In most countries wholesale markets remain an essential link between production and consumption. That such markets should be well managed is essential as the efficiency of their operation directly affects the cost of carrying out produce marketing. High marketing costs inevitably lead to lower prices for producers and higher prices charged to consumers. Inefficient markets also increase the risk of problems of hygiene, of environmental degradation and of transport congestion, to name but a few.
With rapid urban growth in many parts of the world, wholesale markets will continue to play a vital role in channelling a wide variety of produce to urban consumers, even as new distribution techniques, such as direct supply from farmers to supermarkets, are developed. Investments in market infrastructure will undoubtedly increase in the coming years, but wholesale markets need not represent a financial burden to governments, whether local or national. If well managed, they can be run profitably and provide a powerful stimulus to the modernization of food marketing generally.
This Manual analyzes political, legal, economic and commercial aspects of the management and operation of wholesale markets. It has been prepared to assist market managers and authorities concerned with food wholesaling issues to improve the management of existing or planned wholesale markets. It follows related publications on food wholesale markets prepared by FAO in 1976 and 1991, under the authorship of H.J. Mittendorf and J.D.Tracey-White, respectively, which focussed primarily on the technical aspects of planning and design of wholesale markets.
The Manual draws heavily on an earlier draft prepared by Eduardo Sanchez-Monjo, Director of Catalonia Higher School of Public Administration, Spain and FAO Consultant. It was subsequently elaborated upon and put in final form by Bob Densley, FAO Consultant. Technical and editorial advice was provided by Jaime Novoa, Edward Seidler and Andrew Shepherd of the Marketing and Rural Finance Service of the Agricultural Support Systems Division.
