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A. Preliminary Activity Check List
B. Criteria for Screening and Prioritising Market Improvements
C. Market Survey Check Lists
D. Marketing Policy Issues
E. List of Further Reading on Marketing Infrastructure

A. Preliminary Activity Check List

This appendix provides a check list of the basic information and issues that will need to be considered in formulating a market infrastructure development project. Subsequent detailed costing, project feasibility studies, final design, preparation of bills of quantities and other tender documents, and final construction are not considered here.



The Policy Context

Marketing Operational Factors

General Factors in Market Master Plan Preparation and Design


Analysing Market Conditions

Designing the Project

Evaluating the Project

B. Criteria for Screening and Prioritising Market Improvements

Among rural and urban retail markets there may be a large number of potential candidates for improvement. At the identification stage it will be necessary to prioritise these so that a realistic improvement programme can be drawn-up. The factors used in the selection criteria and the prioritisation process can be given equal weighting, can be ranked (so that a particular factor which is of importance to the development programme can be emphasised) or can be used in a sequential manner to provide a decision tree.


The most important criteria for selection of markets for improvement are likely to be whether:


Generally, market improvements are only likely to be viable if the levels of investment are relatively modest. The incremental benefits of undertaking the market improvements should provide sufficient revenues to cover all operating costs, including putting aside a fund for future market expansion. Revenues are often unlikely to be sufficient to cover repayment of capital and interest Ð even assuming a long repayment period and a grace period before repayment. The returns are very sensitive to the daily charges. Thus, after meeting the selection criteria outlined above, the short-list of proposals should be evaluated and ranked according to:

C. Market Survey Check Lists

The following appendix provides a check list of the type of preliminary surveys and studies needed for identification and pre-feasibility studies for design of a market development project. Depending on its availability the information can be derived from desktop studies (such as published statistics and maps, other studies, planning reports and policy statements) or from preliminary surveys. As surveys are costly and time consuming, it is important to only collect the information needed and to avoid undertaking too early the type of detailed surveys which will be needed for a full feasibility study. *

* Details of survey methodologies and examples of questionnaires are provided in the FAO Agricultural Services Bulletins No. 90 (Wholesale markets: planning and design manual, Chapter 11, 1991) and No. 121 (Retail markets planning guide, Chapter 3, and Annexes A and B, 1995).

The information required would normally include the following:


Although detailed design will not be undertaken until the feasibility stage some data on the physical characteristics of the market site will be needed to prepare an outline master plan. The scope of the information required, which would usually be derived from desk and on-site studies, would normally include the following:


With wholesale market projects a more rigorous approach is required in order to make a realistic evaluation. This necessitates further preliminary design work to be undertaken so that a reasonably comprehensive cost estimate and financial analysis can be made. For the purposes of the financial analysis a detailed investigation will need to be undertaken, and this should include all of the main uses* in the existing wholesale market site and any proposals for the future facility. The following information will be required:

* Such as: administration buildings; fruit and vegetable retailing or wholesaling; fruit and vegetable producers retailing or wholesaling; potato retailing or wholesaling; flower and plant retailing or wholesaling; meat retailing or wholesaling; dairy, fish and poultry retailing or wholesaling; dry goods retailing or wholesaling; customs and bonded goods; and ancillary uses.

D. Marketing Policy Issues

The following appendix outlines a number of policy issues which may have a direct or indirect influence on the design of a market development project.


High levels of post-harvest losses of crops, both in the field and during storage and marketing, is often a priority problem. Post-harvest research organizations usually emphasise food technology and post-harvest management (processing, preservation, handling, storage, marketing, loss reduction and harvest maturity) of farm products and by-products, but such activities are not always strongly linked to the needs of the sector. A marketing infrastructure programme may seek to influence the direction of such research in order to address specific post-harvest issues, particularly:


In many countries produce may either be loaded loose in trucks or packed in unsuitable cartons. Market improvements may include the promotion of an improved packaging system. This needs to be approached with some caution as it can result in an inefficient use of transport, either with return loads of empty non-nesting crates or with the traders having to double-handle the produce to put the produce in their own crates.


Interventions possible in a marketing system are largely determined by the regulatory framework for marketing. Frequently, under legislation, municipalities are given the mandate to establish and manage both retail and wholesale markets, sometimes with the mandatory requirement that all fresh produce sold in urban areas should pass through the wholesale market system. However, the legal context for marketing activities may also be lacking and this could prevent the development of the required infrastructure. This may have a direct impact on the market design if new institutional arrangements are to be assumed as the basis for operating the market. In that case, a special decree for the regulation of markets might become a precondition to implementing the project, requiring the general scope of a new or revised Marketing Law to be defined.

E. List of Further Reading on Marketing Infrastructure

ABBOTT, J. C., & J. MAKEHAM, 1979. Agricultural economics and marketing in the tropics, Longman, Intermediate Tropical Agriculture Series, Harlow, England.

FAO, 1986. Marketing improvement in the developing world, FAO Economic and Social Development Series No. 37, FAO, Rome.

FAO, 1989. Horticultural marketing: a resource and training manual for extension officers, FAO Agricultural Services Bulletin No. 76, FAO, Rome.

FAO, 1989. Prevention of post-harvest food losses: fruits, vegetables and root crops, FAO Training Series No. 17/2, FAO, Rome.

FAO, 1991. Wholesale markets : planning and design manual, FAO Agricultural Services Bulletin No. 90, FAO, Rome.

FAO, 1993. Guidelines for the design of agricultural investment projects, FAO Investment Centre Technical Paper No. 7, Rome.

FAO, 1993. A guide to marketing costs and how to calculate them, Marketing and Rural Finance Service, FAO, Rome.

FAO, 1995. Retail markets planning guide, FAO Agricultural Services Bulletin No. 121, FAO, Rome.

FAO, 1997. Market information services - theory and practice, FAO Agricultural Services Bulletin No. 125, FAO, Rome.

FAO, 1999. Wholesale market management guide, FAO Agricultural Services Bulletin (in preparation), FAO, Rome.

KUMAR, K., 1993. Rapid appraisal methods, World Bank Regional and Sectoral Studies, Washington DC.

MAGRATH, P., 1992. Methodologies for studying agricultural markets in developing countries, Marketing Series, Volume 2, Natural Resources Institute, Chatham, Kent.

PRICE GITTINGER, J., 1972. Economic analysis of agricultural projects, The John Hopkins University Press, Baltimore.

HINE, J., 1972. Transport and Marketing Priorities to Improve Food security in Ghana and the rest of Africa, Overseas Centre, Transport Research Laboratory, Crowthorne, Berkshire, UK.

UNDP, 1992. Handbook and guidelines for environmental management and sustainable development, Environment and Natural Resources Group, United Nations Development Programme, New York.

financing be arranged?

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