FAO document 1995

8/7/2019 FAO document 1995

1/151

Retail markets planning guide

Table of contants

byJ.D. Tracey-White

FAO AGRICULTURAL SERVICES BULLETIN 121

The designations employed and the presentation of material in thispublication do not imply the expression of any opinion whatsoever onthe part of the Food and Agriculture Organization of the UnitedNations concerning legal status of any country, territory, city or area or

f its authorities, or concerning the delimitation of its frontiers or boundaries.

M-62SBN 92-5-1 03732-9

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, orransmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, withouthe prior permission of the copyright owner. Applications for such permission, with a statement of theurpose 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, 00100Rome, Italy.

FAO 1995

Contents

Preface

ntroductionChapter 1. Retail markets

What are retail markets?

Justification for market developments

Benefits of market development

Chapter 2. Planning context

A brief history of settlement growth

Markets in rural areas

Retail markets in urban areas

begin

http://www.fao.org/docrep/V8390E/V8390E00.htm (1 of 2) [2004-12-21 01:23:39]
http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-


2/151

Chapter 3. Surveys and projections

Market surveys

Projections

Chapter 4. The market master plan

Preparation of a market master planGeneral Principles Of Market Layouts

Market Layouts: Case Studies

Comparative features of market layouts

Chapter 5. The design of market buildings and infrastructure

General design principles

The design of buildings and stalls

Conservation of market buildings

Market infrastructure

Chapter 6. Mobile facilities and equipment

Facilities at periodic and street markets

Other market equipment

Chapter 7. Management and regulation of marketsMarket management systems

Market rules and regulations

Market maintenance

Training

Chapter 8. Formulating a simple market project

Defining the purpose of a project

The formulation of a project

Annexes

Annex A. Market survey questionnaire

Annex B. Roadside survey methodology

Annex C .Model market regulations

Further reading

begin

http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-


3/151

Preface

Contents - Next

Notwithstanding current developments in the establishment of integrated food marketing systems, theraditional forms of wholesale and retail markets remain as important components of the marketinghain from farm to consumer. Retailing, the last stage in this process, is the point at which economies

chieved in the previous stages can be passed on to the consumer.This Guide is a companion to that produced by FAO on wholesale market planning and design (FAOAgricultural Services Bulletin 90). It has been prepared to assist those engaged in the newevelopment or improvement of rural and urban retail markets, including market managers, plannersnd public administrators, and engineers preparing detailed project designs. The general focus of the

manual is on markets for the trading of fresh produce, such as vegetables, fruits, grains, fresh meat,ish, eggs and poultry.

The Guide addresses the entire range of issues related to market development, from initial formulation

f a plan through to its implementation. Chapter I sets the framework by considering different types ofural and urban retail markets, how they operate, their likely physical and institutional deficienciesnd the benefits that might be expected if these defects are remedied. This is followed by anxamination of the planning context for markets: how they function and how their role within aommunity will vary according to whether they are located in a rural village, a small town? auburban area or a city centre. Chapter 3 outlines a practical methodology to undertake rapid andost-effective surveys to understand how the present retail marketing system operates and how it maye improved. It also provides basic guidelines on how to make projections of market throughput andow to use these to estimate the size of the market area and sales space and to assess what facilitieshould be provided in the market.

Chapters 4 and 5 are concerned with detailed design, including the preparation of market masterlans, the zoning of specialised activities in the market, traffic circulation patterns, a market'selationship to adjacent uses and potential conflicts. The design of buildings and infrastructure isemonstrated by using drawings or illustrations of actual market projects, supplemented with generalescriptions of the organization of market buildings, typical materials, structures and servicingrrangements. Chapter 6 outlines typical market equipment requirements.

Chapter 7 provides an outline of the management and institutional factors which need to be taken intoccount when developing proposals for a new market or for upgrading existing market facilities,

ncluding the application of market regulations. The Guide concludes with a chapter on the overallormulation and economic and financial analysis of a simple market project, whether it is to be fundedocally by central or local government, by a private entrepreneur or financed by an outside donor.

This publication has been prepared by John Tracey-White. Technical and editorial advice has beenrovided by Andrew Shepherd and by other members of the Marketing and Rural Finance Service ofhe Agricultural Support Systems Division. The Guide draws heavily on an earlier draft prepared byean-Michel Ambrosino and on material prepared by Peter de Balogh. Illustrations have beenrovided by the author, by Jean-Michel Ambrosino, the FAO Photo Library and from published

ources, the use of which is gratefully acknowledged.A. SawadogoAssistant Director-GeneralAgriculture Department

Ch01

http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-


4/151

Contents - Next

Ch01



5/151

Introduction

Contents - Previous - Next

This Guide has been prepared to assist those engaged in improving existing retail markets or buildingew markets. Users of the guide may include market staff, technicians involved with detailed projectesign and implementation as well as urban planners and public administrators, at national, regional

r local level, concerned with the planning and operation of food marketing systems. It should also bef use to those interested in the education and training of market personnel.

WHAT IS THE PURPOSE OF THIS GUIDE?

The main aim of the Guide is to provide a simple step-by-step approach to developing markets. Itoncentrates on general principles governing planning and operational efficiency of rural and urbanetail markets. It provides information on how to carry out surveys, prepare layouts and buildingesigns, choose equipment and assess a project's technical and financial feasibility. It is not a guide to

marketing in general, nor to the design of specialised facilities such as wholesale markets.

The Guide uses a systematic approach in which the design and formulation process that will need toe followed is broken down into a series of steps. These steps are summarised in Box 1 and developedn detail in the following chapters.

WHY SHOULD WE IMPROVE OR BUILD NEW MARKETS?

There is a natural wish to be able to purchase foodstuffs and other goods at one location andreferably under a single roof. Markets are an important component of the marketing chain from farmevel to consumer. Efforts made in improving production and reducing post-harvest losses as well asnvestments in agricultural infrastructure, such as storage, have only a limited chance of providing

enefits if the last stage in the marketing chain, retailing, is not able to pass on to the consumer theconomies achieved in the previous stages.

BOX 1The design process for preparing a market development project

. FINDING OUT WHAT EXISTSReviewing the planning context/policies of the market and its catchment areaCollecting data on agricultural production and urban consumptionMaking surveys of existing markets, retail facilities and traffic levels

. FINDING OUT WHAT IS NEEDEDAnalysing the existing throughput and market channelsProjecting future market throughputCalculating sales space requirements and site areaDefining ancillary needs and services

etting targets and priorities for the developmentDeveloping a management structure and training needs

. DESIGNING THE MARKET PROJECT

Preparing an overall master plan of the market sitePreliminary design of individual buildings and infrastructure componentsDefining equipment needs

Ch02



6/151

. FORMULATING THE PROJECTAssessing the potential benefits of the project in meeting its objectivesPreparing capital and recurrent budgets and cash flow forecastsCalculating the project's financial and economic returnsEvaluating the legal, environmental and social impact of the projectDefining the mode of implementation, sources of finance and actions needed

. FINALISING DESIGNS

Adjusting master plan to conform with formulation results and available financFinal design of individual buildings and infrastructure componentsPreparation of bills of quantities and other tender documents

Effective retailing, either from shops, scattered outlets such as mobile facilities, or markets, not onlymproves the flow of products, but can also provide an incentive to agricultural production. Theetailer is directly in contact with consumers and knows their needs. By offering consumersommodities they can afford the retailer is able to both maximise profits and increase supplies fromroducers.

WHAT FACTORS INFLUENCE A MARKET ENVIRONMENT?

The efficient operation of retail markets is influenced by two factors. The first is the physicalnvironment, i.e. the market premises, access, stalls, storage and equipment. Irrespective of whether its a street market, a shop, a covered market or a mobile facility, all aspects of the development and

maintenance of the physical environment have cost implications. To maximise financial returns theacility should be:

close to the customer;q

designed according to the expected level of sales; andq

adapted to the best preservation of the product being sold.q

Equally important, however, is the second factor, which is the social and managerial functioning ofhe market. A retail market is a mechanism for distributing goods, but it is only fully effective if itnables the retailer to operate profitably and the customer to obtain products at the most advantageousrices. This presupposes that an organization exists to forge relationships between retailers and theirartners (suppliers, customers, and market authorities) and that there is a level of shared knowledgen how the market should operate in order to optimise the operation of sales, storage and handlingacilities.


Ch02



7/151

Chapter 1. Retail markets


This chapter sets the framework for the guide by considering different types of rural and urban retail

markets, how the! operate, what are their likely physical and institutional deficiencies and what

enefits might be expected if these defects are remedied. The general focus of the manual is Oft

markers for the trading of fresh produce, such as vegetables, fruits, grains, fresh meat, fish, eggs andoultry.

What are retail markets?

Before looking at the markets themselves it is first necessary to define what is meant by retailing. Theurpose of retail shops or markets for any commodity is to provide an environment for looking at anduying merchandise that is displayed for sale. With a conventional shop, including a large-scaleupermarket, there is usually a sales area where goods are displayed, a shop front used for advertisinghe goods and a service area where goods can be received, re-packed and stored. With a market stall

hese functions occur at one place.

A retail market, like any other type of market, is a location at which there is a public gathering ofuyers and sellers at a known time. All retail markets involve a large number of transactions ofelatively small quantities of goods on a face-to-face basis between a seller and buyer. An essentialeature of a market is the opportunity it can provide to immediately and easily compare pricesetween different sellers of the same product.

Functions of markets

Markets provide low-cost retailing facilities based on small-scale operations and are typically found inhe low and middle-income, higher density areas of cities and small towns and in the centres ofillages in rural areas. The main functions of markets are:

to provide opportunities for the exchange of goods and for sales by producers in rural areas;q

to provide, at assembly markets, opportunities for the bulking-up and export of goods andproduce to outside areas;

q

to provide easy access to a wide range of produce for consumers;q

to provide an important means of generating a diversity of retail outlets in towns and cities bysupplying low-cost space for street vendors who use stalls or carts and do not therefore requirebuildings; and

q

to provide an opportunity to achieve improvements in food hygiene standards and reductions inpost-harvest food losses.

q

Evolution of retail markets

Retail marketing systems in western countries have broadly evolved from traditional street marketshrough to the modern regionally based hypermarket or out-of-town shopping centre. A broad reviewf the history of retailing and its relationship to the growth of settlements is contained in Chapter 2.

Variation in the types of market, whether rural or urban, can be broadly defined according to aumber of characteristics:

y physical and spatial characteristics.

Ch03



8/151


9/151

Justification for market developments

A market is usually located at a critical point in the overall marketing, transport and passengermovement system. In the case of rural areas, and in many urban areas, markets also form the mainink between agricultural producers and consumers.

n formulating a market development programme, whether for a new or upgraded market, there is areat temptation to attempt to solve all the problems experienced at a market by adopting a radical

hysical solution. Responses to problems might include complete rebuilding, relocation to a new siter the separation of one function of the market (e.g. wholesaling) from the other uses. It is often foundhat such radical approaches may be both impractical and unnecessary. The best option may be toevelop and rationalise operations on the existing site including, particularly, improving the market's

management system.

First of all it is necessary to be very clear as to what are the constraints that a development programmewill need to address. A survey and analysis of present market characteristics, conditions andperations is invariably required (these are elaborated in Chapter 3 and in Annexes A and B). Typicalroblems a market may exhibit can be broadly classified into physical problems and social and

managerial problems.

Physical problems: these might include the following:

insufficient sales space, particularly of temporary spaces at peak periods and during peakseasons, leading to produce being sold in the open, with consequent spoilage;

q

the presence of poorly designed and constructed sheds, making the marketing processinefficient and inhibiting customer flow;

q

a general lack of building maintenance;q

insufficient circulation space and traffic management measures, leading to vehicular andpedestrian congestion;q

lack of parking provision and areas for unloading;q

poor condition of roads and paving;q

inadequate drainage and severe flooding problems, leading to produce losses and potentialhealth problems;

q

inadequate site security and overnight storage facilities; andq

inadequate hygienic provision for meat, poultry and fish handling, including a lack of

refrigeration facilities.

q

ocial and managerial problems: these might include the following:

difficulties in enforcing the market bye-laws and regulations;q

an inefficient use of market sales space with low sales volume per trader and low rents;q

a high demand for places in the market, reflecting either uncontrolled use of space or relativelyhigh profit margins; and

q

a market management system where there is no clear relationship between revenues and costsand, consequently, the market is underfunded, especially for repairs and maintenance.

q

Components of a market development project

The implementation of a market improvement programme can become a vehicle for addressing thehysical and social/managerial problems outlined above. It is important to stress, however, that a

Ch03



10/151

roject should not be artificially expanded to deal with peripheral problems unless there is andditional budget available for that purpose. With the exception of main urban covered markets,herefore, infrastructure improvements are likely to be very modest.

FIGURE 5 Street market in the 1950s, Copenhagen, Denmark Source: Salodin E. (undated).

Wanderings in Copenhagen. Carit Anderson Publishers. Copenhagen.

The typical range of construction works that might be needed for the upgrading of rural markets and

mall-scale urban markets could include: internal access roads and parking, paving and sales pitches,urface water drainage, including perimeter drainage and outfall structures, perimeter fencing andccess gates, tube wells/hand pumps, latrines and, if appropriate, the provision of a marketupervisor's office. Traders themselves can contribute to the improvement of the market by, forxample, improving building spaces which they rent on a long-term basis or by providing temporaryhade structures.

Benefits of market development

There is little point in undertaking market development improvements unless they result in a positiveocio-economic impact. To achieve such an aim effective regulation of markets is essential. Inside the

market, both hygiene rules and revenue collection activities have to be enforced. Of equal Importance,owever, will be the maintenance of order outside the market. Licensed traders in a market will not be

willing to cooperate in raising standards if they face competition from unlicensed operators outsidewho do not pay any of the costs involved in providing a proper service. On the other hand, marketevelopment should not be used to artificially reinforce exploitation of traders by providing a

monopoly in retail trade to an influential minority.

Existing rules should be enforced within the framework of a coherent policy on the numbers of

icenses to be issued and the sites at which selling is allowed. Street hawkers, for example, can play anmportant role in retailing of low-cost cooked foods, but this should not be allowed to conflict with thectivities of markets. One of the major goals of a market development programme should be toe-establish a framework for managing markets. Once created, a wide range of benefits might bexpected from a project. These are outlined below. Such benefits may form the basis of the projectormulation and economic analysis explained in Chapter 8.

Reductions in crop losses

Many projects are justified on the basis of reductions in crop losses through quicker and better

andling in an improved market. However, such losses can be overestimated. Savings are sometimesuoted as being between six to ten per cent of produce by value but this would be very high in normalircumstances. Harvesting and handling at the farm and damage during transport are usually farreater sources of post-harvest loss than the limited handling that takes place in a market. A moreealistic level of losses at market level is in the range of two to five per cent of the value of theroduce in the case of rural markets and even less with urban markets.

With the most up-to-date facilities there will always be a certain amount of wastage that cannot beeduced and, where produce is of relatively low value, such as tomatoes in the glut season, the effortnvolved in loss reduction may not even be worth taking. Nevertheless, the provision of covered stalls,

etter storage and, in many countries, an end to flooding of markets in the rainy seasons, will all helpo reduce post-harvest losses to more acceptable levels.

An important aspect of produce loss is pilferage. This can be very much more significant than other

Ch03



11/151

osses and may be radically improved by better fencing and security arrangements. The reduction ofongestion by the improvement of access to a market will also help to reduce losses artificially createdy an inability of producers or traders to sell produce.

mproved efficiency of market operations

mproved conditions in a market can result in substantial savings for market operators. The potentialor greater throughput due to an improved layout and the elimination of congestion, resulting in

educed vehicle operating costs (see below) means that operating expenses for both users andmanagement will be reduced. These savings should be reflected in higher rental levels and charges.

However, the present situation in many markets is one of very low rents. Where public facilities areharged out to users at lower than normal levels, the facilities are likely to be used inefficiently.ncreasing rents and the level of charges to more realistic levels without a parallel improvement inenefits to market traders, in terms of maintenance or services available, is likely to be met withtrong resistance from market users. Improvements have to lead to savings in the trader's operatingosts or otherwise market prices are likely to increase to compensate for the additional costs.

Public health benefitsn the case of urban markets, health gains, while they are virtually unquantifiable in financial orconomic terms, are likely to be the greatest project benefit. Markets are a major potential source ofnfection from food and water-borne diseases. The central location of many street markets and theirelationship to the public transport system may offer a particularly rapid way for disease to spread.uch diseases can arise from a number of sources, including;

poor sanitary conditions for the slaughter of poultry and the sale of meat and fish;q

lack of public toilet facilities, including hand washing facilities;q

inadequate market cleaning provision and solid-waste disposal practices; andqcontaminated food resulting from a lack of adequate paving and drainage, particularly criticalduring the rainy seasons.

q

The most immediate health benefit is likely to be a reduction in the more common and lesshreatening diseases, such as gastro-enteritis and worms. However, if only one epidemic of a moreangerous but less common diseases such as cholera, is prevented or reduced, a market programme

will have been justified.

Amenity and aesthetic benefits

There can be substantial improvements in amenity and convenience for all users from marketmprovements and this has always been viewed as the main benefit of programmes implemented inrban areas. Traders will usually have better stalls with greater protection from the sun and rain. whileonsumers will be able to make their choices from produce that is more cleanly and attractivelyisplayed.

n the case of market improvements in traditional urban areas there may also be a conservation gain,with related benefits to the tourist trade. Many markets are important public buildings (such as the

tarbroek market in Georgetown, Guyana and the Old Stone Town Market in Zanzibar) and when

hey have been upgraded they can provide the basis of an integrated area improvement programme.Figure 6 is a typical example of such an area upgrading, where a proposal for pedestrianisation of aection of a small coastal town in Britain was developed around the improvement of its fishing portnd associated market,

Ch03



12/151

Time savings

Time savings can occur in two ways: for market users and for other road users. In the case of theormer the savings will occur because the market improvements reduce waiting time for thoseelivering and collecting produce. Such savings will tend to be greatest in the case of assembly

markets, where the essential function of the market is one of providing a trans-shipment point.

Time savings for other road users occur when the present arrangement of a market has an impact on

he adjacent road system. For example, the fruit and vegetable assembly market at Al Husainiah inYemen straddles the main highway between the port of Hodeidah and the city of Taiz and the wholeouth-central area of the Republic. This is an extremely busy road with an average daily traffic levelf 2,865 vehicles travelling in both directions. During the market's peak season it takes road traffic anour or more to get through the market area. On that basis there would be considerable benefits tother road users if the market was relocated away from the main road.

Generation of public funds

Many local authorities face severe budgetary difficulties and increased revenues from retail markets

would consequently be very welcome as a useful means of generating additional income. In the casef private markets the same arguments will generally apply.

Provided that the raising of these funds takes place within the context of a general improvement inmarket management the additional funds can provide a significant contribution to upgrading theuality of services offered to both rural and urban residents. The profits will be available for therovision of additional market facilities and for re-investment in other markets and infrastructure. Themportance of this is emphasized by the fact that unimproved markets often do not even cover the costf the staff employed to run them, let alone operations and maintenance, the cost of capital or theental value of the site.

ncome generation is equally important with the introduction of structural adjustment programmes,where in many countries the opportunity is often taken to rationalize the operation of formerentralized, state-operated food distribution facilities in order that they can operate as commerciallyun retail markets. An example of this process, taking place in China, utilizing the site of atate-owned facility, is shown in Figure 7.

ncome from additional services

A variant of income generating benefits arises when a market is able to provide services additional to

hose available before. An example of this is the provision of chill stores for the storage of fruits, meatnd fish, and banana ripening rooms. Grading and packing facilities are also a possibility. However,he introduction of such additional facilities needs to be approached with some caution. There is littleoint in raising the standards of produce presentation if there is no local demand for graded produce.

mpact on agricultural production

Market developments can stimulate increased growth in agricultural production by providing access tomarket opportunities arising from demographic and income changes. Such "induced" growth isarticularly important for smallholder producers who may rely on markets as their sole or main outlet.

With the development of an economy they may begin to face stiff competition from largerommercial operators able to afford the use of more sophisticated techniques, such as on-farm gradingnd packing, and direct sales to supermarkets. Raising standards in markets is likely to provide a

means by which small-scale vegetable and fruit producers can improve the efficiency of their

Ch03



13/151

marketing in order to compete effectively in the sale of greater quantities of cheaper produce.


Ch03



14/151

Chapter 2. Planning context

ontents - Previous - Next

his chapter examines the planning context for markets. How they function and what their role is within a community will vary according to

hether they are located in a rural village, a small town, a suburban area or a city centre.

brief history of settlement growth

etailing is normally one of the main commercial activities of settlements. In many circumstances, markets provide the dominant form oftail facility and are a major land use. In understanding the context of markets, therefore, it is also necessary to comprehend their relationship

the process of urbanization.

ior to the 19th century, the typical city or market town in Europe was based around a market square which was not only the geographicalntre of the settlement but also the social and commercial heart. as well as the religious and cultural focus of the community. The open areathe market square served a wide range of functions. providing retail facilities as well as entertainment. These market squares were often

anned from the outset. In many other cases, particularly in rural areas, markets have resulted from spontaneous growth. A gathering ofddlers, when they start to do this at a given location and at a regular time, will create the nucleus of a market. This pattern continues todaymany countries.

he industrialization of cities in Europe led to a demand for inexpensive shopping facilities and this was often met by providing purpose-builtarket structures. In England, for example, some 400 private Acts of Parliament were passed during the 19th century to enable thenstruction of market halls to take place, both in the centre of cities and in new suburban areas. Similar developments happened elsewhere in

urope, particularly in Spain and France (see Figure 8).

dustrialization also had the effect of changing the character and organization of cities and of promoting a desire for suburban living. In theth century the main influence on the location of new residential areas and their associated retailing facilities has been the emergence of thetomobile as the primary form of mass public transport. In the USA, for example, the population of suburban areas in the 1950s grew at 30

mes that of the inner cities and distances between the suburban areas and the centre of towns and cities increased considerably. The effect ofis growth has resulted in the development of suburban shopping malls and out-of-town shopping centres based around highwaycessibility. However, there has been a partial reversal of this trend recently with the construction of new urban shopping centres, oftencluding market areas, as part of downtown or central area revitalisation and conservation programmes.

Markets in rural areas

he critical issues to be examined when considering interventions in the rural marketing system are the relationship of the market facilities toe pattern of rural settlements, the location and nature of agricultural production areas, how the regional road system is evolving, the possiblesembly functions of a market, the present marketing channels and the relationship of rural markets to urban areas and their wholesale

arkets. The types of rural markets that need to be considered are:

existing retail markets located in traditional rural village centres;q

markets in newly planned rural settlements; andq

assembly markets.q

entral place theory

ne of the key concepts that needs to be understood in reviewing the functioning of markets is that they form one of the main components ofral towns and villages. In fact, they may be the main force behind the creation and economic livelihood of such settlements. They act as theentral place" in providing the population of the surrounding area with goods and services (a distribution function), and may also be the mainechanism for the assembly of local produce for the bulking-up and onward movement of the produce to urban areas.

gures 9 illustrate how the linkage between centres might operate, with the individual settlements forming a series or "hierarchy" of

atchment areas" or "spheres of influence". The limit of a catchment area would be the result of the "range" or "threshold" for economicallyoviding services or goods. The theoretical shape of catchment areas is circular, but it is normally represented as a series of nesting hexagonsee Figure 10). In reality, the location of centres and the shape of their related catchment areas is distorted by transport routes and otherographical features.

GURE 9.Trade links and general pattern of connections between village, town and regional markets. Source: Village Markets in

hana. USAD. 1963.

GURE 10.A hierarchy of central places, with hexagonalshaped catchment areas, adapted from Christaller's marketing principle

ource: DHV consulting Engineers. (1979). Guidelines for rural centre planning. Economic & Social Commission for Asia & the

acific

such a system, the lowest order centres (e.g. a village) would look to the next level (e.g. a small town) for more specialised services,

timately culminating at the top of the hierarchy in the highest level of services, such as universities and speciality shops, provided in agional or national capital. At the lowest level, periodic markets will only operate on one day in a week. A typical pattern of periodicarkets, in the Ghana Upper Region, is illustrated in Figure 11.

s an illustration of the different scales of rural markets, an analysis of the features of ten rural markets in Bangladesh is summarised in Table1. The smaller markets broadly correspond to a rural service centre or district centre and the larger market to that found in a growth centre

Ch04



15/151

ee below).

ABLE 2.1 Features of markets in rural towns in Bangladesh

Average Typical market type:

Characteristics: 10 markets Small Large

. Catchment area (sq. kms) 143.60 79.00 153.00

. Total population 1981 ('000) 85.80 45.82 110.66

. Market area (hectares) 1.40 0.72 4.69

. Daily buyers/sellers (peak number) 29418.00 27418.00 47537.00

. Annual auction revenue (Take '000) 325.90 11.00 1456.0 0

. Open sales area (m) 4694.00 3772.00 9651.00

. Buyer/seller density (number/ha) 26862.00 38081.00 10136.00

. Sales area as % of site area 32.00 52.40 20.60

ource: FAO Project No.TCP/BGD/4511

evels of service

overnments often base their rural settlement policies on the principle of reinforcing an existing hierarchy of service centres as a means ofducing regional imbalances and distributing government services on an equitable basis. Typically, such a system has three levels of centralaces, which will also be reflected in the market facilities:

growth centres: major regional towns or cities based around a sustainable natural resources base (agriculture or mining) and with strongsocial and economic linkages to their hinterlands. The centre might contain a range of higher-level services, such as college, hospitals,banking services, a major market (often with some wholesaling functions) and specialized shopping facilities;

q

district centres: rural settlements whose primary function is to provide administration and to deliver public services. These centresmight contain a secondary school, a health clinic and a market area, which might perform assembly functions for the district. Themarket area is usually associated with a bus station and a number of permanent shops; and

q

rural service centres: typically, the services provided at such a centre would include a primary school, a health post or dispensary, apolice post and a primary market, often operating periodically, rotating on a weekly or fortnightly basis. Rural service centres arenormally located in the centre of a village (and associated hamlets) serving around 500 to 1,000 families (a population of 5,000 peopleis the usual standard) and with a catchment area not exceeding a 10 kilometre radius from the market. In Bangladesh, for example, themajority of users of small markets came from within 5 kilometres.

q

uilding and improving existing rural markets

he improvement of markets located in major rural settlements is likely to require a detailed study of each market to establish the relativenefits of such developments. The high level of trade at such markets is likely to mean that a financially and economically viable project canformulated, hut normally only if the level of market revenue collection can also be increased at the same time to cover the capital outlay.

GURE 11 Hierarchy of periodic markets, Bulsa, Upper Region, Ghana.

ource: Smith, R. and Gormsen, E. Eds. (1979) Market Place Exchange. Geograhisches Institut der Johannes Gutenberg Universitt Main,ermany.

ypical layouts of rural markets are shown in Figures 12, 13 and 14. In all three layouts, the key factor in locating the markets is theirlationship to other public facilities and particularly to the provision of lorry parking. Even at the level of a small open sales space (Figure) lorry parking needs special consideration.

some circumstances, no real provision of marketing facilities may exist. This is illustrated in Figure 15, where the fish market simplyerates on the beach of Lake Victoria, despite the market being one of the main sources of dried fish for the whole of Tanzania. Figure 16ows a small rural market established in the highlands of Irian Jaya, Indonesia, close to the main air strip, in an area where no markets hadrmerly existed.

mproving the facilities of periodic markets operating in smaller settlements may present quite formidable problems - as it is usually difficultincrease revenues to cover the capital costs. This is despite the fact that by improving the range of goods and services provided at suchntres it is often possible to have the greatest impact on the rural population, thus providing a stimulus to the rural economy. However, the

mprovements must be sustainable and an approach is needed based on keeping to a minimum the level of investment in physicalfrastructure.

Chapter 6, experiments in Zimbabwe and Papua New Guinea are described. These are based on combining markets with the use of mobileblic facilities, such as rural credit, agricultural production and marketing extension and input supply, allowing the maximum utilization ofarce personnel and of capital investments in buildings and equipment.

ssembly markets

ssembly markets are a slightly different case from other rural markets as their function is oriented to production rather than consumption.he purpose of such producer-area markets is to act as a focus for the display of local produce to outside buyers, typically from urban areas. Indition, they provide a point where the bulking-up of produce can occur. These markets are often purely seasonal and are highly vulnerable

Ch04



16/151


17/151

d outward growth and the main features of such plans would normally include the designation of new residential and industrial developmenteas and improved primary and secondary road systems. Despite the spontaneous growth of informal-sector marketing activities, typified bycreasing number of hawkers, the issue of market location is often not directly addressed in a plan. The problem is frequently exacerbated bygeneral shortage of affordable commercial land, often compounded by land tenure constraints. However, the overall land use andansportation policies a plan contains are likely to be relevant to the evolution of many of the social and physical planning aspects of marketvelopment programmes.

rban growth patterns

rban land uses tend to group together for reasons of economic advantage. This clustering forms a nucleus - the city or town centre providingwide and rich range of services and facilities. If this nucleus keeps expanding then the comparative advantage of access to the centre gets

st. A rough rule of thumb to use is that for retail services the city centre should ideally directly serve around 300,000 people. Beyond thisgure it will usually be necessary to plan for additional retail areas to serve the suburban areas.

convenient unit often used for town planning purposes is to divide the urban area into local neighbourhoods of one to three kilometresross. This might correspond with a population of 5,000 - 10,000 people. Such a neighbourhood would be served by a small shopping aread a retail market.

tersections of transport systems and modes provide the most convenient locations for markets, particularly if the transfer distance betweenfferent transport modes is minimised (e.g a taxi rank next to the railway station, etc.). The typical growth of market facilities at bus stands inveloping countries demonstrates this.

ocating market facilities

locating shopping facilities a difficult balance has to be struck between the retailers' natural desire to maximize profit and the consumers'sire to have the convenience of a wide range of reasonably priced services and facilities within a short distance of where they live. Bothctors should influence the location of market facilities. However, the catchment area of groups of shops or market stalls is likely to beeater than it would be for an individual retail unit. Therefore, large areas of many towns, particularly low-density suburban areas, maynsequently have lower levels of retail services. An analysis of urban catchment areas is illustrated in Figure 18, which shows the areasrved by markets in Calcutta.

he need for new facilities may often be filled by local corner shops and small-scale markets, particularly if rental levels are sufficiently low.hese facilities fill the gap in the existing pattern of retail shopping by locating themselves to take advantage of areas where there aretential, and often low-income, local consumers. In developing countries, small scale shops may be located within dwellings, althoughning practices by planning authorities often forbid this on the grounds that it is disruptive to residential areas.

efore deciding on the improvement of an individual market it is desirable to review the range of market facilities available within an urbanea. In doing this the factors that need to be considered in assessing the location of the market are population density and the purchasingwer of the population (these factors are further discussed later on under the topic of suburban markets).

order to review the provision of markets in an urban area the following procedure can be used:

identify potential locations which would most strongly support a new market;q

define the size for new markets based on what would be most economically feasible; andq

close down existing markets when they are not economically feasible and do not capture sufficient business to support their size.q

rban catchment areas

he purpose of an analysis of existing retail facilities should be to change the pattern of markets from one which is random to a distribution ofarkets which is more economically stable. To achieve this, surveys of the existing retail pattern will be required (see Chapter 3) to identifyd map the location of existing facilities and potential consumers. Gaps in the pattern of retailing need to be identified and within these gapsw markets and small shops should be located next to clusters of other kinds of shops. The broad characteristics of an overall pattern orerarchy of markets and retail facilities for a major city is shown in Table 2.2

ABLE 2.2 Theoretical urban market population catchments

Population Served Minimum distance apart (kms.)

City centre/main covered market 300,000 16.0

District shopping centre/covered market 50,000 6.5

Neighbourhood shopping centre/open market 10,000 2.9

Group of shops/street market 4,000 1.8

Corner groceries/street barrows 1,000 0.8

otes:The table assumes an average population density of around 2,000 persons per square kilometre. If the density is say 1,000 persons peruare kilometre the distance needs to be increased to 1.4 times the distance specified in the table. if the density is say 3,000 persons peruare kilometre the distance needs to be reduced by a factor of 0.8.

ocational characteristics of markets in urban areas

ithin urban areas, markets should form one of the main uses that would be strategically located in an urban master plan and, ideally, all the

Ch04



18/151

ban population should be within ten to fifteen minutes walk of some form of shop or market stall.

reet markets, like other shopping streets, depend on a high level of access. Modern shopping centres and supermarkets are generally locatedrectly adjacent to major roads, with the shopping centre located within a parking area and with a pedestrian-only area within the shoppingntre itself. This form of development is unlikely to be appropriate for shopping streets and street markets in traditional areas of cities, whiche typically mixed-use areas, often with older buildings. There will usually be a need for a mixture of modes of access for those usingarkets, to include people coming by foot, by bus, by car, etc. However, there is often a direct problem of conflict between shoppers andaffic.

he ideal solution for all urban markets, and particularly street markets, is to locate them at right angles to main traffic arteries, linking withdestrian routes and with parking areas behind so that cars can pull off the main road without entering the market area. To minimize their

mpact on the environment, parking areas for markets should preferably be located in small-scale lots, shielded from view by plants or walls.and ownership and values

arkets need to be considered in relation to the nature of their ownership. Individual stalls are small-scale units, which are usually family-runsinesses, in contrast to larger-scale operations such as supermarkets. Market stall holders needs are, therefore, completely different. Theerall market area, however, is likely to come under one overall ownership, either that of a private landowner or, more typically for urbanarket areas, by a local or municipal authority.

gh land values or a lack of suitable land in public ownership in order to expand an existing market or build a new one is often a majornstraint in urban areas. Quite ingenious solutions to this problem can be developed, including the infilling of existing streets with market

ructures (see Figure 48). On the other hand, urban markets often find themselves in locations which are no longer appropriate to the presentstribution of urban population.

arkets also generally occupy a considerable area of land on prime sites in the centres of towns and villages. Therefore, the opportunity cost,terms of the rent that might be earned from alternative uses on the market site, needs to be considered. The existing value of the land mayt be substantial, but it may be likely to increase as the general economy starts to grow.

will, therefore, be up to a local authority or market board to clearly demonstrate that retaining a market in its present location or buildinge on a new site is the best use of public resources (see Chapter 8). As an example, in the city of Leicester, in England, it was established thate best economic use of the existing market square was to retain it in market use and to improve facilities, rather than undertake a completedevelopment.

uburban markets

he provision of new markets in suburban areas needs to be integrated in the planning process. Land for a market site should therefore, beocated in any local comprehensive development plan and be located near to other communal and commercial facilities. Land will need to beserved in the plan for long-term market growth (5 to 20 years), otherwise there may be no possibility of expansion.

though the ultimate goal may be to construct a permanent covered market, a possible short-term strategy for a new suburban area can be tocourage the provision of retail facilities through mobile vendors or street markets. An existing unplanned spontaneous market is often aod indicator that an area is in need of permanent market facilities. The factors influencing whether a new market in a suburban area is likelybe successful are:

the population density;q

the size of the potential catchment area;q

the purchasing power of local consumers;q

whether most families have refrigerators;q

whether families tend to use cars for shopping;q

whether the site for the market is likely to provide comfortable and safe conditions for shopping;q

whether there is adequate land for a market site;q

whether there is public transport available; andq

whether the area is already established for commercial use, including informal market activities..q

GURE 20 1,400 m covered retail market, Sidi-bel-Abbs, Algeria.

ource: Aloi, R. ( 1959). Mercati e Negozi, Ulrico Hoepli Editore Milanoentranceexitstallsshops

balance will need to be struck between locating a market in a low-income, high-density area or in a middle-income area with greaterrchasing power. On balance, it is likely to be more commercially viable to invest in the development of retail facilities in low-income areas

th a high density, provided that access by other income groups is easily obtained and that the management of the market is able tocourage the sale of a wide range of goods.

n example of a new suburban multi-use market is illustrated in Figure 19. In this case, the market is constructed on reclaimed land (formerlyrice cultivation) adjacent to a new major highway, but between an existing low-income housing area and a new middle-income suburb.

tegration of street vendors with markets

Ch04



19/151

he importance of the informal sector in many countries cannot be over-emphasised. Formal urban wholesaling and retailing activitiesrmally form a relatively small proportion of total commercial sector employment. However, there is usually substantial under-estimating ofe real employment in retailing as the number of street vendors is often not taken into account. Street vendors provide an important means ofpplementary employment, particularly for women. Vendors normally operate from a variety of locations, ranging from tables outsidearkets' the backs of vans and lorries, down to small-scale street "hawkers" with a single box of produce to sell.

pgrading of an existing retail market area should include any adjacent streets and provide measures to assist street vendors in order that theyn be properly integrated with the market and so that environmental and traffic conditions can be improved. Assistance is normally requiredsually provided by the engineering department of a local authority) in planning such an upgrading programme. This might include improvedater supplies and better drainage, and facilities for the daily collection of solid waste.

lecting an urban market site

he ideal approach when considering whether to improve an existing market or when selecting a new market site is to make on-the-groundservations of the potential site. The best method is to cover the area by walking all the streets in a five-minute radius around the site,serving the existing environment, including shops and other commercial activities. Interviews with customers and surrounding shopkeepersll provide a good indication of the commercial opportunities for the project.

will be necessary to consider the relative merits of different options. Sites should ideally be located within or near to high density residentialeas, rather than in areas with low density or non-residential uses (e.g. industry). Proximity to other facilities, such as shops, post office andnks is essential. A site around a public square or adjacent to busy streets with wide pavements is better than one in a cul-de-sac or in an areastatic or declining trading opportunities. Nearness to public transport facilities (such as bus stops or a railway station) is very important and,it does not have its own facilities, the site should be close to adequate parking. For new sites, the presence of public utilities, such as waterd electricity, is essential.

GURE 22.Covered retail market Guadalajara, Mexico.

riteria for urban market improvement programmes

rban market improvement programmes need generally to follow the same criteria as for rural markets described earlier in this chapter, i.e. allingness of traders to participate in the programme and an emphasis on the improvement of common infrastructure. Such criteria are alsorectly applicable to urban street markets. For covered markets, however, there will almost certainly be a need to upgrade or provide newructures and the implementation and cost for this work will have to be borne by a market authority, with cost recovery through increasednts. Priorities for urban markets will also be slightly different: the alleviation of health risks (through, for example, upgrading drainagestems), urban conservation requirements and the need to reduce traffic congestion may be the main motives for undertaking the

mprovement programme.

GURE 23.Conservation plan for the Zanzibar Stone Town Market, Tanzania.

wide range of contrasting conditions can be met in urban market improvement programmes and these are illustrated in Figures 20 to 25. Forample, Figure 20 shows a covered market exclusively for fruit and vegetables in Algeria, built on a site where there were few constraints tovelopment and which could also accommodate a separate fish market (see Figures 37 and 57). Figure 21 also shows a completely new retailarket in Wolverhampton, England, but on a valuable central area site where the market development needed to be integrated with anderground car park, shopping units and multi-storey office accommodation.

gure 23 illustrate a complex problem of redevelopment in the Old Stone Town in Zanzibar. The 19th century covered fish and meat marketeded conservation, whilst also allowing improvements to be made to other parts of the existing market and surrounding streets (particularlyeir surface water drainage). The pressure on the market area by wholesalers was to be relieved by the construction of a new auction slabhich would mostly operate during the peak season. In addition, new sheds would be provided for the retailing of fruit and vegetables. Figure shows a similar approach taken in the Castries Central Market in St. Lucia. Figure 25 illustrates a new fish and multi-use market located on

reclamation area in Tawau Bay, Malaysia, on land adjacent to an existing open retail market and shops.


Ch04



20/151

Chapter 3. Surveys and projections


his chapter outlines a practical methodology to undertake rapid and cost-effective surveys to understand how the present retail

arketing system operates and how it may he improved. The chapter also provides basic guidelines on how to make projections of

arket throughput and use them to estimate the size of the market area and sales space and to assess what facilities should he

rovided in the market.

Market surveys

Whether it is intended that an existing market should be modified or expanded or that a new market should be established, thereill always be the need for surveys. In the case of the improvement or relocation of an existing market three types of basic market

urvey are usually carried out: a general socio-economic review of the market operations, a traffic survey and mapping of the site.or new markets a physical survey will still be required and in more complex situations it may be essential to undertake a rapidppraisal of a city's existing retailing pattern. Where there is a total lack of information on consumption a sample survey ofouseholds may also be necessary.

proforma market survey questionnaire covering a range of socioeconomic issues is provided in Annex A. This can be modifiedsuit most survey conditions. In the case of a simple street market a visual count of the stalls, and their activities, together withscussions with traders may be adequate. In more complex markets, such as a main urban retail market or an important ruralsembly market, a full traffic count will be required (see Annex B).

ata collection requirements

summary, the information that will need to be collected during surveys is as follows:

Market surveys: surveys will need to be undertaken over market and non-market days, using a mixture of full and sample surveysnd discussions with individual traders and traders' associations, to determine the following:

a. Types and quantities of goods transacted, broken down into agricultural produce, inputs and other merchandise, permarket day and other days (using a sample survey).

q

b. Market functionaries (i.e. people using the market, including retailers, wholesalers, commission agents, processors, etc.)by market role and function (including individual daily and seasonal roles), profit margins and total profits (using a samplesurvey covering selected functionaries in each category).

q

c. Market management and fee collection system and suggested improvements. Income and expenditure - present andprojected(using a sample survey).q

d. Marketing channels for agricultural produce, inputs, food and nonfood items, including an analysis of marketing costs andmargins(using a sample survey covering main crops). A diagram showing typical marketing channels is shown in Figure 26.

q

e. Produce transportation modes, frequency and costs (using a sample survey). This will be necessary if a full traffic surveyis not being carried out.

q

f. Intra-market produce flow (using a sample survey). This should be in sufficient detail to allow the catchment area of amarket to be defined for produce coming in and going out. Again, a traffic survey may be needed to define this adequately.

q

g. Customer count and flow analysis (using a full-day count, on market and non-market days, in all directions into themarket).

q

h. Physical facilities (stores, shops, open and enclosed sales space, etc.) available in the market area (full survey). Examples

of simple market structures and sales spaces are shown in Figure 27.

q

i. Present and future infrastructure requirements, including in tramarket roads, pathways, surface water drains, tube-wells,drinking water supply, drainage, sanitary latrines, sanitation and solid wastedisposal (using a full survey).

q

j. Present marketing facility requirements, e.g. sales platforms and sheds and special facilities such as slaughter slabs ormeat/fish retail sheds (using a full survey). Traders should also be asked about their future needs.

q

k. Commodity-specific sales locations within the market. An exampleof the multiple use of a facility is illustrated in Figure28, with a fruit seller using the arcade of an enclosed fish and meat market.Many markets, as shown in Figure 29, have aclearly defined internal structure, with specialised traders being located in specific parts of the market such as near to theentrances or, alternatively, segregated because they would cause a nuisance.

q

l. Optimal locations for new market amenities and marketing facilities (by visual inspection).q

IGURE 26 Rice distribution channels, Ibaji District, Benue State, Nigeria.

ource: Smith, R. and Gormsen. E. Eds. (1979). Market Place Exchange. Geograhisches Institut derhannes-Gutenberg-Universitt, Mainz, Germany.

raffic or roadside surveys: traffic counts (normally over a 14 hour daily period for one week) should be undertaken of the traffic

Ch05



21/151


22/151


23/151


24/151

Local grocers 479 3,853 423 1,083 658 6,017

treet vendors 415 2,441 777 1,392 440 5,050

Total 7,068 1,655 3,559 1,397 13,679

ource: Estimates from survey by MOA, Marketing Department and USAID/LAPIS Project.

he major difficulty in carrying out retail surveys in urban areas relates to the enormous number of small retail outlets (usuallynlicensed). This can be demonstrated by reference to licensing data. Of the 629 retail premises in Maseru, for example, only 77ere licensed for the sale of food and beverages, compared to the 500 or so small stalls which could be observed actually selling

od. In these circumstances alternative methods for estimating consumption need to be used. In some cases this may require aousehold consumption survey to be undertaken.

sing survey results: physical problems in existing markets

he purpose of the physical survey of an existing market is to observe what problems exist in its operation. Space may be at aemium, with produce being sold at the roadside and no physical facilities being provided. In this case losses due to stock

eterioration are likely to occur. A very important part of such a survey is to record the views of the market traders themselves. Thenge of conditions that may cause problems which are likely to be encountered in both rural and urban markets, include:

crops being displayed largely in the open air on an earth road and damage being caused by heavy rainfall, high temperaturesand intense sunlight (particularly affecting fruit and vegetables).

q

lack of permanent roofed-over space can be overcome using temporary protection. However, it is likely to be expensive for

traders to purchase tarpaulins to cover produce and they may tend to use the more affordable plastic sheeting (if anything isused at all), which is far less satisfactory as it leads to humid conditions and consequent germination or bacteria growth (e.g.with grains and onions).

q

produce may be raised off the ground on simple platforms (dunnage), comprising of lengths of timber resting directly on theearth. This provides only limited protection from water infiltration, particularly where flooding is a problem and or wherethere is an inadequate system of open ditches taking rainwater run-off.

q

often, the market conditions are very unhygienic, with different produce mixed up and with barely any differentiationbetween the sales spaces and access roads;

q

provision for solid waste to be deposited in bins or skips may be inadequate. Traders often prefer to manage solid wastecollection and disposal themselves, but this is only viable if the market is operated by a management authority or traders'association.

q

pilferage is often a major problem and traders may specifically request that a new market should have a site security systemand be enclosed by a wall. The provision of a nearby bank may also minimise theft as traders could immediately deposittheir takings;

q

the provision for vehicle circulation, unloading/loading and parking may be very poor. This is often the most obvious offaults, but one that may be rectified, in part at least by instituting better and stricter traffic management. This may not beentirely the fault of a market's management, which in many circumstances is hampered by lack of cooperation from thepolice. Involving the police, on management committees for example, is essential.

q

rojections

his section outlines the methods by which survey data, combined with information on agricultural production and householdonsumption, can be used to estimate the potential throughput of a market and how this key characteristic is applied to predict floor

ace and site area requirements. There is a difference in approach between pure retail markets, whether urban or rural, and thosearkets that also fulfil an assembly or wholesaling function.

etail markets: household consumption

he first step in the design process requires a review to be made of existing consumption data, which is normally expressed as annnual average consumption for individual food items on a per caput (per head) basis, e.g 100 kg. of potatoes per caput. These datae often available from nutrition surveys, but the best method of estimating consumption is generally on the basis of a

omprehensive household budget survey, if this is available. Household budget survey data can also be used to check whether thereany relationship between estimates of daily or annual consumption and the estimated throughput of a market. With allowancesade for wastage and the inevitable inaccuracies in estimating weights this method can provide a reasonable cross check on surveysults.

ontinue


Ch05

http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-


25/151

uture throughput of assembly markets


he future throughput of produce marketed at an assembly market is dependent on how the local production base is likely to grow andhat proportion of this increased growth will pass through the market. This will be influenced by a number of factors and it issential that the nature of existing marketing channels is understood before interventions are made. The precise role of existingoduce markets should be established, i.e. the percentage of produce marketed through direct purchase at field level, what goes toral assembly markets and what is delivered directly to the urban wholesale and retail markets. The calculation should also ideallyke account of the losses that will occur in the marketing chain. An illustration of the calculation that will need to be undertaken to

btain the approximate throughput of a local assembly market is shown in Box 3.OX 3alculation of the present throughput of a rural assembly market

stimated local production of fruits and vegetables ( in tons)inusn-farm use (in tons),e. consumption of produce by rural households

er caput consumption in kg. x farm population 1000)use for fodder + use for seed + on-farm losses

et marketable surplus (in tons),

e. Gross marketable surplus less estimated marketing lossesinusarm gate sales and direct delivery to urban markets (in tons)et amount passing through all local assembly markets (in tons)

ercentage going through the specified rural assembly market

stimated throughput of the specified rural assembly market (tons)resent and future demand at retail markets

he key indicators which explain the present throughput of a retail market are the market's present share of the retail trade and theonsumption of produce. As explained above, the latter is normally measured on a per caput basis. Thus, as a simple illustration, theesent annual throughput of a market in tons would be as shown in Box 4. This method should be cross-checked against anytimates of throughput obtained during surveys (i.e. counting the number of stalls and multiplying by an average turnover per stall,

xpanded by the number of working days per year to obtain an annual total).

o use the information shown in Box 4 to project the future demand for the foodstuffs that will be sold through a retail market willepend on four additional factors:

population growth;q

private consumption expenditure and income growth;q

income elasticities of demand; andq

competition from other imported products and from other marketing channels.q

OX 4

alculation of the present throughput of a retail marketer caput consumption of fruits and vegetables ( in kilos)mesrban populationmesdividual market's percentage share of the overall retail tradevided by

000 (to convert to tons)

ore detail on how these factors can be used to project demand is given in Chapter 12 of the Wholesale Markets Planning and Designanual (FAO, 1991). Of these factors, reasonably reliable estimates are usually available only for population growth. However,ensus data can often be rather out-of-date and this may be a significant factor when urban growth rates are very rapid.

dequate macro-economic information on which to make sound estimates of disposable income growth is rarely available.evertheless, if indicative income elasticities can be calculated these should be used, as even relatively small increases in urbancomes are likely to produce quite substantial increases in demand and hence in potential market throughput.

entral markets may still dominate retail business in a town or city, even when the population served by them is limited. In Zanzibar,

Ch05a



26/151


27/151


28/151

any case, with the introduction of physical and management improvements the utilization of a market will become more efficientver time, which means that the unit space required for the various activities will therefore gradually decrees - this might bencouraged by changes in rental levels. Thus, a standard of say five tons per m might be used for the initial period of operation for anpen market, increasing to ten tons per m with improved management. Table 3.9 shows a projection of floorspace and overall siteea using such a technique.

able 3.9 Maseru market: sales space projections (m)

Design Year Annualthroughput (tons)

Sales area: Site area:

Space standard

(mt/m)

Total area (m) Space standard

(mt/m)

Total area

(m)

992 (initial) 11,070 10 1,107 2.0 5,535

000 (interim) 23,500 12 1,960 2.5 9,400

010 (ultimate) 44,500 15 2,970 3.0 15,170

ource: FAO Project NO. LES/88/010

lthough the standards in Box 6 represent reasonable average values, they need to be used with some caution. Some markets haveery strongly peaked trading patterns either on a weekly or seasonal basis. If this is the case, the projected space requirements maynly be sufficient for average conditions. Peak daily fluctuations (e.g. between a normal weekday and the weekend) and peak

asonal variations (with, for example an assembly market or an urban retail market that also has some wholesale trade) mayecessitate the use of additional space. It may be uneconomic to provide this to the same standard as the rest of the market facilitiesnd some special provision may need to be made, such as the use of a nearby car park or an overspill area, located outside themmediate market area, as an open sales area.

etermining ovrall site requirements and ancillary facilities

he method for estimating the overall space requirements for a market site is shown in Box 7. In addition to the sales space anlowance needs to be made for other ancillary buildings that may need to be accommodated on the market site. For a normal

mall-scale urban or rural retail market this is likely to consist of a market manager's office, toilets and security/cleaningrangements. Suitable space standards for such facilities are also shown in Box 7

pecialised facilities may also be required. These facilities might include:

an auction slab or a separate wholesale shed if the retail market also performs a wholesaling function;q

limited storage facilities, for example where a market retails grains (the standard used in Box 6 assumes three to seven daysstorage but if a longer period is required then additional space would be needed);

q

fruit and vegetable grading and packing (typically at an assembly market which is supplying the export trade);q

an area for live poultry;q

an area for holding live animals and a slaughter slab;q

separate lock-up butchers' or fishmongers' shops; andq

extension services office and meeting room.q

OX 7stimating overall space requirements for a basic retail market

rojected annual market throughput (see Box 5)vided byales space standard tons per m/p.a. (see Box 6)otal sales space requirements (covered and open)usffice space @ 10 to 15 m per office workerusleaner's store plus guardhouse @ say 10 musoilets @ 2 m per 25 market employees (male and female separate)us

oilets @ 2 m per 1000 peak period market usersusllowance for other specialised uses (e.g auction slab)otal sales space + ancillary uses in mmesactor of 2.5 to 5 times usable space for roads and parking

Ch05a



29/151

verall site area in m

rom the surveys, other physical facilities that the traders may believe are important to locate near the market may have beenentified. These might not be accommodated on the market site, but provision can often be negotiated for adjacent sites. Suchcilities include:

a police post;q

a dispensary or clinic;q

banks or credit facilities;q

a post office and public telephones;qspace for grain millers (e.g. rice and maize mills);q

cooked food stands;q

a bus stand;q

a crche or nursery for mothers working in the market;q

dormitory accommodation for farmers and traders who need to make an overnight stay; andq

a second-hand clothes market. This has become of major importance in Africa, where clothing traders often move close to themarkets because the farmers visiting the market have money to spend after selling their produce.

q

onclusions

he purpose of undertaking surveys and making projections is to provide a basis for rational and economic planning. This ismportant in order to ensure that new and improved market sites and facilities are not over-designed. However, in looking at existingarkets it also is important to assess whether it is possible to improve conditions without an intervention requiring new infrastructure.ften, the introduction of new management practices and, particularly, the enforcement of market regulations may provide a more

ost-effective means of achieving improvements in market operations without making extensive physical improvements. If the marketsubject to strong growth pressures such measures may place excessive pressures on the market users, particularly if there is only

mited capacity to raise the efficiency with which the retail space is used. There may also be scope for greater efficiency in transportperations at a market if, for example, more produce is carried on lorries rather than passenger buses.


Ch05a



30/151


31/151

ppropriate one can be chosen.

General Principles Of Market Layouts

he general principles which should guide the preparation of a market master plan are:

he process of market development

ne of the first issues that will arise in developing a market master plan will be the question of what type of facilities should beovided. In making projections of need in Chapter 3 this issue was raised in general terms. At the planning stage it will need to be-examined from a narrower economic viewpoint, i.e. whether the proposed infrastructure investment (assuming funds are

vailable) is likely to be covered by the expected revenues. This will depend on two factors: the expected growth in the market'solume of trade; and the value of that trade. Low income and low growth will not support large investments, whilst with increasingcome growth and accompanying demographic change a reasonable expectation might exist that investments in market facilitiesay be viable.

he most convenient way of looking at this problem is to view market development as a process responding to need. Thus, theocess might start with the development of an open street market with temporary stalls, progressing to the construction of simple

heds for retailers. Assuming that sufficient land is available, the market might gradually provide more specialised facilities,stifying the provision of a main covered market building.

he development of a market site is, therefore, a process which could be initiated with the provision of quite basic facilities. Figure0 shows the evolution of a small rural market, which was started with the construction of a perimeter wall. paving and rubbish

ollection facilities. Subsequently, covered stalls were built when they could be afforded. A similar kind of model could beeveloped for a new market in an urban suburb.

he extent of enclosure a market offers will be one of the fundamental issues to address in the market master plan. As suggestedbove, this is partly a question of affordability and the stage of development of the market. It is also, however, a question of theonvenience of the market to its users, in which case, a simple market structure might be the appropriate long-term solution. Thetail fish market in Bruges, illustrated in Figure 31, for example, is effectively a "planned" open street market, but with the saleseas roofed-over with a permanent structure. Many fruit and vegetable markets in Spain and Italy use a similar approach. The

asic point to remember is that the higher the standard of enclosure the greater the cost of both buildings and internal servicing.he question of market structures is discussed further in Chapter 5.

nother factor influencing the process of market development is the degree to which specialized uses (which are further discussedter in this chapter) should remain in a general market or whether they would be better served at another location. Meat markets,

r example, are often located adjacent to an abattoir or slaughter slab, rather than near a food market. This may be particularlymportant with offal and blood products (such as blood sausages) the sale of which should be closely supervised by public healthfficials.

he question of segregating assembly and wholesaling functions is a more difficult one. Few rural assembly markets arexclusively for bulking-up produce and many assemblers are also retail traders and suppliers of credit. Farmers bringing theiroduce to assembly markets are often also using the markets' retail facilities. The mixture of retailing and wholesaling in urbanarkets raises similar problems. For cities of over half a million inhabitants (and certainly over a million) it will be essential toparate the functions as the problems of traffic management will become insurmountable. However, the mixture of wholesale andtail functions in smaller markets can be viable, particularly if the functions are separated by time, i.e. the wholesaling function

ccurs early in the morning before retailing starts. Again, the same functionaries may perform both tasks.

ehicle access and traffic circulation

ehicle access to serve markets is essential for the efficient movement of goods and the people delivering and purchasing them.With a small rural or urban market this may be achieved by a road through the market area (i.e. a street market) or by a perimeter

ad around the market site (the typical market square). For larger markets a higher level of access will be needed and this iseferably obtained by a system of looped roads which are neither short cuts to other destinations nor dead-ends (such as

ur-de-sacs). To avoid traffic conflicts, junctions of the loop roads to main roads should be T-junctions (i.e. having only threeotential collision points compared with the 16 that occur with cross roads.) The T-junctions should be as near as possible at rightngles so that maximum visibility at corners is obtained.

preparing plans for the central area of towns it is frequently the practice to separate cars and pedestrians' particularly where therea reasonably high traffic density. However, total pedestrianisation rarely works and the most intense urban activities tend to

ccur where the two systems meet. An alternative approach is to develop a system of intersecting pedestrian paths and roads, with

e paths roughly at right angles to the roads. In Arab countries, for example, this intersection is often marked by a precinct and aateway forming the boundary between the two traffic systems (e.g. Shibam in Southern Yemen, the suqs in Sana'a and in Rabat,

Morocco,). In Medieval Europe, this point was often marked by a market cross. Details of pedestrian sidewalks are discussed inore detail in Chapter 5.

he interaction between pedestrian and vehicular circulation in an urban market place is illustrated in Figure 32. Visitors' vehicles

Ch06



32/151

e parked in separate parking areas. Delivery vehicles have direct access to the market stalls, but to reduce the impact of traffic ine market area it is normal practice to arrange for deliveries to be made during a restricted period before trading starts (usually the

arly hours of the morning) and for rubbish collection and cleaning-up to be undertaken at the end of the working day. Traders aremetimes allocated separate parking for their vehicles, usually in an area from which the general public is excluded. Special roadgns indicating who is allowed to park and at what time parking is permitted are frequently needed as part of a marketevelopment programme.

he relationship of the market site to access is equally relevant in the case of rural areas. Figure 33 illustrates two examples ofarkets integrated into rural villages. In both these cases, lorry parking is provided adjacent to the market area. The relationship ofe market to bus stands and petrol filling stations is also important and ideally all these facilities should be located in a nearby

ea.

he market as a public space

Markets, particularly street markets and market squares, were traditionally part of the main system of open spaces of cities andwns. With new development areas, provision should also be ideally made for such public spaces. However, like their traditional

ounterparts they need to be properly defined. The market layout should not be disorienting and it is thus necessary to arrange therculation system so that there is a hierarchy of spaces, with at least one major space, which might be the main market square orreet, off which there are minor spaces serving other functions.

artial enclosure of spaces, by arcades, plants or buildings, generally makes them more comfortable to use. A common mistake ismake the market space too large as empty spaces are not conducive to providing an atmosphere favorable to selling. A

edestrian network must feel lively if shoppers are to be encouraged to use the facilities. Simple standards that can be adopted are

at the maximum dimension or diameter of a space should be 20 to 25 metres and the density of usage of the space should be notss than 15 to 30 square metres of public space per person. A good rule of thumb for the proportion of minor pedestrian routes istry and make the width not to exceed the height of the surrounding buildings.

qually important to ensuring that the space feels lively is that there should be activities occurring around its edges (e.g. such as thepening up of small-scale shops fully to the street) and that the centre of any larger space has some form of central focus such as auntain, clock tower or public notice board. Usually, retail markets are fringed by smallscale individual shops - which can be littleore than stalls enclosed by permanent infrastructure. Such shops can be as small as 5m. The intention should be to make the

nits available at low rentals so that they can be afforded by local entrepreneurs, thus encouraging the retention of wealth created ine community.

common feature of many traditional market spaces is the provision of facilities such as seating for people to rest whilst shopping.pace also often needs to be provided for carnivals, street musicians, dancers and other outdoor events. Typical examples are theirs at Indian tribal heats, mariachi bands in Mexico and carol singing in Christian cultures. There is frequently a conflict withcal regulations and police authorities in allowing such events (on the argument that they obstruct sidewalks or encourageiterers) and the best approach is often to provide a specified location. such as a raised platform or bandstand, where the events

an take place.

ssential components of any market are places, such as cafes and food stands, where both traders and shoppers can sit and relax.uch stands provide inexpensive food and the employment they give can be of critical importance for providing incomes tomilies who would find it difficult to find other fo

Documents

FAO document 1995