the growth in demand over the 20 -30 years of a project's life. 000) .340 60 60 50 1.5 x average month (tons) Ultimate size: (2000 Design Population . Vegetables .80 17. corresponding to present immediate demand. and arc based on the methods for assessing seasonal variations described earlier in this Chapter. however.411. It can be assumed.340 9. the estimating techniques described in Chapter 13 already take the peaks into account as they are based on average values. Design assumptions.710 9. the next step in the preparation of an outline master plan is to ensure that there is sufficient space to accommodate the facilities required for the operational procedure envisaged (described in Chapter 13).11 include estimates of the throughput at peak periods.380 30 20 0 340 120 0 460 1.00 22. A typical example of a throughput calculation for Kathmandu.Ch15 Market throughput After making projections of present and future demand.34 45. where there is a short duration peak caused by a particular crop.fao.000) · Vegetables · Fruit · Fish 41.820 n/a Volume sold (%) Traded at Kalimati: % of total (tons) Monthly volume Minimum size: (1988 Design Population .640 9.820 990 390 3.20 13. based on crude projections from previous population growth and migration trends (if more refined figures are not available).480 Total average monthly throughput (tons) Peak monthly throughput.160 n/a 18. Fruit · Fish Total average monthly throughput (tons) Peak monthly throughput. As a basis for these calculations it is first necessary to make projections of the likely throughput of the market. that the ratio will decrease over time.120 2.500 2. 000) .650 7.060 9. taken as 2 .600 24.540 30 20 0 450 140 0 590 1. In estimating space requirements the extent to which these seasonal differences need to be considered is a matter of judgement.00 35.200 6.

fao. A likely eventuality is that a new market will gain the new trade and that the existing markets and other channels will broadly retain their present level of trade. bearing in mind the degree to which some produce will by-pass the market system. however. Adjustments may therefore be needed.htm (5 of 5) [2004-12-21 01:15:58] . Contents Previous . A reasonable target for when the market is fully operational should also be projected but the extent to which trade would switch from present markets must be evaluated carefully. particularly that from home gardens within the city.Ch15 for establishing how this might realistically change in the future.Next http://www. similar to those used when matching estimates of existing consumption to volumes recorded from roadside and other surveys (see estimated consumption in the previous section) Design targets.org/docrep/T0521E/T0521E0f. as they may not be representative of the whole year. The figures should be treated with some caution.

however. trading practices.fao. the scale of a city may favour more than one outer wholesale market. public bodies are frequently pressured into accepting a location which is already owned by central or local government. but the justification for relocation and the characteristics of a proposed site still need to be rigorously analysed before this solution is accepted. cause site planning problems. because of seasonal fluctuations in supply. A direct approach off a heavily used major highway or close to a major intersection may.1 .org/docrep/T0521E/T0521E0g. The first decision that needs to be considered is whether it is necessary to concentrate all wholesaling activities at a single site. which are only likely to be become more difficult with the http://www. Suitable methods for estimating site size can be based on two basic criteria: urban population and annual turnover.Ch16 13.Next This chapter describes the calculation methods that can be used for estimating market building requirements and reviews the process and types of criteria that will need to be adopted in preparing the site plan and building designs and in making an environmental assessment of a market development project. cultural differences and the dissimilar natures of markets. More detailed figures on which to make an assessment are discussed in the next section in this chapter on estimating space requirement (see Tables 13.13. likely to be wide deviations between countries in what is appropriate.4).5 tons of turnover per m² of overall site area area. Selecting a new market site In considering a site for a new market. however. Some may be exclusively for terminal trade in a city. It may be appropriate to adopt a multiple-market solution for a city: · if there are many small-scale retailers. Full consultations will be required with all the interested parties. while others may have a strong export or re-assembly orientation. · if retailers' transport facilities arc inadequate and · if roads are highly congested. Alternatively.htm (1 of 2) [2004-12-21 01:15:59] . preferably with more than one point of access. The estimation of a suitable size for a new site is a difficult question as comprehensive detail is unlikely to be available on existing trading or on the desirable range of facilities that the site might need to accommodate. The issues involved and desirable features to be reviewed in choosing a new site are discussed below Number of market sites. The siting of a market should ideally be adjacent to a main road. Locations A new site for a wholesale market it will need to be reviewed at two levels: its general location within the urban area and its siting within its immediate neighbourhood. It may be possible for an existing market to serve the central area of a town and for outer suburban areas to be served by a new market. with premises scattered throughout the city. which may serve either the needs of producers bringing produce from different directions or the needs of retailers in a city with widely dispersed retail areas. The potential location of market sites to serve a city are shown in Figure 27. This obviously simplifies the problem of land acquisition. An approximate basis for making such an assessment is to use a figure of 4 . Planning and environmental design criteria Contents Previous . Size of site. Figure 27 Location of wholesale markets within a city There are.

Ch16

build up over time of traffic. The ideal site is one visible from the main highway but which has its own segregated point of access not mixed up with local traffic. For many markets the produce is likely to be brought by bus and a location near to bus routes is therefore essential. Employees at the market and small retailers are also likely to depend on public transport, which in Asia may include bicycle rickshaws and small-scale motorized forms of transport. The location of the market within the urban area should be a balance between the needs of the producers or their agents using inter-city transport routes, and those of the retailers who have to collect produce from the market and are using intra-city transport routes. A common criterion is adopt a maximum travel time of around 30 minutes for retailers to reach the wholesale market. In towns and cities where the main retail area is still located in the centre there is frequently a conflict of interests. Municipal authorities are often eager to obtain use of a vacated central area site, justifying this on the basis of changes in the retailing structure of a city and of relieving traffic congestion. Such a move would usually be supported by the police and traffic authorities. Government departments are also inclined to support the relocation of markets, on the often valid basis that the move could increase the range of facilities that are available and reduce the stranglehold of existing trading monopolies, as well as for more dubious reasons, such as prestige and as a means of gaining control from existing commercial interests. Many projects involving relocation of a market have foundered on the issue of a suitable site location, with a move from an old location being delayed or aborted because of opposition from wholesalers, retailers and other traders. It must not be forgotten in reviewing the need to relocate a market that it is likely to be a major employer of low-income labour. particularly of male porters and of women traders, who could be badly affected by an unneccessary move to an urban periphery market site. Physical characteristics of the site. Although the main criteria for relocation may be to obtain an inexpensive and uncongested site which is of adequate size for present and future activities, the physical characteristics of a site arc also of critical importance. The primary consideration should be that the area is level, with stable soil conditions and not within a flood-plain. Sites with slopes of less than one per cent tend to be difficult to drain, while it is difficult to provide road access on sites over 15 percent in gradient. The latter sites are also likely to have potential soil erosion problems. The optimum range of gradients is 1 - 4 per cent, which should lead to the least-cost construction for roads, services and large-span market buildings. Figure 28 Relationship between city size, turnover and market area The site should, ideally, already be provided with public services, particularly water and electricity and also have a regular and compact shape, as irregular shapes will be wasteful, leaving Houseful pockets of land. The surrounding development should be compatible with the market. A location close to a residential area or public hospital, for example, is likely to lead to nuisance problems from the heavy traffic using the market and the long hours of operation. An ideal location of a market is on the edge of a light industrial area, with easy access to existing and future retail areas. Contents Previous - Next

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Estimating space requirements
Contents Previous - Next To make an estimate of the overall sales space requirement for a new or expanded market necessitates an assessment of potential throughput using the method described in Chapter 12. Care should be taken to ensure that an over-provision of space is not made. This can occur either because the peak trade by-passes the wholesale market system, typically because it is sold directly to traders at field level, or because climatic conditions during the peak season would allow produce to be temporarily sold in the open air or under lightweight covers, thus making provision of any additional sales space unnecessary. Nevertheless, the use of the peak factors is critical to the design of much of the engineering infrastructure, which is described in Chapter 14. Spatial characteristícs of existing markets. The best basis for making projections of space requirements for new or improved markets is to compare them to how existing markets operate. Table 13.1 summarises the characteristics of selected markets in countries at different stages of economic growth. The retail structures in these countries vary from the highly developed system of supermarkets and chainstores in the USA, to the dominance of small-scale retailers and hawkers in Thailand. Table 13.1 Wholesale markets operating in countries at different stages of economic development (1971 data) Wholesale market & year of inauguration New York (1967) Hamburg (1962) Seville (1971) Amman (1965) Lima veg. Mkt(1955) Bangkok (1962) · Yad Piman · Yak Klong Per capita income (US$/pa) 3,578 1,682 663 249 246 137 Catchment population (million) 18.0 5.0 06 0.7 3.0 2.3 12 Market turnover ('000 tons) 1,200 700 360 180 720 350 250 Wholesalers (No.) Sales ('000 tons) 17.1 4.7 5.1 5.0 1.0 1.2 1.9 Aver. Area (m²) 360 80 124 60 21 17 22

70 150 70 36 700 300 133

Source Mittendorf H.J. 1976. Planning of wholesale markets for perishable food Rome FAO Table 13.2 Average turnover at European wholesale markets (tons/m²) City Size (million) Sales (bldg) area ('000 m²) Site area ('000 m²) 56 34 56 72 107 137 94 118 171 145 134 24] 761 Volume traded ('000 tons) 69 54 84 126 261 149 380 203 235 320 5]8 5]6 328 Turnover (tons/m²) Sales Site area area 6.90 6.75 7.64 7.88 10.04 8.76 29.23 12.69 5.34 8.89 ]9.90 6.97 4.56 15.00 1.23 1.59 1.50 1.75 2.44 1.09 4.04 1.72 1.37 2.21 3.87 2.14 0.43 4.00

under 0.1 10 0.1 - 0.2 8 0.2 - 0.3 11 0.3 - 0.4 16 0.4 - 0.5 26 0.5 - 0.6 17 0.6 - 0.7 13 0.7 - 0.8 16 0.8 - 0.9 44 0.9- 1.0 36 1.0- 1.5 26 1.5 - 2.0 74. 2.0 - 3.0 72 Weighted average (rounded)

Source: World Union of Wholesale Markets. 1969. Manual on wholesale markets, The Hague, Netherlands, International Union of Local Authorities. Table 13.2 shows the average area and wholesale market turnover values for a range of city sizes in Europe. Figure 28 illustrates these values plotted as a graph, demonstrating that there is a reasonable relationship between city size and turnover. Table 13.3 gives an analysis of markets in the Near East, compared to European markets and, as well as turnover by sales space, includes other indicators such as city size and the overall site area. Figure 29 and Table 13.4 gives a similar set of values for typical Brazilian wholesale markets, indicating rather lower turnovers per m² of sales area and site area than in Europe or the Near East. As well as providing a basis for making detailed space projections the data in these tables can be used to make a preliminary assessment of overall land acquisition requirements for a new market site. The figures, however, have to be used with some caution as they are both a reflection of different social and cultural factors and of methods of management that may occur between developed and less-developed countries. Table 13.3 Through-put analysis of Near East wholesale markets
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Characteristic

Amman Cent. Mkt Jordan

Rod al Farag, Cairo Egypt

Marche de Gros, Rabat Morocco

Average European Market

Population ('000): · City · Hinterland Area ('000 m²): · Total area · Sales area Turn-over ('000 mt) Spatial analysis (m² per '000): · City population · Hinterland population Turn-over analysis (tons per m²): · Total area · Sales area

250 1,000 28 9.9 155.3 112 28 5.5 15.7

n.a. n.a. 88 26.4 287.9 n.a. n.a. 3.3 10.9

610 1,275 50 7.5 155.1 82 39 3.1 20.7

493 1,435 93.5 17.9 191.4 370 89 4.0 15.0

Source: FAO (1989 data)/ World Union of Wholesale Markets op cit. Note n.a - not applicable Figure 29 Relationship between turnover market area and sales area (Brazil) Table 13.4 Comparative analysis of typical Brazilian wholesale markets Area ('000 m²) Built-up areas Total Site Bldg. As % Area Area Total 32 7.20 22.5 295 14.23 4.8 500 21.95 4.4 1000 43.00 4.3 530 23.91 4.5 617 40.75 6.6 119 7.59 6.4 107 17.70 16.5 117 4.33 3.7 3160 200 86 106 492 5.9 16 250 166 774 228 134 33 408 58.88 6.24 11.53 3.25 28.88 5.90 2.08 43.40 4.62 56.67 16.01 4.99 6.75 19.54 1.9 3.1 13.4 3.1 5.9 100.0 13.0 1.7 2.8 7.3 7.0 3.7 2.0 4.8 Annual Volume Traded (tons) 52,077 56,133 220,470 183,733 114,417 134,421 115,766 108,072 42,521 467,177 57,066 50,856 64,712 238,122 67,659 20,391 265,111 57,859 317,185 93,131 26,881 29,878 126,529 Turnover (tons/m²) Total Site 1.63 0.19 0.44 0.18 0.22 0.22 0.97 1.01 0.36 0.15 0.29 0.59 0.61 0.48 11.47 1.27 1.06 0.35 0.41 0.41 0.20 0.91 0.31 Bldg. Area 7.23 3.95 10.04 4.27 4.79 3.30 15.25 6.11 9.82 7.93 9.15 4.41 19.91 8.25 11.47 9.80 6.11 12.52 5.60 5.82 5.39 4.43 6.48

Market

Alagoas Amazonas Campinas Bahia Ceara Distrito Federal Espirito Santo Goias Maranhao Minas Gerais/Unidade de Belo Horzonte Minas Gerais/Unidade Reg. do Triangulo Paraiba/ Unidade de Joasa Pessoa Paraiba/ Unidade de Campina Grande Parana/ Unidade de Curitiba Parana/Unidade de Maringa Parana/ Unidade de Foz do Iguacu Pernambuco Rio Grande do Norte Rio Grande do Sul Rio de Janeiro/ Unidade Sao Goncalo Santa Catarina Sergipe Average

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120 0.100 0. The opening in 1990 of a new market.000 per day (pa) Space requirement: tons/m² area . including allowance for tourists: = say 750. 1978.100 0.400 m². Table 13.m² 15 pa 3. some variation is inevitable given the fundamentally different basis on which the projections are made.25 metric tons.000 tons per annum or average of 420 tons per day · Potential throughput at Kamtieng Market: = 420 tons per day minus 150 tons per day (at Muang Mai) = 270 tons per day or 97.Ch17 Source: SINAC. Thailand: sales space projections Throughput (tons) per year (pa) Short to medium term. This method uses the net area required to accommodate the average daily sales for each of the main commodities. The existing Muang Mai wholesale market was overcrowded and unable to expand. firstly calculating the overall sales space and then making adjustments for additional facilities. Project proposals on the new Seoul agricultural wholesale market and the national marketing master plan.000 · Annual consumption of fruits and vegetables in the year 2000: = 750. Two simple calculation methods can be adopted.13.000m².800 Fruits: Japan 0.fao. with a longer-term aim of 6. which might range from traders sitting on the floor with their produce heaped in front of them to the selling from samples of produce which is already packaged. can be used to estimate the adequacy of an existing market site.5 Typical daily space requirements: Japan and Korea (tons/m²) Facility Auction halls Middlemens' stores Loading and unloading Chilled/cold storage Vegetables Japan 0. that might be used in Method B. that trade at Muang Mai might in the future be restricted to largely serving the inner city (averaging around 150 tons per day) and that the balance of the metropolitan area would be served by Kamtieng. Osaka. Very reliable survey data is required for such an approach. The potential throughput at Kamtieng was projected as follows: · Metropolitan population in year 2000. specific to the culture and matching exactly the management conditions that will apply in the market. The first method (Method A in Table 13. Table 13. whilst those from Korea could be used as design targets for a new wholesale market. are shown in Table 13.htm (3 of 4) [2004-12-21 01:16:04] . The estimates provide a basis on which to design market buildings.4 and would represent reasonable average values for fruit and vegetable markets. which should usually range from 10 . A better approach is to work from the whole to the part.050 0.org/docrep/T0521E/T0521E0h. at Kamtieng on the edge of the city allowed adjustments to be made in the wholesaling pattern of Chiang Mai city.055 0. Not all the produce. (More elaborate methods for estimating space needs are contained in a publication of the Korea Rural Economics Institute.110 0.6) is an approach based on commercial criteria using. plus allowances for overall circulation and for daily fluctuations in space requirements.055 0.500 Korea 0. Calculation methods for estimating floorspace at new markets. an optimum overall annual turnover per square metre of sales area. per caput (maximum) = 150.085 0. It was assumed. as the main parameter.000 Fish Korea 0. It is very hazardous to build up floorspace figures from a series of too-elaborate assumptions about the potential shares of throughput that various facilities might be expected to achieve at a market. There is a reasonable degree of agreement between the two estimating methods. Brazilia.165 0. with a sales area of 6.730 http://www. a medium-term target might be 4. Checking the adequacy of existing markets. including an allowance for main circulation areas (display/buyers' walk and loading platforms). plus average turnover data.400 Japan 0. This can be illustrated by projections made as part of an FAO study of wholesale markets in Chiang Mai in Northern Thailand. The factors used in the calculation method would vary depending on the methods of display and level of sophistication of the market. may go through the auction hall and the storage needs at wholesalers' premises may be lower than the turnover implies because loads are transferred directly between lorries. Demand and demographic projections. with mechanical handling before and after sales.110 1. Table 13.000 Source NIKKEN SEKKEI.1 .000m². Projecting floorspace for a new market is a more difficult problem than assessing the adequacy of an existing market. If aggregate areas are built up on such a basis the values will need to be adjusted. 1981.400 m² = 15 tons per m² The calculation confirmed that Kamtieng market would provide sufficient floorspace in the short to medium-term to accommodate a reasonable average turnover of 15 tons/m².055 1. The second calculation method (Method B) is an ergonomic approach based on the ideal space requirement for various activities. which may be used in parallel to check the basic assumptions. The Japanese values represent nearly optimum use of space.000 tons per annum/6.6 demonstrates the application of the two calculation methods using turnover projections made for a new export-oriented wholesale market for the province of Chiang Mai.055 0. to make allowance for the mix of functions and extent of usage that will occur in a main sales areas.5. by applying a percentage weighting factor. Japan & FAO Project GCP/CPR/008/BEL Some typical values of space used for storage and sales.080 0. These turnover figures conform with the data contained in Tables 13.070 0.000 tons per annum · Potential turnover using the presently constructed market sheds: = 97.050 0. Seoul. Northern Thailand. Ministry of Agriculture and Fisheries). Method A 56. as part of an overall marketing strategy.000 x 200 kgs.6 Sansai Market Centre. for example.

org/docrep/T0521E/T0521E0h.11 pd 4. marketing extension and cooperative outlet) at 10 percent of commercial sales space.fao. pecking end gracing Market management offices Other offices Basic support facilities Grain dryer and silo Total Space requirement (m² ): Initial Medium-term 2. · offices for private enterprise. market information system.000 2.TCP/THA/8958 Table 13.250 Source :FAO Technical Report TCP/THA/8958 Table 13.7 shows how the build up of commercial floorspace could occur during a 20-year project period using the projections shown in Table 13. market management and for basic support facilities (weighbridge.6 and based on some simple assumptions about the space requirements for ancillary spaces.160 100.06 pd 2.htm (4 of 4) [2004-12-21 01:16:04] .350 5.000 4.000 56.000 Source FAO Technical Report . each at 5 percent of commercial sales space.000 750 600 4. and · other offices (banking and credit facilities.000 11.400 300 300 600 300 100 10.000 - 125 30 155 - 0.000 80.000 800 1.450 6.000 100. These assumptions were: · wholesalers' permanent stores (including chill stores) outside the main sale area would be equivalent to 40 percent of commercial sales space. · washing.750 Long-term 6.000 20.500 500 3.600 150 150 100 200 200 400 100 200 3. Contents Previous .060 850 6.Next http://www. packing and grading facilities at 1m² per ton of through-put.000 3. Thailand: space requirements Function Main sales space Rentable stores Washing.750 500 1. public toilets and site security).000 - 225 55 280 - 20 pa 0. 7 Sansai Market Centre.Ch17 Method B · Vegetables · Fruit Net Total · plus loading area @ 25% · plus peak factor @ 20% Total (Method B) Long term: Method A Method B · Vegetables · Fruit Net Total plus loading area 69 25% plus peak factor @ 20% Total (Method B) 45.06 pd 0.05 pd 0.

L. but this must always be related to other objectives. & Hack.840 710 3. K.org/docrep/T0521E/T0521E0i. Care needs to taken in establishing these objectives as it is a common error of site planners to assume values which are in conflict with the values and habits of the site's users.495 230 350 20. The project goals described in Chapters 2 and 3 will provide a general basis for the preparation of a physical master plan.E.8 29. as change is inevitable with any market and the success of a plan in the long term will depend on its provision for users to mould and adapt it to their particular requirements. MIT Press.1 0. however. Site planning. Buildings Site Development: · Farmers' market area · Roads (on-site only) · Parking areas · Pavements and landscaped areas+ · Drainage and other reserves · Areas under construction # · Future expansion area (paved) Total site area Completion by end of Phase: II III IV 1.1988. accident prevention and structural safety will also need to be considered. The importance of consultation with all the parties involved with this process has been stressed on many occasions in the manual. P. Making microplans.940 150 3. R & Hamdi. These general goals need to be supplemented with more detailed objectives.6 0. (both from Intermediate Technology Publications. More detail on the principles of site planning and appropriate standards that can be used in an urban context are contained in the following publications: · De Chiara. Cost. 1989. The Architectural Press Ltd. some of which are listed in the Bibliography.100 165 1.020 1. It must also provide optimum communications.360 2.640 2.1 0.Next This section amplifies some of the planning principles discussed in Chapter 3 and 4. Cambridge.3 0. 1984.010 13.8 Kalimati wholesale market Nepal: space requirements (m²) Land use/accommodation at ground floor level Buildings: · Multi-purpose shed · Structural bays (number) · Fish shed · Cold stores · Management and administration · Retail unit and hostel · Security block · Main gatehouse · Washing.Ch18 Site planning Contents Previous .135 13.5 0. Table 13. There are. L.190 2. McGraw-Hill Book Company. this should not be forgotten.7 4. a range of general objectives which provide a useful starting point for developing more appropriate objectives suited to the conditions and culture in which a particular market is to be developed.3 2.fao.060 710 5. & Jenkins. master plan..7 1. The most obvious of these objectives is functional adequacy. Two useful publications which explain planning within the context of participatory development are: Goethert. however. 1978. G. a plan must accommodate all the needs defined by a project's goals.680 (7) 560 72 128 152 2. J & Koppelham.2 1.5 29. grading and packing · Toilets Sub-Total. New York.8 3. London. The main problem will be to strike a balance between that of minimizing initial capital costs and reducing the recurrent maintenance and operational costs of running the market. Time to listen . There are many publications explaining the planning process.570 3. N. both in the sense of traffic movement (as a market is primarily a complex transhipment point) and social interaction (as it is a point at which sellers and buyers meet to conduct business).htm (1 of 6) [2004-12-21 01:16:09] .0 1. with which it will frequently be in conflict.8 1.M. and then final. which will be used both in reviewing site planning options and in the development of a preferred option into a draft.370 % of total 17.7 100.5 17.0 http://www. 1980. London).640 (11) 560 308 72 128 152 3.780 2. will always be the main criterion. and Taylor.590 710 3. Choice and adaptability are important objectives. Although architectural quality may not be a main interest of either the market's developers or its users.955 3.2 17. sanitation. · Cartwright R. Minimum standards of public health. Site planning objectives.the human aspect in development. and · Lynch. Site planning standards. The design of urban space.780 3.600 (15) 336 880 560 308 72 24 128 152 6.

will form the basis of the draft master plan and a typical approach to reviewing them is to start with an analysis of land uses on the site.000 4.000 4. the main factor to consider in land-use analysis is the proportion of a site that is given over to roads and parking and in Table 13. This could represent.9) (26.2) (3. such as a flow of information. Stores 6.300 pick-ups/trucks 6.3) (0.30 cars 7. Wholesale Market 2. Thailand land use (m²) Land Use 1. The main categories of land-use activities need to be identified and the relationship or linkages between them established. Car Park . Landscaping/Drainage Reserves 9. the effects of congestion in a market are critical and therefore time is a more relevant measure.500 4.8 shows an illustration of a phased estimate of the market buildings needed for the Kalimati site in Nepal.000 32. this pattern is likely to change rapidly with the introduction of small pick-ups and trucks.fao. Rabat (m² ) (%) 3.000 4.000 1. Car Park.o) (9. but some may be negative.500 9.7 tons is not that high.2) (9.550 85.htm (2 of 6) [2004-12-21 01:16:09] .300 28.TCP/THA/8958 Table 13.500 25.9) (20. covered arcades and paving to the farmers' market area.0) Marche de Gros.000 metric ton cold storage facility.7) 40. including the space requirements for the ancillary and service buildings.0) (24. Land-use analysis.10.9 gives a comparable land use pattern for the Sansai market in Chiang Mai.0) 17. GCP/NEP/043/SWI Notes: + Excluding paved areas associated with buildings.900 (14. The choice of planning options can be most practically understood by using a simple ranking system based on the site planning objectives discussed above.000 12.7) 13. As discussed in Chapter 4.400 (%) (8. Table 13.600 400 100 13.500 24.600 400 400 100 100 13.5) 0 (0.0) 1. for example.4) (8.750 500 1.600 4. Parking 4. for example.500 7.400 85. which will represent a simplification of the design problem to its logical essence. The market is over-intensively used compared to its overall site area. Crates http://www. Roadspace Total Source: FAO Technical Report .600 9. which compares the land uses in three Near East wholesale markets. These linkages may be of a physical nature. Cairo (m² ) (m2) 12. Different diagrams or patterns should be created for each option. Table 13.400 2.400 9. Open sales space 3. These options. different options should be generated to reflect the design objectives. where a large proportion of the site was allocated to traffic circulation needs.300 (19.900 (46. such as roads. As the starting point of the site planning process.Ch18 Source: FAO Technical Report. The reviewing of options will provide an initial sorting out of ideas.9 Sansai Market Centre.100 1. Covered sales space 2. Offices/Other Buildings 3. is explained by its lack of road space and traffic management. such as between a refuse disposal area and on-site residential accommodation.400 Long-term 6. Reserve for Future Facilities 5. Linkages are more usually positive. or more abstract.450 2. The estimates prepared of space requirements for the buildings should be related to that of the whole site. Grain Drying Area 4.500 (15. # Including temporary construction roads Site planning options.550 85. combined with restricted access in the roads leading to the market.500 13.800 (6. the importance of this is evident. an incompatibility between uses.750 9.000 1.10 Land-use analysis of Near East wholesale markets Land Use Amman Central Mkt (m² ) 2.500 25. The extreme congestion of Rod al Farag market in Cairo. Although simple physical distance will give some indication of this. In the estimate an allowance was made for the substantial parking provision and road system which will be needed by the market at ultimate development.0) (8.6) (32.700 0 Rod al Farag. Water Supply Tower 8. The options will need to be analysed. which will generally be based on how satisfactorily they perform in terms of cost and of minimizing time spent within the market.550 25.6) Cumulative space requirement (m²): Initial Medium-term 2.200 5. derived from the accommodation brief.org/docrep/T0521E/T0521E0i. which will need to be developed further during detailed design. Roads 5. although the turnover per m² Of sales space of 15. and for a 2. Table 13.3) 0 (0. Although present retailers at the market may continue with the use of small hand carts.

This tabulation can then be compared to Table 13. as the plan gets modified to meet the site's physical conditions. and · how to organise the site layout so that construction phasing is simplified and future growth and changes can be accommodated without disruption. Administration 8. leading to reductions in deterioration of produce.000 (3 8) (0. The easiest way to undertake an analysis of the plan is to measure the overall site area of each of the proposed land uses and prepare a table which relates them to the overall site area.000 (3. Figure 30 Evolution of a draft or outline master plan (Sansai. A study by the US Department of Agriculture in 1947.. using standardized building forms. to counting squares on a graph paper overlay.10 which gives typical values for the utilization of land at a variety of market sites.000 or 1:2. Important factors that need to be considered in the plan are how the development might be phased and how the separation of permanent uses from those which are of a more transient nature can be used as a means of organizing the site so that future changes can be most easily accommodated. while minimizing capital and operating costs. This will be a stage at which many sketches are made so that adjustments can be made which rationalize the relationship between the land uses and provide the most efficient access and traffic circulation system.800 18. general parking and the internal arrangement of the main market buildings. · compact building layouts with less manual handling of produce.htm (3 of 6) [2004-12-21 01:16:09] . particularly if there is any reluctance on the part of wholesalers to move to a new location or cooperate in the implementation of improvements to an existing market. the essentially functional nature of markets will tend to lead to solutions in which the general form is compact and geometrically regular. · covered sales and handling spaces. Thailand) The difference between an outline plan and master plan is one of detail.fao. As the consultation process continues and the detailed design evolves the land-use pattern will be transformed by the actual designs for buildings and infrastructure. giving protection from rain and sun. Two key issues that will need to be addressed in developing the final master plan are: · how to evolve an arrangement with a satisfactory relationship between the site circulation system.0) 3. The main function of the plan must be to maximize the throughput of the market. The important issue to remember is to always compare the measurements to the known overall area of the site.4) Site master plan.Ch18 7. http://www. lower porterage and labour costs . so they can reflect the actual accommodation requirements related to the circulation pattern and can be fitted within the confines of the site boundaries. The basic approach will be to compile all the planning data. An example of the evolution of such a drain master plan is shown in Figure 30. The first draft or outline master will clarify what are the opportunities and constraints to development on a site.000 (2.org/docrep/T0521E/T0521E0i. The original neatness of sketch diagrams will often to be lost at this juncture. reductions in deterioration of produce · reductions in pilferage 14 percent 12 percent 67 percent 7 percent Another example of the level of economies that can be obtained from improved facilities is shown in Table 13.400 0 88. primarily a map or series of maps.000 scales). These issues are critical to a plan's success. including the land-use projections and any diagrams prepared of market operations (such as in Figure 15) and plan options in order to draw them to scale (typically at 1:500.0) 1. for the relocation of the wholesale fruit and vegetable market from a central area site in the middle of Atlanta (Georgia) to a new site outside the city. Increased rents for premises will need to be justified on the basis that they will be offset by a well-designed market providing other benefits. As roads and parking areas arc likely to be a major element of the total capital cost and are elements which can be varied substantially in both extent and standard of construction. with less time lost for both wholesalers and retailers. supplemented by written statements. The potential savings from an improved or new layout include: adequate parking spaces and loading bays leading to increased vehicle turn-around. and · introduction of controlled entries and exits. estimated that the savings in annual operating costs would be made-up as follows: · less time lost by vehicles . Unused Total Source: FAO 800 0 28. The purpose of preparing a master plan is to provide a document. The methods of measurement for preparing the table can vary from using a planimeter. climatic considerations and the evolving requirements of the design brief. However. such as lower operating costs (see Chapter 5). unloading and loading areas.6) (36. leading to reductions in pilferage. they will be a major consideration in determining the ultimate form of the outline plan. drawing together the synthesised information from the previous design stages and providing a basis for consultation and more refinement of the detailed design. although the influence of the local site is important.13.9) (0. 1:1.8 . leading to lower porterage and labour costs and a more efficient use of warehouse space.11.200 50.

& Drew.T. B. For existing buildings the survey of facilities described in Chapter 11 should help to establish current practice by. In reality.12 but these figures should be used with caution as they may not match local circumstances. This is an iterative process. a buyers' walk and supporting facilities is shown in Figure 31.00 1.3 percent of the value of sales. Vertical dimensions are also important and. The initial task in selecting an appropriate arrangement for the buildings will be to understand the operation of the market. Planning grids One of the key determinants of the planning grid will be the optimum size of sales areas and wholesalers' stalls. A pattern language towns buildings construction. how produce will flow and how it will be managed (see Chapter 8). elaborating those prepared during the site planning stage. et al.S. London.45 0. To arrive at inexpensive and appropriate building forms. As well as the horizontal or (plan) dimensions of the sales areas there are a number of other key dimensions which will influence the building form.62 0.61 12. wholesalers' premises. climatic design. Figure 31 Internal layout of a typical wholesale market (Kalimati. Oxford University Press) provide a comprehensive understanding of this design process.40 30. will require the market authority to involve itself with fully briefing any design consultant.11 Comparison of costs affected by facilites used by produce firms at the Maryland Wholesale Food Center (US $ per Imperial ton) Item Old facilities 1. Manual of tropical housing and building -part 1. As the first step. John Wiley & Sons). specifying the overall estimates of space requirements.31 2.H.27 minus 7. It is assumed that by applying a simplified standard model (often copied from another site or country) an acceptable solution can be arrived at which will avoid the necessity and expense of having to employ an architect or engineer to design the market buildings. the level of technology of the country and the cultural context is if they are consciously designed. J. Building form . Washington DC. To give these diagrams an architectural form is a complex process which can only be briefly touched upon in this manual. albeit of a flexible and expandable nature. These include the dimension of parking bays (see Table 14. Figure 8). A series of geometrical patterns. Typical values for these modules are shown in Table 13. The preferred minimum clear vertical dimension for market halls is 5 metres.1). (1973.Ch18 Table 13. for example.31 18. If they are over-sized this is likely to lead to a low turnover (less than 15 tons m²) and an underuse of resources. will then be applied by the designer to the accommodation schedule. USDA. tabulating the number of stalls of a particular size. The designer will probably present this in the form of simple flow charts.83 minus 0. New York. A typical plan showing the relationship between producers' sales areas. the market authority. Batsford Ltd).61 0. O. Examples of how architectural design principles can be applied to building types in less-developed countries are given in: Maxwell Fry F. Building design The purpose of architectural design is often forgotten in the design of functional building types such as markers. if not carefully considered. The writings of Christopher Alexander (1977. Other dimensions. preferably in conjunction with the designer. The only way that market buildings can be created to match the site and climatic conditions. planning grids and structural modules (see Chapter 14). this is most unlikely to be satisfactory. Nepal) Koenigsberger.89 18. will need to prepare an accommodation schedule. Wholesale Food Distribution Center Growth and Development.org/docrep/T0521E/T0521E0i. including ergonomic and anthropometric standards.fao.94 New facilities 2.htm (4 of 6) [2004-12-21 01:16:09] .85 Change Rent Handling costs: · labour · equipment Cartage Insurance on contents Total plus 0.09 minus 12. (1956.72 minus 6. derived from ideal dimensions for the range of activities in the market. B. which will allow small fork-lifts or powered pallet-trucks http://www. may restrict the flexibility of the building to accommodate changes in operating procedures. 1989. Building in hot dry climates. requiring constant consultation with the market authority and traders. In this process designers use a wide range of physical design data and techniques. The designer will prepare a series of sketch designs which "balance" the internal space and circulation requirements of the buildings with the need for flexibility in use and constructional simplicity. London. usually constructed of steel mesh. Longman).04 10. Tropical architecture in the humid zone. (1980.16 plus 1. and Saini. As a consequence rents are likely to be disproportionately high as cost recovery normally requires that rents should not exceed 2 . The ideal method is to use the minimum of fixed walls so that premises can be defined by moveable partitions. the proposed management system. which should be related to both the width of structural bays and to the dimensions of the sales areas. The basic choice of building form will also need to be made (see Chapter 4.09 Source United States Department of Agricullure/Maryland Food Center Authority. Chichester.

9 . Architectural elements. The better solution is to have a 0. with shading devices to control sun penetration. the particular problems created by the need to build a modern wholesale market using a minimum of sophisticated technology makes a review of climatic design essential if comfortable conditions are to be achieved for the building's users. some of which have already been commented upon in Chapter 4. Another issue that will need to be resolved is how far the floor slab of the market buildings should be raised above ground level.80 percent of the wall area) and positioned on the north and south elevations.htm (5 of 6) [2004-12-21 01:16:09] . If any form of racking and block storage is envisaged. such as offices and other ancillary uses should have a minimum height of 2. · hot. relating to the general climate of the country and to specific micro-climatic features of the site. Walls should have a low thermal capacity. · warm. The buildings in this climate should be planned as compactly as possible in a courtyard form with precautions to prevent entry of hot dry winds. combining the problems of both humid and arid climates.5 metres. Other factors that will influence the form of buildings will be the positioning of internal and external fixed elements. Minor spaces.40 percent of the wall area. with high temperatures and ground glare. Walls and roofs should have a high thermal capacity.2 metre changes of level.fao.12 Dimensions of wholesalers' units at selected markets Land Use New York London (New Covent Garden) Rotterdam Vienna Barcelona Paris Buenos Aires Bogota Module size (metres): width depth 7 5 7. with large openings (40 . 1976.J. dry (arid) climates typical of desert and steppe areas. The traditional building forms in an area will provide evidence of how buildings have been designed in the past to cope with the climate. Rooms in the building should be single-banked to allow cross-ventilation. Door openings through which fork lift trucks may need to pass should be a minimum of 4.2 metres to facilitate loading banks or platforms. Rome. Market buildings are often raised 0. The orientation of buildings should ideally be on an east-west axis. with high humidity and rainfall levels. which will have different implications for the siting of buildings.Ch18 to be used in the future. 2 metres high and preferably 6 metres in width. The main characteristic of buildings in this climate is that they should be planned to minimize solar heat gain and to maximize air flow. Roofs will need to be insulated (see Chapter 14) and should have wide overhangs to prevent sun penetration and to give protection from heavy monsoon rains and high (sometimes hurricane force) winds. Building design is ideally similar to arid areas. their internal layout and their construction. FAO. However. 8% grade) · shutter and sliding doors · sun screens and louvres External elements · fencing · bollards and barriers · gantries · fuel and water tanks · gates · temporary shade structures http://www. again clear of any obstructions caused by the roof structure. but with facilities to take advantage of solar radiation at cooler times of the year and temporary provision for cross-ventilation. Table 13. which may need to be incorporated into the design: Internal elements · canopies · buyers' walks · display areas · loading ramps (max. humid climates: typical of the equatorial tropics and tropical islands. whilst others are discussed in Chapter 14. with permanent or temporary shallow ramps. spaced at a minimum of five times the building's height to allow breeze penetration. and low rainfall levels. · composite climates: typical of equatorial and tropical uplands and Mediterranean areas. It also imposes restrictions on how the building may be used. a more suitable internal minimum height is 7. Climatic design principles The building form will also be strongly influenced by climatic design factors. Cross-ventilation to rooms is not essential and openings should be limited to 20 .org/docrep/T0521E/T0521E0i. The following is a brief check-list of these elements.5 6/12 6 6 6 21 15/21/27 13. This is an expensive element to construct and may lead to cracking problems with the floor finishes. There are three basic types of climate that are common in less-developed countries.5 10/18 12/18 14 12/15 area (m²) 147 75/136 100 60/216 72/108 84 72/90 Most common stall (m²) 242 100 120 84 72 10-12 Source: Mittendorf H. Planning of wholesale markets for perishable food.4 metres.1.

fao.Next · fire hydrants · solid waste skips · landscaping http://www.org/docrep/T0521E/T0521E0i.htm (6 of 6) [2004-12-21 01:16:10] .Ch18 · fire-fighting equipment · refuse bins · directional signs Contents Previous .

however. In reviewing external circulation components of a market development plan all aspects of transport that might serve the site need to examined. 13. however.fao. Appropriate parking and circulation design standards are discussed in Chapter 14. particularly those of retailers. An important advantage of the ring road approach is that it enables drivers to search for parking spaces and to correct mistakes. Projected traffic flows and parking requirements. These will include · road transport. The turnover of vehicles in a market. The use of the overspill areas should be confined to market users with small loads to carry. Of particular importance is to understand the types of vehicles that are using a market and when peak periods may occur. · air (for export markets).13 gives details for the Kalimati site in Nepal of typical parking requirements for vehicular traffic at the peak period (assumed in this case to be the period when retailers are making their purchases). traffic models. As a basic principle it will be better to avoid any crossroads within the layout and to make as many of the junctions as possible 3-way (T-junctions). A typical approach to establishing the road network for a market site is to provide a continuous peripheral road system or "ring road". unloading and loading facilities need to be directly adjacent to the main market building. · rail links. is rapid and it is highly desirable that a sufficient number of adequately sized parking spaces are provided. particularly for large scale markets. At this stage in the design process a hierarchy of roads should be established.3 spaces per 100 m² of sales area. Figure 32 shows the pattern of arrival for vehicles using the Birmingham (UK) wholesale market based on a 7-day survey. with the buildings located within the centre of the block. These may include producers' delivery vehicles. the desirable maximum distance from a parking space to a market building should be 100 metres. but loop systems are more suitable for simpler layouts. estimates should be made of the projected traffic flows and distribution by type of vehicle. which may require the provision of reserve parking areas a little remote from the market facilities. although this may create problems of security and management of documentation. For peak periods. For a preliminary layout a minimum of around Go m² per truck parking space should be used. the size of the area served by the ring road can be increased and individual facilities can be directly served by the road system. served by a single entry road. Junctions and intersections between different grades of roads will need to be looked at in detail. usually by adopting a one-way circulation system. In larger markets a series of entry gates are often located adjacent to each other. particularly in respect of sight-lines and the spacing between junctions. including small-scale electric vehicles. and the vehicles of the general public Table ]3. using computers. Site entry and exit One of the most difficult features to achieve in any site layout is sufficient road length at the site entry so that incoming trucks can slow down and be checked-in at the entry gate without causing backing-up onto the public highway. but it may be necessary to adopt a figure of 200 metres for peak parking in overspill areas. transport for permanent and temporary market staff. 11 and 30 give typical site layouts of small-scale modern market facilities which attempt to meet these general objectives. For smaller markets. this could easily be increased to 4 . · rivers and canals.Ch19 External circulation and services Contents Previous . of Vehicles per day Peak period ratio Parking spaces required (number) Peak season http://www. In preparing more detailed proposals for a site. A layout with more than one exit has obvious advantages in terms of traffic control. For very large market sites. retailers' and other buyers' vehicles. This problem also occurs on leaving the site and often this is more critical as it may involve handling a peak discharge of small volume vehicles (typically pick-ups). are necessary for projecting traffic flows. and · non-vehicular transport (pedestrian head loads and animal carts). but this will not always be possible.13 Kalimati wholesale market: estimated number of vehicles per day and peak period parking requirements at ultimate development Type of vehicles& commodity carried Throughput: (m/t/day) Average day Load factor (m/t) Total no. By using minor loop roads or branches (cur-de-sacs) that penetrate within the block. excluding the main circulation. An overall minimum standard for the provision of parking places (trucks. Road patterns. The ideal practice in developing a road layout is to strictly segregate the produce coming in from that going out. In general. Grid road patterns may be used. Figures 7. reflecting the different intensity of use of facilities. Ideally.org/docrep/T0521E/T0521E0j.Next The access system and general circulation pattern of a market will generally be the most critical aspect of its master plan and initially needs to be looked at as a complete entity. simpler techniques based on examining the pattern of traffic data from roadside and market surveys (see Chapter 11) can be used. pick-ups and private cars) should be 2 .6 spaces per 100 m².htm (1 of 4) [2004-12-21 01:16:13] .

The surface water drainage system will need to deal with storm water flows for peak discharge conditions and the method for estimating this is described in Chapter 14. Surface water drainage. Services other than roads can be disregarded in the initial preparation of the overall site plan.Ch19 Within market: Retailers small trucks & pick-ups: .0 Sub-Total 107.m x 4m) Total parking spaces outside the market Grand total Source: FAO (GCP/NEP/043/SWI) Note: * Includes allowance for longer vehicles 12 18 30 6 36 136 Other services. Fruit 610 33.0 0.0 122. Figure 32 Mean arrival times for vehicles delivering to Birmingham wholesale market The majority of other services are likely to be placed underground.3 0. surface water drainage is likely to be the most important service to consider next. 8. More detailed engineering design criteria are described in Chapter 14. http://www.' (the time intervals between occurrence of storms of similar intensity). but as the site layout is gradually finalized. Invariably. but these networks need to be co-ordinated with each other for ease and economy of construction and in order that future maintenance does not disrupt the working of the market.4m) Total parking spaces within the market Outside market: Private cars and official vehicles: · One parking space for each senior official · Add 150 % for visitors/general public Car parking spaces required (@ 5. the need for frequent cleansing of drains which are easily blocked by produce waste (open channels are normally either covered with steel gratings or concrete slabs) and any potential restriction created by the existing site discharge.5 1. which establish precisely both their vertical and horizontal relationships. consideration will need to be given to the location of other service networks. This will need to be carefully addressed in order to avoid impacting on the adjoining sites.5m x 2.5 81 66 52 199 0. the issue of off-site disposal of surface water and how it can be related to existing natural drainage lines will also have an important influence on the detailed planning of the site. Because of the scale of open drainage systems and the significant runoff from paved market areas. is often adopted.0 66.htm (2 of 4) [2004-12-21 01:16:13] .6 24 20 31 75 17 92 8 100 · Fish 13.4m) Add 20 % for short term truck parking (e. 1 he following notes review the types of site-level environmental problems and the general solutions that may be encountered in market development. The use of "common" trenches for the distribution of services. The alignments of channels is likely to be a major constraint on the overall site layout because of the rigidity of design standards that will need to be applied.0 Add 22. Solving potential flooding problems often requires that off-site works are undertaken These will need to be incorporated into the market development programme. Environmental impact and controls Although the site layout should take into account the servicing requirements of the market there are a number of environmental problems associated with site development which may need to be resolved at the detailed design stage.0 1.0 26.5m x 2.fao.3 0. However. severe problems may occur if a substantial amount of filling is required to bring the site above flood level or to provide a more stable base for construction.5% for suppliers' vehicles/contingency* Truck parking spaces required (@ 8m x 4m) Add for wholesaler's cars (@ 5.org/docrep/T0521E/T0521E0j. Vegetables . Market sites must be almost completely paved and the critical factors to take into account when calculating the drain sizes and sections will be the gradients. The technical issues associated with the disposal of surface water from market sites are not difficult if tackled properly.0 214. causing backing-up of drainage water at upstream sites or direct flooding downstream. Information on actual recorded flood levels may not be readily available and an interview survey of local residents may be required in order to establish the level and duration of previous floods and the likely "return periods.

S. 174 (Mare. development of odours and breeding of files. 1978.). pit latrines and aqua privies. (Management of solid wastes in developing countries. although some improvement to the mains may be required in order that the site can be served. If an existing site is adjacent to such uses careful design measures will need to be adopted in upgrading the market. R. 1977. odours and nuisance from burning and the polluting of ground and surface water sources. 1976. 1978. London School of Hygiene & Tropical Medicine). These are. nor advisable given the potential environmental impact it might have on adjacent sites. 3 metres from water pipes and 1. S. for general cleaning and. An agreement will need to be made with any local sanitary board for the collection of solids and periodic cleaning of the septic tank. Waste should therefore be collected for disposal off-site. be warranted if the market is to be developed in conjunction with other facilities. The location of the septic tank should be away from any adjacent sensitive uses and close to the existing surface-water discharge A minimum distance of 30 metres should be maintained from any wail. if any. Small-scale incineration is not practical or economic. either for recycling the waste as compost or by a controlled tipping or sanitary landfill operation. & Cairncross. To obtain a guaranteed supply.1. sample borings may be required. Usually a drilling or excavation permit will be required before constructing a new well or other form of supply. Equipment options for collection and methods for calculating the volumes of waste that might need to be handled are given in Chapter 14. Sewage treatment in ho' countries.000 kcal/kg. R. & Feachem. On-site compaction of waste and pressing into a container is not likely to be viable in developing countries. For small secondary wholesale markets in rural areas simpler methods of excrete disposal are normally adopted. The management of solid waste is thus a key issue that will need to be resolved.Ch19 Water supply. Building Research Establishment). Sewage treatment. Techniques for this are reviewed in Flintoff. The Initial study findings report of the Chaing Mai Planning Project (Louis Berger International Inc. with leach fields and partially treated effluent going to surface water drains is likely to be the most practical. economic and environmentally satisfactory solution. If the market's solid waste problems cannot be handled by the local collection authority then it may be necessary for the market to consider setting up its own facilities.70 percent) and a low calorific value (+/.fao. 8 (Feachem. a septic tank system.org/docrep/T0521E/T0521E0j. with a high moisture content (60 . typically. New Delhi. These range from public health risks. P. Often. 81. particularly given their extended hours of operation. South-East Asia Series No. which may be appropriate for secondary wholesale markets. in which case their economic viability will need to be assessed Suitable design criteria are given in Overseas Building Note No. for areas where there is a special requirement for quiet conditions such as schools. Estimating the capacity of the septic tank will depend on the numbers of sanitary fittings. typically Psychoda. If an adjacent site is already occupied then useful information can be obtained by discussions with the adjoining owners to investigate what problems. D. will require the provision of toilet facilities A conventional water-borne sewerage system using an existing mains connections is often not available for market sites and some form of on-site treatment will be necessary. London School of Hygiene& Tropical Medicine). Refuse is potentially a major cause of environmental problems. 7 5 metres from streams. Data from a survey by Chiang Mai University (Paiboonslip. Noise levels at markets can cause a significant public nuisance. 1). Noise nuisance. Water supplies to markets are required for drinking and sanitation purposes.16 decibels [dB(A)]. like any other facility used by the public. fire hazards. Garston. Small wafer supplies.htm (3 of 4) [2004-12-21 01:16:13] . of any site surveyed in the city. If an existing mains supply is available this would normally be used. Noise monitoring in Chiang Mai) indicated that one of the main retail markets had the highest ambient noise level. A water-quality analysis of any existing supply may be required to test for the presence of pollutants. They may. however. particularly faecal coliform bacteria (Escherichia coli). based on Japanese levels (but around 15 dB[A] higher). the only practical solution to the supply of potable water for a market will be to use a pumped supply from a bored tube well. which is discussed in Chapter 14. Techniques for the construction of tube wells and other small-scale supplies.5 metres from buildings or boundaries. Small excreta disposal systems. they have experienced. In many cases. 10 (Cairacross. National effluent guidelines frequently require that markets install their own treatment systems and this is usually enforced through building permits. with an on-site storage tower. A full review of these techniques is contained in the Ross Institute Bulletin No. For this reason market sites are usually located away from residential areas and other sensitive land uses. religious buildings and hospitals: Day-time Morning/Evening Night-time http://www. for the washing of produce. The purpose of the system will be to remove organic (excrete) waste so as to prevent infection transmission. arc normally not large enough to justify a mini-treatment plant and there are major ¿difficulties in the maintenance of such complex electrical and mechanical systems Other options available include waste stabilization ponds. however. The waste generated at a market will have a high organic composition (minimum 50 percent). in some cases. pollution of receiving water courses. are given in the Ross Institute Bulletin No. Markets. Community ambient noise standards may not exist and adopting those used in developed countries may be inappropriate. 1985.. although it is an attractive solution for reducing transport demands and disposal facilities. WHO Regional Publications. aerated lagoons and oxidation ditches These are unlikely to be appropriate for the relatively small-scale requirements of a market. F. Market sites. Disposal of solid waste. 1991) suggested the following standards.

by siting noisiest uses away from sensitive areas.fao. as in some layouts where the buyers' walk is made wide enough for vehicles. will be the problem of containment of air pollutants as the construction and operation of any market will lead to a significant increases in pollution levels. This issue will need to be carefully considered during detailed design: · distance attenuation. leading to uncomfortable internal conditions.htm (4 of 4) [2004-12-21 01:16:13] . with different cost implications and effects on a market's operating system.Next http://www. both of which can have a considerable impact on internal ambient noise levels. however. This may be acceptable in arid areas. planted screening (which will have little impact in terms of noise attenuation) and the upgrading of windows. it would be better to confine environmental improvements to the optimum siting of facilities. The construction of walling around a site will have a significant impact on noise levels.org/docrep/T0521E/T0521E0j. no increase above approved noise levels for 90 percent of the time in residential areas might be permitted and only a marginal increase allowed in rural areas or those of mixed use. For example. Air pollution. In the humid tropics. Air flow will be restricted and this will hinder natural ventilation both within the market and of adjacent uses. and · attenuation by window design. as the general conditions for obtaining a reasonably comfortable working environment will require that as much shade is obtained as possible. however. · restricting the working hours of a market. Contents Previous . noise decays at a rate of around 6 decibels (dbA) per doubling of distance from the sound source (the decibel scale is a relative measure on a logarithmic base. Allowing vehicles to enter the market building. if sites are fully enclosed by high walls this might have a number of detrimental effects. Another approach often adopted is to categorise land uses according to their sensitivity to changes in the ambient noise level.Ch19 Maximum noise level 60 dB(A) 55 dB(A) 50 dB(A) It is usually assumed that the noise levels will apply at the property boundary. giving a ratio of sound pressures). is not considered to be acceptable in either the humid tropics or arid climates. There are a number of ways the noise impact of a market development may be reduced. using double glazing combined with mechanical ventilation or by adding projecting external fins. by modifying the windows of adjacent buildings. A significant increase in noise levels may be allowed for developments on industrial sites. so that for example the impact of heavy traffic early in the morning is minimized. Equally important. Problems that this might create in terms of pollution and climatic comfort levels are discussed below. · attenuation by screening. For the humid tropics. particularly higher frequency sound. In open air.

This may be applicable when a site is located at the bottom of a slope. the proportion of organic matter they contain and whether practical problems and costs could make cement stabilization an attractive option. The topographic analysis will assess whether it will be necessary for the level of the site to be raised. There are generally two forms of sub-soil drainage that are used: either horizontal "French" drains which are laid adjacent to main drains and sewers. either obtained by excavating slopes on the site or. The main characteristics that should be considered in making this assessment will relate to the site's drainage and topography. providing ramps where necessary. Raising the site level will require fill material. and vertical drains. it may be necessary to form the http://www. where a steep cross-slope exists. by importing suitable fill material from elsewhere. particularly the relationship of the outlet's invert to the present ground level. the depth of cover. Sites with a large catchment area and discharge flow may require the provision of an improved site outlet and on-site storage for peak period storm water flows. more usually. Technicians may also find the notes useful for highlighting the types of engineering problems that can be encountered in market design. However. The analysis should also consider whether temporary drains and sediment control structures will be needed during the construction period and if stilling basins. A 25-year return period is often assumed.Next The subject of engineering design criteria is a vast one which cannot be satisfactorily covered in a short manual. off which there may be a substantial surface water discharge. · what measures should be taken for disposal of unsuitable fill material. The notes should also be helpful in providing a basis for the preparation of terms of reference for consultants. · maximum compressive strength of cement-stabilized soils. · the minimum 4-days-soaked California Bearing Ratio (CBR) value of the sub-grade soils and the recommended total thickness of the road pavement above the sub-grade. The following notes are meant to provide a guide for non-technicians so that they can understand the scope of engineering design related to markets. Trash trapping may also be necessary at the outlet from the site. retaining walls and ground floor slabs of buildings. from modified Proctor compaction tests. dry density and coefficient of permeability of foundation soils. Site drainage analysis. requiring either adjustments to the site layout and building designs or special consideration to be given in the detailed design of site preparation and infrastructure contracts. Sub-soil drainage may be needed in order to accelerate primary settlement because of a high water table near the existing ground and extremely soft ground conditions with a low bearing capacity (such as clayey-silt alluvial material). a visual inspection of the site and detailed traverse and topographic surveys the overall physical conditions should be assessed. · recommendations on the suitability of natural gravels and mixed soils obtained from the nearby quarry sites for use as imported filling material and as the sub-base course for road pavements.org/docrep/T0521E/T0521E0k. This may be needed to provide stable soil conditions for new building works. to provide adequate cover to the new drains discharging through the site and to ensure that the final level comes above high flood level. · comments on pore water pressure inside the void spaces of the soil mass and whether vertical or horizontal sub-soil drains are required for the stabilization of the project site. The implications that this analysis may have for the site's development should then be defined. possibly carrying earth and other loose material which might block the market's drains. To aid construction in soft ground conditions the fill may be laid on a geo-textile blanket. Many of the subjects may be covered by local building regulations and codes. often used where raft foundations are proposed.1) and by using small changes in level within buildings.Ch20 14 Engineering design criteria Contents Previous . related to the number of commercial vehicles per day. but often these have a strong bias towards the construction of houses and may not be appropriate for the design and construction of markets. Site preparation and development On the basis of the site investigation survey. · the maximum dry density and optimum moisture content of sub-grade soils. and · general recommendations on excavating procedures. Topographic analysts. the usual minimum standard is 95 percent Proctor.htm (1 of 7) [2004-12-21 01:16:19] . surrounds and bedding required for pipes and standards for backfilling of trenches in graded material. This needs to be compacted by heavy plant. The analysis of drainage should assess whether a site is low lying and how the surface water is presently drained. Site investigations The conclusions and recommendations of the site investigation survey described in Chapter 11 should include consideration of the following: · the depth and appropriate standards to be adopted for the compaction of embankments and other areas of fill based on the soil type and the type of compaction plant to be used (to be confirmed during construction by undertaking field density tests). · the types of foundations required for different building types (described later in this chapter).fao. Moderate gradients across a site can be accommodated by sloping roads and parking areas (see Table 14. cascades and trash trapping will be required as part of the permanent drainage system. · the modulus of vertical subgrade reaction.

earth retaining structures may be needed. Roads and parking With the exception of areas designated to buildings.00 2.50 7. from the smallest cars and pick-ups to large trucks.00 11. obtained during the site investigations.50 7. Tutt and Adler. for this reason. These are typically constructed as pre-cast concrete crib walling. Geometrical design. Lynch and Hack.50 Width (metres) 3. Pick-ups .00 12.00 7.200kg axle loads). The road system of markets will need to accommodate a wide range of vehicle types.1 Appropriate road design criteria Length (metres) Roads: · Lane width · Minimum road width (1 way) · Minimum road width (2 way) · Manoeuvering distance Access ramps (no parking).00 3.50 15.0 5.5.65 3.00 18.fao.00 Gradient (percent) 0.5 .00 8. Pavement design. the entire area within a market site will need to be paved in order to provide the maximum degree of traffic manoeuverability and to facilitate site cleaning.0 0.Ch20 site by excavating level platforms.00 4.00 12.75 4. · Maximum up ramp · Maximum up/down ramps · Maximum preferred Horizontal curves: · Outside curb (minimum) · Outside curb (preferred) · Solid waste vehicle (turning) Vehicles: · Pick-up/mini-bus · Standard truck · Articulated truck · Truck with drawbar trailer Loading bays (end-on): · Minimum size · Preferred size Parking spaces: . A suitable design procedure for tropical roads is set out in the publications of the UK Department of Environment (Technical Memorandum H6/78 and Road Notes 29 and 31).5.0 8.00 18. and the peak projected traffic levels (usually expressed as standard 8. The road layout will form the main base map for the construction contracts and.0 .5.80 3.00 5.65 2.00 8.40 2. Specialist advice is generally required to determine the thickness of the road pavement. Typical problems that will require such assistance could be the application of traffic models to predict flows.50 2. landscaping or reserves for future facilities.0 - Sources: Mittendorf. often necessitating layout adjustments. In this case.0 0.50 Radius Metre 10.0 8.5 .htm (2 of 7) [2004-12-21 01:16:19] . Appropriate geometrical design criteria that can be adopted for the design of small and medium-scale markets are illustrated in Table 14. the design of a main junction at the site entry/exit and the detailing of complex loading bay arrangements. reinforced concrete or masonry retaining walls or reinforced earth slopes. A high standard of road construction is always required in markets and the road pavement should be designed on the basis of the California Bearing Ratio (CBR) data for wet conditions.org/docrep/T0521E/T0521E0k. The purpose of the detailed engineering design will be to refine the broad assumptions used in the site plan. De Chiara. fire appliances and refuse collection vehicles.1.00 2.00 5.5.5 . http://www. it is essential to undertake the road design before other engineering services Table 14. The main characteristics of the road system will have been established during the site planning process described in Chapter 13 A hierarchy of roads will have been defined and the number of parking spaces at peak periods calculated. Trucks · Small cars (minimum) 8.50 2.0 6. The geometrical design of roads is a specialized activity and in the case of a complex urban market it will not be possible to develop the design without technical advice.50 15.

including the site. Singapore). Cut-off drains on the site boundaries may need to be provided to control the inlet of water into the site. but they tend to be more expensive. such as I in 5. Roads would be usually provided with integral side gutters and precast concrete herbs. with a small dry weather flow channel in the bed of the larger drains to cater for a self-cleansing velocity. such as 0. and because the future land uses around market sites are likely to be heavily urbanized. To prepare derailed drainage schemes there are many published technical works and it will also be critical to employ the local knowledge of public works departments. Where traffic loads are light and subsoils are suitable. For markets this is normally taken as a high value. Surface-water drainage systems The process of preparing layouts of the surface-water drainage system will. linen finished with a tack coat and surfaced with a pre-mixed bitumen based material. however. 10. Code of Practice on Surface Water Drainage.htm (3 of 7) [2004-12-21 01:16:19] . An assessment will also have to be made of the maximum recorded intensity of rainfall per hour for a range of design storm intensities. with a minimum of crossings. to cater for back-water effects if the existing outlet is constricted and to provide a level of on-site storage at times of peak discharge. Alternatively.Ch20 Where adequate supplies of local crushed stone are available "Macadem" construction would normally be adopted.8 m per second for self cleansing) and Manning's Formula: where: R = hydraulic radius of the channel in metres S = gradient of the channel as a percentage n = Manning's roughness coefficient (which can be assumed as 0. will be of use in making an initial assessment.014 for normal insitu concrete lining to the channels). but because of the urban location of markets the best source of rainfall data is often from the local airport. For most public buildings a level of service of at least 1 in 25 years return period would be appropriate. The run-off coefficient is selected from standard tables and will depend on the extent of paved areas and building coverage.fao. The most useful technique is to use the Rational Formula: where: C = run-off coefficient I = rainfall intensity in mm per hour A = catchment-area in hectares. A freeboard of 10 per cent of the channel depth is often used in design as a safety margin to cope with high intensity short duration storms. 25 or 100 year storms. impermeable and have fully paved surfaces. The direction of the site's main.cross-sectional area of channel in m² V = velocity of flow in m per second (taken as maximum of 3 and minimum of 1. concrete road pavements can be used. The calculation of drain sizes is usually based on the use of the Continuity of Flow Formula: Q (run-off:) = A x V where: A . With complex catchment-area shapes and where it is necessary to allow for some degree of storage within the channels a version of the Rational Formula modified to meet local conditions should be used. have a significant impact on the detailed site planning. Catchment and discharge The first step is to review available mapping of both the site itself and the areas immediately around it.org/docrep/T0521E/T0521E0k. Ministry of the Environment. soil stabilization techniques can be adopted using lime or cement as the stabilizer. because the sites are normally flat. Rainfall intensity Comprehensive historical information on rainfall intensity is usually obtainable from agriculture or irrigation departments. Some drains are likely to have only a minimal slope and wider cross-sections need to be provided. with a compacted sub-grade. The next step is to calculate the total peak discharge of water from the site. sub-base and base courses. Covered or uncovered reinforced concrete rectangular drains are typically adopted. Drain design. The alignment of other main drains is likely to follow the pattern of buildings and roads. in tropical countries at least. Parking areas may be constructed to a slightly lower standard of design. Examples of such publications for tropical areas are the Malaysian Department of Irrigation and Drainage's procedures and the regulations of the Singapore Drainage Department (1978. outlet (or more than one outlet) to a natural water course should be identified and the catchment area of the site should be defined (the area of land whose surface water will drain into the site).9. This should ensure that during major storms there is no inundation of the market buildings and that road access is still possible. particularly at the site outlet. http://www. The following notes.

Local standards may exist for calculating demand which reflect climatic conditions and cultural habits. · 1 fire extinguisher per 600 m² of floor area (or part). Specialist advice should be sought for the design of pipelines on very net sites (less than 1 in 50 gradient) or where there are high water pressures. based on Nepal Water and Sewerage Board standards (Drinking water installation and drainage requirements in buildings in Nepal. and · internal fire hydrants to open-market sheds. 1967) and Recommendations for providing first aid . S. which will make maintenance simpler as parts of the system can be cut-off. The main tank would serve a reticulation system of ring loops. In designing the water supply system a minimum fire-fighting flow of 34 litres per second (450 gallons per minute) should be aimed for. The water will need to be to a similar standard to that for drinking water. Key buildings with a higher fire risk should be provided with secondary alternative means of escape in case of fire and compartmented to a higher standard of fire resistance.fire fighting arrangements in public buildings (IS:2217. An approximate estimate for water demand at ultimate development of a typical 10. The enclosed nature of market sites may make it necessary for the fire brigade to have special facilities for access. including cold storage (IS: 3594. Fire-fighting systems The large amount of organic material in markets means that they present a substantial fire risk and special provision should be made. 1978. so that the site can be served by a gravity distribution system. 10 (Cairocross. Distribution should be to overhead tanks in individual buildings.000 litres = 75. A number of markets have been completely burnt to the ground in major fires. incl.org/docrep/T0521E/T0521E0k.fao. 1963). is as follows: · Basic requirement assuming a "medium" demand of 4 litres per m² of effective floor area for covered markets: = floor area of 10.000 litres = 10. These should be used if available. Any tank or reservoir should hold at least one full day's supply.3 litres per second. etc. R. but local codes may exist and adjustments to meet these standards should be made. Water supply The majority of the water use at a market will be for washing purposes. stand pipes and to a separate fire hydrant system.000 m² x 4 litres/m² · Cool storage requirements at 20 litres per ton:= say 500 tons x 20 litres per ton Basic requirement Add 50% contingency. Pumping may be required to raise the water to the tank level. hatchet. Because the calculation has been based on the total floor space the flow rate is broadly equivalent to a peak flow On a net site this would require a 50 mm diameter polythene pipeline. Assuming that the market in the example above operates over a 16 hour day then the flow rate would be equivalent to 1. Fire hydrants. page 88).000 litres = 25. Tabulations of pipe diameters for different flow rates. spaced at approximately 30 metres intervals in loop systems encircling the main building and around the site periphery. Cold storage buildings should also be fitted with gas detection equipment. The hydrants should be provided with wall-mounted hose reels to serve a maximum radius of 30 metres. Consultation with the local fire brigade is always essential. London School of Hygiene and Tropical Medicine). The hydrants should be located in the pavement areas to protect them from damage by vehicles and be served by connections from a gravity fed overhead storage tank. produce washing · Estimated Total Daily Demand = 40. Small water supplies. gloves. All buildings should be provided with internal emergency equipment to the following minimum standards: · 1 fire bucket per 100 m² of floor area (or part thereof). These fire safety requirements have been generally based on the Indian Code of Practice for fire safety of industrial buildings: general storage and warehousing.000 m² market. materials and gradients are given in the Ross Institute Bulletin No. · first aid kits and tools (asbestos blanket.htm (4 of 7) [2004-12-21 01:16:19] . The market site should be served by a series of above ground fire hydrants. & Feachem. These principles should provide a reasonable basis for design. Smoke detection and alarm systems should be installed in all the main market buildings.) for each building or compartmented section.000 m². served from overhead gravity fed tanks to a minimum pressure of 3 kg/cm².000 litres From this calculation it will be possible to estimate the size of any incoming mains or borehole by converting the water demand into a flow rate.000 litres = 50. In order to avoid the need for a costly overhead sprinkler system the buildings should be compartmented by limiting the distance between fireproof walls to a maximum of 60 metres and to an area of less than 1. thus guaranteeing a water supply for fire fighting.Ch20 At the detailed design stage it may be necessary to fully investigate the possibility of improving the site outlet by increasing the size of the existing outlet or by introducing a new outlet. Fire prevention in buildings. http://www. Depending on available pressures and the reliability of the supply the site may need to be served by an underground reservoir or a high-level tank (in pressed steel or concrete shell).

org/docrep/T0521E/T0521E0k.5 (usage factor) x 2 per 50 users = 17 water closets · number of urinals: = 280 tons (daily throughout) x 1.4 x 1. 1971) and Layout for regulated market yards for fruits and vegetables (IS:1787. Assuming that a mains sewerage system is not available then sewage would normally be taken to one or more septic tanks located within the site boundary. which is published in the design tables of the UK Hydraulic Research Station. The transformed low voltage supply should run in encased cable ducts to a main switch board.7m depth). where the site is very flat and where suitable locations for the treatment plant are limited. large installations.25 market staff) and market users are 75 per cent male. all internal roads and http://www. it may be necessary to pump the sewage. For ease of maintenance all external cables should be ducted through cable trenches and internal wirings should be concealed in conduit wherever possible. A typical size for a market with an annual turn-over of 40. For security reasons and so that the effective working period of the market can be extended.45 persons = 2 46 .6 persons = 0 7 . (IS:2470. is given in the Indian Code of Practice for the design and construction of septic tanks. surround and relationship to rigid structures.20 persons = 1 21.Ch20 Sewerage For most sites it should be possible to use a water-borne gravity system (typically 150 . 1971). The design of this can be based on the Colebrook-White equation. Local methods for estimating the peak sewage flow and the hydraulic design of the sewers should be available. which can be a double-pole mounted type or one located within a building. Larger market sites will need to be served with their own high-tension supply (usually 11kV). then the maximum number of market users per fitting at ultimate development would be: · number of water closets: = 280 tons (daily throughout) x 1. with distribution cables to sub-switch boards in the individual buildings. These standards are shown in Table 14. typically 300 kVA. particularly artificial lighting.fao. A transformer is normally required. which for economic reasons is often an overhead supply mounted on pylons. To estimate the total number of fittings it is necessary to make a number of assumptions about the usage of facilities.25 sellers.70 persons = 3 71-100 persons = 4 wash band basins drinking fountains clearer's sinks Source: Indian Codes of Practice 1 per 25 persons 1 per 100 persons 1 per floor 1 per 15 persons 1 per 100 persons not specified not specified not specified Female 1 per 15 persons 1 per wc plus 1 per So persons not applicable Market yards 2 minimum plus 1 per 50 persons 2 minimum plus 1 per 50 persons 2 per 50 persons Electrical services The provision of power.200mm diameter pipework) but in some cases. 1 buyer and 0. The following calculation is based on the requirements for a medium-size wholesale market yard: · assuming that the average out-going transaction size is a small pick-up load of one ton. it is desirable to be cautious in the structural design of pipelines. the average number of people involved with each transaction is 1. Sanitary fittings The provision of sanitary fittings can be estimated on the basis of the Indian Code of Practice for drainage and sanitation (IS: 1172. 1961).5 x 0. is an important infrastructure component as it enables the fullest and safest use to be made of the market's facilities. External lighting. Septic tanks.5 (0.75 (males) x 2 per 50 users = 13 urinals Table 14.000 tons might be around 26m³ capacity (7. An appropriate method in tropical areas for estimating their size. As new markets are often on filled sites with potential long-term differential settlement problems.htm (5 of 7) [2004-12-21 01:16:19] .2.7 x 3. part 11. particularly their bedding. On very flat sites it may be necessary to use a pressurized pumping mains. The partially treated effluent would be discharged into the main surface water drain at the outlet from the site.2 Standards for the provision of sanitary fittings at markets Fitting water closets ablution taps urinals Male 1 per 25 persons 1 per we plus 1 per 50 persons 0 .

In arid. A major market will require the installation of its own switchboard (PABX system) which would be housed in the main management office. lanterns mounted at 8 metres and overhanging 2 metres would be spaced 25 .08 E . is not likely to be economically viable in most less-developed countries.000 lux to counteract the brighter natural lighting likely to be found outside. typically reducing the internal temperature by 3° . Detailed design criteria are contained in the British Standard BS 5489 (1980. If not. based around skip lifting vehicles.8/370 tons = 754 m³x 220 kg. retailers and exporters and also acts a management and extension tool. may require cable-suspended fittings. with pole mounted lamps on the site perimeter.30 metres apart. even for just the market's offices. from being used.8 tons = 370 tons =5% http://www. BSI). average density 220 kg/m³. With the development of market information systems the telephone is the major means by which price information is transmitted to producers. with high turnover · dual carraigeways and A roads · B roads · outside stairs and ramps E = 12 lux/u2 = 0. the German guidelines (DIN 57528) recommend the following standards of averagè illuminance and uniformity: · parking areas. if this available. Roof extract fans are. For food displays the colour of the tubes should preferably be warm. The spacing of the lanterns will depend on the height at which they are mounted and whether they overhang the road area. which may also provide telegram facilities. Mechanical ventilation. For example. x 11.org/docrep/T0521E/T0521E0k. In the USA. usually provided for the main market sheds. usually from hand cart loads.Chiang Mai = 18. The best arrangement of lighting is to mount lamps or floodlights on the face of the market buildings. such as parking areas. often accommodated at a post office. either tungsten halogen. For markets this is not usually an appropriate system as it may involve the refuse collection staff of the market in additional handling. It should have sufficient external lines for the installation of computer modems and facsimile equipment.260 kg/m³. the following method of calculation (based on projections made for the Sansai market in Chiang Mai. although wall-mounted fans tend to be more effective. Although the correct location of buildings on their sites (see Chapter 13) and the choice of an appropriate building form and roofing material (see later in this chapter) will assist in the establishment of a satisfactory internal climate.33 Building lighting Internal lighting levels to buildings need to be to a high standard of illuminance. This may still not be sufficient to provide comfortable conditions if wind speed is low and solar radiation high. Telecommunication systems The telephone is essential for a modern wholesale market.3% = 166 tons = 18. Public telephones will be required within a market.12 lux/u2 = 0. such as cooling towers. Container interchange An ideal system often used in markets is one using container interchange. The best method for estimating waste generation is to base the calculations on local survey data. high-pressure mercury or sodium vapour. = 166 t. They should be collected at the end of the working day and empty skips left For the next collection. Skip volumes can vary from around 3 . Design standards for ventilation are contained in the British Standard BS 5720 (1979 Code of Practice for ventilation and air conditioning London.Ch20 paved areas need to be adequately lighted by means of high level luminaires.9 cubic metres The skips should be located at strategic locations in the market for gradual filling. probably using compression type refuse vehicles. As an alternative.08 E = 15 lux/u2 = 0. around 40 percent of all transactions are made directly by phone. desert climates the frequent occurrence of sandstorms may prevent natural ventilation systems.htm (6 of 7) [2004-12-21 01:16:19] . with a minimum of 500 lux and preferably 1. It allows rapid communication between wholesalers. In the humid tropics and coastal areas market buildings will tend to have completely open sides to maximize air movement. but some cultures have a strong preference for the use of cool tubes. To minimize heat gain high-efficiency fluorescent fittings should be used for artificial lighting. Air conditioning. preferably in a staggered arrangement. market waste density 200 kg/m³) · Total daily waste arising (1991) · Markets account for 11. Large open areas. for example.fao. BSI). therefore. mechanical ventilation may still be required.5° C. Thailand) provides a reasonable basis for estimating the number of skips that might be required: · Assume Sansai's rate of waste generation is similar to existing markets in Chiang Mai (overall density ranging from 180 . Solid waste equipment The local or municipal authority is already likely have a system for collection and disposal of solid waste. but this may be oriented to the collection of small-scale domestic waste.3% of total Average daily market turn-over in Chiang Mai · Existing market waste .17 E = 12 lux/u2 = 0. Code of Practice for street lighting London. For offices and other facilities ceiling fans are often installed. with the building's ventilation arranged so as to draw heated air out.

x 5 % = 14 t. Keeping the paladins and containers clean can also cause a major problem. hand-operated cleaning machines or vacuum-operated vehicles equipped with brushes for kerb cleaning. typically a farmer who already owns the equipment. either small. In most less-developed countries the only economic solution is to use a combination of manual cleaning with brooms and small-wheeled collection carts. popular in European markets. is to use metal or plastic containers (paladins) on castors. these only have a limited volume (around 1 cubic metre) and require the refuse collection vehicles to be equipped with a lift and tilt mechanism.fao./200 kg = 70 m³ x 1. Often this service can be arranged with a local contractor. unless special facilities are available for automatic cleansing.Ch20 · Projected average daily turnover at Sansai · Projected waste generation at Sansai · Average specific weight of refuse · Volume of waste generation.2 = 84 m³/7 m³ = 12 loads/2 = 6 skips x 2 = 280 tons = 14 tons = 200 kg/m³ = 70 m³ = 84 m³ = 6 . For small secondary wholesale markets the most convenient collection vehicle may be a tractor and trailer combination.Next http://www. However. The general cleaning of road and floor surfaces within a market is also very important. Medium-size containers of 2-3 cubic metres capacity are also sometimes used. Contents Previous .8 m³ = 12 loads = 2 times = 6 skips = 12 skips Other types of solid waste equipment Another method for handling solid waste collection.org/docrep/T0521E/T0521E0k. mechanical methods should be used.htm (7 of 7) [2004-12-21 01:16:19] . but again require special fork lifts attached to the refuse vehicle. Where labour costs are high. In this case refuse would be collected in the market at fixed enclosures (usually constructed of rendered masonry or concrete) and then manually transferred into the trailers. Sansai · Add 20 percent for grading/packing · Average capacity of existing skips · Number of skip loads per day · Assumed collection Rota per day · Number of skips required · Allowance [or container interchange = 280 t.

Depending on soil conditions.Ch21 Building structures and materials Contents Previous . The site investigation will also give recommendations for the depth of strip and raft foundation. Other facilities on a site might be of a more permanent nature. in southern latitudes "south lights" and near to the equator by completely shaded unglazed openings. such as under a main water tower or tank. except for sections of the building where a raft foundation may be required because of higher loadings. such as strip or raft foundation or isolated footing supported by long or short piles. The main criteria for structural design of foundations will be established from the site investigation survey. 1983. pressed-steel sheeting. RJ. often coinciding with a break in the roof plane for ventilation Although the shed form may be simple there are many opportunities for refinement in its detailing and elegant and economic structural forms are possible. insulated and clad with colour bonded pressed-steel sheeting or. completely open on the sides.fao. would be basically similar to the main sheds. Reviews of suitable intermediate technologies are contained in Spence. Spans can range from 8 metres up to 24 metres. but equally influential will be the decisions made about how the roof is to be supported. the foundations should ideally be conventional isolated pads under the main columns. with connecting strip footings. with a light RCC frame. Insulation should be provided to the entire ground floor. The construction of specialized facilities such as cold storage. high level pressed steel or timber louvre ventilators and "clerestorey" glazing should be provided at ridge level. Selection of building materials. (Building Materials in Developing Countries. measures which should be taken in the design of column footings and their inter-connection by tie-beams. with steel roof trusses. Chichester. Buildings with depths greater than the maximum practical spans can be obtained by providing intermediate supports. and. R. To provide comfortable and well-lit conditions in the centre of the building. like that of civil works design. Construction of the building might be of conventional masonry. John Wiley and Sons) and Stulz. Glazing in northern latitudes should be "north lights". in selecting construction materials. This will determine the appropriate bearing pressure that should be adopted in design and the types of foundations that will be required for different building categories. there should be a balance struck between cost. In less-developed countries the selection of appropriate building materials is as important for the construction of markets as for any other building type. the minimum length of pile foundations. utility and the optimum use of resources. if available. The following notes may assist administrators in understanding the types of issues that will need to be considered by the projects architects and engineers when they are developing the design of the market. some form of lightweight fibre sheeting. Swiss Centre for Appropriate Technology) Typical construction. The term appropriate in this context means that.org/docrep/T0521E/T0521E0l. The use of traditional or intermediate technologies does not mean that design will be simpler.S. chamber walls and roof. providing unloading facilities for producers and a raised loading platform for wholesalers and retailers The roof would generally be of steel trusses. Market buildings are essentially simple sheds and in their design the most important element to consider in the structure will be the choice of an appropriate system of roof construction. Foundation design. except that raft foundations may be required because of high loading. The selection of cladding materials is discussed below. if the site falls within an active seismic (earthquake) zone. clad with clay tiles or colour-bonded. not something that can be adequately covered in a short manual. but this should not be at the expense of providing the most functional solution. Structural loading assumptions. Ideally the span and width of structural bays should be as large as possible to provide an unobstructed operating space. the opposite may often be the case. The following figures (based on British Standard CP3: Chap V: Part 1:1967) may provide a useful supplement to these standard figures: Dead loading · Steel roof cladding · Steel trusses 480 N/m² 100 N/m² http://www. Structural design of buildings.Next The subject of building and structural design is. The typical construction of a low-cost market building would be a steel sheet or brick clad reinforced concrete (RCC) frame. It is usual for national standards to exist for standard loadings and these will need to be adopted in design. It is generally preferable that local materials and technology are used. with bays at spacings of 6 metres to 12 metres. or of calculated load-bearing brickwork. 1981 (Appropriate Building Materials Zurich.htm (1 of 4) [2004-12-21 01:16:22] .

Materials supply. None of the sheet materials can be used on their own and roof insulation will be required. Locally produced insulating boards.fao. are the ideal materials if available. The final choice will invariably be made on economic grounds. but a lower time lag of around 8 hours.org/docrep/T0521E/T0521E0l. a review should be undertaken of materials availability and supply. aluminium foils and polyurethane boards are very effective but may be too expensive. asphaltic or fibre-reinforced cement sheets may exist and these should be investigated. In some regions the need to cope with seismic. Roofs will account for the largest proportion of the total building costs and are likely to be the most complex technical problem encountered in the building design. will be determined by a number of external factors. in-situ or pre-cast reinforced concrete finished in hot mastic asphalt or a cold-applied bituminous compound are the usual choice. however. http://www. Hot arid and composite climates will require roofs with a high thermal mass (9 . For spans over 6 metres steel trusses will tend to be the most economic solution.40 kN/metre of height 2.Ch21 · False ceilings Distributed imposed .1 W/m² °C). Roof cladding. noncombustible.75 kN/m² 4. the most important building component that will need to be considered is the cladding material selected for the roof. The presence of termites and wood-boring beetles. supported on masonry.00 kN/m² 5 00 kN/metre height (minimum 15 kN) 2. Market roofs must be durable. The modules required for sales spaces and storage areas and the geometry created by the parking bays will need to be studied in selecting suitable dimensions for the structural bays.live loading · Pitched roof · Produce display/sales · Cold stores · Other stores · General offices · Hostels · Public halls (fixed seats) 140 N/m² 0. may limit the use of structural timber. for example. concrete. In the warm humid tropics the need to cope with high levels of rainfall will tend to favour lightweight pitched roofs. restrict the range of options that are available.00 kN/m² Roof structures. Before making any decisions on basic construction methods. Traditional pitched roof materials that might also be appropriate for rural markets include thatch. however. using waste straw or other residues. include fibre-reinforced soil roofs with animal dung waterproofing and reinforced brickwork finished with asphalt or tiles.50 kN/m² 1. however. insulated to achieve a thermal mass time lag of less than 3 hours (U value of not less than 1. which may be particularly applicable for secondary markets in rural areas. Tropical upland climates will require pitched roofs of a similar thermal mass. The choice of roof materials is very wide and needs to be considered with the structural design. These perform more satisfactorily. steel or timber columns. but generally require foreign exchange for their purchase. Fibreglass. Practical and cost considerations will. which are heavy and thus only generally suitable for short-span structures. will invariably need to be imported and the responsibility for their import should be considered in the preparation of project documents. Other options include plastic coated sheet stell aluminium and asbestos cement. particularly in coastal areas.50 kN/m² 4. Common construction materials for roof structures are steel or timber trusses and reinforced concrete.htm (2 of 4) [2004-12-21 01:16:22] .85 W/m² °C). This will include the capacity and level of local technology what materials are available. For markets. For flat or pitched roofs in arid climates. It is normal and desirable to design a market on the basis of the maximum use of locally available and manufactured materials and components. Certain items. the ability of local fabrication workshops. low surface reflectivity and is not very durable. movement or hurricane force winds will be the major determinant of the roof form. which has fireproofing problems. and clay or stone tiles. The ultimate decision. Other options. such as galvanised steel which has a poor performance thermally.12 hours time lag and a U value of not less than 0. transport constraints and site erection facilities. easily maintainable and must be able to perform under all the internal and external climatic conditions imposed on the buildings. Local production of corrugated. Most modem urban markets favour the use of light-weight corrugated sheet materials.

or roof trusses.3 Geotechnical & materials testing during construction Site preparation Field density test by sand replacement method Modified Proctor test in laboratory Laboratory CBR tests Field CBR tests Mackintosh probes (for building foundations) Consolidation test for primary settlement (T90) Plate load test Materials testing Cement setting times Cement soundness test Cement compressive strength Concrete cube tests Concrete mix design (28 days strength) Brick compressive strength Brick moisture absorption Los Angeles abrasion test/impact test Tests on materials from sand and aggregate sources Engineering design and supervision Final design. Table 14. Geotechnical and materials testing programmes. Because of the difficulties of quality control the import should always be made the sole responsibility of the main contractor.htm (3 of 4) [2004-12-21 01:16:22] . Where there are likely to be wide variations in the quality of locally available materials (such as earth-fill material. water tanks and roof cladding.org/docrep/T0521E/T0521E0l. Assuming that there are sufficient. gratings. the following steps would need to be followed for their appointment: · preparation of D & S terms of reference. A typical list of the types of investigations that might be undertaken during construction is shown in Table 14. depending on the variations in site conditions and the different properties of materials being used on the site. experienced local consultancy firms to take on the role. and · recommendations and approval to appointment by client body http://www. window frames. · review and evaluation of bids. including visits to their offices and to work for which they have been responsible. including newspaper advertisements. such as street lights and fire hydrants. steel shortages may have a significant impact on a project's progress.fao. Significant cost and time savings can be made through the bulk purchase of steel internationally. Geotechnical and materials testing should also be undertaken during the construction period so that the settlement of a site during filling can be monitored and appropriate adjustments can be made to infrastructure design. Either could also act as the design and supervision (D&S) consultants for the project's duration and be responsible for management of the construction contracts.Ch21 Cement is a material which is often in short supply and notwithstanding the existence of cement factories. frames.3. should also be made the sole responsibility of the main contractor. it may need to be imported so as to guarantee a supply. The import of specialized fittings. louvres. It can then be supplied to selectively tendered local sub-contractors for the fabrication of components.6 months for the mobilization of a consultant D & S team. preparation of tender documents and tendering procedures is the responsibility of a government public works department or a locally appointed firm of architect/engineers. · short-listing of local consultancy firms. · invitation to bid. The construction of market buildings often assumes a large steel component. Appointment of consultants. Although there may be a high level of capability for fabricating these components locally. partitions. Although government staff might be appointed without any formalities it would take around 4 . sand and gravel) and components (such as bricks and tiles) the tender documents should incorporate a sub-contract for a local firm to undertake geotechnical and materials testing.

general quality and financial control. A common method to ensure that the client's interests are protected is to appoint an independent project manager. reviewing of bids and letting of the contract packages. assisted by inspectors and a site architect.org/docrep/T0521E/T0521E0l.htm (4 of 4) [2004-12-21 01:16:22] . certification for interim payments and preparation of final accounts. · site supervision of construction contracts. This method usually has the advantage of faster construction periods and may allow greater financial control during the contract. · tendering by short-listed contractors (local competitive bidding). equipment procurement and physical progress. · advertising contracts and pre-qualifying contractors. but it does require that the client body has thoroughly worked out what it wants. · preparation of bid documents for materials and equipment procurement. would form the basis for their terms of reference: · topographic surveys and geotechnical investigations. · review of designs undertaken in previous design stages. · submission of monthly technical progress reports on construction design. reviewing and letting of the contracts. For large-scale projects. including checking of setting out. such as an urban wholesale market. a high level of on-site control will be needed. drawings and bills of quantities) for site construction. · final design and preparation of tender documents (specifications. and · preparation and agreement of final construction accounts and handing over of building and sites to client body at the end of the defects liability/warranty period. contract budgeting. A full-time resident engineer is necessary on the site. The following activities would be undertaken by the D & S team and.Ch21 In some countries there are variants on this procedure where the practice is to use contractors for both design and build.fao. followed by tendering (international and local competitive bidding).Next http://www. if they are to be a private firm of consultants. a turn-key contract. Contents Previous . valuations. Scope of design and supervision activities. This is sometimes referred to as. if not already undertaken by other consultants or government department.

F. Longman. Wholesale markets for horticultural produce in cities and towns. agricultural economics and marketing in the tropics. M.towns. New York. 2 (2): 205-232. Economic Geography. 1978. FAO.M. Fishing ports and markets. C. Liverpool. FAO. Third World Planning Review. Estudio de factibilidad mercados mayoristas de la Paz. Cartwright R. A pattern language . Rome. Oxford University Press. The design of urban space. Darrow. Agricultural Marketing Training Institute. Guidelines for rural centre planning. D.htm (1 of 4) [2004-12-21 01:16:23] . 1988. 1979. Campinos. Chambers R. 14. United Nations.II. 1972. Oxford and Ibhi Publishing Co.S & Agarwal. The Architectural Press Ltd Chambers A. Columbia. FAO. FAO. 1991. 1975. http://www. The Geographical Journal. De Chiara. Davison.H. Rome. J. 157 (1): 51-61. R.L. H. Site planning standards. buildings. Urban food distribution in Asia & Africa. Economic and Social Commission for Asia and the Pacific. Urban projects manual. New York.1983. London. New Delhi. 1989. Seoul. Street markets of London. J. Liverpool. Rural settlement and land use. Chlsholm. Hutchinson University Library. 1979. 1980.C & Makeham. London. University Press.. Bromley. Benjamin Bolm Inc. LE. Appropriate technology sourcebook. T. Report No. R. 48 (3): 299-315. M. McGrawHill Book Company. Rome. Korea. 1977. J & Koppelham. Benedetta. Drakakis-Smith. 1979. AMTI. London. London. 1980. & Goethert. J. Acharya S. Horticultural Marketing Council.C. Alexander. Harlow. 1960. FAO. 1987. G. 1978.P. Intermediate Technology Publications. FAO. Stanford. 1986.fao. Municipal versus spontaneous markets a case study of urban planning in Call. Economic and social development series 37. Regional training workshop on planning and design of fruit and vegetable markets. Volunteers in Asia Inc. K. Rural periodic markets and the extension of an urban system: a Western Nigerian example. Development of food marketing systems for large urban areas . New York. & Payne. Farmer first. 1962. Agricultural marketing in India.org/docrep/T0521E/T0521E0m. 1979.. Abbott. Marketing improvement in the developing world.H.. construction.1981. Urbanization primer. Mass. Eighmy. 1963.Ch22 Bibliography Contents Previous Abbott. London. Cambridge. N. DHV Consulting Engineers. The MIT Press. London. Asia and Far East. New York.

FAO. Marketing and Credit Service. FAO Regional Office for Latin America and the Caribbean. Dictionary of human geography. Marketing Guide 3. Rome. 1989. 1983. & Smith. Goodalt G. ILACO B. Vance Bibliographies.Ch22 Rome. FAO. N. Agricultural Services Bulletin No. http://www. FAO. Rome. Economic Geography. Chile.fao.org/docrep/T0521E/T0521E0m.a manual. in Elz. Covered markets: a bibliography of recent literature.S. Guide to improving rural markets. J. 1972. FAO. AGS Bulletin 51. Clarendon Press. Bangkok. The private marketing entrepreneur and rural development. 1984. London.. FAO Regional Office for Asia and the Pacific. FAO 1986. 1986. Selected indicators of food and agricultural development in the Asia-Pacific region 19 79 -89. RAPA Publication 1990/15. Chile. The spatial and temporal synchronization of periodic markets: evidence from four emirates in Northern Nigeria. 1986. Intermediate Technology Publications. FAO Regional Office for Latin America and the Caribbean. Huls. Marketing livestock and meat. 1988. Rapid reconnaissance guidelines for agricultural marketing and food system research in developing countries. Goethert. FAO. of Agricultural Economics Horticultural Marketing Council. FAO/AFMA. 1981. 1960. FAO. FAO. FAO. Harmondsworth. Monticello. Study of operations in a wholesale horticultural market.a critical link for small farmer development. D. Guide to establishing small packing stations for fruit and vegetables in rural areas. Rome. FAO. Capcitacion en planification y operacion de mercados mayoristas de alimentos de America Latina. G. 1963. 1986. Santiago. Improved food marketing and delivery systems. Agricultural compendium for rural development in the tropics & subtropics. FAO/DSE. 48 (3): 345-355. 1990. Rural markets . M. FAO.a resource and training manual for extension officers.76. FAO. N. 1978. OH T. Making microplans.-Oxford. 1986.htm (2 of 4) [2004-12-21 01:16:23] . Bangkok. Dept. Rome. R & Hamdil. Michigan State University. FAO. Bangkok. Rome. Marketing and Credit Service. London Holtzman. Agricultural marketing strategy and pricing policy. Horticultural marketing . Washington DC. London. 13. Field engineering for Agricultural Development. FAO Regional Office for Asia and the Pacific Fenn. Hill P. FAO. 1982. World Bank. Rome. 1987. HMC Report No. Guidelines on socioeconomic indicators for monitoring and evaluating agrarian reform and rural development. 1975. K. Improvement of post-harvest fresh fruits and vegetables handling . FAO. Hudson. Santiago. Harrison. FAO Regional Office for Asia and the Pacific.W. Penguin Books. PH. Mercados mayoristas de alimentos de America Latina. 1988. 1987.V. Illinois.

N. et al. Jetro Report AG-6.W. C. Longman. JETRO. Planning of urban wholesale markets for perishable food Rome. Hutchinson University Library. 57. B. Agricultural Services Bulletin.org/docrep/T0521E/T0521E0m. XXIII (2): 3548.Union of Local Authorities. Lynch. C.A. J. ODA.J. London. University of California. 1972. Manual of tropical housing and building. 1990. University of London. The Hague. 1981.S. Le Fevre.M P. Models in Planning. H. 1984. Market information services. 1988. Mc-Graw Hill. Agricultural engineer's band-booje. J. Lee. London. Roberts. Agrarian Training Institute Sherbini. Building in hot dry climates. A A. 1969. E. & Plekerleg. Elseveir IULA. Tropical architecture in the humid zone. London. Journal of Agricultural Economies. Retail stall markets in Great Britain. Site planning. Editions Duang Kamol. & MacGuire. 1961. International Institute for Environment and Development. 1973. John Hopkins University Press. Kader. Rome. Maxwell Fry. Jackson. A. J.htm (3 of 4) [2004-12-21 01:16:23] . Koenigsberger. FAO Regional Office for Asia and the Pacific. A. J. New York. 1976. Bangkok. Jacqat. G. 1983. Wye College.A. (ed). Bangkok. Batsford Ltd. An introduction to rapid rural appraisal for agricultural development. & Hack. Mittendorf. Schubert.H. 1980. C. Food marketing in nine Asian countries. McCracken. Pergamon Press. Town planning techniques. 1966. Kilrk. of Agriculture & Natural Resources. O. An outline of food distribution in Japan centering on distribution through wholesale markets.. Senanayake. J. New York. FAO.B. 1972.1972. HMSO. Plants from the markets of Thailand. M. 1980. Mass. Hutchinson.T.Ch22 Amsterdam. London. John Wiley & Sons. Lee. HJ. S. Richey. 1974. Saini. 1963` Surveys for town and country planning. B. Cambridge.F. 1954. Tokyo. et al.H. FAO. International. & Drew. Postharvest technology of horticultural crops. Economic analysts of agricultural projects. Periodic rural markets in the Kurunegala District. 1972 The economics of moving Covent Garden. climatic design. Price Gittinger. Planning fruit and vegetable wholesale marketing facilitties in developing http://www. Manual on wholesale markets.. B. A guide to project appraisal in developing countries. Chichester. London.Y. et al. John Wiley & Sons.1983. London. J. C. J. Baltimore. Div. Oxford. Colombo. London. The MIT Press. Parker. 1973. Simplified site engineering for architects and builders. K. 1956.fao.

SKAT. 1991. The Architects Journal. & Ramaswamy P. Washington. Marketing eggs and poultry. & Jenkins' P.F. Stern. USDA.fao. 1970. FAO. Spence. Appropriate building materials. Field engineering London.S. London. USAlD.htm (4 of 4) [2004-12-21 01:16:23] .the human aspect in development. N. UNDP. G. 1963. Taylor. P. Wholesale food distribution center growth and development. How to write a project document. Chichester. The merchant's world: the geography of wholesaling. Brasilia Companhia Brasileira de Alimentos. Building materials in developing countries. Washington.planning and design data. Contents Previous http://www. 1961. New metric handbook . London. Stulz. 1981. SINAC. An evaluation of the financial feasibility of four new wholesale fruit and vegetable markets in the Yemen Arab Republic. Vance Jr. United States Agency for International Development. R. 4. Market survey and data processing techniques. United States Agency for International Development. R. Marketing Guide No. L. A warehouse layout for a fruit and vegetable service wholesaler in a terminal market. 1990. 20. Washington. 1989. Stewart. P et al. Rome. Intermediate Technology Publications. National wholesale market system.org/docrep/T0521E/T0521E0m.. Faridabad. Swiss Centre for Appropriate Technology. Washington. D. J. 1985.C. 1979. USDA/Maryland Food Center Authority. 1989. USAID 1990. & Adler. United States Department of Agriculture. Bangkok. 1975. 1983.J. Intermediate Technology Publications. Report No. USDA. Marketing Research Report 389. Tutt. New York. FAO Regional Office for Asia and the Pacific.Ch22 countries Rome. FAO. 1989. Designing wholesale markets for Asian cities.. Village markets in Ghana. Prentice Hall. United Nations Development Programme. and Abbott.E. Market Planning & Design Centre (Government of India: UNDP: FAO Joint Project). J. Steppe. Veda. Time to listen . 1983. H. Zurich. John Wiley & Sons.

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