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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Contents 13.htm (4 of 4) [2004-12-21 01:15:04] .fao. 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 http://www.org/docrep/T0521E/T0521E00.

vegetables and other fresh foodstuffs.Next Wholesale marketing systems for fruit. 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. Other matters covered in the manual include consumer demand projections. They neither maximize benefits to producers. Abbott. or their agents. Planning of urban wholesale markets for perishable food). Such studies may be directly undertaken by government agencies or marketing authorities or by consultants appointed to assist them. Governments can address the problem of inadequate infrastructure by undertaking development programmes which reorganize institutional marketing arrangements. but very little guidance is available. directly oriented to the needs of such administrators and planners. http://www. such as architects and engineers. 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. in undertaking marketing and engineering surveys. The manual partly replaces the previous guide prepared by FAO (H.Mittendorf. No development programme should be initiated without investigating these subjects. 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. but implemented by a group of construction oriented professionals. Marketing improvement in the developing world) should be consulted. and in turn sell their purchases to retailers. implementation issues. There is substantial background technical literature on the subject of wholesale market design. 37 :l C.J. financial and economic feasibility. create facilities at new sites or improve existing services. such as livestock and fish. 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. Although the manual is not directly involved with subjects such as market institutions. in a concise and comprehensive form. are initiated by one group of professionals. and in formulating proposals for the provision of physical facilities. 1986.htm (1 of 2) [2004-12-21 01:15:05] . 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. nor to consumers. of necessity. and the justification for the provision of specialized facilities. 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.Ch01 Preface Contents . management. There is a tendency that these improvement programmes become too elaborate and costly.org/docrep/T0521E/T0521E01. I he programmes. so enabling them to carry on a constructive dialogue with design professionals. Problems also arise because of a lack of communication between the various parties involved with development. in the preparation of feasibility studies and master plans. operations and regulation these issues are broadly outlined as they have a significant impact on the physical environment.fao. such as cold storage. are often inadequate. typically agricultural economists and planners. 1976.

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

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

as http://www. The function of wholesale markets The consumption and production of marketed food are spatially separated. a manual needs to be very broad in scope.Introduction Contents Previous .Next The following two chapters broadly review the background to wholesale marketing. 1. For the very poor. the retailer does not need to concern himself with any of the sorting. which enables farmers to sell in small quantities and purchasing by traders and wholesalers to be made in bulk.fao. 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. For general application. The concern of this manual is the planning and design of physical infrastructure that will be required for part of this process. In this case. environmental. 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 . The assembler or wholesaler may also perform a storage and warehousing function. there is a dearth of information on the practical aspects of market planning. distribution and retail stages.60 percent of the total family income. retailer would need to purchase directly from farmers.htm (1 of 6) [2004-12-21 01:15:09] . A simplified diagram showing this process is illustrated in Figure 1. Without wholesalers. assembly.org/docrep/T0521E/T0521E03. primarily fruits and vegetables. allowing produce to be moved from an area of surplus to one of need. Production is generally in rural areas and consumption primarily in urban areas. taking into account the wide range of issues (economic. Marketing is the process that overcomes this separation. involving many minor transactions. The purpose of wholesaling. Although much has been written on the subject of wholesale marketing. Figure 1 The operation of a food marketing system Figure 2 illustrates how this process operates.Ch03 Part A . expenditure on food may rise to 70 . the number of transactions is reduced and the marketing process simplified. 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. planning. 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. 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. The social institution or mechanism that forms the linkage between the producer (farmer) and the retailer is the assembly and wholesale trading system. the wholesale marketing of fresh produce. Food reaches the consumer by a complex network. sorting. With both rural assembly and wholesale markets. reassembly. involving production.80 percent. social. reassembly or distribution functions and concentrates solely on selling to consumers. engineering and management) that are involved with any market expansion and improvement programme.

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

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

org/docrep/T0521E/T0521E03. with local catchment areas. 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. 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. This applies whether a new location is being proposed or an improvement to existing services is being undertaken. In terms of layout and circulation they are similar to hypermarkets or to large-scale distribution warehouses. from a planning point of view secondary and terminal wholesale markets can be treated in a similar way. aimed at a specific group of users (and often introduced to change the operation of existing marketing channels). say between London and Rome. This has a significant impact on both the planning of the market site and on the design of its buildings. Although the design approach will depend on the climate of a particular region. 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. medical operating theatres. Population growth. This is generally possible if you look at other specialised contemporary building types. 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.fao. The reality of wholesale markets in less-developed countries is that most of these principles have not been http://www. They need to handle efficiently the input and output of large volumes of produce and to provide facilities for the sale of that produce. They both perform similar wholesale functions. Although differences may exist.htm (4 of 6) [2004-12-21 01:15:09] . the space standards used for designing such building types will generally be the same whether the facility is in Alaska or Calcutta. wholesale markets were built adjacent to city centres. irrespective of the location. Traditionally. The overall organization will be broadly similar and so will be the level of sophistication of equipment. the location of production 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. including the regional road system. modern wholesale markets in developed countries have much in common. the seasonal variation in production volumes and their relationship to primary assembly markets in rural areas. industrial laboratories or warehouses using mechanical handling equipment. Textbooks on marketing economics often refer to them as the "golden rules". The use of modern management techniques will also be broadly applicable. while terminal wholesale markets are urban. how it is transported and its quality and quantity can be standardized in the manner that is possible in a developed country.Ch03 produce traded. "Ideal markets" There are a number of general principles by which "ideal" markets should be conceptualized. may be different there are many resemblances. located at a focal point of the inter-city transport facilities and close to the main retailing areas. in terms of the types of produce. However. 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. Design problems that are unique to secondary wholesale markets may be related to seasonal peaks in production and the provision of farmers' markets. Special characteristics of wholesale markets. with regional or national catchment areas. A recognition of urban planning problems is therefore essential to understand the growth of terminal wholesale markets. To tackle the problems of secondary wholesale markets requires a full understanding of their local context. such as international air passenger or cargo terminals.

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

Traditional practices.htm (6 of 6) [2004-12-21 01:15:09] . include the method of bid ding "under a cloth". market authorities need to be conscious of the negative effects that relocating a market might cause. An example of this. Traders may not be willing to move. including modifications to sales methods. There may be pressure to combine lots. Changes can also occur because of factors outside the control of a marketing authority but which may have a significant impact on market development. 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. Contents Previous . Outside forces. This is likely to lead to radical changes in the organization of existing markets in Europe. Public intervention may play a part in bringing about changes. bringing about changes in support policies for both producers and traders. and the development of traders' associations and wholesaling skills. such as through the introduction of rules for regulated markets. with immediate payment. Institutional changes that might occur include the growth in banking and credit infrastructure. however. Improvements in storage facilities may also allow producers to market their produce in a more flexible and cost-effective manner. There is often resistance to adopting auctions. allowing producers a greater freedom in how they market their produce. leading to a buyers' market. a new urban highway system or a new port.Ch03 production areas. as they can be time consuming if there is wide variation in the quality of produce. 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. which may enable more sophisticated marketing organizations to be developed. However. which are often banned. Institutional and political changes. 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. which is seen as providing many opportunities for cheating.org/docrep/T0521E/T0521E03. Of all forces for change to an existing market this is likely to be the most common. requiring more stringent control of temperatures and the exclusion of vehicles from within market buildings.fao. enabling improvements to be made in the marketing of produce both for domestic and export markets. Another outside force can be the introduction of new health and safety regulations. 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.Next http://www.

traders and local communities. 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. 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). 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. Practical operating procedures will need to be formulated and discussions will need to be held to set viable and acceptable levels for the rental. Consultation procedures. increased production of fruits and vegetables and related http://www.Ch04 2. the design solutions will have to be acceptable to all the parties who might be affected by the development. Emphasis should be placed on finding solutions which are applicable to the resources and construction technology available in the country. Economic and appropriate solutions. During the design process. An approach to wholesale market planning & design Contents Previous . National and sectoral development objectives. Caution is required in these consultations with traders so that they do not become acrimonious by concentrating too greatly on the financial relationship. as well as meet budgetary constraints. These may include policy-makers charged with decision making about markets. parking and commission charges that the market should adopt. It is thus important that market developments provide a balanced and affordable programme. applicable to the scale of the particular market. 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.htm (1 of 3) [2004-12-21 01:15:10] . as well as providing material for use by participants of training programmes. market organizations. 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. technical staff. in some ways most importantly. Although local planning guidance and regulations may be available the manual can act as a supplement to this information. These goals are concerned with the benefits of the project to the nation as a whole and to the agricultural and commercial sectors. planners and. many of whom may be relatively inexperienced in market development. its likely growth and its expected revenues.fao. The goals will tend to be simple statements of national policy. minimizing the use of foreign exchange and reliance on technologies which might be difficult to maintain. 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. measured by indicators such as: greater per caput consumption of fruits and vegetables.Next This manual for wholesale market planning and design is aimed at a wide range of users.org/docrep/T0521E/T0521E04. to the exclusion of involving them with planning and design issues. As well as fulfilling the needs of the market authority. These will include government agencies. senior administrators. producers. Objectives are likely to be at two distinct levels: national/sectoral and project. Consultants engaged by market authorities may find the manual particularly useful as a check list of the range of issues involved with market development .

All aspects of the design should be subject to the same overall planning and financial constraints. These goals will be concerned with optimization of the operational system and physical design of the proposed market. institutional or management aspects. 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. Figure 4 A design methodolgy A process approach. with a less variation in seasonal price fluctuations. traders and wholesalers. 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. and project evaluation criteria. There are a number of ways in which the overall design process can be viewed: by design stages. These savings can occur from lower handling and equipment costs or more favourable rates for insurance and cartage. levels. particularly of the actual volumes traded at the market. This is essential so that the various professionals involved can have a clear understanding of the roles of others participating in the design process. Design functions. The interactions between the activities are critical. the project's capital and recurrent costs to the potential returns from tolls and rentals. either for upgrading or relocating an existing market or for the construction of a new market. The most convenient way to look at the design process is by the sequence (or stages) in which a design is developed. short-range flexibility. and long-range flexibility. Demonstration that such savings might occur will be critical in persuading market users that higher rents and/or market relocation are justifiable. 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. Figure 4 provides a diagrammatic summary of the overall process. Other project-level criteria include whether there are potential savings in market operating costs. The project formulation and feasibility stages are primarily the concern of individuals with backgrounds in socio-economic. providing the opportunity for easily extending and changing facilities. which will relate by means of financial and economic analysis.6 of the manual follow this sequence. Another way of looking at the design process is by identifying the functions and types of professionals who would be involved in the development. whether it can be constructed within defined cost limits and budgets. 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. for producers. The development programme should also show that defined levels of operational flexibility can be obtained. with distinct outputs occurring at each stage. lower consumer prices. or activities. Within each stage a systematic procedure must be followed. reflecting seasonal variations in trade. emphasizing how the stages of the design methodology are part of a linked system. Design development is the concern of physical planners and http://www.htm (2 of 3) [2004-12-21 01:15:10] . functions. Project-level design objectives. Design stages.Ch04 increases in producers' incomes.org/docrep/T0521E/T0521E04.fao. Chapters 3 . A wholesale market design methodology. The fourth stage is project implementation. Typical criteria that are used in assessing the success of a market project are: whether it meets defined minimum physical-space standards. and reductions in post-harvest losses due to improved marketing and handling practices. These include: immediate needs for day-to-day operational changes. by the introduction of new or improved facilities. In preparing a market master plan a process approach needs to be adopted.

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

Information will be required on the general planning context. and · legislation and regulations on the institutional and legal framework for markets. contained in government sectoral plans (typically from a ministry of agriculture) and district reports. Figure 5 Stage I . if applicable.Next This is the core of the manual and is based on the stages of project design described in Part A. An initial analysis should be made of facilities and accommodation requirements.fao. It can often take 6 8 years from reviewing the need for a new market to its occupation. Information sources will include the following: · national marketing and agricultural policies and strategies. 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. In order to avoid repetition there is cross-referencing to the technical appendices in Part D. including public health and safety regulations.htm (1 of 5) [2004-12-21 01:15:13] . assembling information from published sources.org/docrep/T0521E/T0521E05. Within each stage the other aspects of the design process are also reflected: the design levels. · official maps and air photos. The section does not go into much detail. compiled by planning and public works departments. but with a more complex project the structure will help to clarify the process of project development. · records of previous and current development activities and existing commitments. 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. local and regional demographic and planning studies.Project Identification and Pre-feasibility 3. marketing channels and the existing consumption of fruits and vegetables and. A thorough review of all available background data will therefore need to be made. An important issue that needs to be mentioned before describing the details of project formulation is that the process is likely to be lengthy. 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. It proceeds from project identification through to implementation. the levels of agricultural production. . but defines what should be broadly achieved at each of the design stages and what are likely to arise as key concerns and problems.Ch05 Part B . A flow chart illustrating the overall process is represented in Figure 5. including those undertaken by consultants and universities. This will be largely a desk study. alternative site development scenarios should be considered and an outline master plan and action programme prepared. fish and livestock. With a simple project these stages may not need to be rigidly separated. Project identification and pre-feasibility The first stage in project preparation is to undertake an identification and pre-feasibility study. poultry.Planing and design activities Contents Previous . 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.

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

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

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. Project benefits.org/docrep/T0521E/T0521E05. In order to refine the preliminary estimates of throughput.provision of land.fao. the provision of new equipment or the application of a traffic management scheme. data will need to be collected on the number and size of existing markets. other than.financial and loan requirements. It is important in assessing a project's impact to be clear how benefits might arise. Initial surveys to be undertaken. 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. · surveys of traders and market channels.term strategic problems. . that design should be based on adequate data and it will be necessary. possibly. The mere provision of new or improved physical facilities will not guarantee any benefits. the risks are either eliminated or arc reduced . http://www. A typical short-term risk is that agreement has not been reached on the market's institutional framework and management method. both in terms of the type of produce and the quantities marketed. while a positive effect would be the growth of smallscale traders and wholesalers. if not accompanied by appropriate institutional and management changes. medium or low) and whether they are of a short or medium-term nature. 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. including the establishment of a project advisory committee or management board. however.management and institutional. Ideally data should be available before any further detailed design development occurs. the operating performance of markets can be improved with virtually no physical change. It is essential. if they have not already been undcrtakcn. The subject of risks is discussed further in Chapter 5. to carry out surveys of: · volumes and types of produce transacted at different times in the year. their daily trading patterns and the variations in trade between seasons. These risks should to be described. · traffic modes and volumes. and . or are long.The typical types of issues that will need to be resolved arc: . Where an existing market is to be improved or extended. In many cases. before proceeding further. 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.Ch05 competition for private markets. and an estimate made of their probability (high. 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. Project risks.htm (4 of 5) [2004-12-21 01:15:13] . and · investigations of a site's engineering and physical characteristics. Risks which could influence the overall design of a project need to be identified at this stage. The intention should be that. 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.

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

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

but need to be used with some caution as the figures are national averages. The first should be a minimum size. any calculations that use output volumes (such as retailers' parking requirements) may need to be adjusted to reflect this. A reasonable throughput target for when a market is fully operational should also be projected. In estimating space requirements for markets very simple techniques should be used. These are likely to be the most easily available data. Space requirements. In making throughput projections. The figures are also likely to be overestimates. as the market must still be designed to accommodate it. must be evaluated carefully. A range of 10 . but will form part of the overall per caput consumption. Second. as not all produce reported as being traded is actually sold and substantial losses are likely to occur. particularly that from home gardens within the city. 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. particularly if there is also a large tourist trade. A peak season may be as much as 2. The first is the extent to which peak production and the sales of fruits and vegetables could vary by season. However. They tend to disguise substantial variations in consumption between different seasons. In that case the 1st phase of a new market could be sized to meet an initial (5 year) growth.org/docrep/T0521E/T0521E06. 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). corresponding to present immediate demand and based on the results of roadside surveys.fao.Ch06 12). A conservative basis for planning. The volume of this trade will not appear in roadside surveys. Data from roadside and retail surveys will provide a basis for establishing these factors. Estimating assumptions. such as direct sales to supermarkets. if available. However the extent to which trade might switch from present markets and other channels. This does not affect the input volume. income groups and between urban and rural areas. 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. is that a new market will gain the new trade and existing markets and other channels will broadly retain their present level of trade. which are explained in detail in Chapter 13: · an approach based on overall annual through-put. commonly applicable when existing markets are not going to be closed down. 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. This is essential bearing in mind the degree to which some produce will by-pass the market system. The overall output trading volume should therefore be reduced by say 5 percent. Two estimating methods can be adopted.htm (2 of 10) [2004-12-21 01:15:20] .20 tons per square http://www.5 times the annual monthly average and perhaps 5 times as much as the minimum month. 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. but the data should be treated with some caution as they may not be representative of the whole year. two key assumptions need to be made. locations.

post offices. 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. the essentially functional nature of markets leads to compact and regular layouts. 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. 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. 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. commercial or sales activities that will be undertaken in the main market buildings. The estimates provide a basis on which to allocate floor space for the primary.org/docrep/T0521E/T0521E06. 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). Figure 7 Diagrammatic layout of typical wholesale market There is usually a reasonable degree of agreement between these two methods. At the other extreme might be an urban terminal market. such as banking. A background to the planning process and further details of typical planning criteria are discussed in Chapter 13. Function of the plan. Although the influence of a site is important. extension services and farm input sales will need a further area of around 10 percent of the commercial sales space. The main function of a plan must be to maximize the throughput of a market. However. · 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. using standardized building forms and also resulting in lowest development 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. this figure may vary quite radically. packing and grading might require additional space of around 1m² per ton of throughput. its display by producers or traders. without auction facilities.100 percent in addition to that already estimated for the main commercial floor space. I he plan will be very diagrammatic at this stage. providing the most efficient access and traffic circulation system. A crude rule-of-thumb basis for estimating this would be to allow 50 . whilst minimizing costs. as through geometry and landscaping the layout will http://www. which provides a large amount of medium to long-term storage (possibly including cold stores) for produce such as onions. additional storage. 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. as illustrated in Figure 7. and other facilities. such as offices. These activities would include the unloading of produce. 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. Architectural quality is not of paramount interest but should not be forgotten. 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.Ch06 metre (m²) of covered sales space is desirable.fao. potatoes and fruits.htm (3 of 10) [2004-12-21 01:15:20] .

Ch06 provide a visual clarity to the users and. The usual technique is to adopt a one-way circulation system using a continuous peripheral road. An advantage of this approach is that it enables drivers to search for parking spaces and to correct mistakes. should have its own segregated access. Examples of the distribution of land uses are given in Chapter 13. general parking and the main market buildings. Nepal) are as follows: Land use . some 10 20 percent of the total area.Footpaths & landscaped areas .60 percent and other uses. 'I his problem also occurs on leaving the site. These problems will become more difficult with future traffic build-up. incoming produce should also be strictly segregated from outgoing. Markets obviously need to be located adjacent to main highways. the internal circulation system. Kathmandu. the distribution of land uses should be reviewed.5 29.2 17.Parking areas .Total site area Area m² 6 060 710 5 955 3 570 3 495 580 20370 % of total 29.8 3. but a direct approach off a heavily used route or close to an intersection could cause problems. The key issue will be to evolve an arrangement with a satisfactory relationship between the site access.30 percent.8100. A layout with more than one exit would have obvious advantages in terms of traffic control. As a rough rule-of-thumb the portion of the site covered by buildings should be around 20 .Roads . although this may create problems of extra staffing for security. will relate the market to its surroundings.5 17. including drain reserves. 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.Farmers' market area . Within the market. unloading and loading areas.Buildings . if properly considered. 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.Drainage & other reserves .htm (4 of 10) [2004-12-21 01:15:20] . As a basic principle it is also desirable to avoid cross roads within the lay-out. 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. with the main buildings located within the centre of the block. After preparing the draft plan. The layout. ensuring that it provides a positive contribution to the built environment. therefore. Values for land uses at a typical small scale terminal market (Kalimati market.2 2.org/docrep/T0521E/T0521E06. To reduce the number of conflict points as many of the junctions as possible should be T-junctions (3-way). road space and parking between 50 .0 Access and circulation. the collection of lolls and the management of http://www.fao. thus making planning approval unlikely.

More elaborate methods For estimating parking requirements are given in Chapter 13. One side (3 metres width) is sometimes used for unloading from rail wagons. The turnover of vehicles in a market. For peak periods. 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.htm (5 of 10) [2004-12-21 01:15:20] . while the other may be wider (say 7 metres) and used for both unloading and loading into trucks. surface water drainage is likely to be the most important service to consider. This type of building is suitable for the sorts of large-scale wholesalers found in North America and where retailers use large trucks. pick-ups and private cars) of 3 spaces per 100 m² Of sales area is reasonable. As a general rule an overall standard for the provision of parking places (trucks. Types of market but/dings. excluding the main circulation. This should also allow unloading and loading facilities to be directly adjacent to the main market building. particularly those of retailers is rapid and it is desirable that parking spaces are generous. http://www.org/docrep/T0521E/T0521E06. A minimum of around 32 m² per truck parking space should be used. 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. 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. this needs to be increased to around 5 spaces per ]00 m². In tropical areas. display and sale of produce as these activities normally take place at different times of the day. By varying the position of the dividing wall. typically with pallet loading. or if larger trucks with side-loading are going to be used. 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. The majority of other services are likely to be placed underground. 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. cars or animal carts. which may require the provision of an overspill parking area a little remote from the market facilities. Parking. Engineering services are summarized al the end of this chapter and discussed in detail in Chapters 13 and 14.Ch06 sale documentation. consideration will need to be given to the location of other service networks. the essential difference being that it has a central wall dividing the wholesalers' premises. 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. however. with access platforms on both sides. The easiest way to understand the distribution of services is to prepare a series of typical cross sections. The choice of an appropriate type will depend on the operating system and method of sales to be adopted at the market. as the site layout is gradually defined.fao. different sizes of premises can be obtained. because of the scale of open drainage systems and the significant run-off from paved market areas. which resolve both the vertical and horizontal relationship of the services. Only one access point is provided for the purchase. Figure 8 illustrates the basic types in cross-section.

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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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horizontal and vertical sub-soil drainage may be required. the supply should feed either an underground water reservoir or a main overhead service tank. Drains will be a very important infrastructure component in the tropics. Soil conservation measures. · a surface water drainage system will be needed. designed to cope with storm-water flows. To provide adequate on-site storage. illustrating all the essential components that should be included. A typical example of a final master plan.Ch06 designs the following factors will need to be considered · space standards and design modules · external climatic controls and internal servicing requirements. designed to accommodate peak-hour traffic flows.htm (9 of 10) [2004-12-21 01:15:20] . may also be required. Paved off-site connections to existing main roads. super-structure.fao. sediment control devices and earth or concrete retaining structures may also be needed. including ventilation and natural/artificial lighting · overall building form and siting · expansion needs · choice of materials for foundations/sub-structure. and appropriate internal finishes and · choice of structural techniques. · the road and footpath system will be the main component of the site infrastructure. which are either covered with steel grating or concrete slabs. integrating the final building designs with the vehicular and pedestrian circulation systems.org/docrep/T0521E/T0521E06. Except in very low rainfall areas. I he master plan forms the framework for the development programme. 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. constructed as either a concrete pavement or a flexible bituminous pavement. 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. Where soil conditions arc extremely damp. or a combination of both. either from an existing public supply or from a bore hole. 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. storm water is usually carried in open channels. http://www. possibly with some on-site storage for peak discharge conditions. This will allow the fill areas to thoroughly settle before work starts on the main infrastructure and buildings. enclosure and cladding methods. These works should ideally be undertaken as a separate preparatory contract. 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. is shown in Figure 10. · car and lorry parking facilities will be needed. including improvements to junctions.water mains connection will be required. Roads should be provided with kerbs and integral gutters. and using a similar type of construction. . Frequently the levels of sites have to be built up and this requires compacted fill to be laid on a geotextile blanket.

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. Additional survey requirements At the end of the detailed design stage the need for further surveys may have been identified (see Chapter 11). using facsimile machines and computer modems. · a piped sewerage system is needed. preferably located underground and a street/site lighting 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. or preferably directly to a main sewer. material suitability and geo-technical engineering surveys may also be required for project implementation purposes (see Chapter 6). if this is available and economically viable.org/docrep/T0521E/T0521E06. supplying overhead tanks in individual buildings and a system of fire hydrants. going either to septic tanks. and · a main telephone system which is an increasingly important component of market infrastructure.fao.Ch06 The main tanks would service a reticulation network. · an electrical supply will be required to the site (usually an 11 kV overhead line) going to a transformer unit and main switch room. with partially treated effluent going to surface water drains. Contents Previous . including repeating previous surveys for different seasons.Next http://www. Further topographic.

The overall process that needs to be followed at this stage is shown in Figure 11.fao. and varying off-site infrastructure requirements http://www. which will confirm whether the project is viable. At the start of Stage 111 it is necessary. This process is usually termed "project design". equipment and infrastructure evaluated. 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. to draw together all the previous data and findings into a form which will allow this evaluation. detailed site planning and infrastructure designs) until the third stage has also been completed. which may all have different operational and cost implications. 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. 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). Recommendations Evaluation of options. 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. 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. Project formulation and feasibility Contents Previous . Assembling information. 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. such as UNDP. operations and staffing. · different approaches to setting revenue levels. 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.htm (1 of 5) [2004-12-21 01:15:23] . This may lead to design modifications. different standards of building construction. 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. Aid agencies. Different institutional and management strategies should also be examined and their requirements in terms of staffing. often have their own methodologies for undertaking this (see Bibliography). might include: · alternative institutional strategies.Next The third stage of project design is a project formulation and feasibility study. which might include: options for the final master plan or circulation system. and · alternative physical requirements. requiring the work undertaken in the second stage to be reviewed and revised. In assembling the project design many alternatives may be available which might meet the projects objectives. therefore.Ch07 5. · alternative packages for management. It might not be possible to complete the last phases of the second stage (the final master plan.

This will produce a financial "internal rate of return" (IRR). that is to neither improve the facilities at an existing location nor to relocate the market to a new site. technical assistance and professional fees of design and supervision consultants. 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. which can then be modified to represent the other alternatives.Ch07 In outlining the options. as variations can be calculated most easily. Recurrent costs will include staff wages and salaries and other operating expenditure.org/docrep/T0521E/T0521E07.fao. A financial analysis looks at a project only from the point of view of the operating http://www. The most usual of these techniques is to prepare a financial analysis. over-staffing of the market. repairs and maintenance. all the physical inputs required over a project's life will need to be phased and then costed on an annual basis. that might pass through" a market. and temporary rental of accomodation. assumptions will need to be made. may include: civil works (buildings and infrastructure). in preparing the cash flows. These are again described in Chapter 10. say. the sensitivity analysis might test a substantial reduction in overall revenues. recurrent expenditure and anticipated revenues for a project are often not possible at this stage and. This technique allows alternative physical design options to be considered. As well as estimating the returns from the "basic case" a project should be further tested by undertaking a sensitivity analysis. Project returns and methods of calculation. Typically. land purchase. 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. 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"). represented as a monetary sum. utilities. insurances. Net present values should always be positive and exceed the total capital outlay on the project. commission on auctions and other charges. audit fees and depreciation. office overheads. which would be compiled in a tabulated form.htm (2 of 5) [2004-12-21 01:15:23] . This is a useful method when trying to assess whether to either build a new market or whether to improve an existing market. Financial analysis assumptions There are a number of techniques for evaluating projects and these are outlined in Chapter 10. Sensitivity analysis. The latter is most convenient. Economic analysis. such as interest payments. These costs are set against the anticipated revenues derived from renting space to wholesalers. Typical inputs. A typical range of values would be between 10 -20 percent. equipment. Accurate cost estimates of capital works. therefore. Internal rates of return and net present values are discussed in Chapter 10. as well as the effect of likely variations in revenues and in the share of total produce. where the costs and revenues of a project are represented as a financial statement as cash flows. It is usual. In the case of an existing market the basic case may be to do nothing. represented as a percentage and a "net present value" of the project. furniture and fittings. to expect that a project will have a return at least equal to what might be expected from comparable investments. it is usual to select the most likely one to represent the "basic case". 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". parking fees. 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. in present-day prices. To do this.

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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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Ch08 6. although not directly influencing the broad policy-making aspects of the planning process. 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. when the overall details have been broadly agreed. · the phasing of development and provision for market operation during the construction period. role of the parties participating in implementation. Figure 12 Stage IV.Project implementation · preparation of tender/bid documents. defining phasing targets for the entire development of the market. and the contractor's mobilization. . is the need to adjust the programme realistically so that the market can stay in operation over the whole development period.htm (1 of 5) [2004-12-21 01:15:26] . · establishment of a monitoring and performance evaluation system. For more complex projects. a critical-path network should be prepared to guide the project implementation process. therefore. tendering and tender analysis. Before implementation can commence a wide range of issues needs to be considered.fao. Pace of development Any market development is likely to take a number of years and a common http://www. for both design and construction supervision and for the management and operations staff. Project implementation Contents Previous . Recommendation/action Existing markets. Sufficient time should be allowed for: detailed design. 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. recommendations and acceptance. 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. A typical example of such a bar chart is shown in Figure 13. A flow chart of the overall implementation process is shown in Figure 12.org/docrep/T0521E/T0521E08. the preparation of tender documents. · technical assistance requirements.Next The fourth stage in project preparation is implementation which. Faulty assumptions on implementation are as much to blame for the failure of market projects as the adoption of erroneous design parameters. · trader and public participation. The issues include: · the availability of finance for construction. These are discussed further in this chapter and in Chapter 14. Other matters requiring careful consideration will include packaging the works into separate construction contracts and scheduling of equipment procurement. The programme should incorporate practical time-frames for the construction contract lengths and the periods required for the pre-contract stages. does have an impact on the detailed design of projects.

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

their experience in terms of projects completed and their financial assets. Part of the works will probably require experience in high-quality earthworks and therefore a general civil engineering contractor. with relevant plant. 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.Ch08 broken up or packaged so that they can be handled by the local construction industry. This might be best achieved by letting this section of the works as a separate contract.org/docrep/T0521E/T0521E08. Generally. Contract conditions. Local conditions of contract are likely to exist but these may only be appropriate for particular types of work. 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. contractors are graded into classes (typically. do have both general and specific conditions which allow them to be tailored to local conditions. 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. 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. These criteria are related to the technical personnel they employ. it is essential that adequate provision is made in the contract documents for its proper utilization. as well as allowing them a percentage incentive on their bids. bidding should be on a selective tendering basis. http://www. Affirmative action programmes towards local construction industries may exist so that they can compete against international contractors. would be appropriate. need to be reviewed. Selection and pre-qualification of contractors. Normally. Caution must be exercised in the tender review. If this is contemplated. The contracts should ideally all be on a "measure and pay" basis. For the main contracts. with the balance released as the work progresses to the satisfaction of the resident engineer. so that the payments are only made against specific project activities. however. tendered on the basis of bills of quantity. for which the FIDIC conditions are ideally suited. A common approach is to exempt local contractors from any contract tax and from sales tax levied on materials. therefore. the construction equipment they possess. Most countries have a system of licensing of contractors.htm (3 of 5) [2004-12-21 01:15:26] . such as a percentage release on the arrival of the contractor's equipment and plant. The abilities of local contractors will. which is the one that combines a low price matched to a proven ability to undertake the works. it will be essential to have unambiguous and easily administered contractual arrangements. These programmes will need to be taken into account both in selecting contractors and in the financial and economic analysis of the project. In order to be registered they have to satisfy a range of minimum requirements.fao. at least. Affirmative action programmes. taking into account the need for the contractors to have experience in both the installation of site infrastructure and of fairly sophisticated buildings. although biased towards civil engineering types of work. An additional incentive to local contractors its often to allow a mobilization advance of say 10 percent of the contract value.

the impact of a market project on its beneficiaries is likely to be difficult to measure. The foundation of the monitoring system should be established during the implementation period by undertaking base-line surveys. the market authority will have to consider how the periodic operation and maintenance of the market will be undertaken. At the end of an implementation period the market should be fully operational. On completion of the construction works the market authority will take over responsibility for looking after the physical infrastructure. and consumerprice monitoring. Project completion. 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. and the setting of rents and tolls will also need to be resolved (see Chapter 8). combined with an analysis of the daily trading and receipts records maintained by the market authority. accompanied by a levelling-out of seasonal fluctuations in consumer prices. therefore.org/docrep/T0521E/T0521E08. These include issues such as staff selection and training. fish and meat in line with national basic-needs targets. 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. These data. particularly if lessons from a project are to be applied to other market developments. The achievement of a project's goals will. Post-contract administration.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. will indicate whether the operation of a market has been successful. estimates of changes in production areas planted and yields. and · obtaining public liability and accidental damage insurance. A number of indicators may be used to measure the project's impact.htm (4 of 5) [2004-12-21 01:15:26] .fao. http://www. The selection of applicants for stalls and storage space. 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. A market operator is. 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. Information systems. particularly in the short term of a project life. To do this. 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. this will include: · the setting of maintenance standards for the longer-term repair and replacement of infrastructure. the manager of a major infrastructure system. · the definition of emergency safety and security procedures. which is likely to be the responsibility of "in-house" staff. However. in effect. q expanded production areas for fruits vegetables and related increases in producer's incomes. Apart from day-to-day maintenance. These might include: q increased per caput consumption of fruits. need to be measured by the monitoring system. and q lower consumer prices for fruits and vegetables. Project monitoring criteria.

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

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

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

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

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. the roles being filled by employees working directly for government departments: · public health inspectors and laboratory assistants. Significant reductions in staffing levels can be achieved by adopting modern technology. If the market is privately http://www. such as is illustrated in Figure 14. employed by an extension section of the ministry of agriculture. and personnel administration. Staff such as labourers. employed by the ministry of health. Extension encompassing extension. and · weights and measures inspectors.htm (4 of 6) [2004-12-21 01:15:32] . 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. Typically.fao. including cleaning. It should be noted that this table includes staff for the operation of an auction hall and farmers' market. · Quality Control covering post harvest activities and public health. will be divided into the following broad areas of responsibility: · Finance and Administration which as well as providing secretarial facilities. · post-harvest officers and extension workers. Nepal . legal and accountancy services. including any auction activities. accounts and control services. · price information officers and recording clerks. and . In addition to the management personnel the following staff are normally required.1. 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). a market's management structure.Manager Management Info. market information services and training. also includes security and building maintenance: Figure 14 Kalimati wholesale market. Staff structure The best technique for developing a staff structure is to prepare a simplified organization diagram showing a hierarchy of management responsibilities. excluding any specialized functions. Sub-contracting of services. employed by the ministry of trade or commerce or by a municipal authority.organisation structure · Operations Sales which covers the handling of produce within the market and all revenue collection. cleaners and porters are often employed on a casual basis.org/docrep/T0521E/T0521E09. is adopted in many markets to limit the number of permanent staff. 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.Ch09 General Manager Deputy Gen.

· administration and personnel. including entry supervisors and auctioneers. such as those in India and Korea (see Bibliography). The general manager or his deputy should normally chair the committee meetings and other staff members. The numbers of general support staff. fish marketing.htm (5 of 6) [2004-12-21 01:15:32] . For larger markets data storage. appropriate http://www. A common method of maximizing the exchange of information by the market management staff is to institute a system of operational committees. Training. A comprehensive training programme may need to 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. There must be a regular flow of data upon which management can make informed and timely decisions. small-scale processing. Committees might be convened for the following subject areas: · operations and maintenance. particularly when several months may elapse between meetings of a full board. it is essential to determine the users of data. weights and measures. The board should appoint observer members to each of the committees.Ch09 owned. if applicable for auctioneers. 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. 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. An estimate should then be made of how many of these consignments might be sold or auctioned per hour during the peak period. focussing on in country training and short-term courses in neighbouring countries. will decrease in proportion with this improved efficiency. processing and retrieval should be computerised. The observers act as a liaison between board and management. · financial monitoring. 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. 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. computing. Operational committees. Data needed will include: · monitoring of project implementation. with responsibility for the collection of data. these services are normally provided by government. environmental health. to keep management regularly appraised of market profitability. · development and finance. Overseas study tours can to some extent fill this gap. vegetable and fruit sales. leasing and rentals. packing. 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. and · overall executive coordination. to ensure that staff acquire necessary skills. building maintenance. To ensure that only data with a practical application is collected. The types of courses that might need to be organized include: commercial accounting procedures.org/docrep/T0521E/T0521E09. · a training programme. can be established by making assumptions about how many consignments each individual might handle. Some useful material is available from the international institutions specializing in the training of market management staff. market operations. their individual needs and the frequency and format for data presentation. recording of price data. grading. cold storage management. operations and equipment maintenance. auctioning. 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. 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. Management information system It is essential that an effective management information system (MIS) is set up. From the estimate of peak consignments the need for entry supervisors and tally clerks to check and weigh consignments and. 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.

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

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

and figures as high as 8 . particularly vegetables. 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. demonstrating that they will benefit from the market development programme. producing an overall revenue of 5 . if well organized. 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). However.Ch10 Preferred system Which sales method is adopted will depend on local custom and what type of produce is being sold. A figure of between 3 . Although there are differences in the detail of how produce is handled. Figure 15 illustrates a sequence of steps. requiring the minimum of management and is typically adopted for the sale of small lots.5 2 percent of the value of sales. · charges for using washing. 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. grading and repacking facilities. based on the proposed day-to-day operational pattern for a typical wholesale market using the auction system in Nepal. As a guideline. Table 8. commission fees for auctions can be set as low as 0. 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.5 percent is probably reasonable. particularly if some form of grading system has been instituted. can facilitate the sales of a large number of very small scale consignments.fao. and · charges for all vehicles entering the market. Details of this process are elaborated in Table 8. · commission to be charged to wholesalers and others purchasing produce by auction.org/docrep/T0521E/T0521E0a. Private treaty is the most flexible method. in the months following commencement of trading. The auction system has the advantage that it can avoid the development of wholesalers' rings and. Final resolution of this will be dependent on full consultations with the producers.10 percent are not uncommon. It is not uncommon to have a number of methods operating at the same market. 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.5 percent of the value of sales. · car parking charges. Auctions are almost always used in the sale of livestock and frequently for the sale of fish.1 0 percent. Rentals.1. the basic steps are the same. Fruit can also be sold at auction. as well as the wholesalers. wholesalers and traders.1 The sales process at an auction market Arrival and display of produce http://www. Other revenues may account for a further 2 . · tolls to farmers for using a farmers' market. 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.htm (2 of 4) [2004-12-21 01:15:36] .

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

A market accounting system operating along commercial principles is required. to train its own staff and. requiring simple. Suitable publicity material should be provided on grading/packing requirements and possible outlets for produce. The project often needs. Markets are a convenient location for dissemination of extension advice and information. Figure 15 Produce handling within a typical wholesale market Financial management Markets generate a large number of transactions within a short period. in simplified accounting procedures. Facilities for the display of extension material and the holding of extension meetings should be made available al the market . probably.fao. -the retailer pays a market charge based on the type of vehicle (when he enters). unless the salary and conditions of service are considerably in excess of anything offered by the public service. if telephone links are poor this may need to be supplemented by short-wave radio connections. it enables traders to decide to which market they should deliver produce. quantities sold and qualities offered. 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. The theory of improved market transparency is that it acts as a stimulus to the economic functioning of the market.Ch10 and restaurants. so helping to equalize supply throughout a country and even out price differences.Next http://www. market is to aid market transparency by compiling information on market prices. Contents Previous . the storage period depending on type of produce and whether the wholesaler has cool storage facilities. Persons with recognized accounting qualifications are usually difficult to recruit and it is often impossible to attract commercially qualified accountants. traders who will use the market.org/docrep/T0521E/T0521E0a. Computing and communications equipment will be required. standard procedures to handle them. therefore. 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. 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. based on a system of bookkeeping which will allow auditing on a daily. Market information and extension A major function of a modern wholesale. However. The produce may also be stored. improving competition and promoting adaptations to meet supply needs and market opportunities. or the weight or volume of purchases (on leaving).htm (4 of 4) [2004-12-21 01:15:36] . quarterly and yearly basis. particularly related to marketing activities. Extension. 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. 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. Facsimile or computer modem facilities are the most appropriate method for transmitting this information.

However. Market operators' 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. 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. Sometimes licenses are the direct responsibility of the courts and require an application to he made to a judge or magistrate. market opening times for receipt of produce. to allow the books to be closed for the day. These will vary substantially between different countries. typically within one hour. Market regulations The normal practice in all markets is to establish a set of regulations covering market hours and practices.org/docrep/T0521E/T0521E0b. where an auction system is operated. The administration of such a licensing system will vary from country to country. The rights of users of http://www. Normally it will be responsibility of a trade or home affairs ministry. if appropriate. it is normal to regulate this so that the market can be completely cleaned for security purposes and. Therefore. Trading bours Some markets allow trading hours to be fixed by the traders themselves.fao. 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. should all be clearly specified. These are outlined below. although some markets function over 24 hours. They may. but will follow some general principles. will commence each day and the time at which the market will be closed.Next The regulation of markets is a subject bound up with the culture within which the market will operate.Ch11 9 Regulating the market Contents Previous . other than if it failed to make "reasonable" provision for security. vary during the week (reflecting religious customs) and by season. however. Licensing Licensing can operate at a the level of the whole market or of the individual operating within it.htm (1 of 3) [2004-12-21 01:15:37] . Accepted applicants would be licensed to trade and be required to sign a trading agreement with the board. 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. Traders' licenses. 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. These hours should not follow those worked by government employees and should reflect the real needs of the market users. if this might have a significant impact on working temperatures or the amount of daylight hours available. 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. the time that auctions. A balance will always need to be struck. At the close of each day's sales. all buyers should be required to leave the market within a specified period. The commencement of each day's operation and termination is normally signalled by a buzzer or by the ringing of a hand bell.

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

Further details on solid waste disposal are given in Chapters 13 and 14. the actual operation of the system may be the function of the municipal authority or a private contractor. rubbish or any other substance on the market floor.org/docrep/T0521E/T0521E0b.htm (3 of 3) [2004-12-21 01:15:37] . For larger markets.Next http://www. Contents Previous . The trader concerned should normally have the right to remove the inferior goods from the market should he so wish. These factors should be incorporated into the design of the market buildings (see Chapter 14). filth. To prevent cross-infection. 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. it will be essential to have a fully equipped and staffed laboratory. particularly those trading in meat and fish. Although administration of solid waste disposal is the responsibility of the market authority. 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. such as extinguishers and hose reels. A system of small fines may be necessary to achieve this. particularly any relating to grading standards and to weights and measures.fao. but are using the containers provided. produce that shows any sign of decomposition should be disposed of by the market authority in collaboration with the 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. it will also be necessary to check that market users are not placing dirt.Ch11 authority's sanitary inspectors or by public-health officers.

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

fao. maintenance and spares. by voltage · Ducting and cabling. 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.org/docrep/T0521E/T0521E0c. wash-outs. This is usually estimated on a percentage basis (typically 10 percent overall) for both pre-contract services and site-supervision. which might be obtained directly from a number of local quarries.Ch12 · Heading to street supply.2. including street lighting · High . by diameter · Underground tank or water tower. 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. whilst for other infrastructure costs more detailed estimates will need to be made. if appropriate. etc. separate budget costs for this might also need to be obtained. metering.i.f. Typical market equipment is shown in Table 10.3 Typical market equipment Weighbridge Platform scales Grading equipment Pan Scales Labelling equipment Cashier's listing machine Public health lab. by dimensions. Equipment may also need to be imported and cost estimates for these items should cover. by diameter and depth · Manholes.htm (2 of 6) [2004-12-21 01:15:43] . Because the fabrication of the main structure is also likely to be a major cost component. These include the costs for stone. jointing and poles · Lightning arresters. 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. thrust blocks) · Chambers. cover type and depth Electrical power supply system. tension installations: · Cable (by voltage). recent contracts. However. are shown in Tables 10. by dimensions. by diameter (incl. The costs of major materials might be assessed separately. which are explained in detail in Chapter 14.3. 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. Typical items that might need to be included in infrastructure estimates. UMT and earthing · Low tension installations: · Transformer. air valves and junctions · Building connections · Stand pipes. 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. · 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. materials for building and infrastructure design should either be locally manufactured or easily available as imports from local suppliers. the complete supply (c. by voltage and cable size · Main control panels and earthing · Street Lights Telecommunications. Sometimes the local custom is for the site-supervision element of fees to be charged on a time basis. by depth · Connection charge · Distribution network. · H. gravel and sand. For the purposes of this analysis the cost for buildings is usually estimated on a simple per square metre basis.T. by capacity Sewers: · Unencased & encased pipework. cover type and fittings hydrants. for the destination city). commissioning. Table 10.1 and 10. In general.

Recurrent costs. These should ideally be built-up from detailed staffing establishment figures (see Chapter 7).500/m² 5. technical assistance and physical contingencies.org/docrep/T0521E/T0521E0c. a 10-years average life for equipment and 5 years for furniture and fittings. Bonus payments. A 10 percent physical contingency is usually added to the overall operating costs.000 675 600 1. It is also sometimes necessary to identify separately any items requiring a major foreign exchange component. 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.ups/trucks · Car Park . again at current prices. In this case it is usual to assume as a "basic" case that revenues might be around 5 percent of the turnover.4 Sansai Market Centre: construction costs (Bht '000) Item Buildings and Equipment: Main Sales Space · Rentable Stores · Washing. using prevailing pay scales in the private sector.900 74.500/m² 5.300 pick.610 300 540 3. based on formulas for market productivity.300 500 #0 1.fao. calculated on a straight line or declining balance basis. The table incorporates all the construction costs. however. Most desk top calculators with financial functions or spreadsheet programmes have a facility for calculating depreciation. Depreciation should assume a 25-years life for civil works. as well as estimates of the average value of produce.840 180 14.230 5.4 shows a compilation of capital costs for a the first phase of a medium-sized market development programme. A sinking fund should also be included.730 1. particularly if this feature is going to be analysed in the economic analysis. 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 4.000 300 16. may also need to be included in the cost estimates. The latter can be derived from a combination of roadside surveys of produce types and price data. normally based on prevailing local prices for other construction projects or by applying a factor of around 5 percent to the capital costs. be included in cash flows (although they may form part of project budget estimates ) as the analysis is undertaken in current prices. The main operating expenditure of a market will be staff wages and salaries. To prepare estimates of revenues on sales sensible assumptions will need to be made about the growth in turnover.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) 9.050 10.20 percent physical contingency. For furniture.000/m² 6. Revenues. The revenues generated from wholesale markets are the most difficult components to estimate.000/m² 4.Ch12 analysis. Price contingencies for inflation should not.htm (3 of 6) [2004-12-21 01:15:43] . major equipment.600 @ 3 5% http://www.430 2. Table 10. 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. with a residual value equal to acquisition costs plus site preparation. An overall percentage basis may have to be used if insufficient detailed costs are available. Civil works and equipment cost estimates should include a 10 .500/m² 6.5. Typical items of expenditure that should be included are shown in Table 10.30 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. fittings and minor equipment a dump sum estimate can be included. which is a fairly normal rate of commission levied in wholesale markets (see Chapter 8).430 250 3. 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. Table 10. Revenues for markets charging market fees directly on sales or operating an auction system are the easiest.

all these costs are converted into current prices by applying discount rates. 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.Ch12 · Supervision Base Cost Physical Contingency TOTAL (rounded) @ 2. using a desk-top calculator or spreadsheet. lubricants. grading. Each year of a project's life is represented by a column in a cash flow table.5 Typical market operating expediture Insurances · buildings · plant and machinery · public liability Office overheads Utilities: · electricity and water · fuel vehicle maintenance.htm (4 of 6) [2004-12-21 01:15:43] . · 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.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.490 78. tons percent/m² percent/m² percent/m² tons per month tons per month percent/m² percent/m² '000 spaces '000 users http://www. from market fines (a minimal amount) and from services such as washing. would be applied to these parameters to derive revenues. An example of a project cash flow and the resulting financial analysis is shown in Table 10. can be estimated as 30 per cent of the amounts collected as market fees or as commission on auctions.850 86. Table 10. 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. The rows of the table represent the costs and benefits occurring in each year. where these are available (such as typical rental or parking charges).org/docrep/T0521E/T0521E0c. has already been outlined in Chapter 5. This basic method for calculating financial and economic returns.6 Typical financial analysis parameters . A market investment project is developed over a number of years and its costs must therefore be phased to reflect this. such as by the use of goals-achievement and social cost-benefit analyses. The following notes amplify a number of the technical stages that are used in such an analysis.520 7. from the monthly rental for stores. at 1 percept of capital at 2 percent of capital at 0. greasing etc. Discounted values.7.400 Source: FAO Project TCP/HA/8958 Note: # constructed in later phase Table 10. So that the financial analysis can be undertaken in present day prices. The analysis is not taken beyond around 25 years as this will have little impact on a project's rate of return. Typical examples of such parameters are shown in Table 10.fao. 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. the preferred method for marketing investment projects is usually one that adopts an internal rate of return as the main criterion. packing and parking fees.0% @ 10% 1.6 Unit rates extrapolated from actual market rates.

· each successive net cash flow amount.2 17.Ch12 usually of between 10 -20 percent.0 0.0) 2 38. at a 10 per cent compound discount rate Source FAO Project TCP/HA/8958 Internal rate of return. it is better if gluts are prevented by using production planning to allow staggered harvesting times.3) 4 17. This figure is equivalent to the sum that would be required to go out and purchase such a market Table 10.5 17.7 61.5) 3 28.6 3. where the wholesale market is only a component of a larger programme.9 44.9) 5 0. in which the total of the discounted costs and benefits (the net present value) are zero. There are.0 (22.2 0. for the remaining 24 years.0 (58. the internal rate of return.0 (38. Because.0 0.8 3.0 38. which represents the total value (or worth) of a project in present day terms. where only a limited investment is undertaken and the impact is confined to only a part of the market's operation.6 4.7 36.0 (3.0 7. which might also include assembly markets.0 0.6 ANALYSIS: Internal financial rate of return = 19.0 0.0 0. where the benefits could be assessed by reference to reduced transport costs.4 0. collection centres and rural roads.0 0. The justification for cold storage must be thoroughly examined before entering into costly investment decisions.0 0.0 3.34 million Bht.htm (5 of 6) [2004-12-21 01:15:43] . such as apples. Market cold stores are needed: http://www.1 0.8 47.7 12. This can particularly apply with imported fruits. 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.6 5.9 10 1.6 4. and · a discount rate equivalent to the opportunity cost of capital (in this case taken as 10 percent).2 6-8 0.0 0. market extension and training.5 42.1 4. storage facilities.9 9 21. million) item Year Capital Investment: Civil works & fees Land acquisition Furniture & equip. and gross returns can be directly related in the cash flow to obtain its annual net revenues.3 0. Although this may justify the use of cold storage. 7 Sansai Market Centre: financial analysis (Bht.34 percent Net present value = 159.9 0.0 0. which frequently turn-out to be "white elephants".0 0.8 2. 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. or · the provision of specialist facilities at a market. The spreadsheet programme or desktop calculator will normally allow this to be automatically calculated. the site does not have to be in the market and it is often more appropriately located in the production areas. Net present value. With the application of discount rates. This represents the average earning power on the investment over its life.6 58.9 12. A higher rate will mean that it has made a profit.2 51. where they are being sold through the wholesale market.0 8. 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. the net present value.3 14. with widely varying benefits.0 0. Examples might include: · integrated projects.8 18.9 21.8 1. The return on any investment can be expressed as a percentage. abattoirs and cold storage.1 5. such as large-scale grain drying and silo storage facilities.8 12-25 0. In general. Recurrent Expediture Operating costs Depreciation Total Expenditure Annual revenues Net Cash Flow 1 20. 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 0. An internal rate of zero will mean that a project has covered its capital and operating costs.0 28.0 12. Justification for cold storage.18 percent is usually found acceptable in less-developed countries. these can be converted into a single figure. 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.0 0.4 29.2 5.9 11.0 14.org/docrep/T0521E/T0521E0c. These problems are outside the scope of this manual and should be subjected to a separate detailed justification. cases when refrigerated cold storage can help the market situation. · partial market-improvement programmes. which arc the balance of revenues over expenditure (whether positive or negative). If this calculation is undertaken manually it has to be by series of approximate calculations (iterations).fao.5 0.0 0. however. whilst a computer or financial calculator will automatically produce a single value.1 5.0 58. The calculation can be applied to the financial returns on a project or to the adjusted economic returns (see Chapter 5). An example of this might be the introduction of a traffic management scheme. A project's capital and recurrent costs.0 78.0 0. however.4 70.9 34. It can also apply to local produce at harvest time.3 24.0 11.0 0.0 0. A rate of return of between 15 .8 20.1 38.0 0.2 11 0.

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

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

Casual (but informed) observation and limited interviews with the market functionaries can provide a wide variety of data.total daily volumes and type of produce sold. with only limited intervention by the municipal government. Thailand . one row of the form. Roadside surveys. Vehicles types were recorded on the form by using a code number: Head Load/gasket Push Cart Bicycle Rickshaw Motorbike Tuk . 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. and -volume of sales by destination of produce.volume of purchases by origin of produce. 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. l his method can be used to establish the weight of deliveries. The survey enumerator stopped at every fifth stallholder he or she came to.org/docrep/T0521E/T0521E0d.fao. A questionnaire for this method.Ch13 Survey methodologies. Each vehicle was recorded only twice: when it entered and when it exited the market. -volume of purchases by channel. Eight enumerators were located at key points in the market (see Figure 17) covering all the main entry and exit points. 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. there should be no duplication. its time of exit. The act of unloading a vehicle was considered to be its time of entry and the completion of loading and its departure. the operating hours of the market. The enumerators were instructed that they should ensure. Actual vehicle entry and exit times were recorded and later coded on an hourly basis. This technique is further discussed as a case study in the next section of this chapter.being used for each set of observations (either an exit or an entry of a vehicle). Two methods can be used. which has been used for a number of 20 percent sample surveys is shown in Figure 16. 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. 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. Scope of surveys. as far as possible. 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. The techniques of rapid rural appraisal arc very valuable in this context. 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. The surveys were started promptly at 08:00 am and finished at 16:00 pm. The enumerators were instructed to question the vehicle drivers if there was any doubts about the origin or destination of the produce. There are three basic methods by which these types of data can be collected: Observation. Interview surveys. 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 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). 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.htm (2 of 6) [2004-12-21 01:15:50] .gender and number of employees at each stall. The enumerators were provided with standard survey forms (see Figure 17). Survey methodology. no records were maintained of transactions. -selling areas of stalls. As the market is a private establishment. including recording their place of origin and the destination to which they arc being sent. .5 tons) Saloon Car 4 Wheel Truck (6 tons) 6 Wheel Truck (7. . the origin of the produce and the expected destination (usually based on the previous day's trade).5 tons) 10 Wheel Truck (13 tons) 0 1 2 3 4 5 6 7 8 9 10 http://www.Tuk (3 wheeler) Pick-up (1. 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.

Chiang Mai Province. Particular care was taken to establish traffic that might be emanating from the Chiang Mai municipal area. a similar analysis having also been undertaken for the dry season. The coding of the data was first checked against the categories of vehicle types. Chiang Mai. both between the two days and between the incoming and outgoing flows. mangostecn and durian) F3 Citrus. The average daily commodity flow for the dry season was around 210 tons.19 Further analysis of the spreadsheet data enabled a number of other summary tables to be prepared. melons and others The total load in metric tonnes was recorded based on the type of vehicle used in carrying the produce. These three main sets of data were then further sorted. The type of trade being undertaken was also recorded. tomatoes). Account was taken of partial loads. Results of the wet season survey This section presents an analysis of the two days of the wet season survey. as well as those with non-fruit/vegetable loads. For analysis purposes the origin/destination (O/D) data of vehicles was Figure 17 Roadside survey pro-forma and location map of survey points. langsat and longan) F2 Southern fruits (rambutan. The data was then sorted into three basic spreadsheets as follows: · traffic entering the market (ie. and outside the Northern Region (Bangkok. 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. such as 1/2 load and empty vehicles were also recorded.leaving market Average August 16 257. produce and O/D locations described above. Muang Mai wholesale market survey. the south or the east).08 61.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. The classified data for each day of the survey was then analysed on a personal computer using a standard spreadsheet programme. and · traffic leaving the market (ie.44 588.circulating within Outgoing . root crops and tubers V3 Fruit-vegetables (ea. · commodity flows by time of entry/exit. · traffic circulating within the market. Analysis of surveys.28 Av daily 302.htm (3 of 6) [2004-12-21 01:15:50] .72 291. and · commodity flows and number of trips by vehicle type/mode.08 August 17 347. which are given below.02 277.fao. Table 11. Table 11. 30 percent less than in the wet season. 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. The origin or destination of the particular loads were identified as accurately as possible (by province/district/ towns). These data were grouped into six classes of produce: V1 All leafy vegetables green vegetables V2 Bulbs.14 297.26 316.59 2 Day Total 605. by date and whether incoming or outgoing traffic.1 Summary of commodity flows in the wet season Commodity Flow (tons): Type of Flow Incoming .51 297. other provinces in the Northern Region. peppers and others F1 Northern fruits (Iychee. origin Muang Mai). into the following categories: · commodity flows and type of produce by origin/destination.1 summarizes the commodity flows (in tons) in the wet season. for example.coming into market Internal .org/docrep/T0521E/T0521E0d.93 36.54 30. bring a wholesale load into the market and leave with retail commodities including non-fruit/vegetable loads. The first of http://www. destination Muang Mai).15 24. such as whether it was wholesale or retail.93 285. within Chiang Mai city. The same vehicle might. There was a good correlation in the figures. Northern Thailand classified into thirteen groups: 0 1 2 3 -11 12 within Muang Mai market. The average daily commodity flow for the rainy season was around 300 tons.

75 302.0 0.6 60 100.10 am 10.47 1.2 1.43 291.9 11.60 16.9 1.4 5.7 100.7 5.67 23.0 0.54 2.4 Commodity flows in the wet season by arrival/departure time Time of entry/exit 08. daily 163.6 15. Table.07 16.2 0.73 14.92 8.01 pm 01 .6 23. melons/others Total Incoming (tons) Av. a rapid build-up in flow to a mid-day peak.33 19.29 44. daily 25.36 3.8 23.40 188.0 16. quickly tailing off by late afternoon.59 52.fao.81 66.3 4.2 64.0 In an analysis of commodity flows by origin and destination.9 6.30 0.1 0. For vehicles entering the market the pattern conformed with what would be expected.03 pm 03 .20 20.12 am 12 . langsat and longan) F2 Southern fruits (rambutan.46 9. daily 18. with this type of produce representing 90 percent of the trade.1 1.40 45.52 27.8 2.05 pm Total Incoming (tons): Av.7 1.2 100.37 42. daily % 6.0 4.5 3.htm (4 of 6) [2004-12-21 01:15:50] .7 0.org/docrep/T0521E/T0521E0d.39 42.0 Table 11.14 % 6.7 17.03 5. mangosteen and durian) F3 Citrus.89 68. 10 5.87 36.2 72.30 21.3 12.58 3.60 5.95 41.0 Outgoing (tons) Av.63 218.4. For http://www.0 Outgoing (tons) Av.75 0.04 pm 04 .2 8.97 52.3.11 am 11 .5 1.7 14.72 36. contained in Table 11.0 0.0 14.00 32.00 12. daily % 39.54 13.6 14.8 7.2) presents the commodity flow by type of produce. a striking difference was found between goods coming into the market and those going out.8 4.5 1.2 0.69 302.14 % 56.47 291.0 The pattern of vehicles entering and leaving the market during the day is shown in Table 11.58 13.08 291.Ch13 these tables (11.9 100. peppers and others F1 Northern fruits (Iychee.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.2 Volume of wet season produce by type Type of Produce V1 All leafy vegetables/ green vegetables V2 Bulbs.7 15.5 3.42 91.2 13.80 33. 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 11.1 8.75 4.0 Outgoing (tons): Av.14 % 8.8 11.54 % 66. It was clear from the figures that Muang Mai is primarily a vegetable market.86 2.0 0.98 50.09 am 09.25 3.7 100.9 15.19 45.02 pm 02 . root crops and tubers V3 Fruit-vegetables.2 100.7 6.29 302. daily 199.05 0.5 0.

85 1.5 ton pick-up.Tuk Pick-up (1. This might range from simple chain traversing. with the remaining one third of the produce being brought by heavier vehicles.7 48.6 1. · surveys and testing of existing services · water supply. 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.1. 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.0 0. The survey should be based on a closed traverse and related to a known datum (defined by its height above mean sea level).54 % 0.1 25.7 5. Around 15 percent of the total was carried on pick-ups.htm (5 of 6) [2004-12-21 01:15:50] .80 302.1 3.) 10 Wheel Truck (13 T.7 15.10 291.) 6 Wheel Truck (7.63 17.46 0. 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. Table 11.04 2.3 0.4 3.86 10. through to electronic distance measuring.13 ton trucks.0 0.08 26. with two peaks in the late morning and mid afternoon.87 0. at either ]:500 or 1:1.7 8.58 13. The main mode for incoming traffic was the light 1 .0 0.1 100. These surveys will typically include: · basic mapping. These types of surveys are common to any medium or large-scale development project.8 4. 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. representing around two thirds of the total.org/docrep/T0521E/T0521E0d.4 0. Topographic and geodetic surveys. Techniques for undertaking the surveys will vary depending on the local surveyor's skills and availability of equipment.0 0. The survey should define the site's boundaries and pick up all the existing physical features. .14 2.06 43. mostly for short: haul distances within Chiang Mai city and the adjacent districts. · horizontal linear measurements to be accurate within 20mm per 100 metres (applying appropriate slope and tension corrections).0 65.) Other Vehicles Total Incoming (tons) Av.6 0. For the outgoing traffic the majority of the load (around 75 percent) was carried on 7. However.00 9.11 198. · electrical supply. Table 11.5 T. · sewerage disposal.8 0.5 Commodity flows in the wet season by vehicle type Vehicle type/mode Head Load/Basket Push Can Bicycle Rick straw Motorbike Tuk . · an analysis of a site's drainage problems.71 141.35 16.detailed topographic and geodetic surveys. · preliminary and detailed site investigations of engineering soils. The most essential step in preparing a detailed site plan will be the preparation of a topographic and geodetic survey of the site.12 1.84 3. daily 0.64 26.46 0.5 illustrates an analysis of commodity flow by vehicle type. corresponding broadly to the haulage distances for the produce.3 1. Spot level should be taken at all breaks in slope.fao.) Saloon Car 4 Wheel Truck (6 T. daily 0. · a review of available construction materials and technologies.3 8. including buildings and other infrastructure under construction. plane tabling and level surveys.000 scale.Ch13 vehicles leaving the market there was a completely different pattern. engineering surveys will be needed for both existing or proposed market sites .0 0.8 5. and · angular measurements to be accurate to within 20 seconds of arc. · structural condition of existing buildings. edges and bases of drains and on a 10 metre grid over the entire site.0 Engineering surveys Apart from the socio-economic studies and traffic surveys described above.5 .&6 2.5 T.0 Outgoing (tons) Av.6 100.15 74. and · typical construction costs.14 % 0. http://www.

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

fao. for each district or sub-region. Ministry of Agriculture. both by type of crop and by season. 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. into a series of coefficients.1. for direct transfer to Bangkok and http://www. Horticultural production and its spatial distribution. the majority of produce may be sold at field level. say. the overall throughput of existing rural assembly markets. The spatial distribution (by season) of these production areas is shown in Figure 18. and by comparing the production areas in relation to the location of the main markets and the availability of transport facilities. only a proportion of its vegetable production would be marketed through the provincial capital. low and very low. The coefficients can be grouped into. it should be possible to deduce the likely direction of produce flows. 1988. This tendency to specialize can be studied as a pattern by converting the figures for the areas under crop or production levels. 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. 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. 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. typically with fruit production. Table 12. However. give an indication of the types of issues that will need to be addressed.0 Source: Improved production of tropical vegetables in Nepal.Next The purpose of this chapter is to describe how the agro-economic. Comparable production data is normally also available at provincial and district levels.0 141 970 10 50. This will vary greatly. To describe how it can be undertaken is.8 140 875 6 46.1 Vegetable production and consumption targets. crops are traded through a hierarchy of local markets. 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. fish and potato production.Ch14 12. N. Producers south of the city were likely to sell either direct from the field or assemble their produce locally in the production area. 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. 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. 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. Pokhrel. 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. however. Analysing demand and estimating market turn-over Contents Previous . Nepal. 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. average.9 141 1.515 11 65. therefore. their relationship to potential consumers is equally important.org/docrep/T0521E/T0521E0e. computing them as a percentage of a provincial or regional total. M. The following notes. In some cases.htm (1 of 4) [2004-12-21 01:15:54] . but there is usually a tendency for producers of a similar crop to congregate in a particular area. Transport costs also play a major role in influencing the location of production areas.. 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. temperature and topography. high. A typical tabulation of national-level vegetable production data for Nepal is shown in Table 12. five different levels of productivity: very high. This analysis is a critical stage in the preparation of a development project for understanding the impact of any intervention in the marketing process. difficult as the circumstances under which such interventions take place will completely vary between different countries. moisture availability. From such an analysis. Because of Chiang Mat cay's location in the centre of the province. together with the location of the main areas for fruit.

60 0.17 9. at the "farm-gate" or be marketed through local assembly markets/trans-shipment points.fao. the impact of storage and the substitution between produce.2 Seasonal throughput variations in Near Fast markets Month Central Market Amman.98 1.973 155.95 0. such intensive cultivation may be actively discouraged in order to reduce the incidence of malaria.11 1.420 0. In contrast.00 Marche de Gros Rabat. vegetables and cut flowers. Table 12.305 12.99 23.18 1.945 1. which is virtually impossible to use for deducing seasonal indices because of the time lags in price changes. rainfed systems and off-season production in irrigated areas can provide useful models for examining seasonal variations in horticultural production. while the production of other crops. Figure 20 illustrates the same data as a histogram. Figure 21 Simplified cropping programme in Sri Lanka Typical cropping calendars for upland/lowland.718 12. Despite its importance to low-income families. are a typical example of this.948 16.641 28.96 1.642 0 75 13.89 0.82 1. The relatively small volumes of flower production in the province were concentrated around the city. a substantial amount of cultivation in most less-developed countries may still be undertaken within the boundaries of municipal areas.14 1. compared with Amman and Cairo. In addition to "rings" of production around cities. Figure 19 Variations in vegetable production in Chiang Mai Province. except for price data. then other methods of analysis will need to be adopted.883 13.729 11.00 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. Peak production is often more likely to be purchased directly in the field. A key factor in market operations is the degree to which trade varies by season. the types of interview and roadside surveys outlined in Chapter 11 may give some indication of seasonal variation.55 1. If a marketing authority maintains daily records from an existing market then a comprehensive data base will be available for making such an assessment.99 0.05 1.92 1.024 20.99 1.89 0.341 12. producing high value fruit. 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.091 1.07 1.org/docrep/T0521E/T0521E0e.736 13. so that production of vegetables. the peak months being compared to the average months using a ratio.497 5. such as rice.98 22.56 1.00 1. 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.813 12.994 0. Comprehensive official or research data is not likely to be available on the variation in fruit and vegetable production by season.16 1.43 0. Egypt (tons) (ratio) 23.909 25. However.924 (ratio) 0.88 1.2 shows such a set of data for three wholesale markets in the Near East. Seasonal variations in trade.htm (2 of 4) [2004-12-21 01:15:54] .323 14.961 7.08 1.683 11.978 19.582 4.806 17.83 0.721 27.87 0. there will be increasing pressure on cultivable land within city boundaries. For an existing market.759 0. Thailand Table 12. with urbanization. but with probably less incentive for producers remote from the city to use its wholesaling facilities.92 0. demonstrating the comparatively small seasonal variation at the Rabat wholesale market.523 14. Many studies in the evolution of land-use have frequently confirmed the persistence of intensive horticultural production close to major centres of population.118 12.06 0.718 19. What generally happens is that land such as kitchen gardens becomes more intensively used. production areas to the north were more likely to use wholesale facilities available in the city.38 0.093 12. Morocco (tons) 11.978 21.02 0.210 25.00 Rod al Farag Cairo. fruit and fish (from pond culture) increases.29 0.Ch14 other destinations outside the province.202 287. decreases.796 21. A simplified example for Sri Lanka of such a cropping pattern http://www.925 23. Jordan (tons) (ratio) 15. The pattern for upland and perennial crop production was found to be very similar to that for vegetables.432 13.08 0.32 1.552 11.050 20.15 1. However.244 155. Market garden areas near to cities.593 27.801 12.

Most local trade is in vegetables.426 6. to understand how the pattern might impinge on the role of a wholesale market the flows in the system need to be quantified. drying and storage extends the period of marketing and an off-season crop may alter prices substantially. dry Onion.044 1.htm (3 of 4) [2004-12-21 01:15:54] . Trade volumes by-passing the wholesale market. Figure 23 illustrates the results of surveys undertaken in Jordan on the flow of produce through the main marketing channels. The Kalimati market had been recently opened at the time of the survey.108 5. 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.3 shows the results of a typical roadside and retail outlet survey undertaken in Kathmandu over a 10-day period in April 1989. Chiang Mia Province Table 12. the level of transport facilities and the presence of a traditional network of rural markets will also influence how the channels may operate. Reference has been made in the previous sections as to how this may vary according to factors such as the location of production areas.fao.979 427 549 2. the main production has to be marketed during that period. Figure 22 Marketing channel partícípants. 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). storage and market price may have a significant effect on marketing. whilst others are involved mainly with distributing produce to rural consumers received from the nearby urban wholesale market of Muang mad. exports) Tomato Grass/leaf produce Spinach Other Total (av. 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. credit arrangements and seasonality. Table 12.748 41. 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.595 12. With such a new wholesale market.106 44. confirming the fact that fruit sales often by-pass the local market system. However. They most probably have their own fruit trees or would buy from neighbours.3 Roadside survey: daily produce coming into Kathmandu (kg) Commodity Cabbage Cauliflower Onion. and amounts of trade that might be by-passing an existing wholesale market.334 1.834 591 2.666 1. Figure 22 illustrates the complex pattern of channels that exists in Sri Lanka Informal surveys of farmers. Curing. Figure 24 illustrates the results of such a survey in Northern Thailand Some of the markets are exclusively involved with the assembly of produce. green Garlic. 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.Ch14 is shown in Figure 21. wholesalers and retailers can be used to define such a pattern. with a low volume of fruit sales. Sri Lanka Figure 23 Proportions of produce going through different marketing channel (Jordan) Marketing channels.975 9 32. trade will only gradually build up and produce which formerly went through other marketing channels will then transfer to the new facility.251 2.648 369 490 1. To establish existing trade volumes. 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.357 http://www. surveys of produce flow should be undertaken over an extended period. covering all flows into a city. For semi-dry produce.org/docrep/T0521E/T0521E0e. Other factors such as political and cultural conditions. 10 days) Kalimati wholesale market 8.794 2. green Chilli" green Beans Potato (incl.717 Other destinations in the city 5 126 1. Another consideration in understanding the existing pattern of trade is the problem of defining the channels through which production might pass. In contrast some highly perishable produce may only have a single growing season and apart from what can be canned or dried.

by increases in cropping intensity and by farmers switching to higher-value crops. are the ideal basis on which to make an assessment of changes in the patterns of trade.2 50. Over-view of existing trade pasterns. The improvement of rural roads the availability of credit to purchase a motorbike and sidecar. it is unlikely that the long-term potential for increased horticultural production can be established. These effects are likely to be off set. the availability of low-cost pick-ups and the organization of group marketing. accompanied by an overall marketing strategy for produce.Ch14 Source: FAO Project GCP/NEP/043/SWI Transport changes. 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.3 0. however. public transport often plays a key role. 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.8 66. therefore.2 Other destinations in the city (%) 28.4 Mode of transport for produce coming into Kathmandu (%) Mode of transport Kalimati whole.0 0. which typically causes a loss of presently cultivated land within and on the periphery of cities. at 3 . Contents Previous . Without detailed studies of land-use change any estimates of increased production are usually very tentative. rather conservative assumptions may need to be adopted in relation to the potential throughput of any new market. The agricultural sector in many developing countries is responsible for a decreasing proportion of the gross national product. There would need to be substantial financial benefits to farmers to attract them away from existing market channels.5 percent per annum). In Kathmandu.3 12. therefore.600 tons and that rural markets had an overall total turnover of 170 tons per day. Figure 25 Variations in type of produce sold in local assembly markets. Figure 26 illustrates what happens during the peak period in Northern Thailand. although there may at the same time have been an overall expansion of cropped areas.8 2. It would be unrealistic to presume. 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.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. 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.htm (4 of 4) [2004-12-21 01:15:54] . It assumes that the peak daily provincial production volume was around 1. 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. 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. 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. Such projections of future outputs. 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. Before farmers become well organized. Another common factor is likely to be the impact of urban expansion.sale market (%) 37. in the short term. 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). In making projections for changes in a marketing system. In many countries the potential for this rate of expansion to continue is likely to decrease as only the more marginal areas become available.fao. Chiang Mia Province Table 12. which is usually not the case. can all have a significant effect on marketing practices. This is illustrated in Table 12. Long-term estimates of throughput are even more difficult to make because of the unreliability of production projections.8 1. Unless a comprehensive horticultural plan exists.org/docrep/T0521E/T0521E0e. to use new facilities. that a greatly enlarged proportion of the trade can be attracted.4. unless an existing market is being closed down. seasonal or annual basis. In the hot dry season exports are more likely to be directed towards the other provinces in the Northern Region rather than to Bangkok. In their absence.Next http://www. particularly for horticultural produce and to a lesser extent for field crops. for example. From the analysis of marketing channels.

There are other major difficulties in using demand elasticities as they assume that past consumption trends will continue.61. given different dietary and cultural habits. Table 12. There are two approaches to estimating consumption: a demand approach or a supply approach. but other factors in the equation are unlikely to be reliable without undertaking extensive surveys to establish income elasticities of demand. The basis for this method is the use of income elasticity coefficients. A typical example of such an estimate is shown in Table 12. it is also essential to quantify the present level of consumption of fruit and vegetables. per annum Potato Vegetable# Fruit Irish 320 511 271 4 1 6 4 - 1 - 331 517 275 4 15. have rather complete data on elasticities this is not normally the case.310 1. Notes: assuming allowances for seed production and waste.54 0.88 (kg) Country Cereals Roots & tubers Pulses & beans Fruit & vegetables Animal products Developing countries Bangladesh China India Indonesia Malaysia Nepal Pakistan Philippines Sri Lanka 1.57 31.654 1.5 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.268 1.fao. Supply approach. whilst in Sri Lanka it is 0. Adequate demographic data often exists for estimating the population effect. relating changes in income to spending behaviour. seasonal differences in trade and a profile of average disposable income. exporls and food processing. For example. Because of the problem of estimating consumption using a demand approach.789 1.867 1. whilst in Sri Lanka it is 0.340 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. the demand coefficient for eggs in the Philippines is 0. Another problem with the approach is in understanding the substitution effect between different vegetable and fruit crops. the coefficient for maize in the Philippines is minus 0.5.68.org/docrep/T0521E/T0521E0f.86 and more dramatically. Table 12. Demand approach.Next As well as understanding how an existing market system operates and can be modified.224 1. This might be reasonable if historic data is available to verify this.2. #including leafy vegetables but excluding pulses and tubers. but generally it will not be. 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.27 Source: Marketing Services Division Ministry of Agriculture Nepal 1989.htm (1 of 5) [2004-12-21 01:15:58] . for example the Philippines and Sri Lanka. Figures from other countries are not generally applicable.582 1. 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 which only limited data may be available.Ch15 Consumption of fruit and vegetables Contents Previous .390 1.6 Typical per caput availability of major foods 1986 . making adjustments for imports.35 15. The concept is represented by a formula.

Results of a similar type of sample survey of consumption of major food items.12 Dhankuta 20. Per caput consumption data should ideally be derived from detailed local surveys.8 88.83. locations. such as hospitals. but need to be used with some caution as the figures are national averages. C. Table 12.11 7. Department of Agricultural Economics and Business Administration. Bangkok.8 96. 1984/85. Consumption estimates. for selected districts in Nepal.htm (2 of 5) [2004-12-21 01:15:58] . Another common distortion arises from some produce not having been purchased at the market and reaching the consumer through other channels. Table 12.03 11. based on food balance sheets and taking into accounl availabilily of. Table 12.134 Source: Selected indicators of food and agricultural development in the Asia-Pacific Region 1979-89.07 7.6. schools and army camps. These type of data are likely to be the most easily available. From these studies estimates of per caput consumption can be derived.44 7.18 Gorkha 15.8.399 501 786 1.fao.41 3.foods and human energy requirements. 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.29 43.000 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) = 300.7 demonstrates the substantial variation that can occur. 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. legumes) Fruit Meat/Fish Mustang 61.001 The existing demand for fruit and vegetables in a typical city of around 300.15 4. income groups and between urban and rural areas.5 38. Food security at household level in rural Thailand.9 44.70 7. Data from one of these studies of selected countries in the Asia-Pacific Region is shown in Table 12. 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. 1990. 28. FAO Regional Office for Asia and the Pacific RAPA Publication 1990/15.001 = 45.98 Solokhumbu 86.179 719 57 1.146 92 79 104 34 17 22 18 136 127 157 131 214 179 179 1. 000 x 150 kg. Kasetsart University.44 Source: Food consumption survey.87 Jhapa 27.7 131. particularly if there is also a large tourist trade. Ministry of Agriculture.org/docrep/T0521E/T0521E0f.9 204.8 50.2 63.7 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. based on surveys in two villages over two seasons. They are likely to disguise substantial variations in consumption between different seasons. The following formula summarizes the calculation method: Annual supply (tons) = total population served x per caput consumption x 0.52 24. Nepal.65 8. The range of kg per caput values in Table 12.67 10.000 tons.65 25.Ch15 Thailand Tonga Developed countries Australia Japan New Zealand 1.8 Consumption in selected districts in Nepal (kg per caput) Commodity Potato/Sweet Potato Vegetables (excl. 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. arc given in Table 12. comparing the trade in Muang Mai wholesale http://www. supermarkets. 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. per caput x 0. Particular care is needed in reviewing survey figures.9 maximum 63. FAO has undertaken a number of regional studies of nutrition.9 gives an example from Northern Thailand of such a set of adjustments.016 510 1.5 150.60 7.7 Source: Konjing.08 8.6. It may come from home-garden production (particularly fruits) or have been sold directly by farmers or traders to small corner stores. However. Bangkok. hotels and to institutions.9 97. the overall average compares reasonably well to the FAO national figure of 136 kg per caput shown in Table 12.

vegetables and fish compared with that of urban Nepal and between urban Nepal and Kathmandu.43 (urban/rural ratio) x 1. either as public sector policies or as proposals for investment by the private sector. 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. Source: FAO Project (GCP/NEP/043/SWI http://www.8 kg per caput. the present consumption of 22. 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. the per caput consumption in 1983/84 of 42. fish. 5. substantially above the national plan target. It uses a range of values for the daily trade in Chiang Mai.Kahmandu. which is often attended by changes in dietary habits and substitution between different types of food stuffs. however. medium and high (wet season) volumes-with variations in destination of produce. Market development policies. · consumption of vegetables in Kathmandu was estimated as follows: 27.14 kg. Therefore. taken from surveys (see case study in Chapter 11). Other factors influencing demand may include a general increase in incomes.6). they will match fairly closely the rate of urban population increase.05 (addition for Kathmandu) = 41. In making projections using the supply approach. The analysis highlights the large volume (around 80 per cent of the total urban consumption) that by-passes the wholesale market. · for fish the per caput consumption was based on the existing estimated consumption of fish in Kathmandu i. based on consumption survey data was broadly matched with national food balance sheet data. Studies of per caput changes in consumption tend to suggest that. vegetables and fish for six districts in Nepal. For example. like increases in production levels.10 from Kathmandu demonstrates the principles that might be followed in making an approximate estimate of future demand.fao. it will be necessary to make some overall assumptions on the basis of the assessment made of existing trading patterns.5 kg per caput · for fruits.9 Daily consumption of produce. · all projections of future consumption were based on survey data or official published target levels of per caput consumption. speciality food and. Nepal · The consumption of fruits. · 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.. sometimes. 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. higher quality grades of rice (see Table 12.5 kg per caput x 1.14 kg per caput for 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. including a significant proportion coming from home-garden production.Ch15 market to consumption in the Chiang Mai municipal area. if leafy vegetables were excluded. could be equated with an average in six districts of 27. vegetables and fish) a number of assumptions will need to be made.htm (3 of 5) [2004-12-21 01:15:58] . These will need to be reviewed to see whether they can form a realistic basis for an overall development programme. 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. Table 12.org/docrep/T0521E/T0521E0f. the substitution effect between different produce has to be assumed to be zero. such income changes lead to an increased consumption of meat.19 kg per caput was used.10 Demand assumption . This enabled ratios to be calculated between the national average expenditure on fruits. Frequently. Table 12.5 kg per capita. Chiang Mai.e. The example shown in Table 12. The analysis assumes a constant per caput consumption and relates together possible low (dry season). Existing plans and programmes may already exist. Projected demand In preparing estimates of the potential demand for produce (fruit. for vegetables. however. using the same basis produced a figure of 33. 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 .

0 x average month (tons) Source: FAO Project.10 and taking into account production by-passing the wholesale market system. Possible design scenarios that often used are: a minimum size. 2.GCP/NEP/043/SWI 65. is shown in Table 12.160 n/a 18. 2. which would accommodate the growth in demand over the 20 -30 years of a project's life. Data from roadside and retail surveys may provide a basis http://www.500 2.340 60 60 50 1.80 17.5 times the annual monthly average production/sales. Vegetables · Fruit . Katmandu: design assumptions Per caput consumption (kg/pa) Urban area consumption Annual total (tons) Home use (m/t per annum) 3. the estimating techniques described in Chapter 13 already take the peaks into account as they are based on average values. Fruit · Fish Total average monthly throughput (tons) Peak monthly throughput.480 Total average monthly throughput (tons) Peak monthly throughput. A simple approach to projecting throughput is to develop scenarios for the peak monthly throughput of the market.500 10. and arc based on the methods for assessing seasonal variations described earlier in this Chapter.410 1.htm (4 of 5) [2004-12-21 01:15:58] .442.540 30 20 0 450 140 0 590 1.340 9. Design scenarios.00 22. that the ratio will decrease over time.Ch15 Market throughput After making projections of present and future demand.200 6. 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). taken as 2 .120 2.650 7.org/docrep/T0521E/T0521E0f. In some circumstances.300 2.411. As a basis for these calculations it is first necessary to make projections of the likely throughput of the market. using figures on per capita consumption and the likely population served.820 990 390 3.380 30 20 0 340 120 0 460 1. and an ultimate size.790 3. Table 12.120 4. based on crude projections from previous population growth and migration trends (if more refined figures are not available).11.19 5.710 9.400 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.820 n/a Volume sold (%) Traded at Kalimati: % of total (tons) Monthly volume Minimum size: (1988 Design Population . 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.00 35. it may be better to calculate for the peak separately in order to make special provision for it.000) · Vegetables · Fruit · Fish 41. 000) . 000) . a median size.600 24. using the demand assumptions shown in Table 12.5 x average month (tons) Ultimate size: (2000 Design Population .540 4.34 45. Vegetables . corresponding to present immediate demand.640 9. 2. A typical example of a throughput calculation for Kathmandu. Fish 50. however. Design assumptions.fao.11 include estimates of the throughput at peak periods.41 8.930 n/a 36.20 13.11 Kalimati wholesale market.150 Total average monthly throughput (tons) Peak monthly throughput.480 19. corresponding with likely demand in the near future (say within the next 5 years).060 9.700.90 24.630 3.000 8. In estimating space requirements the extent to which these seasonal differences need to be considered is a matter of judgement. The projections in Table 12. for example.380 13. It can be assumed.2.50 22. In principle.5 x average month (tons) Median size: (1990 Design Population . where there is a short duration peak caused by a particular crop.

The figures should be treated with some caution. however. as they may not be representative of the whole year. 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. bearing in mind the degree to which some produce will by-pass the market system. Contents Previous .org/docrep/T0521E/T0521E0f. particularly that from home gardens within the city. Adjustments may therefore be needed. 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.htm (5 of 5) [2004-12-21 01:15:58] .Ch15 for establishing how this might realistically change in the future.Next http://www.fao. 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.

trading practices. Some may be exclusively for terminal trade in a city. The potential location of market sites to serve a city are shown in Figure 27. while others may have a strong export or re-assembly orientation. Selecting a new market site In considering a site for a new market. Figure 27 Location of wholesale markets within a city There are. 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.1 . which are only likely to be become more difficult with the http://www. because of seasonal fluctuations in supply. the scale of a city may favour more than one outer wholesale market. with premises scattered throughout the city. The issues involved and desirable features to be reviewed in choosing a new site are discussed below Number of market sites.org/docrep/T0521E/T0521E0g.fao. however. Suitable methods for estimating site size can be based on two basic criteria: urban population and annual turnover. Size of site.htm (1 of 2) [2004-12-21 01:15:59] . preferably with more than one point of access. public bodies are frequently pressured into accepting a location which is already owned by central or local government.13. Full consultations will be required with all the interested parties. but the justification for relocation and the characteristics of a proposed site still need to be rigorously analysed before this solution is accepted. 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. Alternatively.Ch16 13. Planning and environmental design criteria Contents Previous . It may be appropriate to adopt a multiple-market solution for a city: · if there are many small-scale retailers.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. cause site planning problems. An approximate basis for making such an assessment is to use a figure of 4 . however. · if retailers' transport facilities arc inadequate and · if roads are highly congested. More detailed figures on which to make an assessment are discussed in the next section in this chapter on estimating space requirement (see Tables 13.4). A direct approach off a heavily used major highway or close to a major intersection may. The first decision that needs to be considered is whether it is necessary to concentrate all wholesaling activities at a single site. likely to be wide deviations between countries in what is appropriate. 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.5 tons of turnover per m² of overall site area area. cultural differences and the dissimilar natures of markets. The siting of a market should ideally be adjacent to a main road. This obviously simplifies the problem of land acquisition. 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.

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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Ch17

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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Ch17

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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which may be used in parallel to check the basic assumptions. Projecting floorspace for a new market is a more difficult problem than assessing the adequacy of an existing market. The existing Muang Mai wholesale market was overcrowded and unable to expand. an optimum overall annual turnover per square metre of sales area.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. Seoul.500 Korea 0. The opening in 1990 of a new market.13. including an allowance for main circulation areas (display/buyers' walk and loading platforms). per caput (maximum) = 150. including allowance for tourists: = say 750. These turnover figures conform with the data contained in Tables 13. A better approach is to work from the whole to the part. Project proposals on the new Seoul agricultural wholesale market and the national marketing master plan. Calculation methods for estimating floorspace at new markets.5 Typical daily space requirements: Japan and Korea (tons/m²) Facility Auction halls Middlemens' stores Loading and unloading Chilled/cold storage Vegetables Japan 0.100 0.080 0.000 Fish Korea 0.400 m².6) is an approach based on commercial criteria using.6 Sansai Market Centre. The Japanese values represent nearly optimum use of space. to make allowance for the mix of functions and extent of usage that will occur in a main sales areas. for example. This can be illustrated by projections made as part of an FAO study of wholesale markets in Chiang Mai in Northern Thailand.055 0. If aggregate areas are built up on such a basis the values will need to be adjusted. The second calculation method (Method B) is an ergonomic approach based on the ideal space requirement for various activities.m² 15 pa 3. Very reliable survey data is required for such an approach. 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.055 0. Northern Thailand. by applying a percentage weighting factor.4 and would represent reasonable average values for fruit and vegetable markets.000 x 200 kgs. Method A 56. There is a reasonable degree of agreement between the two estimating methods. 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.000m². whilst those from Korea could be used as design targets for a new wholesale market. Brazilia. Thailand: sales space projections Throughput (tons) per year (pa) Short to medium term.org/docrep/T0521E/T0521E0h. as part of an overall marketing strategy.000 · Annual consumption of fruits and vegetables in the year 2000: = 750. plus allowances for overall circulation and for daily fluctuations in space requirements. that might be used in Method B.1 . specific to the culture and matching exactly the management conditions that will apply in the market. 1978.055 0.165 0.htm (3 of 4) [2004-12-21 01:16:04] . Checking the adequacy of existing markets. The potential throughput at Kamtieng was projected as follows: · Metropolitan population in year 2000.110 1. at Kamtieng on the edge of the city allowed adjustments to be made in the wholesaling pattern of Chiang Mai city.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.25 metric tons.100 0. Japan & FAO Project GCP/CPR/008/BEL Some typical values of space used for storage and sales.5.400 Japan 0. with mechanical handling before and after sales. It was assumed. Table 13. (More elaborate methods for estimating space needs are contained in a publication of the Korea Rural Economics Institute.730 http://www. Table 13. Table 13. Ministry of Agriculture and Fisheries). The estimates provide a basis on which to design market buildings.Ch17 Source: SINAC. some variation is inevitable given the fundamentally different basis on which the projections are made. firstly calculating the overall sales space and then making adjustments for additional facilities. can be used to estimate the adequacy of an existing market site.055 1. 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.050 0. 1981. with a longer-term aim of 6.000 Source NIKKEN SEKKEI. The factors used in the calculation method would vary depending on the methods of display and level of sophistication of the market.000 tons per annum · Potential turnover using the presently constructed market sheds: = 97. Not all the produce. are shown in Table 13.085 0. Osaka.fao.110 0.000 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 97.120 0. with a sales area of 6. a medium-term target might be 4.000 tons per annum/6. which should usually range from 10 . Two simple calculation methods can be adopted.000m². This method uses the net area required to accommodate the average daily sales for each of the main commodities. The first method (Method A in Table 13.070 0. as the main parameter. Demand and demographic projections. plus average turnover data.050 0.800 Fruits: Japan 0.000 per day (pa) Space requirement: tons/m² area . 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.

11 pd 4.05 pd 0.000 800 1.000 3.06 pd 2.000 Source FAO Technical Report . Thailand: space requirements Function Main sales space Rentable stores Washing.250 Source :FAO Technical Report TCP/THA/8958 Table 13. packing and grading facilities at 1m² per ton of through-put.000 80. and · other offices (banking and credit facilities. 7 Sansai Market Centre. These assumptions were: · wholesalers' permanent stores (including chill stores) outside the main sale area would be equivalent to 40 percent of commercial sales space.TCP/THA/8958 Table 13.000 - 225 55 280 - 20 pa 0.000 4. Contents Previous . each at 5 percent of commercial sales space. market information system.160 100.000 56.000 - 125 30 155 - 0.7 shows how the build up of commercial floorspace could occur during a 20-year project period using the projections shown in Table 13. · washing.fao.htm (4 of 4) [2004-12-21 01:16:04] . public toilets and site security).000 100.000 2.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. marketing extension and cooperative outlet) at 10 percent of commercial sales space. market management and for basic support facilities (weighbridge. pecking end gracing Market management offices Other offices Basic support facilities Grain dryer and silo Total Space requirement (m² ): Initial Medium-term 2.000 750 600 4.6 and based on some simple assumptions about the space requirements for ancillary spaces.000 11.Next http://www.400 300 300 600 300 100 10.750 Long-term 6.060 850 6.500 500 3.750 500 1. · offices for private enterprise.06 pd 0.350 5.450 6.000 20.600 150 150 100 200 200 400 100 200 3.org/docrep/T0521E/T0521E0h.

P.495 230 350 20. Two useful publications which explain planning within the context of participatory development are: Goethert. London). but this must always be related to other objectives. however.Next This section amplifies some of the planning principles discussed in Chapter 3 and 4.0 1.fao.955 3.0 http://www. Table 13. which will be used both in reviewing site planning options and in the development of a preferred option into a draft. Minimum standards of public health. master plan. will always be the main criterion. R & Hamdi.680 (7) 560 72 128 152 2.840 710 3.370 % of total 17. New York.5 29.the human aspect in development. and then final. 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. a plan must accommodate all the needs defined by a project's goals. 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 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.3 0. G.2 17. and · Lynch. 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. The design of urban space.org/docrep/T0521E/T0521E0i. however. 1980. (both from Intermediate Technology Publications.8 3. 1978. 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.M. Making microplans.8 29.5 0.780 2. 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). grading and packing · Toilets Sub-Total.1 0. some of which are listed in the Bibliography. Although architectural quality may not be a main interest of either the market's developers or its users. 1989.940 150 3.1988.135 13. Cambridge. L.E. The Architectural Press Ltd. These general goals need to be supplemented with more detailed objectives.640 2.3 2. 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.htm (1 of 6) [2004-12-21 01:16:09] .060 710 5.600 (15) 336 880 560 308 72 24 128 152 6. Site planning standards. sanitation. with which it will frequently be in conflict. 1984. The importance of consultation with all the parties involved with this process has been stressed on many occasions in the manual. There are many publications explaining the planning process. Site planning. this should not be forgotten.Ch18 Site planning Contents Previous . and Taylor.7 100.570 3.190 2.640 (11) 560 308 72 128 152 3.590 710 3. MIT Press. London.1 0.8 1. accident prevention and structural safety will also need to be considered. Cost.360 2. There are.020 1. J & Koppelham. & Hack. The project goals described in Chapters 2 and 3 will provide a general basis for the preparation of a physical master plan.6 0. McGraw-Hill Book Company.100 165 1.2 1. Choice and adaptability are important objectives.010 13.5 17. & Jenkins. N. · Cartwright R.7 1.7 4. It must also provide optimum communications. K. Time to listen . Site planning objectives.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.780 3. The most obvious of these objectives is functional adequacy. L.

including the space requirements for the ancillary and service buildings. the effects of congestion in a market are critical and therefore time is a more relevant measure.550 85. The options will need to be analysed. this pattern is likely to change rapidly with the introduction of small pick-ups and trucks. Landscaping/Drainage Reserves 9. Open sales space 3.4) (8. Although present retailers at the market may continue with the use of small hand carts. This could represent.600 4.800 (6. such as between a refuse disposal area and on-site residential accommodation.7) 13.500 25. such as roads. Water Supply Tower 8. Roadspace Total Source: FAO Technical Report .0) 1. # Including temporary construction roads Site planning options.000 1.000 4. 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. GCP/NEP/043/SWI Notes: + Excluding paved areas associated with buildings.600 9.600 400 100 13.9) (26.org/docrep/T0521E/T0521E0i. Car Park. Offices/Other Buildings 3. Rabat (m² ) (%) 3.000 4. an incompatibility between uses.450 2. but some may be negative. Table 13.10. Reserve for Future Facilities 5. covered arcades and paving to the farmers' market area.500 25.000 4. The extreme congestion of Rod al Farag market in Cairo.400 (%) (8. where a large proportion of the site was allocated to traffic circulation needs.550 85.3) 0 (0.500 4. Although simple physical distance will give some indication of this. These options. Table 13. As discussed in Chapter 4.5) 0 (0.900 (14. Different diagrams or patterns should be created for each option. although the turnover per m² Of sales space of 15.500 13.TCP/THA/8958 Table 13.0) (8.500 (15.000 metric ton cold storage facility. Covered sales space 2. derived from the accommodation brief.500 24.400 9.Ch18 Source: FAO Technical Report.fao.300 28. Crates http://www.3) (0. Table 13. Land-use analysis.200 5.750 500 1.000 1. the importance of this is evident. Linkages are more usually positive.0) 17. which will represent a simplification of the design problem to its logical essence.2) (3.6) (32.8 shows an illustration of a phased estimate of the market buildings needed for the Kalimati site in Nepal.400 85.300 (19. for example. Car Park .9) (20. combined with restricted access in the roads leading to the market.400 2. Cairo (m² ) (m2) 12.700 0 Rod al Farag. which will need to be developed further during detailed design. 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. Wholesale Market 2. These linkages may be of a physical nature.30 cars 7.7 tons is not that high. 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 13.100 1.9 gives a comparable land use pattern for the Sansai market in Chiang Mai. The market is over-intensively used compared to its overall site area.0) Marche de Gros.000 12. Grain Drying Area 4. different options should be generated to reflect the design objectives. such as a flow of information.500 9.600 400 400 100 100 13.300 pick-ups/trucks 6.750 9. which compares the land uses in three Near East wholesale markets.2) (9. The estimates prepared of space requirements for the buildings should be related to that of the whole site. or more abstract. which will generally be based on how satisfactorily they perform in terms of cost and of minimizing time spent within the market. Roads 5.550 25. Parking 4.htm (2 of 6) [2004-12-21 01:16:09] .000 32.9 Sansai Market Centre. The reviewing of options will provide an initial sorting out of ideas. The choice of planning options can be most practically understood by using a simple ranking system based on the site planning objectives discussed above. Thailand land use (m²) Land Use 1. As the starting point of the site planning process. Stores 6. and for a 2.0) (24.o) (9. The main categories of land-use activities need to be identified and the relationship or linkages between them established.10 Land-use analysis of Near East wholesale markets Land Use Amman Central Mkt (m² ) 2.500 7.7) 40.900 (46.400 Long-term 6.6) Cumulative space requirement (m²): Initial Medium-term 2. for example. is explained by its lack of road space and traffic management.

with less time lost for both wholesalers and retailers.10 which gives typical values for the utilization of land at a variety of market sites.0) 3. 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.13. they will be a major consideration in determining the ultimate form of the outline plan. The basic approach will be to compile all the planning data. leading to reductions in deterioration of produce.000 scales).000 or 1:2. and · introduction of controlled entries and exits. 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. This tabulation can then be compared to Table 13.org/docrep/T0521E/T0521E0i. These issues are critical to a plan's success. The first draft or outline master will clarify what are the opportunities and constraints to development on a site. 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. 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. An example of the evolution of such a drain master plan is shown in Figure 30.000 (2. 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. estimated that the savings in annual operating costs would be made-up as follows: · less time lost by vehicles . drawing together the synthesised information from the previous design stages and providing a basis for consultation and more refinement of the detailed design.000 (3. Administration 8. climatic considerations and the evolving requirements of the design brief. 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.fao. supplemented by written statements.000 (3 8) (0. The purpose of preparing a master plan is to provide a document.400 0 88. http://www. so they can reflect the actual accommodation requirements related to the circulation pattern and can be fitted within the confines of the site boundaries.htm (3 of 6) [2004-12-21 01:16:09] .8 . 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. general parking and the internal arrangement of the main market buildings. 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. · compact building layouts with less manual handling of produce. although the influence of the local site is important. Thailand) The difference between an outline plan and master plan is one of detail. Figure 30 Evolution of a draft or outline master plan (Sansai. The methods of measurement for preparing the table can vary from using a planimeter.6) (36. to counting squares on a graph paper overlay.11.200 50. 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. primarily a map or series of maps. leading to reductions in pilferage.4) Site master plan.800 18. However. 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. 1:1. using standardized building forms.. as the plan gets modified to meet the site's physical conditions. The main function of the plan must be to maximize the throughput of the market.9) (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.Ch18 7. giving protection from rain and sun. and · how to organise the site layout so that construction phasing is simplified and future growth and changes can be accommodated without disruption. Unused Total Source: FAO 800 0 28. lower porterage and labour costs . The original neatness of sketch diagrams will often to be lost at this juncture. The potential savings from an improved or new layout include: adequate parking spaces and loading bays leading to increased vehicle turn-around. leading to lower porterage and labour costs and a more efficient use of warehouse space. such as lower operating costs (see Chapter 5). The important issue to remember is to always compare the measurements to the known overall area of the site. while minimizing capital and operating costs. 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. A study by the US Department of Agriculture in 1947. unloading and loading areas.0) 1.

These include the dimension of parking bays (see Table 14. Longman). planning grids and structural modules (see Chapter 14). wholesalers' premises.htm (4 of 6) [2004-12-21 01:16:09] . & Drew. Vertical dimensions are also important and. 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. Building form . Figure 8). usually constructed of steel mesh.16 plus 1.org/docrep/T0521E/T0521E0i. climatic design. The ideal method is to use the minimum of fixed walls so that premises can be defined by moveable partitions.31 2. will then be applied by the designer to the accommodation schedule.94 New facilities 2. B.09 Source United States Department of Agricullure/Maryland Food Center Authority. In this process designers use a wide range of physical design data and techniques. Nepal) Koenigsberger. albeit of a flexible and expandable nature. To arrive at inexpensive and appropriate building forms. A typical plan showing the relationship between producers' sales areas. (1956. Washington DC. which should be related to both the width of structural bays and to the dimensions of the sales areas. will need to prepare an accommodation schedule. This is an iterative process.89 18.04 10. The only way that market buildings can be created to match the site and climatic conditions. tabulating the number of stalls of a particular size. may restrict the flexibility of the building to accommodate changes in operating procedures.83 minus 0. London. specifying the overall estimates of space requirements.31 18.72 minus 6. the level of technology of the country and the cultural context is if they are consciously designed. this is most unlikely to be satisfactory.09 minus 12. New York. (1973. and Saini. B. The initial task in selecting an appropriate arrangement for the buildings will be to understand the operation of the market. 1989. London. O. Batsford Ltd).T. Manual of tropical housing and building -part 1. USDA. will require the market authority to involve itself with fully briefing any design consultant.61 0. Other dimensions. including ergonomic and anthropometric standards. The basic choice of building form will also need to be made (see Chapter 4.00 1.1). derived from ideal dimensions for the range of activities in the market.40 30. if not carefully considered. As the first step. et al. preferably in conjunction with the designer.Ch18 Table 13.S. Oxford University Press) provide a comprehensive understanding of this design process. J.85 Change Rent Handling costs: · labour · equipment Cartage Insurance on contents Total plus 0. a buyers' walk and supporting facilities is shown in Figure 31. which will allow small fork-lifts or powered pallet-trucks http://www. For existing buildings the survey of facilities described in Chapter 11 should help to establish current practice by.3 percent of the value of sales. the market authority. elaborating those prepared during the site planning stage.fao. Chichester.12 but these figures should be used with caution as they may not match local circumstances. In reality. Tropical architecture in the humid zone.H.45 0. requiring constant consultation with the market authority and traders. A series of geometrical patterns. Typical values for these modules are shown in Table 13. The designer will probably present this in the form of simple flow charts. Building design The purpose of architectural design is often forgotten in the design of functional building types such as markers. (1980. 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. If they are over-sized this is likely to lead to a low turnover (less than 15 tons m²) and an underuse of resources. To give these diagrams an architectural form is a complex process which can only be briefly touched upon in this manual. 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.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. The writings of Christopher Alexander (1977. A pattern language towns buildings construction. Building in hot dry climates. The preferred minimum clear vertical dimension for market halls is 5 metres. how produce will flow and how it will be managed (see Chapter 8). Examples of how architectural design principles can be applied to building types in less-developed countries are given in: Maxwell Fry F. As a consequence rents are likely to be disproportionately high as cost recovery normally requires that rents should not exceed 2 . Figure 31 Internal layout of a typical wholesale market (Kalimati.27 minus 7. Wholesale Food Distribution Center Growth and Development. for example. the proposed management system.61 12. Planning grids One of the key determinants of the planning grid will be the optimum size of sales areas and wholesalers' stalls.62 0. John Wiley & Sons).

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. Walls and roofs should have a high thermal capacity.9 . The main characteristic of buildings in this climate is that they should be planned to minimize solar heat gain and to maximize air flow.5 6/12 6 6 6 21 15/21/27 13. · hot. Table 13.Ch18 to be used in the future. with shading devices to control sun penetration. dry (arid) climates typical of desert and steppe areas. Market buildings are often raised 0. The traditional building forms in an area will provide evidence of how buildings have been designed in the past to cope with the climate. 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. whilst others are discussed in Chapter 14. This is an expensive element to construct and may lead to cracking problems with the floor finishes. relating to the general climate of the country and to specific micro-climatic features of the site. with high humidity and rainfall levels. but with facilities to take advantage of solar radiation at cooler times of the year and temporary provision for cross-ventilation. some of which have already been commented upon in Chapter 4. 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. There are three basic types of climate that are common in less-developed countries.fao. with permanent or temporary shallow ramps. The orientation of buildings should ideally be on an east-west axis. again clear of any obstructions caused by the roof structure. spaced at a minimum of five times the building's height to allow breeze penetration. The following is a brief check-list of these elements. It also imposes restrictions on how the building may be used.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. Rooms in the building should be single-banked to allow cross-ventilation. which may need to be incorporated into the design: Internal elements · canopies · buyers' walks · display areas · loading ramps (max.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.1. with high temperatures and ground glare. Other factors that will influence the form of buildings will be the positioning of internal and external fixed elements. Architectural elements. Door openings through which fork lift trucks may need to pass should be a minimum of 4.org/docrep/T0521E/T0521E0i. 1976. humid climates: typical of the equatorial tropics and tropical islands. 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.J.4 metres.80 percent of the wall area) and positioned on the north and south elevations. combining the problems of both humid and arid climates. Rome. 2 metres high and preferably 6 metres in width. their internal layout and their construction.40 percent of the wall area. with large openings (40 . a more suitable internal minimum height is 7. Climatic design principles The building form will also be strongly influenced by climatic design factors. Minor spaces. Walls should have a low thermal capacity. If any form of racking and block storage is envisaged.2 metres to facilitate loading banks or platforms. such as offices and other ancillary uses should have a minimum height of 2. Planning of wholesale markets for perishable food. · warm. FAO.5 metres.htm (5 of 6) [2004-12-21 01:16:09] .2 metre changes of level. · composite climates: typical of equatorial and tropical uplands and Mediterranean areas. Another issue that will need to be resolved is how far the floor slab of the market buildings should be raised above ground level. Building design is ideally similar to arid areas. which will have different implications for the siting of buildings. However. The better solution is to have a 0. and low rainfall levels. Cross-ventilation to rooms is not essential and openings should be limited to 20 .

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

excluding the main circulation. At this stage in the design process a hierarchy of roads should be established. Road patterns. For a preliminary layout a minimum of around Go m² per truck parking space should be used. Figure 32 shows the pattern of arrival for vehicles using the Birmingham (UK) wholesale market based on a 7-day survey.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. An overall minimum standard for the provision of parking places (trucks. Appropriate parking and circulation design standards are discussed in Chapter 14. These will include · road transport. A layout with more than one exit has obvious advantages in terms of traffic control. is rapid and it is highly desirable that a sufficient number of adequately sized parking spaces are provided. Ideally. particularly for large scale markets. In larger markets a series of entry gates are often located adjacent to each other. particularly those of retailers. 11 and 30 give typical site layouts of small-scale modern market facilities which attempt to meet these general objectives. An important advantage of the ring road approach is that it enables drivers to search for parking spaces and to correct mistakes. For smaller markets. usually by adopting a one-way circulation system. but loop systems are more suitable for simpler layouts. · rivers and canals. 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). however. 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.org/docrep/T0521E/T0521E0j. 13. In general.3 spaces per 100 m² of sales area. particularly in respect of sight-lines and the spacing between junctions. Of particular importance is to understand the types of vehicles that are using a market and when peak periods may occur. of Vehicles per day Peak period ratio Parking spaces required (number) Peak season http://www. These may include producers' delivery vehicles. which may require the provision of reserve parking areas a little remote from the market facilities. Projected traffic flows and parking requirements. The use of the overspill areas should be confined to market users with small loads to carry. the desirable maximum distance from a parking space to a market building should be 100 metres. including small-scale electric vehicles. The ideal practice in developing a road layout is to strictly segregate the produce coming in from that going out. · air (for export markets). and · non-vehicular transport (pedestrian head loads and animal carts). and the vehicles of the general public Table ]3. but this will not always be possible. For peak periods. retailers' and other buyers' vehicles. By using minor loop roads or branches (cur-de-sacs) that penetrate within the block. For very large market sites.fao. however. estimates should be made of the projected traffic flows and distribution by type of vehicle. but it may be necessary to adopt a figure of 200 metres for peak parking in overspill areas. · rail links. transport for permanent and temporary market staff. A typical approach to establishing the road network for a market site is to provide a continuous peripheral road system or "ring road". The turnover of vehicles in a market. Figures 7. are necessary for projecting traffic flows.htm (1 of 4) [2004-12-21 01:16:13] . pick-ups and private cars) should be 2 . In reviewing external circulation components of a market development plan all aspects of transport that might serve the site need to examined. with the buildings located within the centre of the block.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. Grid road patterns may be used. Junctions and intersections between different grades of roads will need to be looked at in detail. although this may create problems of security and management of documentation.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). unloading and loading facilities need to be directly adjacent to the main market building. traffic models. 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. simpler techniques based on examining the pattern of traffic data from roadside and market surveys (see Chapter 11) can be used. 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). this could easily be increased to 4 .6 spaces per 100 m². reflecting the different intensity of use of facilities.Ch19 External circulation and services Contents Previous . In preparing more detailed proposals for a site. using computers.

Invariably. Services other than roads can be disregarded in the initial preparation of the overall site plan. 1 he following notes review the types of site-level environmental problems and the general solutions that may be encountered in market development.htm (2 of 4) [2004-12-21 01:16:13] . consideration will need to be given to the location of other service networks.0 Add 22.org/docrep/T0521E/T0521E0j. The use of "common" trenches for the distribution of services. Solving potential flooding problems often requires that off-site works are undertaken These will need to be incorporated into the market development programme. More detailed engineering design criteria are described in Chapter 14. Vegetables . Figure 32 Mean arrival times for vehicles delivering to Birmingham wholesale market The majority of other services are likely to be placed underground. causing backing-up of drainage water at upstream sites or direct flooding downstream.6 24 20 31 75 17 92 8 100 · Fish 13.5m x 2. 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.' (the time intervals between occurrence of storms of similar intensity). This will need to be carefully addressed in order to avoid impacting on the adjoining sites. http://www.5 1.4m) Add 20 % for short term truck parking (e. 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 14.0 214.0 26.0 0.3 0. However. 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. which establish precisely both their vertical and horizontal relationships. 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. Fruit 610 33. 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.3 0.0 66. Because of the scale of open drainage systems and the significant runoff from paved market areas. 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. Surface water drainage. surface water drainage is likely to be the most important service to consider next. 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 81 66 52 199 0.fao.0 122.5m x 2. 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. 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.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 technical issues associated with the disposal of surface water from market sites are not difficult if tackled properly.Ch19 Within market: Retailers small trucks & pick-ups: .5% for suppliers' vehicles/contingency* Truck parking spaces required (@ 8m x 4m) Add for wholesaler's cars (@ 5.0 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. is often adopted.0 1. 8. but as the site layout is gradually finalized.

fao. typically. London School of Hygiene& Tropical Medicine). S. 1991) suggested the following standards.1.70 percent) and a low calorific value (+/. pit latrines and aqua privies. however. either for recycling the waste as compost or by a controlled tipping or sanitary landfill operation.. are given in the Ross Institute Bulletin No. economic and environmentally satisfactory solution. Small wafer supplies. The Initial study findings report of the Chaing Mai Planning Project (Louis Berger International Inc. Small excreta disposal systems. nor advisable given the potential environmental impact it might have on adjacent sites. fire hazards. sample borings may be required. although some improvement to the mains may be required in order that the site can be served. Sewage treatment. Often. A full review of these techniques is contained in the Ross Institute Bulletin No. Market sites. with leach fields and partially treated effluent going to surface water drains is likely to be the most practical. An agreement will need to be made with any local sanitary board for the collection of solids and periodic cleaning of the septic tank. Data from a survey by Chiang Mai University (Paiboonslip. 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. with a high moisture content (60 . 7 5 metres from streams. in which case their economic viability will need to be assessed Suitable design criteria are given in Overseas Building Note No. Sewage treatment in ho' countries. Noise nuisance. Community ambient noise standards may not exist and adopting those used in developed countries may be inappropriate.). 81. Waste should therefore be collected for disposal off-site. pollution of receiving water courses. P. although it is an attractive solution for reducing transport demands and disposal facilities. Building Research Establishment). They may.16 decibels [dB(A)]. Noise monitoring in Chiang Mai) indicated that one of the main retail markets had the highest ambient noise level. Water supplies to markets are required for drinking and sanitation purposes. Noise levels at markets can cause a significant public nuisance. London School of Hygiene & Tropical Medicine). 1). For small secondary wholesale markets in rural areas simpler methods of excrete disposal are normally adopted. Techniques for the construction of tube wells and other small-scale supplies. The management of solid waste is thus a key issue that will need to be resolved. & Cairncross. These are. religious buildings and hospitals: Day-time Morning/Evening Night-time http://www. 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. Garston. in some cases. National effluent guidelines frequently require that markets install their own treatment systems and this is usually enforced through building permits. 1978. On-site compaction of waste and pressing into a container is not likely to be viable in developing countries. R. 1978. particularly given their extended hours of operation. 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. To obtain a guaranteed supply. for the washing of produce. 1976.000 kcal/kg. New Delhi.htm (3 of 4) [2004-12-21 01:16:13] . 8 (Feachem. For this reason market sites are usually located away from residential areas and other sensitive land uses. with an on-site storage tower. 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. which may be appropriate for secondary wholesale markets.5 metres from buildings or boundaries. S. (Management of solid wastes in developing countries. odours and nuisance from burning and the polluting of ground and surface water sources. Markets. which is discussed in Chapter 14. 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. however. be warranted if the market is to be developed in conjunction with other facilities. if any. they have experienced. A water-quality analysis of any existing supply may be required to test for the presence of pollutants. F. typically Psychoda. Equipment options for collection and methods for calculating the volumes of waste that might need to be handled are given in Chapter 14. 1985. If an existing mains supply is available this would normally be used. In many cases. Disposal of solid waste. WHO Regional Publications. Refuse is potentially a major cause of environmental problems. R. 1977. 10 (Cairacross. aerated lagoons and oxidation ditches These are unlikely to be appropriate for the relatively small-scale requirements of a market. & Feachem.Ch19 Water supply. a septic tank system. D. Usually a drilling or excavation permit will be required before constructing a new well or other form of supply. These range from public health risks. Techniques for this are reviewed in Flintoff. If an adjacent site is already occupied then useful information can be obtained by discussions with the adjoining owners to investigate what problems.org/docrep/T0521E/T0521E0j. of any site surveyed in the city. Small-scale incineration is not practical or economic. 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. particularly faecal coliform bacteria (Escherichia coli). The waste generated at a market will have a high organic composition (minimum 50 percent). for general cleaning and. based on Japanese levels (but around 15 dB[A] higher). South-East Asia Series No. 3 metres from water pipes and 1. 174 (Mare. If an existing site is adjacent to such uses careful design measures will need to be adopted in upgrading the market. The purpose of the system will be to remove organic (excrete) waste so as to prevent infection transmission. development of odours and breeding of files.

For the humid tropics. by siting noisiest uses away from sensitive areas. Equally important. however. The construction of walling around a site will have a significant impact on noise levels. 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. This issue will need to be carefully considered during detailed design: · distance attenuation. planted screening (which will have little impact in terms of noise attenuation) and the upgrading of windows. In open air. with different cost implications and effects on a market's operating system. This may be acceptable in arid areas. is not considered to be acceptable in either the humid tropics or arid climates. For example.org/docrep/T0521E/T0521E0j.htm (4 of 4) [2004-12-21 01:16:13] . however. both of which can have a considerable impact on internal ambient noise levels. A significant increase in noise levels may be allowed for developments on industrial sites. 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. leading to uncomfortable internal conditions. Contents Previous . it would be better to confine environmental improvements to the optimum siting of facilities. and · attenuation by window design. Problems that this might create in terms of pollution and climatic comfort levels are discussed below. · attenuation by screening. Allowing vehicles to enter the market building. by modifying the windows of adjacent buildings.Next http://www. There are a number of ways the noise impact of a market development may be reduced. as in some layouts where the buyers' walk is made wide enough for vehicles.fao. giving a ratio of sound pressures). 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. Air flow will be restricted and this will hinder natural ventilation both within the market and of adjacent uses. particularly higher frequency sound. if sites are fully enclosed by high walls this might have a number of detrimental effects. using double glazing combined with mechanical ventilation or by adding projecting external fins. as the general conditions for obtaining a reasonably comfortable working environment will require that as much shade is obtained as possible. so that for example the impact of heavy traffic early in the morning is minimized.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. · restricting the working hours of a market. Air pollution. Another approach often adopted is to categorise land uses according to their sensitivity to changes in the ambient noise level. In the humid tropics.

fao. often used where raft foundations are proposed. possibly carrying earth and other loose material which might block the market's drains. it may be necessary to form the http://www. Moderate gradients across a site can be accommodated by sloping roads and parking areas (see Table 14. surrounds and bedding required for pipes and standards for backfilling of trenches in graded material.Next The subject of engineering design criteria is a vast one which cannot be satisfactorily covered in a short manual. 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. The main characteristics that should be considered in making this assessment will relate to the site's drainage and topography. Site preparation and development On the basis of the site investigation survey.Ch20 14 Engineering design criteria Contents Previous . The analysis should also consider whether temporary drains and sediment control structures will be needed during the construction period and if stilling basins. off which there may be a substantial surface water discharge. 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 implications that this analysis may have for the site's development should then be defined. Trash trapping may also be necessary at the outlet from the site. This may be applicable when a site is located at the bottom of a slope. The analysis of drainage should assess whether a site is low lying and how the surface water is presently drained. · 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. Topographic analysts. and vertical drains. the depth of cover. To aid construction in soft ground conditions the fill may be laid on a geo-textile blanket. · the modulus of vertical subgrade reaction.1) and by using small changes in level within buildings. Technicians may also find the notes useful for highlighting the types of engineering problems that can be encountered in market design. 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. However. and · general recommendations on excavating procedures. dry density and coefficient of permeability of foundation soils. The notes should also be helpful in providing a basis for the preparation of terms of reference for consultants. Many of the subjects may be covered by local building regulations and codes. A 25-year return period is often assumed. · maximum compressive strength of cement-stabilized soils. cascades and trash trapping will be required as part of the permanent drainage system. · 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 usual minimum standard is 95 percent Proctor. This needs to be compacted by heavy plant. · 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. This may be needed to provide stable soil conditions for new building works. the proportion of organic matter they contain and whether practical problems and costs could make cement stabilization an attractive option. related to the number of commercial vehicles per day. 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. more usually. Site drainage analysis. Raising the site level will require fill material. · the maximum dry density and optimum moisture content of sub-grade soils. retaining walls and ground floor slabs of buildings. 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). 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.htm (1 of 7) [2004-12-21 01:16:19] .org/docrep/T0521E/T0521E0k. to provide adequate cover to the new drains discharging through the site and to ensure that the final level comes above high flood level. where a steep cross-slope exists. a visual inspection of the site and detailed traverse and topographic surveys the overall physical conditions should be assessed. providing ramps where necessary. by importing suitable fill material from elsewhere. The topographic analysis will assess whether it will be necessary for the level of the site to be raised. particularly the relationship of the outlet's invert to the present ground level. either obtained by excavating slopes on the site or. · the types of foundations required for different building types (described later in this chapter). but often these have a strong bias towards the construction of houses and may not be appropriate for the design and construction of markets. from modified Proctor compaction tests.

00 4. Typical problems that will require such assistance could be the application of traffic models to predict flows. for this reason. Appropriate geometrical design criteria that can be adopted for the design of small and medium-scale markets are illustrated in Table 14. 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.0 - Sources: Mittendorf.Ch20 site by excavating level platforms.00 Gradient (percent) 0.0 0. the design of a main junction at the site entry/exit and the detailing of complex loading bay arrangements.fao.5 .5.50 15. it is essential to undertake the road design before other engineering services Table 14.50 2. The road layout will form the main base map for the construction contracts and. · 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: .0 .50 2. 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.0 5.00 8.0 0. Lynch and Hack.00 2. reinforced concrete or masonry retaining walls or reinforced earth slopes.50 7.50 7.00 2.80 3.5.00 18. and the peak projected traffic levels (usually expressed as standard 8.200kg axle loads).65 2.00 18.40 2.00 12.50 15.htm (2 of 7) [2004-12-21 01:16:19] .00 3. 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. Pavement design. 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. from the smallest cars and pick-ups to large trucks. 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. The purpose of the detailed engineering design will be to refine the broad assumptions used in the site plan.0 8.0 6.0 8.50 Width (metres) 3.00 11. The road system of markets will need to accommodate a wide range of vehicle types.00 8.1. These are typically constructed as pre-cast concrete crib walling. Geometrical design.65 3.50 Radius Metre 10.org/docrep/T0521E/T0521E0k. De Chiara. Roads and parking With the exception of areas designated to buildings. In this case.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). Trucks · Small cars (minimum) 8.75 4.00 5. Specialist advice is generally required to determine the thickness of the road pavement.5.00 7. obtained during the site investigations.00 12.00 5. Tutt and Adler. landscaping or reserves for future facilities. http://www. fire appliances and refuse collection vehicles.5 .5 . often necessitating layout adjustments. Pick-ups . earth retaining structures may be needed.

concrete road pavements can be used.htm (3 of 7) [2004-12-21 01:16:19] . 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. Code of Practice on Surface Water Drainage. will be of use in making an initial assessment. 10. in tropical countries at least. Singapore). but because of the urban location of markets the best source of rainfall data is often from the local airport. Ministry of the Environment. http://www. however.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. Where traffic loads are light and subsoils are suitable.org/docrep/T0521E/T0521E0k. Alternatively. 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. Rainfall intensity Comprehensive historical information on rainfall intensity is usually obtainable from agriculture or irrigation departments. including the site. An assessment will also have to be made of the maximum recorded intensity of rainfall per hour for a range of design storm intensities. Surface-water drainage systems The process of preparing layouts of the surface-water drainage system will. The following notes. 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. particularly at the site outlet. The alignment of other main drains is likely to follow the pattern of buildings and roads.9. Drain design. sub-base and base courses. The next step is to calculate the total peak discharge of water from the site. 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.Ch20 Where adequate supplies of local crushed stone are available "Macadem" construction would normally be adopted. For markets this is normally taken as a high value. 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. Covered or uncovered reinforced concrete rectangular drains are typically adopted. have a significant impact on the detailed site planning. The run-off coefficient is selected from standard tables and will depend on the extent of paved areas and building coverage. This should ensure that during major storms there is no inundation of the market buildings and that road access is still possible. 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). soil stabilization techniques can be adopted using lime or cement as the stabilizer.cross-sectional area of channel in m² V = velocity of flow in m per second (taken as maximum of 3 and minimum of 1. Some drains are likely to have only a minimal slope and wider cross-sections need to be provided. such as I in 5. For most public buildings a level of service of at least 1 in 25 years return period would be appropriate. 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 . Parking areas may be constructed to a slightly lower standard of design. with a minimum of crossings. linen finished with a tack coat and surfaced with a pre-mixed bitumen based material. The direction of the site's main.014 for normal insitu concrete lining to the channels). because the sites are normally flat. impermeable and have fully paved surfaces. but they tend to be more expensive. Catchment and discharge The first step is to review available mapping of both the site itself and the areas immediately around it. 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. with a compacted sub-grade. and because the future land uses around market sites are likely to be heavily urbanized. 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.fao. Cut-off drains on the site boundaries may need to be provided to control the inlet of water into the site.

Fire prevention in buildings. which will make maintenance simpler as parts of the system can be cut-off. gloves. · first aid kits and tools (asbestos blanket.org/docrep/T0521E/T0521E0k. Distribution should be to overhead tanks in individual buildings.000 m² market. including cold storage (IS: 3594. Fire hydrants.000 litres = 10. 10 (Cairocross. Local standards may exist for calculating demand which reflect climatic conditions and cultural habits. Any tank or reservoir should hold at least one full day's supply.) for each building or compartmented section.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.000 litres = 75. produce washing · Estimated Total Daily Demand = 40. · 1 fire extinguisher per 600 m² of floor area (or part).000 m². Small water supplies. 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). Tabulations of pipe diameters for different flow rates.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. hatchet.3 litres per second. http://www. thus guaranteeing a water supply for fire fighting. 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. R. These principles should provide a reasonable basis for design. so that the site can be served by a gravity distribution system.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. 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. The main tank would serve a reticulation system of ring loops. served from overhead gravity fed tanks to a minimum pressure of 3 kg/cm². materials and gradients are given in the Ross Institute Bulletin No. London School of Hygiene and Tropical Medicine). These should be used if available. 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. 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.000 litres = 25. but local codes may exist and adjustments to meet these standards should be made.fao. page 88).000 litres = 50. The hydrants should be provided with wall-mounted hose reels to serve a maximum radius of 30 metres. In designing the water supply system a minimum fire-fighting flow of 34 litres per second (450 gallons per minute) should be aimed for. 1978. Pumping may be required to raise the water to the tank level. 1963). & Feachem. and · internal fire hydrants to open-market sheds. The enclosed nature of market sites may make it necessary for the fire brigade to have special facilities for access. Water supply The majority of the water use at a market will be for washing purposes. 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. etc. The water will need to be to a similar standard to that for drinking water. Assuming that the market in the example above operates over a 16 hour day then the flow rate would be equivalent to 1. spaced at approximately 30 metres intervals in loop systems encircling the main building and around the site periphery. Smoke detection and alarm systems should be installed in all the main market buildings. based on Nepal Water and Sewerage Board standards (Drinking water installation and drainage requirements in buildings in Nepal. S. These fire safety requirements have been generally based on the Indian Code of Practice for fire safety of industrial buildings: general storage and warehousing. A number of markets have been completely burnt to the ground in major fires. stand pipes and to a separate fire hydrant system. 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. incl. Consultation with the local fire brigade is always essential. 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). Cold storage buildings should also be fitted with gas detection equipment.htm (4 of 7) [2004-12-21 01:16:19] . The market site should be served by a series of above ground fire hydrants. 1967) and Recommendations for providing first aid . 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. An approximate estimate for water demand at ultimate development of a typical 10.fire fighting arrangements in public buildings (IS:2217.

is an important infrastructure component as it enables the fullest and safest use to be made of the market's facilities. part 11. particularly their bedding. Sanitary fittings The provision of sanitary fittings can be estimated on the basis of the Indian Code of Practice for drainage and sanitation (IS: 1172.5 x 0. 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.5 (usage factor) x 2 per 50 users = 17 water closets · number of urinals: = 280 tons (daily throughout) x 1. large installations. For security reasons and so that the effective working period of the market can be extended.2.6 persons = 0 7 . External lighting.4 x 1.Ch20 Sewerage For most sites it should be possible to use a water-borne gravity system (typically 150 . the average number of people involved with each transaction is 1.000 tons might be around 26m³ capacity (7. is given in the Indian Code of Practice for the design and construction of septic tanks. For ease of maintenance all external cables should be ducted through cable trenches and internal wirings should be concealed in conduit wherever possible. it is desirable to be cautious in the structural design of pipelines. 1 buyer and 0. A transformer is normally required.20 persons = 1 21. typically 300 kVA. it may be necessary to pump the sewage. To estimate the total number of fittings it is necessary to make a number of assumptions about the usage of facilities. particularly artificial lighting. with distribution cables to sub-switch boards in the individual buildings.200mm diameter pipework) but in some cases.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.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 .7 x 3. 1971).75 (males) x 2 per 50 users = 13 urinals Table 14. A typical size for a market with an annual turn-over of 40. As new markets are often on filled sites with potential long-term differential settlement problems. which for economic reasons is often an overhead supply mounted on pylons. (IS:2470.fao. where the site is very flat and where suitable locations for the treatment plant are limited.htm (5 of 7) [2004-12-21 01:16:19] . 1971) and Layout for regulated market yards for fruits and vegetables (IS:1787. Septic tanks. On very flat sites it may be necessary to use a pressurized pumping mains. all internal roads and http://www.45 persons = 2 46 . 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. Local methods for estimating the peak sewage flow and the hydraulic design of the sewers should be available. then the maximum number of market users per fitting at ultimate development would be: · number of water closets: = 280 tons (daily throughout) x 1. surround and relationship to rigid structures. These standards are shown in Table 14. An appropriate method in tropical areas for estimating their size. 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.5 (0. The partially treated effluent would be discharged into the main surface water drain at the outlet from the site. Larger market sites will need to be served with their own high-tension supply (usually 11kV).25 sellers.org/docrep/T0521E/T0521E0k.25 market staff) and market users are 75 per cent male.7m depth). 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. 1961).

is not likely to be economically viable in most less-developed countries. For markets this is not usually an appropriate system as it may involve the refuse collection staff of the market in additional handling. average density 220 kg/m³. As an alternative. the German guidelines (DIN 57528) recommend the following standards of averagè illuminance and uniformity: · parking areas. with the building's ventilation arranged so as to draw heated air out. based around skip lifting vehicles. For example. For food displays the colour of the tubes should preferably be warm.17 E = 12 lux/u2 = 0. often accommodated at a post office.8 tons = 370 tons =5% http://www. around 40 percent of all transactions are made directly by phone. The best method for estimating waste generation is to base the calculations on local survey data. either tungsten halogen. Solid waste equipment The local or municipal authority is already likely have a system for collection and disposal of solid waste. Design standards for ventilation are contained in the British Standard BS 5720 (1979 Code of Practice for ventilation and air conditioning London.htm (6 of 7) [2004-12-21 01:16:19] .9 cubic metres The skips should be located at strategic locations in the market for gradual filling. The spacing of the lanterns will depend on the height at which they are mounted and whether they overhang the road area. market waste density 200 kg/m³) · Total daily waste arising (1991) · Markets account for 11. Roof extract fans are. for example. with high turnover · dual carraigeways and A roads · B roads · outside stairs and ramps E = 12 lux/u2 = 0. They should be collected at the end of the working day and empty skips left For the next collection. therefore. usually from hand cart loads. Public telephones will be required within a market. BSI).Ch20 paved areas need to be adequately lighted by means of high level luminaires. Skip volumes can vary from around 3 . if this available. usually provided for the main market sheds. If not. but some cultures have a strong preference for the use of cool tubes.org/docrep/T0521E/T0521E0k. retailers and exporters and also acts a management and extension tool.30 metres apart.000 lux to counteract the brighter natural lighting likely to be found outside. 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 . In the USA. desert climates the frequent occurrence of sandstorms may prevent natural ventilation systems. Container interchange An ideal system often used in markets is one using container interchange. with pole mounted lamps on the site perimeter. but this may be oriented to the collection of small-scale domestic waste. Detailed design criteria are contained in the British Standard BS 5489 (1980.3% of total Average daily market turn-over in Chiang Mai · Existing market waste . Air conditioning. which may also provide telegram facilities. Large open areas. The best arrangement of lighting is to mount lamps or floodlights on the face of the market buildings. Code of Practice for street lighting London.33 Building lighting Internal lighting levels to buildings need to be to a high standard of illuminance. high-pressure mercury or sodium vapour. Telecommunication systems The telephone is essential for a modern wholesale market.fao.12 lux/u2 = 0. with a minimum of 500 lux and preferably 1. although wall-mounted fans tend to be more effective.Chiang Mai = 18.260 kg/m³. probably using compression type refuse vehicles. lanterns mounted at 8 metres and overhanging 2 metres would be spaced 25 . the following method of calculation (based on projections made for the Sansai market in Chiang Mai.5° C. from being used. mechanical ventilation may still be required. A major market will require the installation of its own switchboard (PABX system) which would be housed in the main management office. may require cable-suspended fittings.8/370 tons = 754 m³x 220 kg. x 11. preferably in a staggered arrangement. BSI). 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. With the development of market information systems the telephone is the major means by which price information is transmitted to producers. such as parking areas. It should have sufficient external lines for the installation of computer modems and facsimile equipment.08 E = 15 lux/u2 = 0. To minimize heat gain high-efficiency fluorescent fittings should be used for artificial lighting.08 E .3% = 166 tons = 18. This may still not be sufficient to provide comfortable conditions if wind speed is low and solar radiation high. = 166 t. For offices and other facilities ceiling fans are often installed. In arid. Mechanical ventilation. typically reducing the internal temperature by 3° . even for just the market's offices. 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. such as cooling towers.

Medium-size containers of 2-3 cubic metres capacity are also sometimes used.fao. Keeping the paladins and containers clean can also cause a major problem.Next http://www. Contents Previous ./200 kg = 70 m³ x 1. x 5 % = 14 t.org/docrep/T0521E/T0521E0k. 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. Often this service can be arranged with a local contractor. either small. Where labour costs are high. In most less-developed countries the only economic solution is to use a combination of manual cleaning with brooms and small-wheeled collection carts. However.htm (7 of 7) [2004-12-21 01:16:19] . but again require special fork lifts attached to the refuse vehicle. typically a farmer who already owns the equipment.2 = 84 m³/7 m³ = 12 loads/2 = 6 skips x 2 = 280 tons = 14 tons = 200 kg/m³ = 70 m³ = 84 m³ = 6 .Ch20 · Projected average daily turnover at Sansai · Projected waste generation at Sansai · Average specific weight of refuse · Volume of waste generation. unless special facilities are available for automatic cleansing. The general cleaning of road and floor surfaces within a market is also very important. 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. 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. is to use metal or plastic containers (paladins) on castors. mechanical methods should be used. popular in European markets.8 m³ = 12 loads = 2 times = 6 skips = 12 skips Other types of solid waste equipment Another method for handling solid waste collection. 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.

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

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

louvres. The import of specialized fittings. experienced local consultancy firms to take on the role.3. preparation of tender documents and tendering procedures is the responsibility of a government public works department or a locally appointed firm of architect/engineers. including newspaper advertisements.org/docrep/T0521E/T0521E0l. Assuming that there are sufficient. It can then be supplied to selectively tendered local sub-contractors for the fabrication of components. such as street lights and fire hydrants. Because of the difficulties of quality control the import should always be made the sole responsibility of the main contractor. water tanks and roof cladding. · short-listing of local consultancy firms. frames. Although government staff might be appointed without any formalities it would take around 4 . Significant cost and time savings can be made through the bulk purchase of steel internationally. gratings.htm (3 of 4) [2004-12-21 01:16:22] .Ch21 Cement is a material which is often in short supply and notwithstanding the existence of cement factories. 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. and · recommendations and approval to appointment by client body http://www. · invitation to bid. Table 14. 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. should also be made the sole responsibility of the main contractor. or roof trusses. steel shortages may have a significant impact on a project's progress.fao. A typical list of the types of investigations that might be undertaken during construction is shown in Table 14. partitions. Where there are likely to be wide variations in the quality of locally available materials (such as earth-fill material. including visits to their offices and to work for which they have been responsible. it may need to be imported so as to guarantee a supply. Appointment of consultants.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. Although there may be a high level of capability for fabricating these components locally. depending on the variations in site conditions and the different properties of materials being used on the site. the following steps would need to be followed for their appointment: · preparation of D & S terms of reference. window frames.6 months for the mobilization of a consultant D & S team. The construction of market buildings often assumes a large steel component. Geotechnical and materials testing programmes. · review and evaluation of bids. 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.

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

Asia and Far East. 1980. construction. 48 (3): 299-315. London. & Goethert. 1979. Urban food distribution in Asia & Africa. Oxford University Press. London. Fishing ports and markets. G. Benjamin Bolm Inc. United Nations. 2 (2): 205-232. Site planning standards. New Delhi. Bromley. 1960. Drakakis-Smith. FAO. Urban projects manual.org/docrep/T0521E/T0521E0m. Economic and social development series 37. M. 1979. FAO. 1991. Chambers R. D. FAO. & Payne. M. Cartwright R. Stanford. 1962. R. McGrawHill Book Company. Third World Planning Review. Cambridge. London. Appropriate technology sourcebook. Farmer first. Chlsholm. AMTI. Regional training workshop on planning and design of fruit and vegetable markets. London.II. Seoul. Rome. University Press. DHV Consulting Engineers. De Chiara. Columbia. R. Campinos..L. Rome.fao. Economic and Social Commission for Asia and the Pacific. 1987.1981. The MIT Press. New York. 1980.H. Liverpool. FAO. 14. LE. 1979. F. 1979. Eighmy. Harlow. Darrow. Municipal versus spontaneous markets a case study of urban planning in Call. Korea. FAO. Longman. 157 (1): 51-61.C. 1988. Economic Geography. Hutchinson University Library. London. A pattern language .. Guidelines for rural centre planning. http://www.Ch22 Bibliography Contents Previous Abbott.htm (1 of 4) [2004-12-21 01:16:23] .P. 1986. Rural periodic markets and the extension of an urban system: a Western Nigerian example. Marketing improvement in the developing world. New York. Report No. 1972. FAO. Rome.M. Benedetta. Street markets of London.H. agricultural economics and marketing in the tropics. Mass. Development of food marketing systems for large urban areas . buildings. K. T. Estudio de factibilidad mercados mayoristas de la Paz. Horticultural Marketing Council. The design of urban space.towns. Acharya S. Oxford and Ibhi Publishing Co.S & Agarwal. London.C & Makeham. Abbott. Agricultural Marketing Training Institute. 1975. N. The Geographical Journal. Liverpool. 1977. The Architectural Press Ltd Chambers A. Alexander.1983. C. Intermediate Technology Publications. New York. Volunteers in Asia Inc. Urbanization primer. J & Koppelham. 1978. 1978. Rural settlement and land use. J. Agricultural marketing in India. Wholesale markets for horticultural produce in cities and towns. 1989. H. 1963. New York. Davison.. J. J.

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