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Wholesale markets

Table of contents

Planning and design manualby J. D. Tracey-White

The designations employed and the presentation of material in thispublication do not imply the expression of any opinion whatsoever on

he part of the Food and Agriculture Organization of the United Nations concerning the legal status of ny country territory, city or area or of its authorities, or concerning the delimitation of its frontiers oroundaries

M-62SBN 92-5-1031 07-X

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,ood and Agriculture Organization of the United Nations, Viale delle Terme di Caracalla, 00100

Rome, Italy.

FAO 1991

Contents

PrefaceAcknowledgementsPart A - Introduction

1. Changing role of wholesale markets

The function of wholesale marketsInternational trends in wholesale and retail marketingTypes of wholesale marketsIs 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 objectivesA wholesale market design methodology.

Part B - Planing and design activities

3. Project identification and pre-feasibility

Project context and data collectionProblem definitionInitlal project formulationProject evaluationFurther actions

4. Detailed design development

Processing and analysis of initial surveysDetailed estimates of physical requirementsOutline master planSite facilitiesBuilding formFinal master plan

Detailed site planning and infrastructure designAdditional survey requirements

5. Project formulation and feasibility

Overall project designFinancial and economic analysisProject justificationProject recommendations

6. Project implementation

Phasing of developmentThe contract administration systemImplementation of market operations

Part C - Management and operations

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7. Market management systems

Type of market ownershipMarket management boardsStaffing the marketManagement information systemMethods of financial control

8. Market operations

Transaction methods: auctions and salesRentals, fees and chargesProduce handling proceduresFinancial managementMarket information and extension

9. Regulating the marketLicensingMarket regulationsInspection, quality control and hygiene

Part D - Technical notes

10. Project justificationFinancial analysis assumptionsTerms used in financial feasibility studiesSpecilalist analysis

11. Socio-economic and engineering surveys

Introduction to survey techniques

Socio-economic surveys of existing facilitiesCase study of roadside survey of commodity flows (Thailand)Engineering surveys

12. Analysing demand and estimating market turn-over

Analysis of existing trade patternsConsumption of fruit and vegetablesEstimating future demandMarket throughput

Contents

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13. Planning and environmental design criteria

Selecting a new market siteEstimating space requirementsSite planningBuilding designExternal circulation and services

Environmental impact and controls

14. Engineering design criteria

Site investigationsSite preparation and developmentRoads and parkingSurface-water drainage systemsWater supplyFire-fighting systemsSewerageElectrical servicesTelecommunication systemsSolid waste equipmentBuilding structures and materialsEngineering design and supervision

Bibliography

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PrefaceContents - Next

Wholesale marketing systems for fruit, vegetables and other fresh foodstuffs, such as livestock andish, are often inadequate. They neither maximize benefits to producers, nor to consumers. Experienceemonstrates that there are substantial benefits to be gained from giving positive encouragement to

he development of more professional approaches to the provision of marketing infrastructure wherewholesalers can purchase produce from large numbers of assembled farmers, or their agents, and inurn sell their purchases to retailers.

Governments can address the problem of inadequate infrastructure by undertaking developmentrogrammes which reorganize institutional marketing arrangements, create facilities at new sites ormprove existing services. The Food and Agriculture Organization of the United Nations (FAO) hasver a number of years been involved with providing technical assistance to governments to developmproved marketing organizations.

There is a tendency that these improvement programmes become too elaborate and costly, thereforeeopardizing their financial and economic viability The cause of this problem is mainly the poorefinition of project objectives and the preparation of an inadequate development brief. Problems alsorise because of a lack of communication between the various parties involved with development. I herogrammes, of necessity, are initiated by one group of professionals, typically agriculturalconomists and planners, but implemented by a group of construction oriented professionals, such asrchitects 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,irectly oriented to the needs of such administrators and planners, so enabling them to carry on aonstructive dialogue with design professionals.

This manual has been compiled to fill this gap and to provide a systematic methodology based on theequence of steps normally adopted in the development process The manual should be of practicalalue, both to senior professionals and to technicians, in undertaking marketing and engineeringurveys, in the preparation of feasibility studies and master plans, and in formulating proposals for therovision of physical facilities. Such studies may be directly undertaken by government agencies or

marketing authorities or by consultants appointed to assist them. Themanual also provides guidance on the monitoring of market improvement studies and the preparationf 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,perations and regulation these issues are broadly outlined as they have a significant impact on thehysical environment. No development programme should be initiated without investigating theseubjects. Other matters covered in the manual include consumer demand projections, implementationssues, financial and economic feasibility, and the justification for the provision of specializedacilities, such as cold storage.

The manual partly replaces the previous guide prepared by FAO (H.J.Mittendorf, 1976. Planning of rban wholesale markets for perishable food). As a background to this manual and for a

omprehensive view of the whole subject of marketing improvement the FAO Economic and SocialDevelopment Series Bulletin No. 37 :l C. Abbott, 1986. Marketing improvement in the developingworld) should be consulted.

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AcknowledgementsContents - Previous - Next

n the nature of preparing a planning and design manual which covers a number of professionalields it is inevitable that it should draw from a wide variety of published sources, includingextbooks, official handbooks, consultants' reports and manufacturers' information. The primary

nformation sources are listed in a bibliography at the end of the manual and the author gratefullycknowledges these sources. Where diagrams and other material are reproduced these are by the kindermission of the authors. Many colleagues and friends provided material for the manual, eitherirectly or through published reports and working papers.

Reference material was made available by the FAO library in Rome and the libraries in London of theRoyal Geographical Society, the Royal Institution of Chartered Surveyors and the ArchitecturalAssociation. The author is particularly grateful to the following individuals for supplying informationnd illustrative material: G. Schuetz (FAO Regional Office for Latin America and the Caribbean,antiago, 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 isesponsible for all editorial changes to the material used.

Continuous encouragement and constructive advice on the contents of the manual was provided by E.eidler and A. Shepherd of the FAO Marketing and Credit Service.

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Part A - IntroductionContents - Previous - Next

The following two chapters broadly review the background to wholesale marketing, how it is evolvingnd 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 nformation 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 aystematic approach to the preparation of development proposals. For general application, a manualeeds to be very broad in scope, taking into account the wide range of issues (economic, social,nvironmental, planning, engineering and management) that are involved with any market expansionnd improvement programme.

1. Changing role of wholesale marketsood is the most basic of human needs In less-developed countries any improvement in foodmarketing will have a significant impact on the poorer sections of the community. The proportion of he 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,xpenditure 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 inural areas and consumption primarily in urban areas. Marketing is the process that overcomes thiseparation, 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 thisrocess, the wholesale marketing of fresh produce, primarily fruits and vegetables.

The purpose of wholesaling. Food reaches the consumer by a complex network, involvingroduction, assembly, sorting, reassembly, distribution and retail stages. A simplified diagramhowing this process is illustrated in Figure 1. The social institution or mechanism that forms thenkage 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 bemade in bulk.

igure 1 The operation of a food marketing system

igure 2 illustrates how this process operates. Without wholesalers, retailer would need to purchaseirectly 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, theetailer does not need to concern himself with any of the sorting, reassembly or distribution functionsnd concentrates solely on selling to consumers.

Wholesaling facilitates the economic function of buying and selling (usually termed as "priceormation") by allowing the forces of supply and demand to converge to establish a single price for aommodity. 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 tomarket. The people involved in wholesaling can act simply as merchants, buying and selling produce,e brokers dealing in orders rather than goods, be commission agents (or factors) acting for theroducers (and without title to the produce) or be export/import agents, only dealing in foreign trade.

igure 2 Impact of wholesaling

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.or urban areas the sources of food are more diverse and will vary greatly depending on economicnd cultural factors. The most obvious source will be market stallholders or conventional retailersperating from fixed premises, who will receive their supply from wholesalers and, perhaps, directly crom producers.

n less-developed economies, sources of supply other than from formal retailers are frequently of qual significance and are particularly important for the urban poor. There is often a petty commodityr informal sector, which is largely carried out by hawkers, who typically supply fresh and cookedroduce. There is usually also subsistence production within the city from household or backyardardens.

roduction from household gardens. In some Chinese cities over 85 percent of the food consumed isrown 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, fornstance, the household's own production accounts for around 18 percent of the total consumed,lthough this varies with income and occupation of the household head. Surveys in Western countriesave also concluded that production from kitchen gardens makes a significant contribution to theousehold diet, with 10 -20 percent of the domestic plot area often being given over to food

roduction.nternational trends in wholesale and retail marketing

Wholesale markets develop in a number of of stages. They start as general markets, then become morepecialized by trading in a limited range of produce. A later stage is to deal with samples of producend finally to transact only graded produce. A recent trend in Western Europe and the USA is toy-pass the wholesale market system. Direct links are created between producers and supermarkethains, usually by means of contract farming arrangements.

Very few new wholesale markets have been created in developed countries in the last decade,lthough old markets have been relocated to new sites. Those that already exist have tended to alsottract warehouses for integrated food distribution, changing their role to "food centers" (in the USA)nd including other non-fresh food products. Wholesale markets still have a role in the marketing of orticultural produce but the traditional fresh meat and fish wholesale markets, particularly thoseealing with live produce, are generally being closed down in major urban centres. rends in retailing.n less developed countries the retail sector will Lend to be located in traditional markets andmall-scale shops, but with the growth of integrated food distribution systems the use of theseacilities is likely to decrease. Supermarkets and hypermarkets will become more important sources of upply. A typical example of the changes in food distribution that are likely to occur with economicevelopment is illustrated in Figure 3.

Urbanization. and trends in consumption . With rapid urbanization and increases in income, theeneral long-term trend in food distribution of less-developed countries will be for per caput

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onsumption of horticultural produce to rise, accompanied by changes in dietary preferences, oftenlong Western lines. Expenditure on food becomes increasingly elastic, allowing discretionaryurchases of non-staple, often imported, foodstuffs.

Changes in work patterns, particularly the employment of women, and the impact of technologicalnnovations in post-harvest handling, food processing and storage, including the use of domesticefrigerators, tends to encourage the development of one-stop shopping at supermarkets, usually on ance-a-week basis. In Hong Kong, for example, the number of supermarkets grew from 62 in the mid970s to 655 by the mid 1980s, when they accounted for around 55 percent of retail food sales. Thisejects what has occurred in Western Europe. In Sweden supermarket sales of vegetables in 1990ccounted for 90 percent of the total, whilst in England, France and the Netherlands they were around5 percent. Supermarket sales in Spain were only around 30 percent on average, but higher formported produce and lower for local produce.

Types of wholesale marketsMarkets can be viewed in economic terms by the degree of competition that exists within them. This

anges from "perfect" competition when there is a large number of buyers and sellers who have aerfect knowledge of demand, supply and prices, to "imperfect" markets when a single firm orndividual is dominating the market, either by "monopoly" (a single seller) or "monopsony" (a singleuyer). 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 unregulatedmarkets to fully regulated markets which trade in accordance with rules and regulations (see Chapter

).

This manual is, however, primarily concerned with the physical location and functioning of thewholesale marketing system. The kinds of markets considered can be broadly classified into two

ypes: Secondary and Terminal Wholesale Markets. These markets are exclusively, or at leastredominantly, involved with wholesale produce and transactions for the sale of incoming produce areenerally between farmers or traders and wholesalers.

igure 3 Evolution of food distribution systems

econdary wholesale markets. T hese markets are located in district or regional cities and take theulk of their produce from rural assembly markets located in production areas, where the transactionsre small scale and usually take place between farmers and traders. The distinction between ruralssembly markets and secondary wholesale markets is often not clear. The difference is that

econdary wholesale markets are in permanent operation (rather than being seasonal in nature orealing 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 produces finally channelled to consumers through trade between wholesalers and retailers. Produce may alsoe assembled for export. The merchants tend to be well organized and a commodity exchange mayxist for forward trading. A variant on terminal markets are markets located at major ports (or aorder railroad or sometimes an airport) dealing exclusively with import and export of produce.

ature of market design problems. Markets may share a number of characteristics. They may act ashe terminal market for a regional city but also provide facilities for the assembly of produce destinedor other locations, both within the same province or district, or other parts of the country or forxport. Although the scale of secondary and terminal wholesale markets, in terms of the volumes of

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roduce traded, may be different there are many resemblances. They both perform similar wholesaleunctions, the distinction between them being their location and the scale of their catchment areas.econdary wholesale markets are essentially rural or located in a small city, with local catchmentreas, 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 inroduction and the provision of farmers' markets, aimed at a specific group of users (and oftenntroduced to change the operation of existing marketing channels). To tackle the problems of econdary wholesale markets requires a full understanding of their local context, including theegional road system, the location of production areas, the seasonal variation in production volumesnd their relationship to primary assembly markets in rural areas.

The problems of terminal wholesale markets are usually ones of congestion caused by an unsuitableocation 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 facilitiesnd close to the main retailing areas. Population growth, changes in urban land-use patterns and theevelopment of modern transport systems have all had an influence on the suitability of existing androposed wholesale market sites. A recognition of urban planning problems is therefore essential tonderstand the growth of terminal wholesale markets.

However, from a planning point of view secondary and terminal wholesale markets can be treated in aimilar way. They tend to share common problems in the types of data that need to be collected inrder to analyse them and in the methodology that is used in preparing layouts and designingacilities. This applies whether a new location is being proposed or an improvement to existingervices is being undertaken.

s it possible to standardize wholesale markets?t would be very convenient if a standard model for wholesale market development was available forse in less-developed countries. This is generally possible if you look at other specialisedontemporary building types, such as international air passenger or cargo terminals, medical operatingheatres, industrial laboratories or warehouses using mechanical handling equipment. Although theesign approach will depend on the climate of a particular region, the space standards used foresigning 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 quipment. The use of modern management techniques will also be broadly applicable, irrespective of he location.

pecial characteristics of wholesale markets. Although differences may exist, say between Londonnd Rome, modern wholesale markets in developed countries have much in common. In terms of ayout and circulation they are similar to hypermarkets or to large-scale distribution warehouses. Theyeed to handle efficiently the input and output of large volumes of produce and to provide facilitiesor the sale of that produce. So why are wholesale markets in less-developed countries different? Theistinction is largely that neither the inputs into nor outputs from the market, in terms of the types of roduce, how it is transported and its quality and quantity can be standardized in the manner that isossible in a developed country. This has a significant impact on both the planning of the market site

nd on the design of its buildings.Ideal markets" There are a number of general principles by which "ideal" markets should beonceptualized. Textbooks on marketing economics often refer to them as the "golden rules". Theeality of wholesale markets in less-developed countries is that most of these principles have not been

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ulfilled. 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 aumber of these factors in order that improved conditions can be obtained for both producers andonsumers. As discussed in the section on international trends, markets need to develop in a numberf stages. They start as general-purpose markets, then become more specialized by dealing with amited range of produce and only later trade in graded produce, selling by samples as in Westernurope and the USA.

t is virtually impossible to move rapidly to more sophisticated practices when the producers arcmall, the buyers arc not organized and the management skills for running a complex marketingystem 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 forhange 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 theweakness of the national wholesale fruit and vegetable marketing system and related marketing

nformation networks.Relationship to national programmes . Marketing interventions, particularly for assembly and/orecondary wholesale markets, are often related to targets for achieving increased production fromovernment-assisted horticultural projects and form part of an agriculture sector component of ational plans and basic needs programmes. The main aim may be to improve incomes for fruit andegetable 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 withfficiently meeting the food needs of rapidly expanding urban populations, particularly those in theower income groups. Existing consumption of fruit and vegetables may be relatively low and aovernment may have identified marketing as a major constraint in increasing consumption to provideetter nutrition, while providing improved incomes to rural producers.

hysical 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 demographichanges.

Within existing markets this is usually seen in the inability of existing marketing systems to cope withhe increased demand, causing congestion and delays. Space for efficient handling of produce isnadequate and the market area is overcrowded, frequently leading to activities spilling over into thedjacent 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 toransport modes and new communications facilities, such as the construction of access roads to

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roduction areas, a new urban highway system or a new port, enabling improvements to be made inhe marketing of produce both for domestic and export markets.

mprovements in storage facilities may also allow producers to market their produce in a morelexible and cost-effective manner.

nstitutional and political changes. Institutional changes that might occur include the growth inanking and credit infrastructure, allowing producers a greater freedom in how they market their

roduce; increased political stability and liberalization of pricing systems, bringing about changes inupport policies for both producers and traders; and the development of traders' associations andwholesaling skills, which may enable more sophisticated marketing organizations to be developed.

ublic intervention may play a part in bringing about changes, such as through the introduction of ules for regulated markets, including modifications to sales methods. Often this intervention is takens an opportunity to introduce an open-auction method to encourage the marketing and promptisposal of better quality produce, with immediate payment. Traditional practices, which are oftenanned, include the method of biding "under a cloth", which is seen as providing many opportunities for cheating. There is oftenesistance to adopting auctions, however, as they can be time consuming if there is wide variation inhe 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 authorityut which may have a significant impact on market development. The most common of these is likelyo be planning pressures from municipal authorities to relocate an existing market because of a desireo redevelop an area of a city or make mayor land-use or environmental changes to the structure of aity. 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 experienceifficulties in moving their place of employment and the poorer sections of the urban populationerved 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 his, currently applying to markets in Europe is the effect of new European Economic Communityirectives on the marketing of fresh meat and fishery products. This is likely to lead to radical changesn the organization of existing markets in Europe, requiring more stringent control of temperaturesnd the exclusion of vehicles from within market buildings.


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2. An approach to wholesale market planning & designContents - Previous - Next

This manual for wholesale market planning and design is aimed at a wide range of users. These maynclude policy-makers charged with decision making about markets, senior administrators, plannersnd, in some ways most importantly, technical staff, many of whom may be relatively inexperienced

n market development. Although local planning guidance and regulations may be available themanual can act as a supplement to this information, as well as providing material for use byarticipants of training programmes. Consultants engaged by market authorities may find the manualarticularly 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 whichre both functional and efficient, as well as meet budgetary constraints. This means essentially that themployment of consultants to assist in the planning process should make the reaching of appropriateolutions easier as well as saving money for a market authority. A good measure of success would bef the savings in capital and recurrent costs are at least equal to the professional designer's fees.

conomic and appropriate solutions. It is thus important that market developments provide aalanced and affordable programme, applicable to the scale of the particular market, its likely growthnd its expected revenues. Emphasis should be placed on finding solutions which are applicable to theesources and construction technology available in the country, minimizing the use of foreignxchange and reliance on technologies which might be difficult to maintain.

Consultation procedures. As well as fulfilling the needs of the market authority, the design solutionswill have to be acceptable to all the parties who might be affected by the development. These willnclude government agencies, producers, market organizations, traders and local communities. Duringhe design process, frequent discussions will need to be held with all the interested parties in order toefine 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 willeed to be formulated and discussions will need to be held to set viable and acceptable levels for theental, parking and commission charges that the market should adopt. Caution is required in theseonsultations with traders so that they do not become acrimonious by concentrating too greatly on theinancial relationship, to the exclusion of involving them with planning and design issues.

Development objectivesAn essential step in evolving the market development programme is to define a clear set of objectivesr "goals" which will guide both the policy makers and designers. It is essential that this step is notmitted as only by undertaking full discussions on the project's objectives will the often conflictingeeds of the users of the market be resolved. Objectives are likely to be at two distinct levels:ational/sectoral and project.

ational and sectoral development objectives. These goals are concerned with the benefits of theroject to the nation as a whole and to the agricultural and commercial sectors. The goals will tend toe simple statements of national policy, measured by indicators such as: greater per caputonsumption of fruits and vegetables; increased production of fruits and vegetables and related

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ncreases in producers' incomes; lower consumer prices, with a less variation in seasonal priceluctuations; and reductions in post-harvest losses due to improved marketing and handling practices.

roject-level design objectives . These goals will be concerned with optimization of the operationalystem and physical design of the proposed market. Typical criteria that are used in assessing theuccess of a market project are: whether it meets defined minimum physical-space standards; whethercan be constructed within defined cost limits and budgets; and project evaluation criteria, which will

elate by means of financial and economic analysis, the project's capital and recurrent costs to theotential returns from tolls and rentals.

Other project-level criteria include whether there are potential savings in market operating costs, forroducers, traders and wholesalers, by the introduction of new or improved facilities. These savingsan occur from lower handling and equipment costs or more favourable rates for insurance andartage. Demonstration that such savings might occur will be critical in persuading market users thatigher rents and/or market relocation are justifiable.

The development programme should also show that defined levels of operational flexibility can bebtained. These include: immediate needs for day-to-day operational changes; short-range flexibility,eflecting seasonal variations in trade; and long-range flexibility, providing the opportunity for easilyxtending and changing facilities.

A wholesale market design methodology.This manual bases the problem of market planning and design on a clear design methodology. Figure

provides a diagrammatic summary of the overall process, emphasizing how the stages of the designmethodology are part of a linked system. The interactions between the activities are critical. No aspectf 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 overalllanning and financial constraints.

igure 4 A design methodolgy

process approach. In preparing a market master plan a process approach needs to be adopted, withistinct 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 rolesf others participating in the design process. There are a number of ways in which the overall designrocess can be viewed: by design stages; functions; levels; or activities.

esign stages. The most convenient way to look at the design process is by the sequence (or stages)n which a design is developed. The first step would usually be a project identification andre-feasibility study. If the project appears feasible this would be followed by a second stage of etailed design development and a third stage of project formulation and feasibility analysis. Theecond and third stages are to a large extent interdependent and are likely to be carried out in parallels they both rely on collection and analysis of survey data, particularly of the actual volumes traded athe 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.

esign functions. Another way of looking at the design process is by identifying the functions andypes of professionals who would be involved in the development. The project formulation andeasibility stages are primarily the concern of individuals with backgrounds in socio-economic,nstitutional or management aspects. Design development is the concern of physical planners and

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ngineers, whilst project implementation will involve project management, architectural, surveyingnd engineering skills.

esign levels. The stages of the design methodology also reflect various design levels. Projectdentification is primarily concerned with the broader issues, starting with national policy matters andhen 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 considerationwill be the traffic and land-use problems of the area of the town in which the market is situated. At theetailed design and feasibility stages the planning of the market site and overall building designecome important. At the implementation stage the main concerns will be the detailed design of uildings and infrastructure and the procurement of fixed and mobile facilities.

esign activities. For each design stage it is possible to develop a detailed flow chart or check-list,eflecting the design functions and levels mentioned above. These will define the activities that needo be followed in order to arrive at the final plans, budgets and implementation programmes. Theattern of activities that will need to be carried out at each design stage will follow a framework imilar 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 withinterested parties. This might entail further data collection, processing, analysis andsynthesis, 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 finalrecommendations, budgets and master plans . The output of this final stage might alsoinclude the need for further studies and surveys on issues identified during design.

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Part B - Planing and design activitiesContents - Previous - Next

This is the core of the manual and is based on the stages of project design described in Part A. Itroceeds 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

he process of project development. Within each stage the other aspects of the design process are alsoeflected: the design levels, functions and activities. The section does not go into much detail, butefines what should be broadly achieved at each of the design stages and what are likely to arise asey concerns and problems. In order to avoid repetition there is cross-referencing to the technicalppendices in Part D.

An important issue that needs to be mentioned before describing the details of project formulation ishat 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 involvedwith the project formulation and that a separate advance budget is available for the funding of design

tudies and surveys.igure 5 Stage I - Project Identification and Pre-feasibility

3. Project identification and pre-feasibilityThe first stage in project preparation is to undertake an identification and pre-feasibility study. Theurpose of this is to identify if there are problems with the existing marketing system which might beolved by a planning and infrastructure project. An initial analysis should be made of facilities and

ccommodation requirements, alternative site development scenarios should be considered and anutline master plan and action programme prepared. A flow chart illustrating the overall process isepresented in Figure 5.

Project context and data collectionUnless full records have been kept by a market authority it is usual to start any study of existing orroposed 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, theevels of agricultural production, marketing channels and the existing consumption of fruits andegetables and, if applicable, poultry, fish and livestock. This will be largely a desk study, assemblingnformation from published sources. Information sources will include the following:

national marketing and agricultural policies and strategies, contained in governmentsectoral 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 byconsultants 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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resent 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 asfficiently as possible. It is important to visit markets during peak trading periods and not just duringovernment working hours.

Problem definitionReviewing and analysing data collected on the general institutional and management context and onhe existing site conditions and facilities should allow the overall shortcomings of the present systemo be identified. The types of analysis that can be attempted will be limited by the availability of data,ut should include, at least, a description of the existing market channels and an overall idea of theolume 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 andnstitutional problems, such as the existence of monopolies and unfair trading practices, financialonstraints, inadequate market management and lack of staff training. Other problems might include

easonality of demand and lack of storage space, high produce losses and other costs associated withhysical constraints, such as, poor infrastructure, inadequate space in relation to through-put, trafficongestion and lack of modern equipment.

With an existing market the major problem will be whether to relocate the market and, if so, whetherhe existing market should also be retained. It does not always follow that one market per city isecessarily the optimum solution, particularly for those with high-density centres.

efinition of project goals and beneficiaries. On the basis of the problems that have been identifiedwith the existing marketing system an attempt should then be made to define the project's goals and

he likely beneficiaries. At this stage this will tend to be a very simple statement of national oregional policy. A typical example might be as follows: to improve marketing facilities so that roducers of fruits and vegetables in area "x" can obtain a ready market for increased horticulturalroduction and a wider range of fruits and vegetables, in greater quantities and al competitive prices,an be available to consumers in city "y".

Alternatively, the project-goals could be specified in terms of the benefits that might accrue to aarticular market authority by, for example, improved efficiency gained from the upgrading of presentacilities or additional revenues created from the development of a new market.

nitial project formulationThe next step will be to formulate an overall programme which will meet the project's goals and solvehe problems that have been identified. Simple methods for making projections of space requirementsre discussed in Chapters 4 and 13. The main difficulty at this stage will be how to match anyudget 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 procedurehat can help to conceptualism the problems. This can be refined later when further surveys arendertaken.

hysical requirements. A first approximation of the physical requirements and budget costs for theevelopment should always be attempted, as this will form a basis for discussion with all thenterested parties. It may not be possible to prepare even a diagrammatic layout at this stage. Theasic design parameters on which the projections should be based do not need to imply any

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ompetition for private markets, while a positive effect would be the growth of smallscale traders andwholesalers.

roject 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 notccompanied by appropriate institutional and management changes. In many cases, the operatingerformance of markets can be improved with virtually no physical change, other than, possibly, therovision of new equipment or the application of a traffic management scheme.

roject risks . Risks which could influence the overall design of a project need to be identified at thistage. These risks should to be described, and an estimate made of their probability (high, medium orow) 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 institutionalramework 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 undertakeurveys and feasibility studies and to prepare detailed designs and tender documents. Other commonroblems are that action is delayed because of difficulties in purchasing suitable land and that theource 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 possibleor the construction operations at the market site to be phased in a way that enables the market toontinue to operate during the construction period.

Further actionsThe definition of project risks will provide the basis for clarifying the issues that will need to beesolved before progress can be made with project development. The intention should be that, beforeroceeding further, the risks are either eliminated or arc reduced .The typical types of issues that willeed to be resolved arc:

- management and institutional;- financial and loan requirements; and- provision of land.

nitial surveys to be undertaken . The main conclusion that will be drawn at the end of the projectdentification stage is almost certainly that the collection of further data will be required. In order toefine the preliminary estimates of throughput, data will need to be collected on the number and sizef existing markets, their daily trading patterns and the variations in trade between seasons, both inerms of the type of produce and the quantities marketed.

deally data should be available before any further detailed design development occurs, but the timingf surveys will also be influenced by factors such as the need to collect data during peak productioneasons or to avoid logistic problems caused by working in a wet season. It is essential, however, thatesign should be based on adequate data and it will be necessary, if they have not already beenndcrtakcn, 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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urther details of survey methodologies and typical examples of survey pro-forma sheets are given inChapter 11.


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4. Detailed design developmentContents - Previous - Next

The second stage in the preparation of a project is detailed design development. This will result in ainal master plan, outline building designs and cost estimates. The overall design process is shown inigure 6.

The second-stage designs will provide the basis for the evaluations undertaken in the third-stageeasibility study, which may lead to design modifications. The second and third design stages are,herefore, to a large extent interdependent and can be carried out in parallel. Both stages will rely onhe collection and analysis of survey data, particularly of the actual volumes of produce traded.

rocessing and analysis of initial surveys

The first step in preparing a detailed design will be to undertake and analyse the surveys which wereutlined at the end of Chapter 3. Apart from surveys of existing facilities and engineeringnvestigations, the most important of these will be the surveys of produce flow (see Chapter 11).

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Roadside surveys . These surveys should, ideally, be undertaken over an extended period, covering allroduce flows into a city (including both wholesale markets and retail outlets). The best method, if esources are available, is to carry out a complete roadside survey, using fixed checkpoints. However,s such road-blocks are often also used to control "illegal" trade and to extract gratuities from traders,he 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 theransport 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,ncluding the roles played by the various functionaries who are participating in the marketing channelsnd the origin and destination of produce flows. More details of the types of analysis that should bendertaken are provided in Chapter 12.

igure 6 Stage 11- detailed design development

stimate of demand and trade volume . The next step is to make a detailed projection of the potentialemand 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-elasticityoefficients, relating changes in income to spending behaviour. Because of lack of data it is rarelyossible 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 thispproach the substitution effect between different produce is assumed to be zero.

er caput consumption. Consumption data should ideally be derived from detailed local nutritionalurveys of the daily intake of fruits, vegetables, fish and meat, for a range of income groups. Fromuch surveys, estimates can be made of annual consumption, which is expressed in terms of ilogrammes per head (or "caput") of population.

AO has undertaken regional food balance sheet studies of per caput consumption, taking intoccount factors such as production levels, imports, exports and processing requirements (see Chapter

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2). These are likely to be the most easily available data, but need to be used with some caution as theigures are national averages. They tend to disguise substantial variations in consumption betweenifferent seasons, locations, income groups and between urban and rural areas, particularly if there islso a large tourist trade.

Detailed estimates of physical requirementsBefore the preparation of an outline master plan it is necessary to ensure that there is sufficient spacet an existing or proposed market site to accommodate the range of facilities required for theperational procedures envisaged.

Throughput The first step in this procedure is to make projections of the likely throughput of themarket. A simple approach to projecting throughput is to develop scenarios for the peak monthlyhroughput of the market based on estimates of demand at specific design dates for the likelyopulation to be served, using projections from previous studies of population growth and migrationrends.

At least three possible design scenarios should be developed for a range of design populations. Theirst should be a minimum size, corresponding to present immediate demand and based on the resultsf roadside surveys, if available. The second should be a size corresponding with likely demand in theear future (say within 5 years) and the third an ultimate size which would accommodate the growthn 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 byeason. A peak season may be as much as 2.5 times the annual monthly average and perhaps 5 timess 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 mightealistically change in the future.

Data from roadside and retail surveys will provide a basis for establishing these factors, but the datahould be treated with some caution as they may not be representative of the whole year. The figuresre also likely to be overestimates, as not all produce reported as being traded is actually sold andubstantial losses are likely to occur. This does not affect the input volume, as the market must still beesigned to accommodate it. However, any calculations that use output volumes (such as retailers'arking requirements) may need to be adjusted to reflect this. The overall output trading volumehould 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 asirect sales to supermarkets, must be evaluated carefully. This is essential bearing in mind the degreeo which some produce will by-pass the market system, particularly that from home gardens withinhe city. The volume of this trade will not appear in roadside surveys, but will form part of the overaller 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 existingmarkets and other channels will broadly retain their present level of trade. In that case the 1st phase of

new market could be sized to meet an initial (5 year) growth.

pace requirements. In estimating space requirements for markets very simple techniques should besed. 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 (m) of covered sales space is desirable; an approach based on the "ideal" space standards that need to be allocated toaccommodate the various activities required to handle the average (or in some casesmaximum) daily throughout of commodities.

igure 7 Diagrammatic layout of typical wholesale market

There is usually a reasonable degree of agreement between these two methods. The estimates provide

basis on which to allocate floor space for the primary, commercial or sales activities that will bendertaken in the main market buildings. These activities would include the unloading of produce, itsisplay by producers or traders, its sale to wholesalers (by private treaty or auction) and its short-termtorage and display by the wholesalers before being sold and dispatched to retailers.

imple assumptions also need to be made about the space requirements for ancillary uses, such asffices, additional storage, and other facilities. A crude rule-of-thumb basis for estimating this woulde to allow 50 - 100 percent in addition to that already estimated for the main commercial floor space.

or a recent FAO study in Thailand long-term wholesalers' stores (including cool storage) were

ssumed 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 inrural 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 urbanerminal market, without auction facilities, which provides a large amount of medium to long-termtorage (possibly including cold stores) for produce such as onions, potatoes and fruits.

Washing, packing and grading might require additional space of around 1m per ton of throughput.Offices for market management staff (whether private or public enterprise) and for basic supportacilities (such as security and toilets) will each need an area equivalent to at least 5 percent of theommercial sales space. Other facilities, such as banking, post offices, extension services and farmnput sales will need a further area of around 10 percent of the commercial sales space.

Outline master planAn outline or draft master plan is a physical representation of a market's development programme,roadly setting-out the space and circulation requirements related to an existing or proposed site. I helan 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 toevelop the project further at the feasibility and implementation stages. Adequate time must berovided at those stages in order that full consultation can occur and potential design conflicts can beesolved. The plan also provides a rationale for the approximate cost estimates that are used in theinancial and economic analysis described in Chapters 5 and 10. A background to the planningrocess and further details of typical planning criteria are discussed in Chapter 13.

unction of the plan . The main function of a plan must be to maximize the throughput of a market,roviding the most efficient access and traffic circulation system, whilst minimizing costs. Theuccess of a plan in the long term will depend on whether it allows the market's users to mould and

dapt the market to their particular requirements. Although the influence of a site is important, thessentially functional nature of markets leads to compact and regular layouts, using standardizeduilding forms and also resulting in lowest development costs. Architectural quality is not of aramount interest but should not be forgotten, as through geometry and landscaping the layout will

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rovide a visual clarity to the users and, if properly considered, will relate the market to itsurroundings, ensuring that it provides a positive contribution to the built environment.

lanning and land use criteria Important factors to be considered in preparing an outline plan areow the construction of the market might be phased and the extent to which separation of moreermanent uses from those which are of a transient nature is needed, so that future growth andhanges can be accommodated without disruption.

As roads and parking areas are a major part of total capital costs and are elements that can be variedubstantially in both extent and standard of construction they will be important in determining theutline plan. The key issue will be to evolve an arrangement with a satisfactory relationship betweenhe 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 roughule-of-thumb the portion of the site covered by buildings should be around 20 - 30 percent, roadpace and parking between 50 - 60 percent and other uses, including drain reserves, some 10 20ercent of the total area. Examples of the distribution of land uses are given in Chapter 13. Values forand uses at a typical small scale terminal

market (Kalimati market, Kathmandu, Nepal) are as follows:

d use Area m

% 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

ccess and circulation. Markets obviously need to be located adjacent to main highways, but a directpproach 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. Theayout, therefore, should have its own segregated access.

Within the market, incoming produce should also be strictly segregated from outgoing. The usualechnique is to adopt a one-way circulation system using a continuous peripheral road, with the mainuildings located within the centre of the block. An advantage of this approach is that it enablesrivers to search for parking spaces and to correct mistakes. As a basic principle it is also desirable tovoid cross roads within the lay-out. To reduce the number of conflict points as many of the junctionss possible should be T-junctions (3-way). If cross roads are essential they should be created by usingoundabouts (rotaries)

One of the most difficult features to achieve in any market-site layout is to obtain sufficient roadength 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. Aayout with more than one exit would have obvious advantages in terms of traffic control, althoughhis may create problems of extra staffing for security, the collection of lolls and the management of

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ale documentation.

arking. The turnover of vehicles in a market, particularly those of retailers is rapid and it is desirablehat parking spaces are generous. A minimum of around 32 m per truck parking space should besed, excluding the main circulation. As a general rule an overall standard for the provision of parkinglaces (trucks, pick-ups and private cars) of 3 spaces per 100 m Of sales area is reasonable. Thishould also allow unloading and loading facilities to be directly adjacent to the main market building.or peak periods, however, this needs to be increased to around 5 spaces per ]00 m, which mayequire the provision of an overspill parking area a little remote from the market facilities. Morelaborate methods For estimating parking requirements are given in Chapter 13.

igure 8 Comparison of types of wholesale premises

Engineering services Engineering services other than roads need not be considered in any detail athis stage but, as the site layout is gradually defined, consideration will need to be given to theocation of other service networks. In tropical areas, because of the scale of open drainage systemsnd the significant run-off from paved market areas, surface water drainage is likely to be the mostmportant service to consider.

The majority of other services are likely to be placed underground, but these networks need to beoordinated 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 theistribution of services is to prepare a series of typical cross sections, which resolve both the verticalnd horizontal relationship of the services. Engineering services are summarized al the end of thishapter and discussed in detail in Chapters 13 and 14.

Site facilitiesThe type of buildings that the market might accommodate needs to be considered at this stage in theesign because it will affect the site layout.

Types of market but/dings . There arc four basic types of market buildings which can accommodatehe main commercial floor space. The choice of an appropriate type will depend on the operatingystem and method of sales to be adopted at the market. Figure 8 illustrates the basic types inross-section, using the same roof form so that comparison is simpler:

) garage type

With this type of market premises the wholesalers' stalls run the full depth of the building, with accesslatforms 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 andwhere retailers use large trucks, typically with pallet loading.

) back-to-back type

This is a variant on the garage type, the essential difference being that it has a central wall dividing thewholesalers' premises. By varying the position of the dividing wall, different sizes of premises can bebtained. Only one access point is provided for the purchase, display and sale of produce as thesectivities normally take place at different times of the day. It is usually better if the platform is at theame level as the road if the majority of the market users have small pick-ups, cars or animal carts, orf 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 particularlyuitable for developing countries. The building type can be either used as the point where the purchasef produce is made from commission agents and traders on a private treaty basis or can be used inonjunction with a separate auction hall. A variant of this building type, used in Amman, is toonstruct a single depth wholesalers' premises backing onto a boundary wall or fence. This makesery effective use of the site area.

i) central spine, with buyers' walk

This is similar to the back-to-back arrangement but also incorporates a central buyers' walk whichacilitates the appraisal of produce by buyers. The buyers' walk is typically 4 metres wide, such as atondon's New Covent Garden market, with unloading and loading of produce confined to the rear of

he premises.

Many West European countries (such as France and Spain) have adopted this type of premises, but itsse in other countries, such as Brazil, has not been entirely successful. In some cases the buyers' walk s made much wider (more than 16 metres wide in the Paris Rungis market) to allow a wider displayf produce and the easy movement of produce to retailers vehicles. Recent public health trends have,owever, tended to discourage the entry of vehicles into the covered sections of market buildings,articularly where they trade in meat or fish products.

v) central spine/ball-type market building

This is an integrated facility where the sale of fruits and vegetables is undertaken in a multi-purposehed. The typical facilities might include producers' sales space, a buyers' walk, wholesalers' storageacilities (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 beccommodated.

The building illustrated in Figure 8 is of a limited depth and would be suitable for medium andmall-scale wholesale markets in developing countries, particularly as it could be relatively simplyonverted, if necessary, into one of the other types. Some hall-type markets are of a much wider span,uch as in Milan, (Copenhagen and some Japanese cities. Although convenient for major cities withmall-scale wholesalers and many retail customers, this building form is not necessarily appropriate ineveloping countries because of the high cost of the roofing system and the potentially greater internalandling costs.

Compact site planning. Whatever type of premises is selected it is important that a consolidated

ayout is created rather than a scatter of smaller unrelated buildings. The sales spaces should berouped together, probably only segregating the larger wholesalers, as their building requirements willend to be different, The distance between buildings should be determined by "ideal" dirnensions forarking and circulation (see Chapter 14). An approach based on grouping of facilities has distinctdvantages:

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 andallowing adjustments to be made between wholesalers' premises, auction spaces andother 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,nless absolutely necessary, be avoided. Only offices for wholesalers, commission agents or brokersnd other uses not involving the transfer of produce should be accommodated at a mezzanine level if here is insufficient space on the ground floor.

on-horticultural produce markets . Fish marketing is usually undertaken in a separate building, thelan organization of which can be similar to that of a central spine type building. Construction wouldormally be to a higher standard, particularly in the provision of easily cleanable internal (wall andloor) finishes. The building should be provided with facilities for gutting, cleaning and boxing, with aool room for the temporary storage of fresh fish and a freezer room for frozen fish. It is preferablehat a fish market has its own quality- control facilities, perhaps at mezzanine level, overlooking theales space.

eparate facilities must also be provided if it is envisaged that the market will also trade in poultry,ggs, grains or meat. Accommodation for meat marketing can be virtually identical to that for fishxcept that it is preferable that ceiling mounted rails are also provided for the easy transport of arcasses. Flowers are often marketed in the same building as fruits and vegetables, but can beeparated if the turnover justifies it or in more temperate climates where some form of heating may beequired.

Market authority building . The site should be administered by the market authority from a centralervice building, which might be of more permanent multi-storey construction, sometimes physicallynked 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 postffice and public telephones. The market authority offices should ideally be located at first floor level,verlooking the whole market. Depending on the scale of the market, their accommodation wouldomprise an account's section, a general office, a director/manager's offices and a board room.

ven where the market is to be operated by private enterprise it will be essential to provide facilitiesor the public bodies concerned with marketing and public health Such facilities might include a hallor public meeting and exhibitions, accommodation for market information and extension services, anmergency clinic or first-aid post, an environmental health laboratory and a weights and measuresffice.

ncillary site facilities. Provision should also be made on the site for public toilets, buildingmaintenance facilities, centralized solid waste collection and crate storage. An entrance control gatewill be required, including in most cases, a weigh-bridge. This will normally be combined with theite security facilities. Simple produce cleaning, grading and packaging may also be needed if thisas 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 (althoughhese 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 theity overnight or for out-station market staff who might come to the city for on-the-job training.

acilities for retailing . Retail units for the sale of packaging materials are normally required at amarket but the provision of other types of retailing facilities is a difficult issue to resolve as it will

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esigns the following factors will need to be considered

space standards and design modules external climatic controls and internal servicing requirements, including ventilation andnatural/artificial lighting overall building form and siting expansion needs choice of materials for foundations/sub-structure; super-structure; enclosure andcladding methods; and appropriate internal finishes and choice of structural techniques, including economy and ease of construction

Final master planThe last step of this design stage will be to prepare a final master plan drawn accurately to scale andncorporating all the factors evolved during the process of design and consultation. I he master planorms the framework for the development programme, integrating the final building designs with theehicular and pedestrian circulation systems. A typical example of a final master plan, illustrating all

he essential components that should be included, is shown in Figure 10.

Detailed site planning and infrastructure designDetailed site planning proposals and site infrastructure layouts can be finalised when a final masterlan has been agreed. In preparing proposals for a comprehensive site development the followingypes of infrastructure (which are discussed in greater detail in Chapter 14) would typically bencluded:

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 belaid on a geotextile blanket. Where soil conditions arc extremely damp, horizontal andvertical sub-soil drainage may be required. Soil conservation measures, sediment controldevices and earth or concrete retaining structures may also be needed. These worksshould ideally be undertaken as a separate preparatory contract. This will allow the fillareas 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. Roadsshould be provided with kerbs and integral gutters. Paved off-site connections to existingmain roads, including improvements to junctions, may also be required; car and lorry parking facilities will be needed, designed to accommodate peak-hourtraffic flows, and using a similar type of construction; a surface water drainage system will be needed, designed to cope with storm-waterflows, possibly with some on-site storage for peak discharge conditions. Drains will be avery 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 steelgrating or concrete slabs. Because of the large amount of impervious roof and roadsurfaces in markets it is also likely that any existing site outlet to a natural drainagecourse will need to be improved;- water mains connection will be required, either from an existing public supply or froma bore hole. To provide adequate on-site storage, the supply should feed either anunderground 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 inindividual buildings and a system of fire hydrants; a piped sewerage system is needed, going either to septic tanks, with partially treatedeffluent going to surface water drains, or preferably directly to a main sewer, if this isavailable and economically viable; an electrical supply will be required to the site (usually an 11 kV overhead line) goingto a transformer unit and main switch room. This will serve an earthed distributionlighting and power network, preferably located underground and a street/site lightingsystem; and a main telephone system which is an increasingly important component of marketinfrastructure. As well as providing facilities for sellers and buyers to arrange deliveriesdirectly by telephone it can also form a major element of a market price informationsystem, using facsimile machines and computer modems.

Additional survey requirementsAt 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 feasibilitytudies (see Chapter 5), including repeating previous surveys for different seasons.

urther topographic, material suitability and geo-technical engineering surveys may also be requiredor project implementation purposes (see Chapter 6).


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5. Project formulation and feasibilityContents - Previous - Next

The third stage of project design is a project formulation and feasibility study, which will confirmwhether the project is viable. Projections of demand and cost information derived during the secondtage detailed design will form the basis of a financial and economic evaluation of the proposals. The

verall 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 optionsoutline and foal master plans) that might meet the objectives set for the project. Different institutionalnd management strategies should also be examined and their requirements in terms of staffing,quipment and infrastructure evaluated. This may lead to design modifications, requiring the work ndertaken in the second stage to be reviewed and revised. It might not be possible to complete theast phases of the second stage (the final master plan, detailed site planning and infrastructure designs)ntil the third stage has also been completed.

igure 11 Stage III Project formulation and Feasibility

Overall project designOn the basis of studies already undertaken in the previous stages the objectives of the project shouldave 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.

t should be clear that the project can achieve benefits for the main target groups of beneficiaries andhat functioning market information and management systems can be established (see Chapter 6). At

he start of Stage 111 it is necessary, therefore, to draw together all the previous data and findings intoform which will allow this evaluation. This process is usually termed "project design". Aid agencies,uch as UNDP, often have their own methodologies for undertaking this (see Bibliography).

ssembling information . To evaluate a project it is first necessary to review the project context andssessment of the project's global impact prepared during the first design stage (see Chapter 3) andhen to systematically assemble the surveys, plans and programmes derived in the previous detailedesign stage (see Chapter 4) so that the proposed physical changes to a market can be both quantifiednd costed.

Recommendationsvaluation of options. 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 viablend if they will need to be tested in the financial and economic analysis. These options, which may allave different operational and cost implications, might include:

alternative institutional strategies; different approaches to setting revenue

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