rural markets planning and design
TRANSCRIPT
ISSN 1020-7317
4Marketing Extension Guide
Planning and designingRURAL MARKETS
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related to agricultural marketingplease contact:
Agricultural Marketing GroupAgricultural Support Systems Division
Food and Agriculture Organization of the United NationsViale delle Terme di Caracalla
00100 Rome, Italy
Fax: (+39)-06 57056850E-mail: [email protected]
http://www.fao.org/ag/AGS/subjects/en/agmarket/agmarket.html
4
Planning and designingRURAL MARKETS
FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONSRome 2003
byJohn Tracey-White
Marketing Extension Guide
All rights reserved. Reproduction and dissemination of material in thisinformation product for educational or other non-commercial purposes areauthorized without any prior written permission from the copyright holdersprovided the source is fully acknowledged. Reproduction of material in thisinformation product for resale or other commercial purposes is prohibitedwithout written permission of the copyright holders. Applications for suchpermission should be addressed to the Chief, Publishing ManagementService, Information Division, FAO, Viale delle Terme di Caracalla, 00100Rome, Italy or by e-mail to [email protected]
© FAO 2003
The designations employed and the presentation of material in thisinformation product do not imply the expression of any opinionwhatsoever on the part of the Food and Agriculture Organizationof the United Nations concerning the legal or development statusof any country, territory, city or area or of its authorities, orconcerning the delimitation of its frontiers or boundaries.
Preface
Upgrading rural markets is one way to improve accessto marketing opportunities. This guide is designed toassist community planners, rural engineers andagricultural extension units to formulate and implementrelevant market development plans.
The types of issues covered in this guide includedesigning markets that meet a community's social andeconomic needs; working with communities to identifytheir marketing problems and to choose a site for a newmarket; using appropriate and simple methods to surveyand plan the site layout and to design market buildings;preparing a market development proposal and makingbudget estimates; undertaking simple social andeconomic feasibility studies; looking for financing andconstructing the market; and managing, operating andmaintaining the market.
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Contents
Preface .............................................................. iiiAcknowledgements .......................................... viii
Introduction ........................................................ 11 Identifying the need for rural markets ................ 52 Assessing market trading requirements .......... 173 Working with farmers and traders .................... 254 Identifying the space required ......................... 335 Choosing the right site ..................................... 436 Preparing the site plan ..................................... 537 Deciding on the buildings
and equipment needed .................................... 658 Checking the market’s viability ......................... 799 Constructing the market .................................. 89
10 Operating and maintaining the market ............ 97
Annexes ......................................................... 105Glossary ......................................................... 117Further reading .............................................. 119
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Figures
1 Outline of work for the planning, design and construction of rural markets .......... 2
2 Examples of marketing channels ..................... 103 Central places in a rural area .......................... 134 Market location characteristics ........................ 465 Market site analysis ......................................... 486 Basic layouts of rural markets .......................... 587 Example of a rural market site plan ................. 638 Design of market stalls .................................... 689 Layout of market buildings ............................... 70
10 Market infrastructure and facilities ................... 74
Tables
1 Types of rural market intervention ................... 152 Calculation of future market throughput .......... 223 Market needs assessment
and ranking of users’ priorities ......................... 314 Sales space calculation
for a basic rural market .................................... 355 Estimating trading spaces
for a basic rural market .................................... 376 Estimating overall land uses ............................ 417 Site analysis
– example of ranking alternatives .................... 508 Market development costs ............................... 829 Annual market recurrent costs ......................... 83
10 Annual market benefits .................................... 8411 Viability of a simple market development ........ 86
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Annexes
A Survey checklist ............................................. 106B Assessment of supply and demand ............... 109C Infrastructure design and space standards ... 115
Forms (Annex B)
1 Estimating local farm production ................... 1092 Estimating use of market outlets ................... 1103 Average annual food consumption ................ 1114 Annual farm household food needs ............... 1125 Total annual farm use .................................... 1126 Marketable annual surplus or deficit .............. 1137 Annual sales apart from rural markets .......... 1138 Annual market throughput ............................. 114
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Acknowledgements
The author would like to acknowledge the assistanceprovided by FAO’s Agricultural Marketing Group. AndrewShepherd acted as overall technical editor and EdwardSeidler provided comments on the draft texts. FrancescaCabré Aguilar revised the text. In Bhutan Peter Schmidtand Chris Butters were responsible for early drafts of anumber of the illustrations. Tom Laughlin wasresponsible for the overall graphic design of the manual.
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Introduction
This guide is intended to provide a step-by-stepapproach to the planning, design and construction ofsimple rural markets. Whether the market is to be builtby national or local government, by donors, by a localcommunity or privately, the assistance of extensiondepartments, planners and rural engineers will berequired. Such assistance is likely to include:
j identifying marketing problems and needs;j helping with selection of market sites;j planning, implementing and operating effective
market improvement activities; andj following up and evaluating the results of the
development.
The guide follows the development process fromidentification of the need for a market through tooperation of that market. Although each stage in theprocess is presented as a separate chapter the stagesare not necessarily independent of each other. Adiagram of the planning process is shown on pages 2and 3 (Figure 1) with a brief description of each stageand indications of where findings may be used to modifythe work of previous stages. An outline of all stages andsteps is shown on page 4. 1
STAGE 1IDENTIFYING THE NEED FOR RURAL MARKETS The process starts with
understanding the marketing system and the different
types of rural markets as well as their relationship to
settlement patterns. This understanding is then used
to identify the need for market improvements.
STAGE 2ASSESSING MARKET TRADING CONDITIONS
The next stage is to assess probable supply and demand conditions for the identified markets. Limited surveys
may be required to estimate market throughput, so as to
allow design to proceed
STAGE 4IDENTIFYING
THE SPACE REQUIREDData collected through
consultation with existing or potential users, field surveys and desk studies of existing information are analysed to
decide what space and market accommodation is
required.
STAGE 5CHOOSING
THE RIGHT SITEThe next stage is to agree on
the market site location, identify any potential
problems and decide on whether an environmental
impact assessment is needed. Different options may be assessed and the site availability checked.
STAGE 3WORKING WITH
FARMERS AND TRADERSConsultations are
undertaken with market users and local communities
to identify their present problems and future needs - leading to proposals on how these might be met. Special needs, such as targeting of particular groups, may also
be considered.
Note: Initial conclusions regarding the need for market
improvements (Stage 1) may be altered either after an
assessment of market supplies is made (Stage 2) or after detailed consultations with users (Stage 3).
Possible feedback
Planning stages
KEY
Only if market already exists
2
Figure 1Outline of work for the planning,design and construction of rural markets
STAGE 7DECIDING ON THE BUILDINGS AND
EQUIPMENT NEEDEDNext comes the detailed design of buildings, stalls
and equipment. In discussion with the users, the various
options that are available are identified and their relative
advantages assessed
STAGE 8CHECKING THE
MARKET’S VIABILITYCost estimates are prepared and an assessment is made
of the market’s viability. Sometimes it is necessary at
this stage to look again at the design and make
modifications. STAGE 10OPERATING
AND MAINTAININGTHE MARKET
Finally, the market needs to be put into operation; space must be let, fees collected
and market operations regulated.
STAGE 9CONSTRUCTING
THE MARKETSources of funding are confirmed and designs
finalized with users. Tender documents are prepared, followed by tendering and letting of contracts. The
construction is carried out and monitored to ensure that what is being done conforms
to the original design.
STAGE 6PREPARING
THE SITE PLANAfter identifying a market site, a draft master plan is prepared. This provides a
framework for all the activities that will take place
within the market
Note: Estimates of space and accommodation (Stage 4), together with the detailed
design of buildings that flow from them (Stage 7), may need to be modified after
working out the cost of the proposed market (Stage 8).
3
4
STAGE 1IDENTIFYING THE NEED FOR RURAL
MARKETS
Steps1.1 Identify market channels in rural areas1.2 Define responsibility for decision-making1.3 Review planning considerations1.4 Identify market improvement options
STAGE 2ASSESSING MARKET TRADING
REQUIREMENTS
Steps 2.1 Decide on design information needed2.2 Assess supply and demand2.3 Estimate the market's throughput
STAGE 3WORKING WITH FARMERS
AND TRADERS
Steps 3.1 Consult with the users3.2 Provide support to the market committee3.3 Assess user needs
STAGE 4IDENTIFYING THE SPACE REQUIRED
Steps 4.1 Estimate sales space requirements4.2 Identify trading spaces4.3 Decide on the market’s facilities4.4 Determine the area needed for the site
STAGE 8CHECKING THE MARKET’S VIABILITY
Steps 8.1 Estimate development costs8.2 Estimate recurrent costs8.3 Estimate benefits8.4 Test financial viability8.5 Assess the proposals8.6 Amend the designs
STAGE 9CONSTRUCTING THE MARKET
Steps 9.1 Obtain consents
and agree on the financing9.2 Prepare tender documents
and tender the works9.3 Let construction and equipment
contracts, supervise construction and monitor implementation
9.4 Confirm practical completion and evaluate the works
STAGE 10OPERATING AND MAINTAINING
THE MARKET
Steps 10.1 Commission the market10.2 Agree on space allocation and leases10.3 Agree on the market fee schedule10.4 Agree on the market regulations
STAGE 5CHOOSING THE RIGHT SITE
Steps 5.1 Review suitability of site locations5.2 Reviewing site features5.3 Determine if an environmental
assessment is needed5.4 Prepare an impact statement5.5 Review site options and availability
STAGE 6PREPARING THE SITE PLAN
Steps 6.1 Gather design data6.2 Organize land uses6.3 Plan vehicular access and circulation6.4 Plan for supplementary uses6.5 Finalize the site plan
STAGE 7DECIDING ON THE BUILDINGS
AND EQUIPMENT NEEDED
Steps 7.1 Design buildings7.2 Design infrastructure7.3 Identify environmental impact
mitigation measures7.4 Decide on market equipment
A step-by-step outline of the planning process
1 Identifying the need for rural markets
STAGE 1IDENTIFYING THE NEED FOR RURAL MARKETS
The problemAn efficient marketing system can provide better pricesto producers and improve the availability of competitivelypriced produce to consumers. In some cases newmarkets or improvements to existing markets in ruralareas can help overcome many of the marketingproblems faced. However, before considering whether tocarry out improvements to markets and what type ofimprovements to introduce, it is important to be sure thatmarkets, or lack of them, represent the main problem.Other causes of inefficient marketing could be:
j poor roads;j a lack of knowledge about marketing among farmers;j an inadequate quantity of products to attract sufficient
traders.
The benefits of marketsFormal markets in rural areas play an important role inimproving agricultural marketing. They can:
j provide a location at which farmers can meet withtraders;6
Stage 1 reviews existing marketing problemsthat may be solved by either new or improvedmarkets, and identifies the kind of marketneeded and the improvements that will mostbenefit local communities. At the end of thisstage, and subject to discussions with theexisting or potential market users (see Stage 3),it should be possible to provisionally addressthe following points:
How the marketing system works and howthis relates to the local settlements.
Who would be responsible for managingthe identified market once it has beenconstructed or improved.
Special planning issues that need to beconsidered, such as developing markets inparticular settlements, markets associatedwith particular road improvements or theneeds of special groups.
The types of marketing improvement thatare needed and where they will beundertaken.
j increase retail competition by providing a convenientplace where farmers can meet with consumers;
j improve hygiene, if existing marketing activities arecarried out in an insanitary manner;
j reduce post-harvest losses by providing protectionfor produce from direct sunlight, rain, etc.;
j make marketing a more pleasurable activity; andj provide a focal point for rural activities.
Location for trade. Traders who buy produce fromfarmers for transport to urban markets experiencesignificant costs in travelling from farmer to farmer to buysmall quantities. This is not a major problem if farmersare situated close to major roads and traders simplydrive along the road buying from each farmer. Whenfarmers are at the end of poor quality local roads,however, traders lose considerable time. Costs are alsohigh because traders often use the same large vehiclesthat they use for journeys to urban areas, and poor roadconditions may damage those vehicles.
Farmers are also at a disadvantage because they aremore or less forced to accept the price the trader offers.They cannot compare the price they are offered with theprevailing local price because there is no local market.Even if they have access to information about the pricesin urban markets they cannot really use that knowledgeto negotiate with traders because they have no realisticidea of the costs faced by the traders in travelling to theirfarm or village.
For these reasons “assembly” markets have tendedto develop in rural areas. They provide a convenientlocation for traders to meet with farmers. In some casesthese markets operate seasonally or on only one or twodays of the week. In others, they operate more or lesscontinuously, with large-scale traders sometimesemploying agents in several such markets to buy on theirbehalf.
Retail facilities. In some countries farmers travel fromdoor to door to sell their produce. This can be timeconsuming and exhausting and may require investmentin transport, such as a bicycle. Door-to-door selling alsomakes price setting difficult because farmers have littleinformation regarding prices being charged by othersellers. Markets, on the other hand, provide a locationwhere all buyers and sellers can meet. Consumers cansee the range and prices of produce on offer and makechoices based on their preferences and income. Sellerscan take their produce to one location rather than havingto go from door to door. They can see how much of aparticular product is on offer, compare the quality of theirproduce with that of other sellers, and set their pricesaccordingly.
In order to achieve such benefits, however, marketsmust be situated in locations acceptable to both sellersand buyers. This is emphasized strongly in this guide.There have been many examples of new markets beingconstructed in unsuitable locations and never being 7
used! Existing market sites, or places where buyers andsellers meet informally (e.g. a plot of land at the side ofthe road), are usually the best places to construct newmarkets because they are clearly at locations favouredby the users.
Improve hygiene. Existing “markets” are often justareas of available land that buyers and sellers findconvenient to use. They may be well established in thesense that they have existed at the site for a long time,or they may be temporary, for example, a vacant plot ofland used until it is reclaimed by the owner for someother purpose. Either way, hygienic conditions areusually very poor. In most cases there are no toiletfacilities or running water and probably no arrangementsfor waste disposal. In the rainy or monsoon season themarket area may be extremely muddy, but sellers maydisplay their produce on the ground, with a risk ofcontamination from the soil or mud. Many municipalmarkets are like this, even though users are oftencharged a fee. Improved markets should minimize all ofthese problems. Apart from providing a healthier overallmarket environment, such improvements can reduce thedanger of food contamination.
Reduce post-harvest losses. Unimproved marketsusually lack any form of shelter. Produce is displayed andstored in the sun. Apart from conditions being verydifficult for those using the markets, the lack of protectionfrom the sun can have a major impact on the life of fresh
produce and on its nutritional value. Leafy produce, forexample, can be kept fresh by protecting it from the sunand by keeping it moist. This is not possible in marketsthat do not have either shelter or fresh water supplies.
Provide a rural focal point. Retail markets frequentlyplay an important social function. Farmers in manycountries prefer to take their own produce to marketrather than sell it to traders. The visit to the rural centreprovides them with the opportunity to buy itemsunavailable in their villages and to catch up with localnews. In many countries markets function as more thanjust trading places. They are the focal point of a ruralcentre and provide an important place where people canmeet. Markets that are attractive places to do businessdraw buyers and sellers alike. Competition is promotedamongst sellers and at the same time the sellers have alarge number of potential customers.
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Step 1.1Identify market channels in rural areas
As a first step towards identifying requirements for newor improved rural markets it is important to understandhow existing marketing functions. The most commontransactions in rural areas are described below.
Farm-gate purchases. Purchase of produce may be onan individual basis at the farm gate. Buyers go to thefarm, usually at a pre-arranged time. In some cases,such as with fruit crops, the produce can be sold “on thetree” or “in the field” and the buyer arranges for itsharvesting. In other cases the sales may be throughmarketing groups or cooperatives. The farmers in thiscase may wait for the trader at collection centres.
Local (primary) markets. These markets are usually fordirect sales of small quantities of produce by farmers tovillage traders and rural consumers. Rural primarymarkets often form part of a network arranged on aperiodic basis, such as on a specific day of each week.They are commonly organized at a central place in avillage or district centre or beside a village’s access road.In some instances, markets in small towns also providean assembly function.
Assembly markets. Larger rural markets are foundwhere greater quantities of produce are traded, either bythe producers themselves or by traders. These“assembly” markets (gathering produce in largerquantities for onward sale to outside buyers) are oftencombined with local rural markets and are normallysituated on main highways, other local main roads ornear to ferries. Traders or collection agents working onbehalf of urban wholesalers normally purchase produce.The market operations may be year-round or seasonal,depending on the types of crops being marketed.
Direct sales to urban markets. Farmers may also taketheir produce directly to urban areas, either to a retailmarket or to a wholesale market.
Note: The diagrams in Figure 2 on pages 10 and 11show examples of how farmers market their products.
9
FARM
Farmer sells at farmgate Farmer or trader takes produce to urban markets
Farmer takes produce to local primary market
Farmer unloads produce and sells it in small quantities
to consumers
Farmer takes produce to assembly market
Buyer purchases produce at assembly market
ASSEMBLY MARKET
LOCAL PRIMARY MARKET
RURAL
Figure 2Examples of marketing channels
10
WHOLESALE MARKETRETAIL SHOP
RETAIL MARKET
FARMERS' MARKET
Produce is unloaded, weighed and delivered
to wholesaler
Retailers purchase produce from wholesalers and take it to their shops
Retailer sells produce to consumer
Retailer sells produce to consumer
Farmer sells produce to consumer
URBAN
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Step 1.2Define responsibility for decision-making
There is no right way to operate a rural market. Theextent to which the public sector and local communitiesare involved depends on who pays for the developmentand who maintains it. The involvement of centralgovernment in small marketing infrastructure is usuallylimited to capital expenditure, the maintenance beingundertaken by local government or the community itselfusing locally generated funds such as the market fees.A market committee (or, perhaps, a local ruraldevelopment committee) would usually be the keydecision-making body. The existing market users shouldbe closely involved with decisions about whether toimprove a market, or to develop new infrastructure (seeStage 3). Most development should involve a high levelof local initiative. Sufficient time should be given at thestart to ensure the community’s involvement in thedesign process and to establish ownership of the facility.
Step 1.3Review planning considerations
Not all villages have permanent markets and thedistance to market can vary a lot. A key concept in ruraldevelopment is how rural settlements relate to the overallpattern of towns and villages.
Relationship of markets to settlement patterns.Some settlements act as “central places”, providing thepopulation of the surrounding “catchment” area withgoods and services.They may also function as points forassembly of local farm produce for onward movement tourban areas. There are usually three levels of “centralplaces” in rural areas (see Figure 3):
j growth centres;j district centres; andj rural service centres.
1. Growth centres: major regional or provincial towns.The centre contains a range of services such as acollege, a hospital, banks, a major market (often withsome wholesaling functions) and specializedshopping facilities.
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Provincial capital
Town Town Town
Village
VillageVillage
VillageVillage
Village13
Figure 3Central places in a rural area
Major markets
District markets(some with
assembly function)
Primary markets(periodic)
Growth centre
District centres
Ruralservice centres
14
2. District centres: rural settlements whose primaryfunction is to provide administration and to deliverpublic services. These centres might contain asecondary school, a health clinic and a market, whichcould perform assembly functions for the district. Themarket is often found close to a bus station and anumber of permanent shops.
3. Rural service centres: normally located in the centreof a village (and associated smaller villages) servinga population of around 5 000 people and an area notusually exceeding a 10-kilometer radius. Servicesprovided at such a centre could include a primaryschool, a health post or dispensary, a police post anda primary market, often operating periodically. Market“catchment” areas are often defined by bus routes (orsometimes by short river journeys) and by walkingdistance. This could be up to one hour (i.e. 5 to 6kilometres) or even more.
Planning policies. Local planning authorities may haveclear plans as to which settlements should be developedand which should not. Ranking systems are sometimesused to determine which settlements are to be givenpriority. This is often based on rural road developmentpolicies. The guidance of local planning authorities onhow to interpret such policies should always be obtainedwhen planning markets.
Step 1.4Identify market improvement options
Justification for new markets. The basic choice isusually between choosing a new site or upgrading anexisting market or trading area. The better option isnormally to improve conditions on an existing site,particularly if this can be accompanied by improvementsin the market’s management.
Deciding on rural market improvements. It isnecessary to adopt some objective criteria inconsidering options for market improvement. This willdepend on need (see Stage 3) and the market’s financialor economic viability (Stage 8). However, at an earlystage, some overall criteria must be adopted to allow apreliminary selection of markets to be made. Thefollowing are some criteria that could be used:
j Improvement or construction of only those marketsthat have an assembly function and can promoteagricultural production could be considered.
j The improvement of primary markets that have onlya local retail function, or the construction of newmarkets, might be linked to those areas with anexpanding population.
Table 1Types of rural market intervention
Type of market Reasons for undertaking improvements Ownership Possible interventions
Existing primary markets Inadequate and insanitary facilities Public Repair existing facilitieslocated in traditional rural Poor management New building and infrastructurevillage centres Production growth Private Planning assistance
Population growth Repair existing infrastructure
Primary markets in newly Production growth Public Site acquisitionplanned rural settlements Population growth New building and infrastructure
Private Planning assistanceNew infrastructure
Existing assembly markets Inadequate and insanitary facilities Public Repair existing facilitiesPoor management New building and infrastructureProduction growth Private Planning assistanceAgricultural diversification Repair existing infrastructure
New assembly markets Production growth Public Site acquisitionAgricultural diversification New building and infrastructure
Private Planning assistanceNew infrastructure
15
j Market improvements might be planned where thereare poor public health and sanitation conditions inexisting markets because of inadequate space andfacilities available in the market area.
j Improvements could depend on the willingness ofmarket traders to improve the efficiency of existingmarket operations and to accept higher rents andcharges to cover the costs.
j Emphasis could be placed on those markets wherethe private sector takes responsibility for improving
individual sheds and stalls, allowing the improvementprogramme to concentrate on upgrading “common”infrastructure (i.e. roads, paving, fencing, drainage,toilets, etc.).
An initial assessment can be made using thesecriteria.This will reduce the need to cover all the marketsin an area and should simplify the design process. Asimple chart could be drawn up to classify the potentialmarket interventions, as shown in Table 1.
2 Assessing market trading requirements
STAGE 2ASSESSING MARKET TRADING REQUIREMENTS
Overall approachWhat is supplied to the market? In Stage 1 thereasons why market improvements might be neededwere broadly identified. This stage involves estimatingthe levels of supply that could pass through new orimproved markets. For existing markets the assessmentcan be based mainly on observing what is happening inthe market. Where there is no existing market theassessment must be based on local supply and demandestimates and forecasts.
Supplies to a market and the type of market usedvary depending on the type of local agriculture. Forexample, in areas where there is large-scale productionof fruits and vegetables for urban areas, a new orimproved assembly market may be required. In areaswhere production is primarily of export commodities,which usually have well-established independentmarketing channels, only rural retail markets may berequired.
Catchment areas. One of the most difficult points toconsider is the “catchment area” to be served by a18
Stage 2 involves the review of data necessaryfor market design. Existing agriculturalproduction statistics can be used together withsurveys to estimate supply and demand. Thefollowing activities should be carried out:
Collection of information on local crop andlivestock production, on the functioning ofthe various marketing channels and ongeneral trade conditions in the market’scatchment area.
For new, larger markets and assemblymarkets, an assessment of the supply anddemand conditions.
An estimate of the present quantities ofproduce that are traded and a projection ofthe future market throughput.
particular market. This could be reviewed by looking atthe production areas within walking or animal cartdistance of a market, in which case a maximum radiusof 10 km from the market might be a reasonableassumption. When an assembly market is beingplanned, and farmers have access to public transport orsmall trucks, a longer distance could be assumed. Ifthere are no other large rural centres with markets a“catchment area” for an existing or new assembly marketcould have a radius as high as 50 km.
Step 2.1Decide on design information needed
Secondary data. All rural planning depends on theavailability of information.The first approach to collectingthis information is to undertake a review of existingpublished documents and maps, such as regularpopulation and agricultural census reports. These
provide what is usually referred to as secondary data,examples of which are:
j population data (age composition, gender, migration,and mortality rates, annual growth rates);
j agricultural production data – areas and yields,location of agricultural production areas (irrigated andnon-irrigated), forested areas, fishing concessions;
j relevant studies on crop marketing, existing marketchannels, location of agroprocessing and storagefacilities; and
j available site engineering data and maps, strategicand physical planning standards and master plans,environmental data and building cost data.
Primary data. Primary data may also be needed. Thisinvolves working with communities, market traders andfarmers to collect data and, if necessary, undertakingfield surveys to fill gaps.
Market surveys. The types of survey that could beundertaken are as follows:
j inventory surveys that describe physical and tradingconditions in existing markets;
j traffic surveys to measure the number of vehiclesusing a market, the mode of transport used and theorigin and destination of agricultural produce;
j socio-economic and environmental impact studies ofspecific issues or areas; and 19
j case studies of small businesses, such as markettraders, to investigate their financial viability. This isparticularly important in order to evaluate theircapacity to pay increased fees, which may benecessary after making improvements or building anew market.
The market inventory survey (detailed in Annex A)usually consists of two parts: a general review of marketoperations and a physical survey, which involvesmapping the site and its facilities.
For more complex markets (such as an assemblymarket) this data should be supplemented by a trafficand origin/destination survey. Where there is a total lackof information on production, a sample survey of farmhouseholds may be necessary, although this level ofinvestigation is probably not appropriate for most ruralmarkets. A count of the existing sellers and observationof the market users’ activities, together with discussionswith traders, should be adequate for most markets.
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It is essential to review production of both crops and livestock in the area to be served by the market.
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Step 2.2Assess supply and demand
It may be necessary to make an assessment of potentialsupply and demand to determine the existing or likelyflows through new markets. The methods for doing thisare shown in Annex B and the steps involved are asfollows:
j review crop and livestock production, to identify thequantities that could be marketed;
j review the role of market channels, to find out wherethe produce is presently going;
j review existing consumption, on the basis of averagefood consumption levels;
j determine on-farm use, to identify what is retained bythe farmers for their own use; and
j determine non-market sales, to quantify how muchproduce is not likely to go through the market.
Step 2.3Estimate the market’s throughput
Existing throughput. The last step at this stage is toestimate the planned market’s throughput. The basiccalculation method, which is the same for both primaryand assembly markets, is shown in Form 6 in Annex B.Using this method for each of the main crops it ispossible to estimate the following on an annual basis:
j marketable surplus;j total non-market sales;j planned or existing market sales;j imports into the area to meet any deficit; andj total market throughput.
Future market throughput. In calculating future marketthroughput additional factors need to be considered.Thefuture throughput of produce marketed at an assemblymarket is dependent on how local production increasesand what proportion of this increased growth will passthrough the market. For a primary retail market the futurethroughput will depend on local retail demand, which willbe affected by local population and income growth. Theeasiest way to handle this calculation is to assume thatthe competition from other marketing channels remains 21
22
Table 2Calculation of future market throughput(tonnes per year)
Fresh Present Retail trade Assembly trade Total produce through- Through- Growth Future Through- Growth Future future
put put factor put factor
a b c d e f g h(60% of a) (b × c) (40% of a) (e × f) (d + g)
Vegetables 2 000 1 200 1.40 1 680 800 1.40 1 120 2 800
Potatoes 2 500 1 500 1.40 2 100 1 000 1.60 1 600 3 700
Fruits 2 000 1 200 1.40 1 680 800 1.50 1 200 2 880
Meat 800 800 1.40 1 120 - - - 1 120
Eggs 500 500 1.40 700 - - - 700
Fish 200 200 1.40 280 - - - 280
Total 8 000 5 400 7 560 2 600 3 920 11 480
a constant proportion, to divide the market throughputinto retail and assembly trade and then to apply growthfactors for:
j retail trade, based on population growth andchanges in consumption (remember that censusdata is often out of date and this may be significantwhen growth rates are very rapid); and
j assembly trade, based on expected productiongrowth for different crops.
To make projections it is necessary to assume a timeperiod. In financial and economic analysis this is usuallytaken at 20 to 25 years, based on the life of theinvestment. However, such long-term projections aredifficult to justify and would give an exaggeratedimpression of demand for space. For rural markets a10-year projection period is more appropriate. Forexample, if the growth is 3.5 percent per year, for10 years it will be a growth factor of 1.03510, roughlyequivalent to a 40 percent increase or a multiplier of 1.4.
In many cases, of course, a market has a mixture offunctions. For example, retail trade might account for 60percent of the total and the balance might be assemblytrade. This assumption is made in the example shown inTable 2.
Given the uncertainty of making such estimates it isusually necessary to make two projections – high and
low – of future throughput, which reflect optimistic andpessimistic views of likely growth scenarios. The basisfor the growth factors should be discussed with localagricultural officers to ensure that they are consistentwith current information and policies.
As was suggested earlier, for simple improvements toan existing primary market such detailed calculationscan be omitted. By counting the number of stalls (n) andmultiplying this by the average daily sales per trader (s)and the number of marketing days (d) in a year, a roughestimate of the annual total (T) throughput can bederived. T = n × s × d. This can be projected into thefuture using a simple growth factor (as in Table 2).
Note: More detail on methods that can be used toproject demand is given in the FAO Agricultural ServicesBulletins Nos. 90, 121 and 141 (see Further Reading atthe end of the guide).
23
3 Working with farmers and traders
STAGE 3WORKING WITH FARMERS AND TRADERS
A participatory approachBefore decisions are made about constructing newmarkets or improving existing markets full-scaleconsultations must be carried out with the likely users.These will obviously include farmers and tradersand the needs of consumers must certainly be takeninto account when planning retail markets. Suchconsultations should be designed to identify:
j the marketing problems facing the producers andmarket traders;
j possible ways of overcoming those problems;j the location for any new market;j whether surveys are needed, such as a detailed
survey of users, and who pays for such surveys;j whether the community is capable of setting up and
running a market committee; andj whether a sufficient number of producers and traders
will benefit from market improvements and be willingto pay additional fees.
Consultation methods. There are many ways toconsult with the users. A simple method is just to walk26
Those who are likely to use a market must beinvolved in its planning. The purpose of Stage 3is to initiate a dialogue with market users tojointly identify the problems they face andpossible solutions. This involves working withfarmers, traders, consumers and localcommunities. By the end of the Stage:
An overall social assessment should havebeen undertaken with the market users(communities, producers and traders).
If a market management committee did notexist, one should have been established.
Special needs (such as for women traders)should have been identified and included inthe needs assessment and the users’ needsshould have been prioritised.
through a market with local traders and villagers andobserve the existing conditions and problems. Anothermethod is to use a simple questionnaire to find out theusers’ opinions. For example, this might be used to findout the willingness of market traders to pay additionalmarket fees for better facilities.
Sometimes a more systematic approach is neededin order to gain insight into local conditions. Anunderstanding of the cultural, social and marketingprocesses involved is required. The community’sperception of its marketing problems and their possiblesolutions also needs to be examined. The approachesused for consultation include:
j Rapid Rural Appraisal (RRA). This method calls forthe planner to visit communities and their markets inorder to obtain information.
j Participatory Rural Appraisal (PRA).With this methodthe planner assists a community to collect andanalyse information and holds meetings at whichlocal people are able to make proposals regardingwhat is required.
Key informants. Both of the above methods usually relyon using key informants (local “experts”), includingformal and informal leaders, traders, women’s grouprepresentatives and teachers. Acquiring an insight intolocal knowledge is a significant benefit of the RRA andPRA processes. Planners should attempt to reach a real 27
Holding meetings with local people is an important wayto ensure that new markets meet users' needs.
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cross section of the community. For example, in societieswhere women do most of the shopping, and where theircontact with outside males is either forbidden or frownedupon, it is essential that interviews with consumers beconducted by women. Step 3.1
Consult with the users
Consultations that may be needed for marketing projectsare listed below:
Communities. Discussions with communities arenecessary to identify their marketing problems. Acommon approach is to undertake a PRA or RRA, asmentioned above. There are similarities between themethods and both may be used together. For example,in circumstances where financing is already available forconstruction, a PRA may be used to help select thelocation of the new market. Where there may be thepossibility to upgrade a market, but only if it is financiallyfeasible, it would be unfair to raise people’s expectationsand an RRA may be used to identify present marketingproblems. Subsequently, if proposals are shown to beviable, planners may return to the community to conducta PRA in order to work out the proposals in detail.
Producers. To best understand their marketing problems,discussions with producers are better held at farm level. Itis necessary to discuss their problems regarding accessto markets to sell their produce. Producers’ organizationsor associations could also be approached.28
Women are frequently able to provide the most valuable information on local markets.
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Market traders. Unless a traders’ association exists,discussions with traders are usually best undertaken ona one-to-one basis. There is often a “senior” person orelder who may be delegated to talk for other traders.Where new markets are being considered, meetingsshould be held at the sites where farmers and traderscurrently conduct business.
Consumers. A market, however well built, will fail ifconsumers do not want to use it. The main factor thatinfluences the acceptability of a market to consumers isusually the location. If a location has already beenidentified, its suitability must be discussed with a sampleof retail shoppers; if no site has been identified,individual or group meetings must be held withconsumers to identify possible locations.
The best way of holding discussions with the usersis usually through a series of meetings. This processcould start with a brief introductory meeting, followedby meetings with key informants of communityorganizations, producers and traders. A final gatheringwould be necessary to draw up an assessment of theusers’ needs (see Step 3.3).
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Existing trading patterns may help to identify possible locations when planning new markets.
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Step 3.2
Provide support to the market committee
The most effective method of involving users in marketdevelopment is to ensure that they are fully representedon a market committee. Such a committee may alreadyexist; if not, it may be necessary to set one up. This isnot an easy step to undertake, but is essential forachieving a sustainable market.
The mandate of the committee should be as flexibleas possible in order to accommodate changes in itsmembership and its powers. Members of the committeeshould include traders, producers, the market’s managerand transporters. If possible, consumers and women’sgroups should also be represented. Financial supportmay be necessary for the setting up of a marketcommittee.The types of temporary support that could beprovided to a committee are:
j minor financial support to cover travel and otherexpenses of the committee members;
j provision of space to hold meetings, such as a localgovernment committee room; and
j secretarial assistance to prepare documentation.
Step 3.3Assess user needs
As a result of consultations with market users a “needsassessment” can be developed. Once the problems havebeen identified, the users should try to prioritize them atthe final meeting as a guide for the market designers(Stages 4 to 7) and as a basis for preparing an overallassessment of the project (Stage 8).When preparing theassessment it is a good idea to make experiencedfacilitators available at the meeting to help the usersclarify and prioritize their problems. Facilitators couldinclude representatives from the local departments ofagriculture, planning, community development andrural engineering. Some of the physical, social andmanagerial issues that might be identified (based on thesituation at an existing market) are shown in Table 3.
During consultations with the users some specialrequirements may be identified (such as a need forspace to be reserved for women or cooperative groups).Such needs should initially be included in the overallassessment so that the practicality of meeting them isconsidered.
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Table 3Market needs assessment and ranking of users' priorities (1 = highest priority)
Problems with existing market facilities Farmers Traders Managers Overall score Ranking
Lack of temporary sales space for producers at peak periods ✓ 1 ✓ 13 ✓ 10 24 ÷ 3 = 8.0 7
Lack of temporary buying space for assembly traders ✓ 2 ✓ 12 ✓ 9 23 ÷ 3 = 7.7 5
Produce presently being sold in the open, with consequent spoilage ✓ 3 ✓ 14 ✓ 14 31 ÷ 3 =10.3 12
Inadequate site security and overnight storage facilities ✓ 4 ✓ 5 ✓ 11 20 ÷ 3 = 6.7 4
Poor layout, inhibiting customer flow ✓ 11 ✓ 2 ✓ 12 25 ÷ 3 = 8.3 8
Lack of building repair and maintenance ✓ 14 ✓ 4 ✓ 8 26 ÷ 3 = 8.7 9
Vehicular and pedestrian congestion due to insufficient circulation space ✓ 8 ✓ 3 ✓ 7 18 ÷ 3 = 6.0 2
Lack of parking provision and areas for unloading ✓ 9 ✓ 6 ✓ 13 28 ÷ 3 = 9.3 10
Poor condition of roads and paving ✓ 10 ✓ 7 ✓ 6 23 ÷ 3 = 7.7 5
Inadequate drainage, with produce loss and potential health problems ✓ 7 ✓ 9 ✓ 15 31 ÷ 3 =10.3 12
Inadequate provision for the hygienic handling of meat, poultry and fish ✓ 12 ✓ 8 ✓ 16 36 ÷ 3 =12.0 16
A strong demand for new permanent trading spaces ✓ 15 ✓ 11 ✓ 5 31 ÷ 3 =10.3 12
Inefficient use of market sales space with low sales volume per trader and low rents ✓ 16 ✓ 15 ✓ 4 35 ÷ 3 =11.7 15
Difficulties in enforcing the present market regulations ✓ 6 ✓ 10 ✓ 2 18 ÷ 3 = 6.0 2
Inadequate market management, providing few facilities ✓ 5 ✓ 1 ✓ 3 9 ÷ 3 = 3.0 1
Under-funding, especially for repairs and maintenance ✓ 13 ✓ 16 ✓ 1 30 ÷ 3 =10.0 11
4 Identifying the space required
STAGE 4IDENTIFYING THE SPACE REQUIRED
IntroductionOn the basis of the projections made in Stage 2 anestimate can be made as to whether an existing marketcould cope with increased trade. This applies both to itsbuilding floor space (sales area and other uses) and tothe overall site area. For a new market the floor spaceand site requirements will be key factors in thepreparation of any plan.
Step 4.1Estimate sales space requirements
Rural markets normally achieve an annual turnoverranging from 5 to 15 tonnes per square metre of salesarea. Appropriate annual throughput values that can beused for projections are:
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Stage 4 analyses data collected from marketusers and from field surveys and desk studies.Facilities to be accommodated in the new orexpanded market are defined and, based onthis, calculations of overall space requirementsare made in preparation for site selection. Oncompletion of Stage 4 there should be a clearand quantified brief that can be used formarket site selection and infrastructure design.The following should have been done:
The retail and assembly sales areas of themarket should have been calculated.
The potential number of traders in themarket should have been estimated.
A list of possible facilities for the differentfunctions of the market should have beendrawn up and checked with the users.
The overall site area should have beencalculated and, for an existing market,checked against what presently exists.
j small-scale fruit and vegetable primary markets, from3 to 7 tonnes per m2;
j fruit and vegetable year-round assembly markets,from 10 to 15 tonnes per m2;
j small-town fruit and vegetable open markets, from 5to 10 tonnes per m2.
These standards can be used both for designing anew market and assessing an existing market. If anexisting market broadly matches such standards thenthe sales space should be examined to see if there isscope for it to be used in a more efficient manner in orderto meet future demand. Additional space may not berequired.
For best results the sales space should be around 20percent of the total site area and, except in exceptionalcircumstances, should not exceed 40 percent. Spaceshould be allowed for sales and general internalcirculation and daily and seasonal fluctuations should betaken into account. The standards given above arebased on experience of the relationship between spacerequirements and annual turnover. The figures assumean average mix of produce, with fruit and vegetable salespredominating. If a market specializes in a particularcommodity such as livestock, some adjustment may benecessary.
With the introduction of physical and managerialimprovements, the utilization of market space should
become more efficient over time. This means that theunit space required for the various activities can begradually reduced. For example, a standard of fourtonnes per m2 might be used for the initial period ofoperation for a primary market, increasing to five tonnesper m2 as management improves. A calculation of spacerequirements is shown in Table 4.
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Table 4Sales space calculation (covered and open)for a basic rural market
Throughput Space Space(tonnes per standard needs
annum) (tonnes/m2) (m2)
a b c(a ÷ b)
Present needsPrimary market section 5 400 4 1 350Assembly market section 2 600 10 260
Total – present 8 000 1 610
Future needs (in 10 years)Primary market section 7 560 5 1 512Assembly market section 3 920 12 327
Total – future 11 480 1 840
In the example in Table 4, the calculation indicatesthat the present need for sales space is around 1 600 m2
and there is a future need of 1 840 m2. If the sales areaof an existing market is less than 1 600 m2 there may bea case for expanding it to at least that area and, to meetfuture needs, probably up to 1 840 m2.This figure shouldalso be used as the target for the design of a market ona new site. Space for livestock trading must be addedseparately. In addition, if the market is going to trade innon-food items such as charcoal, cloth and householdgoods, additional space should be allowed.
Step 4.2Identify trading spaces
It is possible to calculate the number of trading spacesthat might be allocated from the estimate of overall salesspace required. An important consideration is that allthose wishing to trade in a retail market should be given
the opportunity to do so. In assembly markets, on theother hand, it may be necessary to restrict space toexisting traders, with allocation for some growth. It is notunknown for people with no previous trading experienceto seek to gain access to a new market. Allocating spaceto all those who request it may limit the amount of spacethat can be given to experienced and bona fide traders.
In order to check whether the space allocationsmatch traders’ needs an assumption has to be madeabout the proportion of retailing that will be undertakenby farmers. Some primary markets are exclusively usedby farmers, whilst in others all the space is allocated topermanent traders. A mixed approach is, however, oftenthe best.
Using the previous example of 1 840 m2 of salesspace the calculation of the number of trading spacesmight be as shown in Table 5. The space allocation isbased on experience of average rural market conditions.The amount of space allocated to users is usuallyaround 10 m2 for each permanent retail trader, 6 m2 foran assembly trader (who requires less space as mosttrade is done from vehicles) and 3 m2 for a farmer.
The figures need to be checked against present usebut, obviously, the amount of space allocated per usercould be varied. This is an issue that would need to bediscussed with the users during Stage 3. However, it isimportant to be cautious. Traders will inevitably ask for36
much more space than they really need. Maximizing theefficient use of space must be one of the clear objectivesof market planning. Space used badly is a misuse ofresources, particularly if there is a shortage of suitableland or if construction costs are high.
A decision must also be made as to how to sub-dividethe space between covered and open use. For example,in the dry season temporary users might sell in the open,using tables and umbrellas. Permanent traders wouldthen be allocated the covered areas. However, one great
danger with this approach is that all food items might endup being sold in the open areas with the permanent stallsonly allocated to those traders selling non-food items.
Step 4.3Decide on the market’s facilities
From the discussions with the users carried out inStage 3, initial proposals can be made regarding thefacilities that might need to be included in the market.There are three broad types of facilities: those that arestandard to all markets; specialized uses that may berequired in some markets; and non-market facilities.
Standard usesRetail traders’ stalls. These are likely to be fixed-roofedstalls, rented on a monthly or annual basis. Often thestalls are provided with lock-up storage facilities (for 37
Table 5Estimating trading spaces for a basic rural market
Space Space Numberneeds per user of users(m2) (m2)
a b c(a ÷ b)
Present needsPrimary market section 1 512
j traders (60% of space) 907 10 90j farmers (40% of space) 605 3 200
Assembly market section 328 6 55
Total 1 840 345
example, under a raised platform or counter). In somecircumstances, such as for the sale of meat, fish or dairyproducts, the stall may be enclosed with wire mesh.Sometimes separate lock-up shops for butchers andfishmongers are also provided. Stalls for non-food itemsshould be located in a separate area.
Producers’ stalls. These may be similar to the retailers’stalls, but are usually rented on a daily basis. Thepremises normally have a roof over them, but are notusually provided with lock-up storage facilities. Salesmay be made from a marked area on the floor, from araised platform or fixed counter, or from trestle tablesthat can be folded and stored at the end of the tradingday (see details in Stage 7).
Assembly market sales area. Assembly activities oftentake place on temporary spaces, which are mainly usedduring the peak harvesting season. The simplest form iswhere the sales take place in a parking area, theproducers bringing their produce up to the trucks of thetraders. Alternatively, a roofed market hall can beprovided, in which the producers lay out their crops forpurchase by traders who carry them to their trucks. Insome countries, such as many in the Near East,commission agents operate in assembly markets. Analternative sales method is for crops to be auctioned tothe assemblers, either by commission agents or by themarket operators. In this case it is normal to provide aseparate auction area on a raised concrete slab.38
A fixed-roof market in Papua New Guinea with built-in sales counters.
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Pedestrian and vehicle circulation areas. In ruralmarkets these are usually the same areas (unlike largerurban retail or wholesale markets where there is oftensegregation).There must be adequate circulation aroundall the trading areas, so that produce can be brought inor taken out with minimum obstruction.
Parking. Parking provision is needed for servicevehicles, delivery vehicles and visitors. This shouldinclude space for non-motorized transport, such asbicycles, motor bikes and ox-carts. In most primary retailmarkets the provision can be minimal, but in assemblymarkets greater consideration must be given to providingorganized parking areas.
Ancillary facilities. These usually include a cleaner’sstore, an office for the market manager, public toilets,standpipes for fresh water and garbage collection points.
Other marketing usesSpecialist users’ stalls. Retailers’ or producers’ stallsprovided for specialist or targeted users, such as womentraders, producer groups or cooperatives.
Livestock sales areas. Livestock sales are normallyundertaken outdoors, preferably in a fenced enclosure orring. A livestock market needs space for holding liveanimals, with temporary shade space and water points.Many rural markets also have a separate area for livepoultry.
Slaughter slabs. Sales are usually of live animals, butslaughter facilities are sometimes provided, particularlyin rural retail markets. The simplest arrangement is aconcrete slab, with a hoisting rail, water supply andeffective drainage.
Storage. Most rural markets deal in fresh produce forwhich storage provision is not necessary. However, smalllockable chests for overnight storage may be provided,for example, in markets where grains or other non-perishable crops are sold.
Non-market usesOther facilities that should be located near the marketmay be identified from discussions with the users. Itmight not be possible to accommodate these facilities onthe market site, but provision can often be made onadjacent land. This is particularly important when amarket is constructed in an entirely new location. If themarket is to play an important role in the life of thecommunity, services and businesses will want to beclose to it. These could include:
j agricultural extension service office;j police post;j dispensary or clinic;j banks;j post office and public telephones;j space for grain millers (e.g. rice or maize mills);j cooked food stalls; 39
j bus or lorry stand;j crèche or nursery for mothers working in the market;j dormitory accommodation for farmers and traders
who need to make an overnight stay; andj space for second-hand clothes sales. Clothing
traders often locate close to a market because thevisiting farmers have money to spend after sellingtheir produce.
Step 4.4Determine the area needed for the site
The final step at this stage is to estimate the overallspace requirements for a market. As noted in Step 4.1,the built-up area of the site should be around 20 percentof the total site and under no circumstances shouldexceed 40 percent.
In addition to the sales space some allowance shouldbe made for other buildings that may need to be40
In many countries local marketshave become outlets for second-hand clothes.
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Here produce sellers in the foreground are almost overwhelmed by second-hand clothes sellers to be seen in the background.
accommodated on the market site (if this is concludedfrom Step 4.3). For a normal small-scale rural market thisis likely to consist of a market manager’s office, latrinesand security and cleaning arrangements. Based on thesales space calculations in Step 4.1, the method ofcalculation of the site area is shown in Table 6.
In this example, the total site requirement is aroundone hectare (10 000 m2), assuming the buildings take up20 percent of the site area. The absolute minimum site
requirement would be 0.5 hectare, assuming a buildingcoverage of 40 percent. These figures can be used tocheck the area of an existing market, to determine theadditional land needed to expand an existing market orto use as a basis for selecting a new market site.
At this stage it is usually not possible to accuratelydetermine the areas for specialized and other uses.These will need to be reconsidered at the detailedbuilding design stage (Stage 7).
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Table 6Estimating overall land uses (m2)
Land use needs Sales space Ancillary space Total built space Site area
a b c d(a + b) (c × 5)
Primary market section:
j traders (60% of space) 907 - 907j farmers (40% of space) 605 - 605
Assembly market section 328 - 328
Manager's office at 10-15 m2 per office worker - 60 60
Cleaner's store plus guardhouse at 10 m2 - 10 10
Toilets at 15 m2 - 15 15
Total built space m2 1 840 85 1 925
Total site area m 2 9 625
5 Choosing the right site
STAGE 5CHOOSING THE RIGHT SITE
IntroductionThis stage is primarily applicable to new markets, but isalso relevant when existing market conditions arecramped and expansion is needed. Choosing the site fora market is a key stage in the design process and onethat is often undertaken badly. Before starting this stageit is essential that the previous design stages have beensuccessfully completed.
Transport of produce to markets. Usually, the keyfactor in locating rural markets is their relationship totransport links and to other commercial and publicfacilities, particularly their proximity to bus stands andlorry parking areas. Passengers and goods normallytravel together, usually on buses, modified lorries,pickups, motorbikes, or on non-motorized transport suchas bicycles or animal carts.
Transport improvements can have a significantimpact on marketing. For example, investment in localassembly markets may be pointless if the simultaneousimprovement of access and feeder roads encouragesthe farmer to either market more produce at the farm44
In Stage 5 the desirable economic, social andenvironmental characteristics of the marketneed to be reviewed and a site chosen thatcomes closest to fulfilling those requirements.The site for the market and the availability ofthe chosen site should be confirmed, and theneed for an environmental assessment reviewed.The following points should be considered:
The location of an existing market site or anew site should be reviewed to ensure thatit is well located.
The features of the chosen site should beanalysed to identify whether it is suitableand to confirm that there are no constraints.
The chosen site (or sites) should bescreened to see whether an EnvironmentalImpact Assessment (EIA) is needed.
If an EIA is needed, the process forundertaking such a study should be initiated.
The site options should be assessed and theavailability of the preferred site confirmed.
gate or deliver produce directly to urban markets.Investment in a new or improved retail market maysimilarly be wasted if there are plans to move a busstation to the other side of the village or town. Undersuch circumstances, farmers and retailers are likely tofollow the bus station, even if it means conductingbusiness on a vacant plot of land and leaving a purpose-built retail market empty. For such reasons, it is essentialthat existing and planned traffic flows be fully reviewed.
Mapping. Before choosing a site it is essential to see ifmaps are available of:
j the planning context, indicating the potential marketsite in relation to its catchment area, transport linksand other economic and social facilities; and
j the potential market site (or sites), showing itsphysical layout and facilities, including infrastructureservices.
Sources of such information are survey departmentsand local authority engineers. Other relevant data mayalso exist, such as aerial photographs and planningreports. The mapping process is discussed in furtherdetail in Annex A.
Step 5.1Review suitability of site locations
The first step in choosing a market site is to ensure thatits location is satisfactory. The essential locationalcharacteristics that a site should have are:
j There must be easy access for deliveries to themarket. If the market is not well located, producersmay bypass an assembly market and try to supply anurban market directly.
j Primary markets that are mainly retail in natureshould be close to where consumers live so that it isconvenient for them to use the market.
j Both primary and assembly markets should be closeto public transport facilities and, preferably, also closeto other commercial and social facilities.
These locational characteristics are important,whether an existing market is to be upgraded or a newsite is to be selected. At this stage there may be anumber of alternative sites for the market and it may alsobe necessary to choose between upgrading an existingmarket or relocating it to a new site. Some examples oftypical locational factors in selecting a site are shown inFigure 4. 45
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Figure 4Market location characteristics
In this example the market site wasidentified in a local action plan and locatedadjacent to a proposed bypass road. Thesite was within a short walking distance ofthe centre of a small district town and nearto the district hospital, a potential customerfor produce.
The site for this market is relatively flat,compared to adjacent areas, but as it waslocated in a minor valley there werepotential drainage problems, This issuewas addressed in the layout plan of themarket and the design of the infrastructure(see Figures 6 and 7).
KEY1 Possible market site2 District centre
and mini-bus stand3 Local district hospital4 Proposed bypass road5 Existing main road to the capital6 Steep slopes7 Valley with drainage problems8 Sports field
2
8
0 50 100 150metres
Ónorth
1
6
4
5
3
4
7
Step 5.2Reviewing site features
After a list of the potential sites has been drawn up, it isthen necessary to look in detail at the individual sites.The factors that should be considered are as follows.
j Will the site meet the needs of the users, as identifiedin Stage 3? Is the site, or a nearby location, alreadybeing used for marketing, thus suggesting that thelocation is suitable?
j Is there sufficient space on the site to accommodatethe required facilities that were identified duringStage 4?
j Is the site available for market use (see alsoStep 5.5)? Does the use of the site as a market fit inwith local planning or zoning requirements?
j Can the site development be coordinated with otherprojects or linked to road and other transportinfrastructure upgrading?
j Is there good access for pedestrians and uncongestedroad access for vehicular traffic?
j Will the site be easy to develop? Generally, buildingcosts are lower for flatter sites.
j Are there any breaks in slope that will need retainingstructures?
j Are there soil problems, such as contamination, lowbearing capacity or swelling clays?
j Are there any potential hazards, such as flooding,erosion or landslide problems?
j Could there be any negative environmental impact(see Step 5.3)?
j Are any public services, such as water or electricitysupply, available on the site?
The result of the site analysis will be a list of the sitecharacteristics, which can be noted on a map of eachpotential site. An example of a simple site analysis mapis shown in Figure 5. Such a map will also form anessential basis for the site planning process to beundertaken in Stage 6.
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Figure 5Market site analysis
Site analysis looks at development optionsand problems. In this case, the originalmarket site was rejected as it causedcongestion on the main road andobstructed the view from a guest house. Theonly viable alternative in this steeplysloping settlement was an area adjacent toa fast flowing river with a potentialflooding risk, requiring river training toprotect the site. In compensation, the sitecould accommodate some future expansionand easily be provided with parking,drinking water and electricity supplies.
KEY1 Proposed market site2 Road to district centre3 Main road to capital4 Bridge over river5 Landfill parking area6 Original market site7 Guest house8 Expansion/parking area
2
8
0 metres 40
Ónorth
1
6
5
3
4
7
riverbank
3 large trees providingmorning shade
water supply
electricitypole
opendrain
steps
Step 5.3Determine if an environmental assessment
is needed
Environmental issues need to be taken into account atan early stage to ensure that any positive impact ismaximized and any negative impact is either preventedor reduced to a minimum. A well-formulated marketdevelopment should not have a negative effect on theenvironment or on the local population. Any negativeimpact can be reduced, but at a cost. It is better,therefore, that the potential impact is recognized fromthe beginning.
Environmental Impact Assessment (EIA). This is aprocess for preparing a balanced appraisal of a projectby predicting and evaluating the likely effects that adevelopment activity could have on the natural andhuman environment. The EIA is undertaken before theactivity starts. Small rural markets do not usually needan EIA, although it may be required where a donor fundsthe market.
Screening. This establishes whether a detailedassessment is needed. Guidance on the criteria forscreening needs to be obtained from a relevant
government department or agency. Screening criteriausually relate to the type of land use and scale ofdevelopment. Most industrial activities and large-scaledevelopments require an EIA.
Step 5.4Prepare an impact statement
When an EIA is required, the market owner or ruralplanner usually prepares it. Most rural technicians cancarry out an initial assessment (IEIA), but a full-scale EIAis likely to need the assistance of a specialized agencyor of private consultants.
When the EIA has been completed a government orspecialized agency usually reviews it and comments onthe proposals. A formal environmental consent is oftenneeded (see Stage 9), and this may also specify whetheran environmental management plan needs to be drawnup. 49
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Table 7Site analysis – example of ranking alternatives
Site characteristics Existing site New site 1 New site 2 New site 3
Site area (hectares) 1.3 1.5 2.0 1.81. Fits needs assessment 1 2 2 32. Adequate size 3 (9) 2 (6) 1 (3) 2 (6)3. Land availability 1 2 3 14. Access 1 1 2 35. Topography 2 1 2 36. Services availability 1 2 3 37. Environmental impact 2 3 2 18. Hazards 2 3 2 19. Planning context 2 1 1 3
Maximum score 27 ( or 33) 15 (21) 17 (21) 18 (20) 20 (24)
Note: Lowest number = best option
Step 5.5Review site options and availability
The last step of this stage is to review the site options,choose the best option and confirm the availability of thepreferred site. The information obtained during theprevious steps needs to be gathered and compiled intoa ranked tabulation of the alternatives (see Table 7).
Ranking. If there is only one possible site, the purposeof this analysis is to ensure that it fulfils all the criterialisted in Step 5.3. If there are a number of alternativesthe simplest approach is to prepare a table (as inTable 7) in which they can be compared. This can bedone by ranking the factors for each site on a scale of 1to 3 (with 1 being best and 3 worst) and then totalling allthe factors. If the market users find some of the factorsmore important than others these could be “weighted”.
Thus, in the example shown in Table 7, the “existingsite” offers the best alternative. However, because thissite is the smallest, it may not be found viable at the timeof detailed design. This problem could be reflected byweighting factor 2 (site size) using a ranking of theoptions on a scale of 3 to 9 (the alternative scores aregiven in brackets in Table 7). In that case the overall
ranking of the options would change and “new site 2”would become the preferred option.
Site availability. Site availability is often one of the mainconstraints to choosing a site. Ownership or title to theland must be clarified and the relevant planning, buildingand environmental consents obtained. If compulsoryacquisition is not possible, an agreement to purchase orrent the land will need to be made with the landowner.This may be a private owner, a local authority or acommunity. These issues need to be clarified at the siteselection stage and before any detailed site planning isstarted (Stage 6).
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6 Preparing the site plan
STAGE 6PREPARING THE SITE PLAN
Site development principlesThe next stage after choosing the site is to prepare adraft master plan. This is a method of organizing thedifferent uses on the site and should incorporate all theneeds of the users and take account of the factors thatinfluence the management and operation of the market.A good plan reflects these factors well and provides themaximum benefit for the minimum investment. A badplan can hinder the market’s operations. At this point, theplan will only be tentative. It will need to be finalizedduring the detailed design in Stage 7.
Market development is often an ongoing process. Atfirst there may be an open market in a street or on apiece of vacant land with temporary stalls. This may befollowed by the construction of simple sheds. Assumingsufficient land is available, the market might graduallyprovide more specialized facilities, justifying theprovision of covered market buildings. A small ruralmarket might start with the building of a perimeter walland provisions for paving and rubbish collection facilities.Covered stalls might then be built when the resources
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In Stage 6 an overall master plan is preparedfor the site incorporating all design elements.This provides a framework for all activities thatwill take place within the market. The followingpoints should be covered:
All relevant design information obtainedduring the previous stages should begathered together.
The site design should be organized toreflect the users’ needs.
The road system inside the market shouldbe designed to maximize efficientcirculation.
Supplementary uses, such as public spacesand landscaping, should be incorporatedinto the site plan.
The site plan should be finalized. Changesmade during the detailed design ofbuildings and infrastructure (see Stage 7)should be incorporated.
are available. The site plan will need to take into accountthis evolution. Initially, lack of resources may mean thatit won’t be possible to meet all the needs of the users,but provision should be made so they can beaccommodated in the future.
Step 6.1Gather design data
It is necessary to gather all the information that has beenassembled during the previous stages. The social,physical and institutional factors that need to beconsidered in preparing a site plan are:
j site analysis maps (from Step 5.2) showing thegeometry of the site, its boundary, whether it is flat orsloping and the positions of vehicular and pedestrianaccess points;
j maps showing the surrounding land uses andinfrastructure facilities, such as main drains, sewers,overhead power lines, adjacent buildings, and busstops; and
j tabulation from Stage 4 of the areas of buildingsrequired, the number of users’ spaces and lists of anyspecial facilities that may be required, includingenvironmental impact mitigation measures.
Step 6.2Organize land uses
The purpose of this step is to reflect the views of theusers on how the activities on the site might beorganized for maximum efficiency.
Zoning land uses. The question of segregatingassembly and retailing functions is a difficult issue. Fewrural assembly markets are used exclusively forassembly purposes and many assemblers are also retailtraders. Farmers bringing their produce to assemblymarkets often use the markets’ retail facilities as well.The mixing of assembly and retail functions in smallmarkets can be viable, particularly if the functions areseparated by time, e.g. with assembly taking place earlyin the morning before retailing starts. 55
Another zoning issue is whether specialized usesshould remain in a general market or are better locatedelsewhere. For example, it may be preferable for a meatmarket to be located adjacent to a slaughterhouse.
The different sections of a market can be set up asfollows:
j fresh fruit and vegetable retail trading areas;j temporary sales areas for producers and assembly
traders;j meat, fish, poultry and egg sales;j sales of grains and spices;j sales of cooked food;j other non-food sales, such as clothing and household
goods;j general circulation areas (internal and external); andj other uses, such as storage, administration and
public toilets.
Grouping sales outlets. The direction from which mostcustomers arrive influences the location and grouping ofstalls. Customers often come from a main point such asa bus stop or from the direction of a more denselypopulated area. It is preferable that stalls for productsthat people buy on an almost daily basis, such as rootsand tubers, fruits and vegetables, be located away fromthese approaches so customers can be drawn into themarket. If retailers are grouped by type of product,
competition will be greater, which should be beneficialfor consumers.
Some food stalls, such as those used by butchersand fishmongers, may be incompatible with others.These should be located in different sections of themarket or at least separated by a main path or aisle.
Temporary and small-scale vendors. Small-scaleretailers or farmers often operate in the area surroundinga market, causing congestion and competing with thepermanent retailers, as consumers may find buyingoutside the market quicker. However, it is not desirableto remove such small-scale traders, as they would losetheir means of livelihood. These temporary vendors andproducers sometimes operate during limited days of theweek or for a limited season. Ideally, separate spaceswithin the market should be provided for them and dailylicences issued.
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Step 6.3Plan vehicular access and circulation
Easy access to the market is essential for efficientmovement of goods and people.The best form of accessis for public transport to be provided with a stopping pointat the front of the site and for the service access to beat the side or rear of the premises. With a small ruralmarket this is achieved by providing:
j an access road to one side of the market; orj a perimeter road around the market site (the typical
market square).
For larger markets, an internal road system, whichhas neither short cuts to other destinations nor dead-ends (cul-de-sacs), could be provided.
A road running through the centre of the market area(i.e. effectively creating a street market) causes the mostcongestion and is not a recommended option.
To avoid traffic accidents, junctions of loop roads tomain roads should be T-junctions (i.e. having only threepotential collision points compared with the 16 that occurwith crossroads). The T-junctions should be as near as
possible at right angles so that maximum visibility atcorners is obtained. Separating cars and pedestrians isnot necessary in rural markets, although priority shouldbe given to pedestrians, at least during the main hoursof operation. A workable circulation system is to developpedestrian paths roughly at right angles to the serviceroads. Some of these characteristics are included in themarket layouts shown in Figure 6.
Parking. Separate parking areas should be available forvisitors’ vehicles. In larger markets traders should beallocated separate parking for their vehicles, usually inan area from which the general public is excluded.Delivery vehicles need to be able to unload close to themarket stalls, although this may not be possible for allretail markets. To reduce congestion, deliveries shouldnormally be made before trading starts (usually earlymorning) and rubbish collection and cleaning should beundertaken at the end of the working day. Signs aredesirable to indicate who is allowed to park and at whattime parking is permitted. The relationship of the marketto bus stops and petrol filling stations is also importantand ideally all these facilities should be located closetogether. In most rural markets, parking areas forbicycles, motorcycles and animal carts are a greaterpriority than parking for private cars.
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Figure 6 Basic layouts of rural markets
The basic layout of a rural market will depend on physical site conditions, the level of investment and local cultural preferences.
Example A: The simplest solution is a street market, with stalls either onone or both sides of the road. This is really only suitable if the market isnot on a main road.
Example B: A traditional solution is to locate facilities (open sales areaor covered stalls) in a central square or village green, with a road systempreferably around the edges.
Example C: Another common form is a dedicated market site, which isoften enclosed by a wall or fence. The sketch layout on the opposite pageis an example and shows the evolution of the site location plan illustratedin Figure 4.
KEY1 New covered market stalls 2 Open sales area 3 Dairy and meat stall 4 Future covered market stalls 5 Parking 6 Future parking 7 Paved area 8 Future paving 9 Future shed/cold room
10 Future toilets 11 Planted area 12 Steps 13 Existing road connecting hospital to centre 14 Assumed alignment of future bypass road
Example A: Street market
Example B: Market square
Example C:Dedicatedmarket site
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Figure 6, continuedA sketch layout
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Step 6.4Plan for supplementary uses
Public space. The market should provide an atmospherefavourable to selling. For larger markets the circulationsystem is usually best arranged so there is a “hierarchy”of spaces, with one or more major trading areas, off ofwhich there are minor spaces serving other functions.
Location of facilities. Facilities that serve all marketusers, such as toilets, rubbish bins and boards that giveprice and other information, should be centrally locatedso that they are easily accessible. In larger markets, suchfacilities will need to be provided in several differentlocations.
Marketing of live animals. Livestock has no placeinside a food market. A separate enclosure with its ownwater supply is needed. The humane treatment ofanimals is important to maximize the benefits of livestocksales, and basic principles of animal husbandry must beobserved. In most rural markets there is no possibility oferecting a separate building for poultry. Therefore, thebest solution is usually to house the birds in cages in awell-ventilated area, close to the exit and separated bysolid masonry walls from other parts of the market.
Uses around the fringe of the market. It is importantfor a market to be a lively place in order to attractcustomers. Spaces should be allocated around the edgeof the market for business activities such as small-scaleshops. Seating accommodation is a common feature onthe fringe of traditional market spaces, for both tradersand shoppers to relax. Spaces are often provided forcafés and cooked-food stands, which should beconcentrated at junctions of roads and paths in order tomaximize trade. Portable stands or small huts arenormally used.
Site landscaping. Facilities are needed to make the sitecomfortable for users. Existing shade trees should beretained and new trees planted wherever possible. Treeguards made of wooden stakes or steel gratings shouldbe used to protect trees. In larger markets, outdoorseating should be provided. Low walls can provideappropriate seats.
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Step 6.5Finalize the site plan
After reviewing all the planning factors discussed abovea draft site plan can be prepared. Approaches topreparing site plan maps are discussed in Annex A. Themain factors that must be reflected in the site plan are:
j the dimensions of the market elements, such asoptimum size of buildings and stalls, width of streetsand drain reserves (see Annex C);
j land-use zoning and provision of adequate circulationand parking areas, which include space for animalcarts, cycles and motorcycles (Steps 6.2 and 6.3);
j orientation of buildings in relation to climatic factors,such as maximizing air flow through buildings andminimizing solar heat gain by staggering the buildingsin relation to each other and orienting them on aneast-west axis; and
j meeting any requirements set down by the localauthority to conform to minimum structural, publichealth, hygiene and disabled-access standards.
Checking areas. The first part of the process is to totalup the sales and circulation space and check whether itbroadly corresponds to the overall area projected for the
market in Stage 4. If necessary, adjustments to the totalrequirements can be made to take account of existingfacilities. If an existing market is sub-standard it is betterto consider its redesign as though it were a new market,making allowance for existing facilities.
Consulting with users. An important part of theprocess is to consult with market users. The marketcommittee should be given the opportunity to examinecritically the market layout and building designs to see ifthey fulfil the requirements set down in the design brief.Users may need to be presented with a number ofalternative site layouts so that the most suitable can bechosen. This cannot be undertaken until the next stagehas been completed.
After Stage 7 it will usually be necessary to revise thedraft site plan. An example of a rural market site plan isshown in Figure 7.
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1 1
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Adjusted site layoutfor Monggar market, Bhutan
DAIRY STALL1a
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Figure 7 Example of a rural market site plan
To construct a rural market it is necessary to preparedimensioned drawings that can be used by contractorsfor setting out and construction. This figure shows thedetailed planning that was needed to develop the siteillustrated in Figures 4 and 6. The main features shownon the site plan are:
Key1 Market buildings, stalls and pitches
1a Dairy market2 Stores and market offices 3 Paved areas for pedestrian circulation 4 Access roads 5 Parking areas, including defining parking
bays 6 Changes in level – steps and ramps 7 Walls and fences 8 Landscaping – new and existing trees and
grassed areas 9 Drains and culverts
10 Other infrastructure – garbage collectionpoints, toilets, street-lights and water supplypoints
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The new cheese and milk market at Monggar, Bhutan.
7 Deciding on the buildings and equipment needed
STAGE 7DECIDING ON THE BUILDINGS
AND EQUIPMENT NEEDED
The purpose of this stage is to use the space projections(from Stage 4) to design the buildings and infrastructurein detail, within the context of the draft site plan (fromStage 6). This is mainly the responsibility of a ruralengineer or architect.
Step 7.1Design buildings
The first step in the detailed design process is the designof the market buildings. In the context of markets,buildings can include many forms of structures, rangingfrom simple isolated stalls and open-sided roofed shedsto fully enclosed buildings.66
In Stage 7 the building and infrastructuredesigns are completed. The following pointsshould be covered:
The detailed designs for buildings and stallsare prepared.
The detailed designs for infrastructure suchas roads, paving and services are prepared.
The necessary environmental mitigationmeasures are identified and integrated intothe project design.
A list of the equipment needed for themarket is drawn up.
After completing these steps the site plan (SeeStage 6) may need to be amended toincorporate changes made during the detaileddesign of buildings and infrastructure.
Facilities requiredThe basic issue to resolve is whether the market shoulduse open-air stalls, purpose-built buildings or acombination of both of these. The facilities required forsellers of fruits and vegetables are much simpler thanthose required for traders of higher-value goods, such asclothing, who will invariably need lock-up facilities. It isnecessary to determine the number of sellers requiringfacilities under cover and the number who prefer to sellin the open air, perhaps providing their own stall. In manyperiodic rural markets only the permanent tradersoperate under cover. Although everyone might wish to beunder cover, there has to be a clear relationship betweenthe level of rent and fees charged and the quality offacilities provided.
Market stall design. The basic module of any marketdesign is the individual market stall. The size of salesspace may vary widely. Some sellers may only trade asingle sack of fresh produce a day (25-50 kilograms). Asmall stall or trestle table would be appropriate for them.There may also be a need for very large stalls, forexample, for specialized traders in grains or dry foodswho require additional space for storage.
Designing stalls in a modular fashion so that anumber of stalls can be combined to form a larger unitnormally addresses such design problems. Standarddimensions of stalls are given in Annex C. An exampleof stall arrangement is given in Figure 8.
There are many forms of multi-use stall design,depending on local cultural preferences. They can bebased on the trader standing behind the stall, standingin front of the stall or sitting on the stall to servecustomers.The distance a person can reach determinesthe overall dimension of the stall. It is essential to consultwith traders on the suitability of the stalls and theirdimensions before finalizing the design. In some casestraders may have problems in understanding drawingsor designs. In such circumstances it would be useful tomake a model of the planned stalls. Too often, marketsare designed without such consultation. This often leadsto traders redesigning their stalls after moving into themarket. In one market in Nepal, for example, traders tookadvantage of the high ceilings of their individual lock-upstalls to build a second floor to provide sleeping quarters.Such lock-up stalls, often placed around the perimeter ofthe market, are frequently the most popular with sellers.
For small rural markets it is common for stallholdersto provide their own stalls (e.g. umbrellas, barrows withan integral roof, or simple structures that can be collapsedat the end of the day).They usually have a canvas awningor plastic-sheeted roof spanning between a timber,bamboo or steel framework. In these cases, the marketstalls are the property of the individual stallholders andare not subject to any design control. Alternatively, themarket could provide standard prefabricated stalls on anindividual or group basis, the rental fee reflecting the useof the stall as well as the space. 67
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Figure 8 Design of market stalls
The design of market stalls will depend onwhether traders’ premises are enclosed oropen and what method is customary for thesale of produce. A way of understandingthis is to look at the arrangement and thespace needed as a cross section. There arethree basic ways the sellers might use theirsales spaces:
Example A: The trader stands behind afixed stall or trestle table. Produce canbe stored and displayed both under thestall and behind the trader.
Example B: The trader sits on the stalland serves the customer by reachingforwards over the displayed produce.
Example C: The trader stands in theaisle and serves the customer fromgoods displayed and stacked behind
These arrangements can be applied to openpitches, fixed stalls or lockable units. Theminimum width of a stall or pitch should be1.5-1.8 metres. Another issue to resolve isthe extent to which shelter is provided forcustomers: by either extending the roofoverhang over the aisle or by placing thepitches or stalls in a wide span structure.
C. selling from the aisle
A. selling fromtrestle tables
A. selling from fixed stalls
B. selling while sitting on the
stall
Meat and fish stalls. Although fresh fruits andvegetables may make up the majority of the food stalls,it is likely that facilities for butchers and fishmongers willalso be needed. It is important from a health point of viewthat these facilities are concentrated in one location.Theprovision of a water supply, fly-proof meat safes andhanging rails for meat is essential.
Poultry marketing. If chickens, ducks and geese aresold slaughtered the sales facilities will be similar tothose used for fresh meat or fish. For a market seller,however, live birds have an advantage over slaughteredbirds in that they do not have to be disposed of at theend of the working day. In simple rural markets livepoultry may be displayed in an open enclosure or in thebaskets in which the birds were transported to market.The poultry can be either purchased live (i.e. forslaughter at home) or slaughtered and plucked ondemand in the market, in which case the provision ofseparate slaughter facilities is necessary.This requires ashackle for hanging the birds and hot water for scaldingcarcasses. Provision should be also made forcondemned carcasses, which are usually taken awayfrom the market and incinerated.
Egg marketing. Eggs are sold by grade, usually inbaskets, cartons or trays. Samples of the eggs are oftendisplayed on a table or bench. As eggs are perishable itis essential they be located in the coolest place, withadequate shade and cross-ventilation. 69
A fixed-roof market structure where sellers sit next to their produce (see Example B on opposite page).
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Figure 9Layout of market buildings
This figure shows two typical types of small-scalemarket buildings: an open shed with pitches onwhich the sellers sit and an enclosed marketbuilding, in this case a facility for the sellers ofmeat and cheese products. The layout alsoillustrates selling from trestle tables under a shadetree and selling cooked food from a mobile stall.
KEY1 Double-sided open shed pitches,
1.5 × 2.25 metres2 Booths for sale of meat or cheese3 Sink and preparation counter4 Serving counter, with shutter5 Customer area in enclosed
single-sided building6 Entrance steps7 Paved area for pedestrian circulation8 Trestle tables under shade tree9 Cooked food stall, under umbrella10 Wall used for sitting11 New and existing trees12 “V” drain13 Garbage collection point14 Water supply point
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Design of market buildingsA typical layout for simple market buildings is shown inFigure 9. The fixed stalls can either be accommodatedin single-sided buildings ranged along the external wallor in double-sided blocks (as in the figure). With thelatter, access can either be from the perimeter or stallscan be approached from a walkway through the centreof the building. The walkway is particularly importantwhen protection from weather conditions is a majorconsideration.
The extent of enclosure of the market building (walledor not walled) and the requirements for security,particularly for storing products, determine the overallinternal circulation system. Maximum airflow can beprovided by constructing an open-sided shed, with eitherfixed stalls or pitches (defined areas of the market floor)for sellers laid out within it. A conventional arrangementof covered markets is to have two or three aisles, withone or two double-sided sets of stalls down the middleof the building and single-sided stalls on the perimeterlooking into the market.
Storage. Many users would like to have storagefacilities. A simple lockable cupboard under a stall isoften sufficient. Stalls that can be closed off with pull-down shutters or separate lock-up retail shop units aremore secure.
Construction methodsUse of resources. If at all possible buildings in ruralareas should be constructed using locally availableresources such as materials, craftsmen and labourers.The rural engineer may have to undertake a rapidappraisal of what resources are available and at whatcost. Traditional building crafts are also appropriate touse, particularly for walling, roofing, plastering,carpentry and joinery. These methods are highlyadaptable for creating simple market structures,although it is not always possible to use them becausethey may require skilled craftsmen. Some level of off-siteprefabrication of parts of the buildings, such as rooftrusses, may also be needed.
Fire and air pollution. Fire is common in rural areas,particularly dry-season bush fires. If fire-resistantmaterials are not used the minimum distance betweenany rural buildings should be from 6 to 8 metres. Thelocation of fresh and cooked food stalls should bedownwind from odours, dust and flies. Fires in marketsare, unfortunately, quite common and the use oftraditional building materials can increase the risk.
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Step 7.2Design infrastructure
In parallel with the design of the market buildings thedesign of the infrastructure needs to be consideredcarefully. Features of some of the key infrastructureelements are shown in Figure 10.
Paving. This is required for roads, parking areas andpedestrian circulation. Ideally, a market should havecompletely paved surfaces, using asphalt, in-situconcrete or, where vehicular traffic is minimal, some formof paving units such as pre-cast concrete or stoneblocks. The cost of paving, however, can often take upmost of the limited budget that is available for marketconstruction and maintenance. It is important thereforeto find an economic solution to paving. Although easy toclean and wash down, paved surfaces of markets cancause severe run-off and erosion problems. Small-scale,rural markets may be effectively paved using moretraditional materials such as brick, stone cobbles or evencrushed and rolled gravel, which allow some of therainwater to be absorbed into the subsoil.
Pedestrian safety measures. At intersections of pathsand roads it is necessary to provide a crossing where the72
While using locally available materials is recommended, there are risks– this thatched roof in a market in Papua New Guinea burned down.
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pedestrians have the right of way over vehicles. Aneffective method is to provide a physical interruption inthe road, such as a speed hump, so that the vehicles areforced to slow down.
Pitch markings. For sales in open areas the spaceallocated to the traders, frequently called a “pitch”,should be clearly outlined. The size of the pitch shouldbe based on the experience of stallholders’ needs.Methods for defining pitches include road-line painting orusing a different construction material (e.g. defining thepitch using a concrete strip). The most importantconsideration is that the paint or other method of definingthe pitch should not be worn away by normal foot traffic.It is also important to distinguish each pitch bynumbering. Painting the pitch number on the paving isthe simplest method.
Surface water drainage. A key issue in designing anypaving system is the method of drainage. Clogging ofpoorly designed or maintained drains is a commonoccurrence at many markets. In small markets it may notbe necessary to have any internal drains within themarket area as all the rainwater can run to perimeterdrains. This is not possible in larger markets, whereinternal drains must be installed. This presents twoproblems: the difficulty of routine cleaning, particularly ofdebris from vegetables, and the potential obstruction thedrains introduce, both to delivery vehicles and foot traffic.
To counteract these problems the drainage channelsneed to be set as flush as possible with the general levelof the paving. Dished-shaped drains are generally easierto keep clean. They are damaged less than other typesof drains when a vehicle inadvertently enters them. Draincovers using fixed steel grills are invariably damagedand should be avoided. If covers must be provided theyshould be of a lift-out type. Ignoring these problems willnot help, as market users often take matters into theirown hands by, for example, back-filling a drain with earth.Like any drainage system the alignment and gradientsshould be designed so that the velocity of the watercreates self-cleansing drains. To achieve this it is betterto start the drainage runs with a minimum depth at thestart of the drain run (i.e. the drain bottom at the samelevel as the pavement).
In rural areas drainage generally discharges directlyinto streams, ponds and open water areas, which canbecome highly polluted if wastewater (such as fromtoilets) and garbage are disposed of in a watercourse.
Water supply. A water supply at a reasonable walkingdistance is important for markets, particularly forwashing down the market area and for products such asfish. In rural markets water is usually pumped from aborehole, with a raised concrete apron to preventpolluted water from running into the ground andcontaminating the supply.The supply should probably be
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Figure 10 Market infrastructure and facilities
Market infrastructure is a main component of the overalldevelopment costs. It is a false economy to try and minimizethese costs as without appropriate infrastructure a market willnot operate effectively. The key infrastructure is roads andpaving, drainage and solid waste disposal. Water supply isalso important, particularly if the market’s trade includes meatand fish sales. The design of the infrastructure will depend onwhat materials are easily and economically available locally.In the examples shown here there was a plentiful supply oflocal stone, timber and sand, but the costs of other materials,such as cement and steel, were high due to the need totransport them over long distances.
mass concretestilling basin
masonry wing wall
grassed em- bankment
reinforced concretebridge slab and kerb
1.5 - 2.5 metres 1.5 metres
concrete slabs onsand bedding
masonry ‘V’ drain
masonry retaining wall
1.5 metres
stilling basin
pipe
stone pitching
bridge deck
section through paving and retaining wall
section through culvert
0.9 m dia. concrete pipeon concrete haunching
elevation of culvert
0.5 metres
min. 1 in80 fall
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Figure 10, continued
steel lighting column onconcrete base
hingedsteel meshflap doors
plan and section through garbage collection and water supply point
plan
section through bin/equipment store and site lighting/road verge
reinforcedconcreteslab rendered
block wall
lever tap
reinforcedconcreteslab
garbagepit
section
0.2
1.4
met
res
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fall0.
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1.8 metres 1.0 metres
1.5 metres 0.2 outfall
garbagepit
flapdoors
renderedblock wall
reinforcedconcreteslab
reinforcedconcreteslab
cleaningmaterials
0.15 1.2 metres 0.15 1.0 metres 0.15
0.3
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barrow
bins, broomsand buckets
dresses stone cobbleson sand blinding oncompacted sub-base
masonryverge/wall
located on the perimeter of the market, using theoverflow to flush out drains, rather than directing itstraight to an outfall.
The water supply should be on an individual basis forbutchers and fishmongers; however, to reduce costs awater point can be provided on a group basis.
Sewerage. Standards for providing toilet facilities areshown in Annex C. It is important that toilet provision isnot made without there being an integral or nearby watersupply for washing hands. There should also beprovision for some form of on-site treatment of effluent(such as a septic tank). It is vital to ensure that thetreatment is carefully located to minimize any potentialcontamination of ground water sources.
Garbage disposal. As waste in rural markets is mainlyorganic it does not usually create major problems;however, arrangements must be made for its collectionand disposal. There are three options: aerobiccomposting; anaerobic digestion (biogas production);and disposal through burying or sanitary landfill. Thereis no point in providing containers or constructinggarbage pits if a collection system has not been set upas part of a routine maintenance programme. Theprovision of small, easily cleaned containers throughouta market area is preferable to the construction of largepits remote from users (see Step 7.4).
Electrical supply and street lighting. The supply ofelectricity is not affordable in most rural markets, exceptthose located in important rural towns, where it can beprovided externally using conventional streetlightsmounted on lamp standards or fittings attached toadjacent buildings. Lighting for market buildings isrelatively easy as fittings can be suspended from the roofstructure. The fittings should be robust (either industrialquality pendant fittings or fluorescent tubes) and easilyaccessible for replacement of bulbs or tubes. Long-life,low-energy fittings are highly appropriate for marketbuildings.
Traders selling meat, fish or dairy products may needan individual electrical supply to run a small refrigeratoror chiller cabinet. Separate metering is essential in thiscase, unless a special charge for power use is includedin the stall rent.
If a mains supply is not available, an auxiliary powersupply may be needed, using diesel-driven generatorunits. However, the environmental impact of this requiresparticular attention, as there could be air pollution frompoor maintenance of equipment and diesel spillage fromthe generator itself or from on-site fuel storage tanks. Inorder to minimize potential risks, a concrete apron slabto the generator or tank, with a raised stand, should beprovided.
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Fencing and gates. The market site may require fencingfor security purposes, using walls of buildings around theperimeter, close-timber fencing, brick walling or chain-link fencing. Gates can be made from timber, steel orframed chain-linking and are usually left open during theworking hours of the market. If there is a need to chargean entrance fee based on the type of vehicle entering themarket, a hinged barrier may be appropriate.
Step 7.3Identify environmental impact mitigation measures
Even if there are no official requirements for an EIA, it isadvisable that environmental mitigation measures areincorporated as “best practice” in the design of markets.Such measures often include the following:
j The design should minimize earthworks and avoidtaking extra land for widening roads or constructingdrainage channels or wells.
j If land is needed for expanding an existing site or fora new site, full compensation payments should bemade. Alternatively, where land is presently in publicownership or village common land is used,memorandums of agreements should be drawn upwith the local communities.
j Soil conservation and reinstatement measuresshould be followed for storage and reuse of strippedtop soil, slope treatment and surface water drainagecontrol, in order to reduce possible erosion andsiltation risks.
j There should be minimum interference with thehydrology of existing rivers and streams. This meansminimizing scour around culverts and drainageoutlets, and preventing backing up.
j Drinking water must meet the minimum qualitystandards for potable water.
j Provision should be made for the handling andtreatment of organic or toxic effluents; includingcreating an appropriate solid waste managementsystem (locating sanitary landfill disposal sites andmaking provision for haulage transport).
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Step 7.4Decide on the market equipment
The next step is to decide on the equipment needed forthe operation of the market. Most rural markets have onlyvery limited equipment, which may include the following.
Trestle tables and display stands. The simplest formof sales space is the trestle table. It should be made oftimber sufficiently robust to stand the heavy wear thatoccurs in markets. Alternatively, fixed stalls made ofpermanent materials, such as concrete or masonry, canbe provided. For the sale of fish, meat, dairy productsand cooked foods such stalls should be covered withtiles or stainless steel to make them easy to clean. Aseparate chopping block or table should be used forgutting and boning. Where wall space is available, tiereddisplay stands can be used, with wide shelves at thebottom, reducing in depth at the top of the stand.
Prefabricated market stalls. Such stalls are found inmany markets and can be used by an individual traderor for a pair of traders. The most common materialsused to manufacture these stalls are brick or stonework,steel or timber or a combination of these. They canincorporate a roof, integral storage, a rail to prevent
produce slipping off the sales area and a small shelf ata lower level, convenient for shoppers to place theirbags.
Weighing equipment. Individual stallholders normallyown their equipment, but the market may haveweighing equipment for checking purposes. The moresophisticated forms of equipment, such as a dial orelectronic scale, are not appropriate in rural markets. Aspring balance or a steelyard with a suspended arm areboth inexpensive, but the most convenient is likely to bea pan scale. For accurate weighing, a complete range ofweights, ranging from 50 grams to two kilograms, isneeded. Assembly markets do, of course, require largerscales. In some countries, such as Indonesia, weighingservices are provided by private individuals who ownwheel-mounted platform scales.
Equipment for the disposal of solid-waste. All ruralmarkets need simple cleaning equipment, such asbrooms and wheelbarrows. For waste disposal, the usualpractice in rural markets is for solid waste to be taken (bycleaners and/or the traders themselves) to a centrallocation, such as a walled enclosure, from where it isreloaded onto a refuse collection vehicle, such as atractor or trailer. It is usually very difficult to keep thesefacilities clean, particularly as the refuse is double-handled. A more satisfactory method is the use ofreceptacles with a capacity of 2 m3 to 3 m3, made fromsheet steel, which is relatively easy to clean.78
8 Checking the market’s viability
STAGE 8CHECKING THE MARKET’S VIABILITY
Overall approachThe purpose of this stage is to make an assessment ofthe market proposals to ensure that they areeconomically sound. The market’s impact has to bequantified, expressing costs and benefits in financialterms to see whether the capital and running costs arelikely to be covered by the expected revenues. Thisdepends on two factors: expenditure levels and themarket’s ability to attract traders willing to rent or leasespace. The costs must be covered. In order to achievethis, investments in physical infrastructure must be keptto a minimum by using low-cost construction methods.
The market must also be evaluated in social andqualitative terms. By combining all these factors it shouldbe possible to demonstrate that it is socially, technicallyand economically viable. The method of doing this is toprepare a feasibility study.The factors involved in makingthis assessment are explained in Step 8.5. However,before reaching that step it is necessary to make somepreliminary calculations (Steps 1 to 4).
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Before proceeding with construction it isnecessary to test whether the proposals aresocially, technically, financially andeconomically sound. In Stage 8 the overallviability of the market proposals should beverified. The following points need to becovered:
An estimate should be made of constructionand equipment costs.
An estimate should be made of the market’soperational and maintenance costs.
The market’s benefits should be assessedand revenues forecast.
The market’s financial feasibility should betested.
An overall assessment should be prepared.
If the project appears not to be financially,technically or socially feasible, the designsshould be amended and the market’sfeasibility reassessed.
Step 8.1Estimate development costs
Detailed budget estimates of capital works need to beprepared by the engineer. These estimates will providethe basis for making a cash flow projection on a year-by-year basis and should be undertaken as carefully aspossible. The cost of preparing a design is a smallproportion of the total cost while the benefits derivedfrom ensuring appropriate design can be substantial.
Buildings. For simple markets the estimated cost ofbuildings is usually derived from the costs per squaremeter of buildings constructed using similar standards.Open-shed constructions will obviously cost less thanbuildings enclosed by walls.
Infrastructure and other costs. Infrastructure costssuch as roads, bridges and culverts, drainage and watersupply, should be calculated by using prices that reflectlocal conditions and material costs. Preferably, theyshould be priced in detail using unit rates derived fromrecent contracts of a similar scale. Other costs mightinclude:
j pre-development costs, including site survey,planning fees, official permit fees and financingcosts for banks and other lending institutions;
j land acquisition costs, including legal fees, dutiesand property taxes;
j site preparation and clearance;j environmental impact mitigation measures; andj design and supervision costs (for engineers and
planning consultants).
Equipment costs. The most accurate way to estimatecosts for equipment or vehicles is to obtain quotationsfrom manufacturers or suppliers. For special items, suchas prefabricated stalls or trestle tables, local craftsmenmay be able to provide quotations.
Overall costs. An example of how to estimate thedevelopment cost is shown in Table 8.
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Step 8.2Estimate recurrent costs
In addition to the capital costs of civil works andequipment it is necessary to estimate the annualrecurrent costs of operating and maintaining the market.The estimate for a new market requires someguesswork. For an existing market the present recurrentexpenditure provides a guide.
The recurrent costs of an existing market mayincrease or decrease as a result of improvements. Anincrease will occur if more staff is employed or ifadditional services are used, such as electrical power.Running costs may decrease if a rationalization ofmanagement results in reduced staffing requirements orif improved infrastructure results in reduced operating,cleaning, maintenance or insurance costs.
An example of how to estimate recurrent costs isshown in Table 9.
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Table 8Market development costs
Average cost per m2 for market buildings $ 250Multiply by gross internal floor area (m2) × 100
Estimated building costs 25 000
Add other costs:Land purchase 1 000Roads and drainage 2 500Water supply/power 750Equipment 1 250Bank charges 750Professional fees 750
Total development costs 32 000
Divide by number of trading units ÷ 24
Average development cost per unit 1 500
Divide by repayment period (years) ÷ 10
Average annual development cost per unit $ 150
Step 8.3Estimating benefits
The next step is to consider the benefits resulting frommarket improvements. For the market users theseimprovements should help to reduce transaction costsby providing more direct and cost-efficient access tomarketing channels and by reducing losses of produceby spoilage. These benefits must be sufficient to attractthe users to pay more for services in an improvedmarket.
These benefits are best calculated in terms of therevenues that can be collected. There are twoapproaches to making estimates of the revenues. Thefirst method is to estimate receipts on the basis ofcharges that are in line with those at comparablefacilities elsewhere. The second method is to estimatethe revenues on the basis of covering costs. In practice,it is best to use a combination of the two methods,checking one against the other and looking at the impactof the changes on the producers’ or traders’ margins. Anexample of calculating benefits is shown in Table 10:
The returns are generally very sensitive to the levelof daily charges and rents charged for the stalls. The 83
Table 9Annual market recurrent costs
Periodic maintenance and repairs $ 2 000Divide by frequency of maintenance (years) ÷ 4
Equivalent annual maintenance cost 500
Staff costs:Management staff 2 500Security staff 500Cleaning staff 1 500
Total annual staff costs 4 500
Add other costs:Routine repairs 150Cleaning materials 50Water/power charges 500Equipment replacement 250Bank charges 50
Total other annual costs 1 000
Total annual recurrent costs 6 000
Divide by number of trading units ÷ 24
Average recurrent cost per unit $ 250
revenues derived from undertaking improvementsshould ideally be sufficient to cover all operating costs,including putting aside funds for future market expansion(and, possibly, for the maintenance of roads around themarket). Revenues may not be sufficient to coverrepayment of capital and interest, even assuming both along repayment period and a grace period beforerepayment.
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Table 10Annual market benefits
Monthly lease rental per trading unit $ 25Multiply by number of months × 12Multiply by number of trading units × 24
Total revenue from leasing 7 200
Revenue from a daily pitch 0.50Multiply by number of peak market days × 100Multiply by visiting traders + farmers × 50
Total revenue from daily pitch charges 2 500
Other revenues (parking, licensing) 500
Total all revenues 10 200
Divide by number of trading units ÷ 24
Average revenue per unit $ 425
Step 8.4Test financial viability
After assembling the information on costs and revenuesit is possible to test the financial viability of the market.
Discounted cash flows. The approach often adoptedfor analysis, particularly when there is external fundinginvolved, is to undertake both a financial analysis and aneconomic analysis using discounted cash flows. Thismeans that the values are shown as “current” costs andrevenues. In this way, it is possible to add and subtractcosts and benefits as though they all occurred in thesame year.The purpose of such an analysis is to assesswhether the sum of the discounted benefits exceeds thesum of the costs, i.e. whether the returns from adevelopment will exceed the sum of the investment anddiscounted recurrent costs. The conventional way ofexpressing profitability calculated in this way is as anInternal Rate of Return (IRR) percentage. Normally aminimum IRR of 10 to 12 percent is required for adevelopment to be considered viable.
The distinction between the two types of analysis isthat a financial analysis evaluates the commercial worthof a development to its owner, whilst an economic
analysis assesses a development’s worth to the wholeeconomy (“public good”). In the latter case, the costs areadjusted to account for any distortions, such assubsidies and taxes. The benefits are not necessarilyquantified on the basis of revenues but on the basis ofreductions in produce losses or timesaving due toreduced traffic congestion.
Sources of how to undertake these types of analysisare given in the list of Further Reading at the end of themanual.
Break-even analysis. A more appropriate approach toevaluating a very simple market development is to use abreak-even analysis, which requires only a normalcalculator. This method is particularly appropriate if theinvestment is being locally funded. This approach todevelopment analysis ignores discounted costs and issuitable for checking whether the level of investment ismatched by the likely increase in rents and otherrevenues.
The method uses the familiar concept of defining thepoint at which a development breaks even, i.e. does notmake a profit or a loss. It can be used to answer thefollowing simple questions:
j What is the minimum rent or market fee that wouldneed to be charged to recover all the capital andoperating costs? 85
j Given the expected rents and market fee rates, whatis the maximum amount that could be spent on theconstruction and on operating expenses?
j Given the likely level of operating costs and expecteduser rates, what is the minimum number of tradersthat would need to take leases on stalls or attend onmarket day?
Some examples of applying break-even analysis areshown in Table 11, using the figures calculated in Steps1-3. This demonstrates that if the overall developmentcosts were $32 000 and operating costs $6 000 a year,the annual revenues from stall hire and rents for 24traders would need to be around $10 200 to break even.If the analysis produces rent levels that traders would notbe willing to pay, the design should be reviewed to seeif it is possible to reduce the capital and operating costs.
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Table 11Viability of a simple market development
a. Break-even rent per unit:Average annual dev. cost per unit (Step 8.1) $ 150Average recurrent cost per unit (Step 8.2) 250Total annual cost per unit 400Average annual revenue per unit (Step 8.3) 425
Annual profit / loss on rents per unit + 25
b. Break-even number of trading units:Total annual leasing revenue (Step 8.3) 7 200
Divide by number of months (Step 8.3) ÷ 12Divide by rent per month per trading unit (Step 8.3) ÷ 25
Number of trading units required 24
c. Break-even capital cost:Total of all revenues (Step 8.3) 10 200
Deduct annual recurrent costs (Step 8.2) 6 000
Net revenue available to cover development costs 4 200
Annual development costs (32 000 ÷ 10) $ 3 200
Step 8.5Assess the proposals
The purpose of assessing the viability of a rural marketdevelopment is to enable a financier to make a decisionon whether to go ahead with the project. This will beneeded whether the financier is a government authority,a private company, a donor, an NGO, a local community,a market committee or a mixture of these.
Questions to consider. The market proposals need toaddress a number of fundamental questions:
j What are the real objectives of the development andwhat are the marketing problems being addressed?
j Have alternative strategies been analysed and hasthe most viable one been selected?
j If the programme is undertaken as envisaged, will itsatisfy the needs of producers, traders andconsumers? How have they been involved in theproject design?
j What is the potential social and environmental impactof the development? Have adverse effects beenminimized?
j Are the proposals operationally workable and arethere any potential risks?
j How will the market be constructed? What are thepotential sources of financing? How long will it taketo construct?
j Are there any preconditions for success?j Will the benefits from development cover the
estimated cost? (Answered by Steps 1 to 4).
The answers to all of these questions need to be writtendown clearly in a report in order that a final decision onwhether to proceed can be reached by those providingthe finance.
Step 8.6Amend the designs
The last step is to review the designs again and amendthem if they are not financially viable or do not satisfy thetraders and other market users. This effectively meansre-examining some of the previous stages (site planning,building design, infrastructure and equipment provisionand staffing levels) until a reasonable viability is reached. 87
It may be necessary to adjust the capital costs, recurrentcosts and potential revenues. As market development isa collaborative effort, with success depending on thequality of market design and management, it is essentialto go back to the users to find out whether it is possibleto make these changes and still satisfy their needs.
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9 Constructing the market
STAGE 9CONSTRUCTING THE MARKET
Constructing infrastructure and facilities is likely to be afamiliar task for the rural engineer and planner. However,with market development there are some differencesthat need to be taken into consideration.
Both the market users and the financiers are probablytotally unfamiliar with the formal steps involved with theconstruction process.They need to be kept informed andthe process needs to be clearly explained to them. Thiscan be done through regular meetings with the marketcommittee. This is particularly important if there are costover-runs or the works are significantly delayed becauseof bad weather or hold-ups in the supply of materials.
A major risk at the construction stage is that theprocess is interfered with. An impartial system of invitingand reviewing tenders is essential. It is equally importantto ensure that only essential changes are made duringthe construction process, as this is likely to havesubstantial cost implications. Of particular importance isthat the contractor should only receive site instructionsand variation orders from the engineer, not from theclient or market users.90
In Stage 9 all approvals and necessary financingshould be obtained; and the market should beconstructed. The following points should becovered:
All interested parties should give theirconsent and approval and the sources offunding and method of financing the projectshould be agreed.
The tender documents should be ready andthe implementation method should be decidedupon.
Tenders should be invited and evaluated.
The construction and equipment supplycontracts should be let.
Construction should be adequately supervisedduring implementation.
Construction works should be finalized.
Any design changes need to be carefully explainedto the users. To the engineer they may not seemimportant, but to the user they may have a major impacton how they operate the facilities. Examples includeintroducing changes in levels that effect handlingproduce on trolleys or changes in heights that causeobstructions to head loading of produce.
Step 9.1Obtain consents and agree on
the financing
It is necessary to work out a way of consulting both themarket users and the decision-makers. The mostconvenient method is usually to hold a meeting for thosemost affected. The final site plan, building andinfrastructure designs and the overall budget estimateshould be presented. Although complete agreementfrom all those present at the meeting is unlikely, ageneral consensus should be obtained. 91
Two views of the Monggar market, Bhutan – the upper view shows the projectduring construction and the lower upon completion.
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Formal consents. A number of consents or approvalsmay need to be obtained before the development canproceed, including:
j planning consent;j building and public health approval; andj environmental consents.
Sources of finance. Ideally, a rural market should beself-financed from fees and charges. However, the initialcapital requirement is always a problem. All possiblesources of funding should be explored, including:
j the budget of a particular government department,such as the agriculture department;
j special government grants, such as those sometimesavailable for small-business promotion andenvironmental improvements;
j a joint venture with private enterprise, such as theexisting market traders (as individuals or groups), orthrough leasing the whole or part of a site to privateentrepreneurs, while still maintaining some controlover fees charged;
j cost sharing with a donor, government department orprivate enterprise. In this case part of the revenuesgenerated by the market may be used to financeother social facilities. Cost sharing can take the formof capital contributions or other forms of equity, suchas the provision of land; and
j self-help schemes, which involve traders providingtheir individual stalls. However, such arrangementswould not be expected to cover overall infrastructurecosts.
It is important to ensure that the cost estimates arerealistic so that adequate finance is obtained. If tendersare higher than the estimate and the funds allocated, thisis likely to result in delays in implementation or evencancellation of construction.
Step 9.2Prepare tender documents and tender the works
Preparing tender documents. After the source offinancing is confirmed the final tender documents can beprepared. These include final drawings, specifications,bills of quantities and the conditions of contract.92
A formal contractual arrangement with one or moreprivate contractors is likely to be the easiest and mostrapid approach to implementation. However, suchcontractors may not be available in remote rural areasand it may be necessary to employ labour directly.
Inviting tenders. Procedures for inviting tenders forconstruction works and for equipment are normally welllaid down by governments. The process usually involvesadvertising in local newspapers. In drawing up a list ofpotential contractors allowance must be made for localconditions, such as:
j the type and scale of works;j grading or the class of contractor (based on technical
competence, capital and financial performance andavailability of resources);
j government procurement procedures, such as theminimum number of tenders to be submitted; and
j policies regarding the use of open tenders or forselecting, pre-qualifying or targeting particular typesof contractors.
Evaluation of tenders. Tender evaluation proceduresare generally well established and usually involve tenderreview panels appointed by local government. Theremoteness of rural markets is often a problem in thatfew tenders may be obtained and the experience ofcontractors may not cover the range of works requiredfor a market.The most experienced local contractors are
often those who are used to constructing roads, and theirbuilding experience may be limited.This may necessitatethe provision of special training for both the contractorsand their skilled and unskilled labour.
Step 9.3Let construction and equipment contracts,
supervise constructionand monitor implementation
Contract conditions. There are usually standardconditions of contract available for letting contracts forthe supply of equipment and construction services.However, the engineer needs to ensure that employmentmethods used by the contractors are fair and conform togovernment standards. Issues that must be addressedinclude defining:
j labour standards, maximum working hours,occupational health and safety requirements; 93
j social security provision and insurance, minimum agelevels, mode of payment, recruitment and productivityagreements;
j methods for setting out the works and monitoring thequality of work, maintaining minimum technicalstandards; and
j valuation of works and frequency of payment.
Supervision. Day-to-day supervision of a contract is theresponsibility of a local rural engineer or an appointedconsultant.
Step 9.4Confirm practical completion
and evaluate the works
Snagging. The last step is to confirm that theconstruction works are complete and that all theequipment has been acquired. It is normal practice thatat the end of the construction period (practicalcompletion) a “snagging list” is drawn up that specifies
any outstanding or incomplete works. This refers only toproblems related to the contract and cannot be used tointroduce new requirements, which were not foreseenbefore construction started.
The list should be drawn up by the engineer incollaboration with the market committee, to ensure thatall their concerns have been fully addressed. Thecontractor should make good these snags before thepenultimate payment is made. After completion, a periodof 6 to12 months is usually specified in the contractdocuments (called a “defects liability period”) duringwhich other defects should be made good. After thisperiod the final payment to the contractor can be made.
Testing equipment. Prior to the practical completion, itmay be necessary to commission or test installationsand equipment, such as:
j water supply pumps;j septic tanks;j lighting installations; andj weighing equipment.
Evaluation. Evaluation of a market’s impact aftercompletion is important. It enables an assessment to bemade of the market’s social and economic impact andwhether resources have been correctly utilized. It alsoprovides an indication of what adjustment should bemade in the design of future markets.94
Individual small-scale market improvements probablyneed to be evaluated using only simple indicators, suchas the total area improved, the number of stalls createdand total number of traders using the new facilities.
For larger-scale programmes, the expansion ofmarket trading activities could also be evaluated. Thiswill require ongoing monitoring during the first few yearsof the market’s operations. Certain indicators may beused to assess the project’s effectiveness.
These include:
j increased trade in the market, measured by marketturnover (tonnes);
j whether users believe that there is a reduction inproduce losses;
j increased number of farmers and traders using themarket facilities;
j increased market revenues; andj improved market maintenance and management.
95Construction of a privately built market in Lao People’s Democratic Republic.
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10 Operating and maintaining the market
STAGE 10OPERATING AND MAINTAINING
THE MARKET
IntroductionClear arrangements must be set up for the managementof markets. Although this is presented as the final stage inthis guide, in fact, investments in rural markets should notbe made without a management system being previouslydefined and a market committee being in place. Rules formarket operation need to be agreed at an early stage aswell as methods of leasing spaces and the setting of fees.
Market managementA complex management structure is not appropriate forrural markets.
Primary markets. For small primary markets, thepresence of full-time market staff is not usually viableand the management options are limited. The simplestsolution is for management to be undertaken by localgovernment, particularly when rents for stalls or pitchesare collected on a monthly or annual basis. Apart fromdaily rubbish collection, an adequate system ofmanagement normally requires only regular visits to themarket by local health inspectors.98
In Stage 10 the market is commissioned and putinto operation. The following points should becovered:
The method of management should bedefined including how the market will beoperated and maintained.
The procedure for allocating space andletting leases should be finalised with theusers and the market committee.
The users and the market committee shouldagree on the method of charging for use ofthe market.
The users and the market committee shouldagree on the scope of the marketregulations.
Where fees are collected on a daily basis, it issometimes necessary to give a local government officerresponsibility for fee collection. Alternatively, the marketcan be run as a franchise operation, with a privatecompany or individual tendering for annual fee-collectionrights. It can also be operated by a traders’ group orassociation. Whatever the case, the operations must beoverseen by an elected market management committee.
Assembly markets. Larger assembly markets usuallyrequire full-time market staff. The operation of the marketmight be the responsibility of a local authority or privateenterprise and come under the overall supervision of amarket manager or superintendent. He or she provides themain channel of communication to the market committeeand may be assisted by a small staff. An assembly marketmanager, for example, may have three basic functions:
j revenue collection, administration and record keeping;j security and traffic control; andj cleaning and maintenance.
It is necessary at the outset to agree on minimumstaffing requirements and qualifications, job descriptions,selection procedures, levels of remuneration, promotioncriteria and training needs.
Role of market management committeeAfter construction has been completed major problemsmay still occur with the effective operation of a market.
Issues such as disputes over space allocation and rentlevels, delays in appointment of staff, and lack of workingcapital for operation, staff salaries and recurrentmaintenance need to be resolved before the market iscommissioned. Cash-flow projections should be made.The market management committee’s responsibility is tooperate a well-functioning organization, which includesdefining procedures for ensuring:
j effective market operations;j application of rental and stall-allocation policies;j revenue collection and appropriate revisions to rental
levels and daily fees;j operation of market rules and regulations;j dispute resolution procedures;j effective traffic control and management;j enforcement of environmental, public health and food
safety requirements;j mechanisms for meeting recurrent and periodic
maintenance requirements; andj future improvement and expansion of facilities.
For small rural markets without full-time staff but withpermanent traders, many functions could be delegatedto a traders’ organization. The market managementcommittee would need to initiate meetings with thetraders on a regular basis in order to resolve specificissues.
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Step 10.1Commission the market
It is usually necessary for the project promoter or financier,such as a local authority, to draw up an agreementcovering market operations and maintenance.
Market operations. The scope of an agreement shouldcover the following areas:
j Who will be on the market management committee,and will it have specified representation from tradersand farmers?
j How often will committee meetings be held?j How will temporary space be provided in the market
for producers?j How will market fees be collected?
Market maintenance. Agreement will also need to bereached on recurrent maintenance.
j Procedures should be defined and arrangementsmade for daily cleaning of the common areas and ofthe individual premises, particularly stalls andequipment in meat and fish sections and wherecooked food is being prepared.
j Procedures should be defined for cleaning andmaintenance on a periodic basis of the building fabricand main infrastructure services, such as roads,water supply, drainage and sewerage.
j An agreed percentage of the market fees should bereserved for market operations and maintenance (aminimum of 30 percent). This is usually calculated inadvance, so that the money can be put aside.
j Agreements should be made with relevant authoritiesfor their involvement in the collection of solid waste,street lighting, site security, surface water drainageand environmental health issues.
Step 10.2Agree on space allocation and leases
The market committee should prepare, in consultationwith the users, draft agreements on how space will beallocated in the market and what form lease arrangementsshould take. Discussions should have been held with the100
traders at the design stage; however, until the newfacilities have been completed it is not really possible tofinalize such arrangements.
Space allocation. This has two aspects: distribution ofspace between permanent and temporary traders, andallocation.
Distribution. Sometimes permanent traders try toprevent temporary traders from using a market. This canbe avoided by allocating a section of the market totemporary traders. Temporary users should pay fees ona daily or, sometimes, a weekly basis.
Allocation. The allocation of permanent space needs tobe done in a fair and transparent manner. Two commonways to achieve this are to:
j at the planning stage hold an auction or a lottery forthe right to apply for a lease on market space, so thatthe potential market revenues can be determined atthe outset; or
j place a limit on the maximum amount of space anyindividual trader can lease.
If the use of the market is to be restricted to tradingin agricultural products, or part of the market is to bereserved for specific products, applicants would have toconfirm that they would only trade in such productsbefore being allowed to take part in auctions or lotteries.
An important role for market management is to ensurethat spaces reserved for agricultural products in general,or for specific agricultural products, are in fact used forthose purposes. This frequently is not done. A commonexperience with urban markets is that traders in drygoods and clothing gradually take over space allocatedfor agricultural trade. This particularly applies to indoormarkets.
Leases. The contract terms and duration should bespecified, including renewal or termination conditions(i.e. the period of notice and how it is to be given). Ideally,contracts for the renting of fixed stalls should not exceedone year. The lease conditions should includerequirements for traders to maintain their stalls openduring the working hours and for the duration of thecontract. Sanctions in case of default in payment shouldbe defined (normally requiring the termination of acontract), together with the liability of traders for anydamage caused by them or their personnel, either to thecommon parts of the market or to the allocated stand orstall.
Disputes. The market management committee shouldalso reserve the right to terminate the contracts of userswith records of bad relationships with other traders, themarket administration or the general public.
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Step 10.3Agree on the market fee schedule
There are a number of different ways in which marketscan collect revenues. The collection method should besimple and inexpensive to administer and shouldcorrespond to normal practices. The collection methodshould be seen to be fair and highly visible. The types offees collected will depend on whether the traders arepermanent or temporary (such as farmers selling theirown produce).
Temporary traders. The following types of market feesare usual for temporary traders:
j Daily ticket fees should be set on the basis of thespace occupied or the quantity of produce brought infor sale.
j Stand or pitch fees are for daily or weekly use of anarea and are based on the size of the pitch and,sometimes, its location in the market area (e.g. feesare normally higher for pitches near the entrance).
j Parking fees are charged on entry and based on thetype of vehicle (this system is more likely to be usedfor assembly markets).
Permanent traders. The following types of market feesare usual for permanent traders:
j Stall rents can be charged on a monthly, quarterly orannual basis for the use of a meat, fish or other fixedstall or for a lock-up shop (rents are usually based onarea used and location).
j Licence fees are paid by specialized market users,such as butchers, fishmongers or slaughtermen.
The market committee should draw up a possible feeschedule and discuss this in detail with the market users.Particular care must be taken to ensure that revenuesare set at a sufficiently high level to fully cover alloperation and maintenance costs.
The normal practice is for the local authority to collectthe fees. However, an alternative approach is for therights to the fees to be sold in advance to a privateindividual or company.This can be done by auctioning orcompetitively tendering the right to collect the fees on anannual basis. Such an approach has several advantagesfor the market:
j the revenue to be received is known in advance;j market employees are not needed to collect fees;j there is no danger of corrupt collusion between
market users and staff to avoid payment or payreduced fees; and
j problems associated with handling cash are reduced.102
Step 10.4Agree on the market regulations
The smooth operation of a market and the properuse of its facilities require the promotion of andstrict compliance with a set of realistic regulations.Appropriate legislation needs to be in place and this isusually provided in the form of local government acts or,more rarely, special market legislation. Such legislationshould permit an authority to enact or modify by-laws.
Regulations should be prepared by the marketcommittee in collaboration with staff and users. Theyshould be realistically enforceable and culturallyacceptable taking into account existing practices. Theregulations need to be clear, concise and written inlanguage intelligible to every user. A public signboardgiving a summary of the main rules, principally thoserelating to hours of operation, traffic, public and users’behaviour, should be put up at the entrance and inconspicuous places within the market.
Details of market regulations are included in anumber of the FAO publications in Further Reading atthe end of the guide.The usual scope of such regulationsis listed in the box. 103
Scope of market regulations
Market administration. Liability of users of the market andtype of disciplinary powers and sanctions that will beapplied for breaches of marketing, hygiene, safety andsecurity rules.Market operations. Opening and closing hours, holidaysand days when market is closed, times for deliveries andstall preparation.Traffic controls. Traffic management controls, includingvehicle parking, non-obstruction of roads, prohibition onwashing or repairing vehicles and rapid departure ofvehicles after unloading.Physical controls. Prohibition on users erecting structuresand installing electrical equipment without prior approval.Marketing practices. Traders to sell specified produce, maintainstalls and not encroach or obstruct public rights of way.Public order. Right to prohibit admission to personscausing a disturbance.Security and fire safety. Locking of premises, maintainingaccess to fire-fighting equipment and prohibition on the useof open fires for cooking, except in designated locations.Hygiene control and inspection. Right to withdraw anddispose of any product or spoiled food unsuitable for humanconsumption.Cleaning. Traders to keep stalls clean; waste to bedeposited in bins provided and general cleaning to beundertaken at end of working day.Special facilities. Exclusion of live animals andslaughtering unless provided for. Inspection by competentveterinary services. Cleaning of butchers' cutting boardsand other tools.
Annexes
Annex ASurvey checklist
Market surveys
An example of a market survey is provided in “Retailmarkets planning guide” (Agricultural Services BulletinNo. 121, FAO Rome, 1995). The following types ofinformation could be collected:
j types and quantities of goods transacted daily,divided into agricultural produce, inputs and othermerchandise;
j details of market users (farmers, retailers,wholesalers, commission agents, processors, etc.);
j the market management system, including feecollection and details of present and projectedincome and expenditure;
j marketing channels for agricultural produce, inputsand non-food items;
j methods of transporting produce, the types ofvehicles used, frequency of travel and cost oftransportation;
j produce flowing into the market and going out toother destinations;
j number of customers attending on market days;
j physical facilities available in the market area (stores,shops, sales platforms, open and enclosed salessheds, slaughter slabs, meat/fish retail sheds, etc.)and future needs of traders; and
j present infrastructure, including market roads,pathways, surface water drains, tube wells, sanitation,drinking-water supply, drainage, sanitary latrines andfacilities for disposal of solid waste.
Setting up surveys. Surveys can be time consuming.Sufficient financial resources and a trained andcompetent staff are needed.Where surveys are requiredit is necessary to decide the following.
j Who is responsible for the survey design?j Who will carry out the survey?j How will it be paid for and what is the procedure for
recruitment of the necessary staff?j Who will supervise the survey and be responsible for
logistics, such as transport?j Who will be responsible for data handling?j Is a "pilot" survey needed before starting the main
survey?j When will the survey be undertaken (for example,
during peak agricultural production periods)?j Is special approval required from adjoining owners,
traffic authorities or local communities?
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Social assessment methods
The methodologies used in rapid rural appraisal (RRA)or participatory rural appraisal (PRA) are very similar.For market studies they have in common the followingfeatures:
j semi-structured open-ended interviews, in groups orwith individuals;
j participatory mapping, by walking through a marketarea to understand the distribution of stalls and typesof produce sold;
j local histories of what has happened in recent yearsin the production areas or the market;
j seasonal diagrams of what is grown and when, andpeak harvesting times; and
j group discussions to crosscheck information onmarketing practices such as where farmers sell theirproduce, how often they visit markets and theproblems experienced at markets.
Mapping
Mapping is an integral part of the planning process. Thepurpose of mapping is to provide:
j a "baseline" assessment of present conditions;j a means to enhance communication with users and
help in identifying marketing problems and informulating proposals;
j the basis for preparing a site master plan; andj a means for monitoring a project's impact.
Approaches to mappingThere are basically two approaches to mapping, both ofwhich may need to be applied. These can besupplemented by field survey work and the choice ofmethod will depend on the availability of resources andequipment.
Participatory mapping. This is a method of creatingmaps through a dialogue with key informants, such astraders and farmers. The maps, which can be drawn ona blackboard or even on the ground, clarify therelationship between the various factors that influencemarketing and highlight what is important (orunimportant) to the users. The mapping is oftencombined with a systematic walk through the area withthe key informants, which can be useful for understandingany changes that are taking place.
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Formal mapping. These are working maps used tounderstand existing market patterns and to identify andplan new market sites. The mapping is undertaken toprovide:
j a base map of the area;j thematic maps, showing different characteristics
such as market locations and catchment areas;j site maps of the market area as the basis for
selecting the sites and for preparing detailed sitedevelopment plans.
The process of producing base-line maps consists of thefollowing:
1. Collection of copies of all maps in current circulationand of any geographic information system database (ifavailable).
2. Identification of provincial, district and village boundaries,administrative centres and market locations.
3. Drawing or redrawing of a base map.4. Reproduction of the base map on tracing sheets.
Often the base maps are out of date. Advice onupdating should be sought from the local surveydepartment.
Site maps. The most important mapping in the wholeprocess is preparing the site map of the market site. Ifadequate mapping of the market area is not available a
survey should be carried out to record all the existingfeatures within the market.The survey should be at least1:500 scale, picking up details of levels (spot heights ona 2 to 5 metre grid, inverts of drains, slabs, breaks inslope, etc.) and the market site should be related to afixed point. For an existing market the site map shouldalso include all the existing buildings and otherinfrastructure on the site.
The survey may need to be extended to record otherimportant features outside the market area, such asmain road links and drainage outfalls. All mapping shouldbe plotted to conform to a standard sheet size.
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Annex BAssessment of supply and demand
This annex supplements the description of Stage 2 andoutlines the methods by which survey data, combinedwith information on agricultural production andhousehold consumption, can be used to estimate thepotential throughput of a larger market. Where verysimple market improvements are planned (for example,to upgrade existing retail market infrastructure), suchsteps can be omitted.
Step B.1Reviewing crop and livestock production
Where information on market supplies does not exist,estimates can be made by looking at the available dataon crop and livestock production within the marketcatchment area, including:
j planted area under production (in hectares); withmultiple cropping this will exceed the cropped area;
j average yields (in tonnes per hectare);j total quantity of crops produced (in tonnes); andj total number of livestock reared.
Often, local or district data collected on an annualbasis can give an idea of crop production. Estimates oflivestock can be more difficult, as the data that isnormally collected is the number of animals (head) in thefield or pen. One way of handling data on localproduction is shown in Form 1.
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Crop Area Yield Production(ha) (t /ha) (t)
Green vegetables
Roots and tubers
Fruits
Grains (unmilled)
Total local production
Livestock Number Live weight Dead weight(head) (t) (t)
Cattle
Goats and sheep
Poultry
Total meat/poultry
Form 1Estimating local farm production
This approach only gives existing production levels.However, by looking at trends over a number of years itshould be possible to identify some patterns of growth.These will be influenced by a number of factors,including the way farmers are intensifying production(increasing yields) of existing crops or diversifying intonew crops (changing to higher-value crops). If no trenddata is available, a simple assumption to make is thatproduction is increasing in line with population growth.
Step B.2Reviewing the role of market channels
Step B.1 gives an approximate idea of total production,but this has to be adjusted to take account of what ismarketed and what farm households consume. Acommercial farmer produces exclusively for the market,whilst a subsistence farmer grows primarily for homeconsumption.
Subsistence farmers are likely to rely mainly on the localretail market for their sales. More advanced farmers mayuse a variety of outlets, including on-farm sales andassembly markets. Large-scale commercial growers are
probably better able to control their own marketing,which could be done through a mixture of contract sellingat the farm gate and direct deliveries to local assemblymarkets or to wholesale markets in urban areas. Fromdiscussions with local officials and farmers it should bepossible to obtain an overall impression of whatmarketing channels are presently being used, and whatproportion (%) of marketed production is going througheach channel (see Form 2).
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Type Type Fresh Fresh Live-of farmer of outlet vegetables fruit stock
(………… …%… ……..)
Small-scale - on-farm sales
- local markets
- other outlets
Large-scale - on-farm sales
- local markets
- other outlets
Form 2Estimating use of market outlets
Step B.3Reviewing existing consumption data
The next step in the process requires a review to bemade of what people eat. Consumption data is normallyexpressed as an annual average consumption forindividual food items on a per capita (per person) basis,for example, 100 kilograms of potatoes per capita.
This information is often available from nutritionsurveys. Alternatively, data from a comprehensivehousehold budget survey may be available. Informationmay not be specific to the market catchment area, butcan provide a broad estimate of what is consumed bylocal households.
Form 3 shows how consumption figures, by age andgender, can be used to calculate an average. These arelikely to be national figures, but more reliable figuresspecific to the area may be available and sometimesthese figures may distinguish between urban and ruralhouseholds. As far as possible, local rural figures shouldbe used. Care should be taken to use actual figures orreliable estimates. For food security purposes figures ofdaily food “requirements” are often announced and usedin calculations of food balances. Such figures shouldnot be used when planning markets as there is often abig difference between “requirements” and actual“consumption.”
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Fresh Daily consumption per capita (grams) Annual
`produce Male Female Child Average consumption
per capita (kg)
Vegetables
Potatoes
Fruits
Meat
Eggs
Fish
Total
Form 3Average annual food consumption
Step B.4Determining on-farm use
Once it has been decided what consumption figures touse it is possible to calculate the amount farm familiesare likely to consume of their own produce. However,farms may not be able to produce all their requirementsand may need to purchase some commodities fromoutside, usually from a local primary market. Theprocedure for calculating average food requirements isshown in Form 4.
This may not be the total use of produce on the farm. Todetermine the farm surplus, adjustments need to bemade and this will require some rough estimates to bemade as shown in Form 5.
The last calculation is to determine whether there isactually a surplus from the farms. It compares the farmhousehold needs with the production estimates derivedin Step B.1, as shown in Form 6.
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Form 4Annual farm household food needs
Annual on-farm consumption Farm population Total
Fresh Kilograms Tonnes in catchment food
produce per capita per capita area needs
a b c d
(from Step 3) (a ÷ 1000) (from census) (b × c)
Vegetables
Potatoes
Fruits
Meat
Eggs
Fish
Total
Form 5Total annual farm use (tonnes)
Fresh Total food Other use of produce Total farmproduce needs Fodder Seed Losses use
a b c d e(a + b + c + d)
Vegetables
Potatoes
Fruits
Meat
Eggs
Fish
Total
Step B.5Determining non-market sales
Before estimating what might be the market throughput,the role of other marketing channels (Step B.2) needs tobe taken into account. As this is influenced by manyfactors only a rough estimate can be made, particularlyof produce sold at farm level or delivered directly tourban wholesale and urban retail markets. An illustrationof the calculation is shown in Form 7, using thepercentages from Step B.2 to divide the surplus betweendifferent channels.
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Form 6Marketable annual surplus or deficit (tonnes)
Fresh Total farm Total production Marketableproduce use from Step B.1 surplus
a b (a – b)
Vegetables
Potatoes
Fruits
Meat
Eggs
Fish
Total
Form 7Annual sales apart from rural markets (tonnes)
Fresh On-farm/ Direct Other Total non-produce farm-gate sales deliveries markets rural market
a b c (a + b + c)
Vegetables
Potatoes
Fruits
Meat
Eggs
Fish
Total
Step B.6Estimating market throughput
The last step is to estimate the throughput of the plannedmarket.The basic calculation method, which is the samefor both primary and assembly markets, is shown inForm 8.
If the market also trades in live animals then anallowance for this must be made. For an existing marketthe best guide would be what is presently traded, but fora new market an assumption will have to be made as towhat proportion of the local livestock or poultryproduction might be sold in the market.
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Form 8Annual market throughput (tonnes)
Total Planned Supplies TotalFresh Marketable non- or from market
Produce surplus rural existing outside through-market market area to put
meet deficit
a b c d e(a – b) (c + d)
Vegetables
Potatoes
Fruits
Meat
Eggs
Fish
Total
Annex CInfrastructure designand space standards
Roads and parking
j Single-lane road width: 3.5 m.j One-way road width: 7 m.j Two-way road width: 12 m.j Size of parking space for 1 car: 4.8 × 2.4 m.j Visitors’ car parking: 2 to 5 spaces per 100 m2 of sales
area.j Visitors’ car parking: preferred maximum distance
from market: 100 m (absolute maximum distance atpeak periods: 200 m).
j Size of parking spaces for pickups: 8 × 3.6 m.j Size of parking areas for trucks: 11 × 3.6 m.j Parking for traders and delivery vehicles: 1 to 2
spaces per 4 stalls.j Sidewalk widths: 2.5 m minimum (5.2 m if roadside
stalls to be accommodated).j Lamp standards: spaced at intervals of 15 to 25 m.
Public health
j Water supply standpipes or tube-wells at a maximumdistance of 50 m from users (25 m preferred).
j Meat and fish stalls with immediate access to watersupply (adjacent).
j Toilets (pit latrines and urinals) at a maximumdistance of 100 m from users (50 m preferred). Spacefor latrines at 2 m2 per 1 000 peak period marketusers.
j Toilet provision for staff: 2 m2 per 25 marketemployees (male and female separate). Minimum of2 m2.
j Dustbins or garbage pits at a maximum distance of50 m from users (25 m preferred).
Buildings and stalls
j Main thoroughfare of a market: a 6-metre width aislebetween stalls to allow for seating and other uses.
j Aisles inside building: minimum of 3.5 m to allow agroup of three people walking together to pass oneperson standing by a stall, or two people walking topass two other people. 115
j Maximum distance between cross aisles insidebuildings: 12 m.
j Minimum stall depth (trader standing behind): 2 m forstanding and stacking of boxes, plus 1 m for thecounter.
j Minimum stall depth (trader standing in front):between 1.2 and 1.5 m for the counter.
j Minimum stall depth (trader sitting on stall): 1.2 m.j Minimum stall height (trader sitting on stall): 0.4 m.j Minimum stall height (trader standing in front): 0.7 m.j Minimum stall width: 1.8 m.j Small lock-up stalls: between 2 × 2 m and 3 × 4 m,
with sales space or table taking up from 30 to 50percent of the area.
j Sales or table area per trader: between 0.8 and1.2 m2, excluding standing space;
j Ceiling height for market building: from 3.5 to 6 m.j Outdoor seating/low walls: 400 mm high and between
300 and 500 mm deep.j Central market space for trading in the open:
maximum dimension between 20 and 25 m.j Width of minor pedestrian routes: not to exceed the
height of the surrounding buildings.
Animal handling in the market
j Cattle need comfortable climatic conditions, requiringbetween 2.5 and 3 m2 of shade per head.
j Adequate space should be provided between stalls:a minimum of 2 m is desirable.
j Bull pens should have a resting area of between 12and 15 m2.
j Pig housing should be at a density of 0.6m2 per pig(porkers).
j Poultry (chickens and ducks) housing should be at adensity of 1 m 2 per 6 to 8 birds.
j Slurry handling needs particular attention because ofrisks to animal and human health.
j Clean water supplies: allow between 60 and 70centimetres of trough length per cow, with one troughfor each herd of 50 animals. Typical waterconsumption is as follows:
upgraded beef cattle – 50 litres per daylocal cattle – 20 litres per day
sheep – 5 litres per daygoats – 3 litres per day
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Glossary
Accommodation or users’ brief is a schedule andtabulation listing the space and facility requirements forthe market. The brief is prepared in consultation withmarket users.
Assembly markets are larger rural markets wherequantities of produce are traded (either by the producersthemselves or by traders) and assembled for furthertransport to other markets.
Baseline surveys are undertaken before a marketdevelopment in order to review the “without change”circumstances. An example might be a survey of marketthroughput.
Catchment area or sphere of influence is the areasurrounding a central place that is economicallyprovided with services or goods.
Central place is a village or town, with markets andshops, which provides the population of the surroundingarea with goods and services.
Economic analysis is a way of looking at the worth ofa development from the viewpoint of the whole economy,i.e. the general public interest or public good. Thesecosts are adjusted to account for any distortions, suchas subsidies, taxes and transfer payments.
Environmental impact assessment (EIA) is a processundertaken before a development starts to predict theadverse effects it could have on the natural and humanenvironment.
Financial analysis looks at the viability or commercialworth of a development from the viewpoint of a privateinvestor.
Internal rate of return (IRR) is the discount rate atwhich the discounted values are equal to zero. If theIRR is higher than the rate of return required fromthe development (usually 10-12 percent) then thedevelopment is viable.
Investment or capital costs are initial costs needed tofund an investment, including land, buildings, equipment,professional fees and bank charges.
Participatory rural appraisal is a survey method wherethe surveyor works with the community to collect andanalyse the information.
Pilot survey is a preliminary survey undertaken to testwhether a survey questionnaire has been properlydesigned.
Pitches are defined areas laid out on the market floorfrom which individual traders sell their produce.
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Primary data is information that has to be collectedthrough field surveys to fill data gaps.
Primary markets are small markets where the trade ischaracterized by direct sales of small quantities ofproduce by farmers to village traders and by farmers andretailers to rural consumers.
Rapid rural appraisal is a survey method where thesurveyor visits the community in order to obtaininformation, which is taken away to be analysed.
Recurrent costs are all costs required to finance theoperation of an investment, including staff salaries, utilitycosts (water, fuel, etc.), land taxes, building andequipment maintenance, loan repayments and intereston capital borrowed.
Secondary data is information that has already beencollected and published by others.
Sustainability, in the context of markets, is the capacityto continue operating the market after capital fundinghas finished. This is invariably an issue of access toresources (obtained from revenues) for the maintenanceand operation of the market facilities
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Further reading
Association Française des Chambres de Commerce.1991. Guide des marchés. Association Française desChambres de Commerce, Paris.
Beer, A. & Higgins, C. 2000. Environmental planning forsite development. London, E & F.N. Spon.
ESCAP. 1979. Guidelines for rural centre planning, Vol.1.New York, United Nations.
FAO. 1989. Horticultural marketing: a resource andtraining manual for extension officers. FAO AgriculturalServices Bulletin No. 76, Rome.
FAO. 1991. Wholesale markets: planning and designmanual, by J. Tracey-White. FAO Agricultural ServicesBulletin No. 90, Rome.
FAO. 1993. A guide to marketing costs and how tocalculate them, by A. Shepherd. Marketing and RuralFinance Service, FAO, Rome.
FAO. 1993. Guidelines for the design of agriculturalinvestment projects. FAO Investment Centre TechnicalPaper 7, Rome.
FAO. 1995. Retail markets: planning guide, by J. Tracey-White. FAO Agricultural Services Bulletin No. 121, Rome.
FAO. 1997. Market information services: theory andpractice, by A. Shepherd. FAO Agricultural ServicesBulletin No. 125, Rome.
FAO. 1999. A guide to maize marketing for extensionworkers, by A. Shepherd. FAO Marketing ExtensionGuide No. 1, Rome.
FAO. 1999. Law and markets: improving the legalenvironment for agricultural marketing, by C. Cullinan.FAO Agricultural Services Bulletin No.139, Rome.
FAO. 1999. Wholesale market management: a manual,by R.J. Densley & E. Sanchez-Monjo. FAO AgriculturalServices Bulletin No. 140, Rome.
FAO. 1999. Market infrastructure planning: a guide fordecision makers, by J. Tracey-White. FAO AgriculturalServices Bulletin No. 141, Rome.
FAO. 2000. Understanding and using market information,by A. Shepherd. FAO Marketing Extension Guide No. 2,Rome.
Lebo, J. & Schelling, D. 2001. Design and appraisal ofrural transport infrastructure – ensuring basic access forrural communities. World Bank Technical Paper No. 496,World Bank, Washington, DC.
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McCracken, J., Pretty, J. & Conway, G. 1988. Anintroduction to rapid rural appraisal for rural development.London, International Institute for Environment andDevelopment.
Stern, P. 1985. Field engineering: an introduction todevelopment works and construction in rural areas.London, Intermediate Technology Publications.
Tufte, E. 1990. Envisioning information, Cheshire,Connecticut, USA, Graphics Press.
Wates, N. 2000. The community planning handbook.London, Earthscan Publications.
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NOTES
NOTES
NOTES
NOTES
Desktop publication: George EllisCover illustration: Peter Schmid
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The following is a list of booklets published in theMARKETING EXTENSION GUIDE series:
A guide to MARKETING COSTSand how to calculate them1993, 59 pp. (E F S)
A guide to MAIZE MARKETINGfor extension officers1999, 111 pp. (E F)
Understanding and usingMARKET INFORMATION2000, 85 pp. (E F S)
MARKET RESEARCHfor agroprocesssors2003, 114 pp. (E S)
Planning and designingRURAL MARKETS2003, 120 pp. (E S)
Available in: E – EnglishF – FrenchS – Spanish
Series editor: Andrew W. Shepherd
For further copies of this publicationand for information on FAO’s activities
related to agricultural marketingplease contact:
Agricultural Marketing GroupAgricultural Support Systems Division
Food and Agriculture Organization of the United NationsViale delle Terme di Caracalla
00100 Rome, Italy
Fax: (+39)-06 57056850E-mail: [email protected]
http://www.fao.org/ag/AGS/subjects/en/agmarket/agmarket.html
Upgrading rural markets is one way to improve access tomarketing opportunities. This guide is designed to assist
community planners, rural engineers and agriculturalextension units to formulate and implement relevant market
development plans.
The types of issues covered in this guide includedesigning markets that meet a community's social and
economic needs; working with communities to identify theirmarketing problems and to choose a site for a new market;using appropriate and simple methods to survey and planthe site layout and to design market buildings; preparing a
market development proposal and making budget estimates;undertaking simple social and economic feasibility studies;
looking for financing and constructing the market; andmanaging, operating and maintaining the market.
TC/D/Y4851E/1/9.03/1500