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3. CASE STUDY: KUALA LUMPUR


3.1 Introduction

Kuala Lumpur supports a substantial market for live, fresh, frozen and cured fish and canned fishery products. Under the administration of the Kuala Lumpur City Council, the capital city of the country is centrally located on the West Coast of peninsular Malaysia. Covering an area of 243 square km, in 2000, Kuala Lumpur City has an estimated population of 1.6 million (according to latest estimates, the total projected population of Malaysia[9] for 2000 is about 22 million). Table 11 shows the distribution of Kuala Lumpur’s population by ethnicity. Under the Local Government Act 1976 (Act 171), all laws related to local government were revised and consolidated. In February 1972, Kuala Lumpur was granted local autonomy, conferred city status and declared a Federal Territory in 1974. Under Parts VII and IX, Public Places, Food, Markets, Sanitation and Nuisances (Local Government Act 1976) the Kuala Lumpur City Hall is in charge of basic city sanitary services, enforcement of inspection of food products and urban sanitation. It is also in charge of policy formulation and supervision of wholesale and retail food markets and street food vending.

Table 11: Kuala Lumpur’s Population, by Ethnicity, 1998

Ethnic Group

Percentage (%)

Malay

38.4

Chinese

44.7

Indian

11.8

Others

1.3

Non-Citizens

3.8

Source: Kuala Lumpur City Hall

ASEAN countries, particularly the Philippines, Singapore and Malaysia, offer a strong regional seafood market with significant imports. In 1997, FAO reported an apparent annual per capita fish supply of 52.5 kg for Malaysia. Currently Malaysia, the Philippines and Singapore have the highest per capita supply of fish in the ASEAN[10] region. A breakdown of the annual per capita supply of fish for Malaysia in 1997 is shown in Table 12, with pelagic fish constituting the biggest portion, followed by other marine fish. The total fish production was 1,276,282 metric tonnes, including aquaculture production. Malaysia is by far a net importer of seafood although exports are substantial. The main export products are high value items such as chilled, cured, canned and frozen fish, molluscs, shrimp and cephalopods. In 1997, total exports and imports of seafood were about 236,643 metric tonnes and 374,893 metric tonnes, respectively. Main import products included pelagic fish (70.3 percent), other marine fish (12.7 percent) and crustaceans (12 percent). Much of the imported pelagic fish was used as raw material for the local canning industry.

In 1998, Malaysia had an average per capita gross domestic product (GDP) of US$ 3,304. Only Singapore and Brunei Darussalam had higher per capita GDP among Southeast Asian countries. However, the recent Asian financial crisis caused a deceleration in GDP growth, increases in unemployment, lower income levels and weakening of trade accounts. The Federal Government has imposed capital controls to protect the national currency while cutting interest rates to stimulate the economy. In addition, several economic adjustments have been made to combat rising unemployment. Financial recovery has begun.

Table 12: Fish per Capita Supply (1997)

Food Item

Annual per Capita Supply
(kg/year)

Freshwater fish

1.6

Demersal fish

7.5

Pelagic fish

20.1

Marine fish, other

13.7

Crustaceans

5.2

Cephalopods

2.0

Molluscs, other

2.4

Total fish

52.5

Source: FAO Food Balance Sheets, 1994-97

Table 13 shows the national meat and eggs per capita supply for 1997. When comparing meats with seafood products, the highest per capita supply item was poultry meat (including chicken, duck and other birds) with 34.78 kg/year, followed by pelagic fish with 20.1 kg/year.

Table 13: Meats and Eggs, per Capita Supply (1997)

Food Item

Annual Per Capita Supply
(kg/year)

Beef and Veal

5.23

Mutton and Goat Meat

0.62

Pork

11.23

Poultry

34.78

Other meat

0.02

Eggs

13.97

Source: FAO Food Balance Sheets, 1994-97[11]

3.2 Fish Distribution Channels

Current apparent consumption/supply levels of about 52.5 kg per capita place Malaysia among the highest seafood consuming nations in the world. Both freshwater and marine fish and fishery products are regularly traded in Kuala Lumpur’s domestic seafood market. Fish and fishery products are staple foods, and are the main source of animal protein for virtually all ethnic and income groups.

Fresh seafood is landed at several centres along the coastline of Peninsular Malaysia and is marketed by private fish traders/wholesalers. Much of it is traded through private contracts at negotiated prices and to a lesser extent, public auction. In addition, supplies originating from Thailand are transported by road to urban centres on the West Coast of Peninsular Malaysia. The distribution of fresh seafood in peninsular Malaysia shows a strong flow southward to main urban centres, in particular to Kuala Lumpur and Singapore. Seafood reaches consumers in Kuala Lumpur through a multi-level system, which may involve at least four transactions before the fish or fishery product is purchased by consumers in a public fish market or supermarket, or eaten at a restaurant/food stall. The channels of distribution incorporate locally caught and processed seafood, live and chilled cultured species and frozen locally processed and imported items from the region. Figure 3 illustrates the marketing channels for fresh seafood in Peninsular Malaysia. Kuala Lumpur’s supermarket chains often obtain supplies from direct importers or distributors of frozen and canned seafood products, which makes possible a shorter distribution chain.

Figure 33: Simplified Marketing Channels for Fresh Seafood in Peninsular Malaysia

The Fisheries Development Authority of Malaysia (LKIM) is in charge of the following functions:

There is a significant domestic live fish trade which is handled by mainly private wholesalers, who operate small trucks (with tanks and aeration systems), collecting live freshwater fish (tilapia, catfish, snakehead) produced by aquaculture farms. Domestic live shellfish trade comprises molluscs such as cultivated green mussel (Perna viridis), cockles/clams (Anadara spp. and Arca spp.), in particular blood cockle (Anadara granosa) and oyster (Crassostrea spp.); crustaceans include mangrove crabs (Scylla spp.). These live shellfish are regularly distributed in Malaysia using sea and road transport; supplies come from mariculture enterprises and small-scale fisheries. Most of the production of oysters, blood cockles/clams and green mussels are sold alive and a relatively limited proportion is sold as shucked flesh.

There is also a significant domestic and export trade of live cultivated seabass (Lates calcarifer) and to a lesser extent, groupers, with supplies coming mainly from cage culture. Singapore is the main export market for live seabass, which is transported by road in trucks equipped with tanks and aeration. Current ex-farm prices of pond-cultivated live seabass are about US$ 2.6 to 3.9/kg according to size; average market size of cultured seabass is about 500 to 700 g/piece. The most important domestic market channel for cultured seabass is the catering sector; according to latest estimates[12], about 3,000 tonnes of cultured seabass are consumed in Malaysia annually. Chilled/fresh cultured seabass is regularly offered through supermarket chains and public food retail markets.

Table 14 shows the price range and average wholesale prices of selected seafood at the Kuala Lumpur wholesale market during February/March 2000. Of the fresh/chilled fish species, white pomfret and threadfin fetched the highest prices. Fish is usually size- graded in three categories (large, medium and small). Shrimp species were among the most expensive seafood traded; and were graded according to the number of pieces per kg; most common sizes were 35 - 40 pieces/kg, 40 - 60 pieces/kg and > 60 pieces/kg.

Malaysia has becoming increasingly reliant on imports of frozen fish to satisfy the local fish canning industry demand. Canned fish, in particular mackerel and sardines, which are locally manufactured, are easily found in supermarkets, public markets and small grocery retail outlets. Some canned fish products from Thailand are also offered in the domestic market. Many of the retail outlets sell a wide variety of canned seafood, fish/squid snacks and cured fish. Supermarket chains are considered to have the largest share of the canned seafood retail market. Popular canned seafood packs include the following:

Table 14: Average Wholesale Prices of Selected Seafood in Kuala Lumpur

Period: February/March 2000

Species

Wholesale Price
(M. Ringgit[13]/Kg)

Indian Mackerel

3.6 - 7.2

(Rastrelliger kanagurta)

(5.3)

Spanish Mackerel

7.0 - 12.5

(Scomberomorus spp.)

(10)

Threadfin

7.3 - 23.0

(Nemipterus spp)

(19)

Seabass

7.6 - 13.5

(Lates calcarifer)

(10.5)

Red snapper

8.3 - 14.0

(Lutjanus spp.)

(10.8)

Brown spotted Grouper

7.3 - 17.0

(Epinephelus chlorostigma)

(11.6)

Red Grouper

8.5 - 23.5

(Cephalopholis sonnerati)

(14.8)

Black Pomfret

7.5 - 13.0

(Formio niger)

(10.3)

White Pomfret

14.0 - 36.5

(Pampus argenteus)

(25.5)

Black Tiger Shrimp

23.5 - 45.5

(Penaeus monodon)

(35)

White Shrimp

24.5 - 47.0

(Penaeus indicus)

(36)

Source: INFOFISH Trade News

3.3 Kuala Lumpur’s Retail Fish Market Sector

There are 78 public food markets, the Selayang food wholesale market being one of Kuala Lumpur’s main sources of fresh produce, including seafood.

The Kuala Lumpur urban area is home to a variety of retail establishments offering live, fresh, frozen, cured and canned seafood to consumers. The range of shopping options include public retail markets, supermarkets and street outlets, which offer a wide selection of live fish, fresh fish, frozen and canned fishery products as well as cured and fermented fish. Public markets and street fish hawkers currently hold a significant share of the retail market of chilled and live fish, as well as fermented and cured fishery products. Large supermarket chains offer mainly canned and processed seafood (including fish/shrimp crackers, shrimp paste, fish sauce, fish snacks, boiled-dried anchovy and dried fish). There is a strong preference by consumers to regularly shop for chilled/fresh fish at public retail markets and to a lesser extent, at street hawker stalls. Boiled-dried anchovies is a well-established product in the domestic market and was available in most retail outlets visited; according to some retailers, its demand is strong and steady the year-round.

The most popular product form is whole fresh fish and the species most in demand are Spanish mackerel, Indian mackerel, squid, threadfin bream, red snapper, grouper, sardine and shrimp. In a market where culinary traditions regard intrinsic characteristics of fresh fish as important, frozen products have to overcome consumer resistance. Usually, unsold fish is frozen and offered for sale the next day, at which time it fetches lower prices in comparison with fresh fish. However, frozen imported seafood (including hoki fillets and shucked mussels) is sold at some fast food restaurants; according to the restaurant management, improved availability and advertising campaigns have raised acceptance levels for frozen products among consumers in the catering sector. Cultured fish such as seabass, snakehead and catfish are well accepted by most ethnic and income groups.

Table 15 shows comparative retail prices for fresh fish at selected street seafood markets and public markets in Kuala Lumpur. In general, retail prices at street seafood markets were slightly lower than public markets with a price difference range of RM (Malaysian Ringgit) 0.5 to 3 per kg. However some products like Spanish mackerel, round scad, threadfin bream and sand velvet shrimp were at the same price level.

Table 15: Comparative Retail Prices of Fresh Fish at Selected Street Seafood Markets and Public Markets in Kuala Lumpur

Species

Street Seafood
Market Price
(M. Ringgit/kg)

Public Market Price
(M. Ringgit/kg)

Price Difference
(%)

Red Snapper

8 - 12

13.0

+3

Mangrove Snapper

8.0

8 - 9

+0.5

Squid

6 - 9

8 - 10

+1

Spanish Mackerel

13 - 15

14.0

0

Round Scad

5.0

4 - 6

0

Catfish (Live)

n/a

4.0

-

Hardtail Scad

4 - 5

5.0

+0.5

Yellow Striped Trevally

4 - 5

5.0

+0.5

Indian Mackerel

5 - 6

7.0

+1.5

Skipjack (small size)

3.0

3.0

-

Silver Pomfret

16.0

15 - 16

- 0.5

Black Pomfret

15.0

15 - 17

+1

Chinese Pomfret (small)

9.0

n/a

-

Tilapia (small)

3.0

n/a

-

Tilapia (medium)

3.5

n/a

-

Carps

7.0

n/a

-

Threadfin Bream

7.5

7.5

0

Mangrove Crab

13.0

13.5

+0.5

Sand Velvet Shrimp

25.0

25.0

0

Giant Freshwater Prawn

19.5

20.0


Source: data from field market surveys carried out by the author and counterparts

At most public markets, there are full-service seafood stalls in charge of taking and preparing orders from consumers. The preparation may include weighing a specific quantity of fish or shellfish, gutting, cleaning or cutting a whole fish to the desired size or product form. Orders are then wrapped in plastic bags.

Live fish and shellfish, including catfish, snakehead and blood cockles, are well-established products in the domestic market. The fish are kept in aerated tanks/aquaria, or simple water tubs or display baskets (for blood cockles) - this is a traditional and attractive marketing approach found in many public retail markets. Figure 34 illustrates a typical low-cost fish display table used for marketing of live catfish at public retail markets. Live catfish retailers indicated that average sales range from 60 - 70 kg/day; however one retailer indicated an average sales volume of 150 kg/day. Average retail prices of live catfish and eel were RM 4 and 15 per kg respectively. The basic equipment of a typical live catfish retailer consisted of one (1) plastic tank with a storage capacity of 500 kg of live catfish, weighing scales, chopping boards, plastic containers and one display table. Reportedly, the catfish can be kept alive for up to 7 days and with about 2 percent losses. Sales through the catering sector are also an important outlet for seabass, catfish and snakehead. Some restaurateurs indicated strong consumer preference for catfish, seabass and snakehead, either traditionally steamed or fried with vegetables. Blood cockles are also very popular in restaurants, steamed or sautéed in curry sauces.

Figure 34: Typical Low-cost Display Table for Retail Marketing of Live Catfish

The retail market for minced fish-based products includes fish balls, squid/cuttlefish balls, fish cakes, fish fingers and surimi analogues. In some street markets it was noticed that traditional small-scale production of minced fish paste was carried out regularly. This product was offered at some street markets, in particular those catering to the ethnic Chinese population. In addition, minced fish-based dried fish/shrimp crackers (locally processed and imported) were also offered. Public retail markets and supermarkets currently offer a variety of traditional minced fish products and surimi-based products. Traditional fish and squid balls are consumed in soups, mixed with vegetables or deep-fried.

Besides the above-mentioned minced fish products, value-added fishery products such as breaded shrimp and fish fillets are locally processed and marketed. In addition, dried squid and soaked/processed squid (sotong) are popular with consumers. Despite substantial local production of squid, some fresh/chilled squid/cuttlefish and dried squid is imported to meet domestic demand.

3.4 Street Food Hawkers in Kuala Lumpur

Street food hawkers in Kuala Lumpur, in particular those selling fresh and ready-to-eat seafood, are considered to be catering to the low-income consumers. According to current data from the City Hall, Department of Hawkers and Petty Traders, the total number of licensed street hawkers is about 34,593. However, it is recognised that about 12,000 unlicensed street hawkers are currently operating in the city[14]. Some 35 percent of the total number of street hawkers are involved in retailing ready-to-eat foods and beverages, raw food (fruits, vegetables, seafood, poultry) and native sweets and delicacies. According to the type of stall, hawkers in general are categorised as follows:

a) With static stalls
b) With stalls in marketplace
c) With stalls in hawker centres/food centres
d) Locked-up stalls
e) With stalls in open market place/night markets
f) With kiosks
g) With stalls in office buildings
h) Seasonal hawkers (festivals/cultural events)

Since the formulation of the National Action Plan on Hawkers in 1990, a comprehensive policy has been in effect to tackle the social and economic problems associated with street hawkers both at rural and urban levels. Its implementation includes the provision of funds to support credit schemes and training programmes for street hawkers to improve their facilities. In addition, the sanitary aspects of street food trading were to be addressed. Unfortunately, during the survey work, it was not possible to collect any available data on the level of implementation.

The main legislations formulated by the Federal and municipal authorities related to street food vending included regulations/laws which required hawkers to apply for registration/licensing, follow codes of practices, undergo periodic medical examinations, and follow training and inspection procedures. In addition, City Hall has implemented measures to try to control the number of hawker licenses; since 1996, a complete freeze in the issue of new licences began. However, this drastic measure apparently has not been totally effective, as more street hawkers have appeared. The authories acknowledge the following problems associated with the increase of the street hawker population:

a) Inappropriate location and poorly designed/non-uniform stalls
b) Inadequate basic amenities; wastes are not properly disposed of
c) Poor management and low personal hygiene habits
d) Improper food handling practices; lack of adequate health awareness.

Street fish hawkers currently play a significant role as fresh/chilled seafood suppliers in Kuala Lumpur; however, there is no detailed data on the number of such hawkers operating in the city. The main characteristics of fresh/chilled seafood street hawkers include the following:

Retail sales of raw food, in particular fresh fruits, vegetables and fresh and cured fish at busy streets or around public markets by informal vendors in Kuala Lumpur are an integral part of the local market place. These market outlets are regulated and supervised by the municipal authorities.

The main factors for this growth of street food vending in Kuala Lumpur can be explained as follows:

i) Local eating habits, cultural significance of street food hawkers, socio-economic environment, unemployment rates, and urban population growth

ii) Loyal patronage of a growing clientele; street food vending has emerged in response to a socio-cultural need for inexpensive nutritious foods. In the particular case of fresh raw seafood, informal street markets operating from strategic locations at busy hours of the day save customers time and/or money which might otherwise be spent in search of public markets or supermarkets

iii) The Asian financial crisis had severely hit the urban poor population. Therefore, street food vending activities flourished.

Currently Kuala Lumpur City Hall is planning to regulate street food vending to include the designation of specific street areas as well as provision of support to vendors through the construction of adequate food stalls and related facilities. Joint plans with the Hawkers Association include the design of adequate vans for mobile food vending. Also a survey is being planned to collect updated information on the socio-economic characteristics of the street hawkers and petty traders.

In general, it was noticed during field surveys that fish and fishery products offered by street hawkers were of acceptable to good quality. It appeared that consumers felt satisfaction and convenience with readily available fresh fish at street seafood markets. Based on observations, it is concluded that street fish markets were well accepted by consumers and in general, provide personalised services with adequate seafood expertise. However, it is important to note that Asian consumers, in particular the Chinese, are less likely to complain when dissatisfied with a purchase due to cultural factors (face saving behaviour). Based on direct observation and limited survey data, it appears that convenience, strategic location and affordable prices directly influence repeat purchases of street vended fish, rather than customer satisfaction and loyalty.

At most street food markets visited, adequate to fair conditions were observed regarding fish handling practices. At most stalls, fresh seafood was displayed without ice, except some high value finfish, shrimp, prawn and squids which were kept with crushed ice. However, most street fish vendors had at least one insulated box to keep chilled fish in crushed ice and one (1) 15 - 20 litres capacity plastic bucket for storage of potable water for fish cleaning. Some large stalls had at least one lined insulated HDPE container to keep fish with ice. Regarding the variety of fish and fishery products at street markets, most stalls had about ten (10) fresh/chilled fish species or six (6) fishery products (mainly minced, cured and fermented) on display. The hawkers indicated that they were holding inventories of fresh fish from one to two working days. On average, street fish vendors operate about 6 to 8 hours daily and most of the vendors interviewed indicated that the average number of working days is about 7 days per week. The average daily sales per stall are about 45 - 60 kg of fresh fish and shellfish.

Our limited street fish retailer’s survey indicated that men are the predominant operators of the street seafood retail stalls in Kuala Lumpur. A limited gender analysis showed that most women and men run street vending as a family business.

The main challenge is therefore the need to implement effective and sustainable interventions, taking into account the peculiar characteristics of street fish vending in Kuala Lumpur. Statutory requirements, including licensing, should be linked to equipment/infrastructure development programmes. In particular, seafood street vending should have adequate provision of improved facilities for handling, chilled storage and preparation which can be provided by targeting busy street areas where seafood vendors regularly operate. In addition, different seafood vendors, depending on the type of seafood prepared and sold (e.g. chilled raw fish and cooked fish/squid balls), working hours, working places, modus operandi (with fixed stalls or itinerant vendors with pushcarts), have varied requirements in terms of equipment and facilities, as well as different views regarding proposed improvements of their services and facilities.

The use of simple dial metallic thermometers is suggested, to regularly measure temperature of seafood on display at street fish markets. Dial thermometers can easily be calibrated to a known temperature by adjusting a hex nut located under the dial. These thermometers were locally available. This basic tool could be included as part of the training kit for street fish vendors. In addition, adequate supplies of potable water (water taps) as well as suitable wastewater drainage systems should be made available to each street fish stall. Water is used extensively in fish markets not only for fish cleaning, but also to flush offal and blood from equipment and floors, and to flume wastewater to floor drains and collection sumps. The first step for the implementation of potable water supplies in individual stalls at street fish markets should be to analyse water use patterns, install water meters and regularly record water consumption. The next step should be to undertake a survey of all market area and ancillary operations to identify wasteful practices and undertake corrective actions. Each street fish vendor should pay according to their water consumption and proportionally for the provision of wastewater drainage systems.

Regular training courses on fresh/chilled fish handling and hygiene should be part of any development programme for street seafood vendors organised by the Kuala Lumpur City Hall in co-ordination with the relevant government agencies. This training should be aimed at providing adequate guidance and technical assistance to fish hawkers on proper seafood handling and personal hygiene practices. All stall holders and their assistants who are involved in the preparation and sale of seafood should be required to attend and pass this training course.

Basic technical fields, which may be relevant for training courses intended for street fresh fish vendors, are as follows:

i) Introduction to the concepts of freshness, quality, wholesomeness and nutritive value

ii) The care of live and fresh fish, handling methods, use of ice, receiving deliveries, quality inspection, storage of live and chilled fish; hygiene and sanitation for fish retailers, selection and application of detergents and disinfectants

iii) Quality and quality aspects at retail level; display of fish; promotion of fish sales techniques. Avoiding bad marketing practices

iv) National and municipal regulations and codes of practice for fish vending

v) Introduction to business planning; simple economics for fish retailing

vi) Equipment & facilities development programmes in street fish vending.

3.4.1 Typical Street Food Markets in Kuala Lumpur

Municipal authorities license hawkers operating in most street food markets in Kuala Lumpur. In general, hawkers have to pay a monthly stall space fee and an annual license fee. Typical of many urban street markets is their location (usually near public markets) and the use of umbrellas and/or canvas awning which provide shelter and protection from rain and sun.

Seafood stalls are mostly equipped with trestle tables (the table top made of galvanised iron, stainless steel or fibreglass) for display of produce, insulated HDPE containers, chopping boards, weighing scales and price boards. They usually operate 6 - 7 days per week, according to the municipal regulations. The daily cleaning operations and solid waste collection at this street food market is carried out by a specialised private agency under contract with the local authorities. In most street raw food market outlets surveyed, the following food items were offered:

i) Fresh seafood
ii) Minced fish (raw)
iii) Cured fish (dried and dried-salted fish)
iv) Fermented fish sauce, pickled shrimp/prawn and shrimp/prawn paste
v) Squid/fish balls
vi) Noodles and rice/bean curd
vii) Dressed chicken/eggs
viii) Fresh goat meat, pork and beef, live frogs
ix) Fresh fruits and vegetables
x) Ready-to-eat food and beverages
xi) Roasted pork/duck
xii) Charcoal/dry goods/lentils/dried vegetables
xiii) Cooked food (various)
xiv) Sweets/cakes
xv) Traditional medicines
xvi) Shoes/newspapers/plastic articles/clothes
xvii) Jade articles/kitchen utensils/joss sticks
xviii) Garden utensils/seeds/fertiliser

Figure 35 illustrates the general layout of a typical street food market outlet located in the Pudu area. The total number of hawker stalls operating in the streets surrounding the Pudu retail market was about 1,097, of which 162 stalls were selling fresh seafood (including some also offering fermented and cured fishery products). In addition, 28 hawker stalls were offering fish balls/minced fish and/or bean curd.

The seafood stalls were distributed in the five areas allocated in the streets surrounding the Pudu market, without a specific pattern. However, the main concentration of seafood stalls was located in the areas A, B and C.

The market hours for street food hawker stalls were from 0600 hours to 1210 hours, immediately after the cleaning operations and solid waste collection were carried out. Some of the stall equipment was kept in nearby areas and the streets used by hawkers were cleared by afternoon. The typical sales or table area per seafood retailer would be in the range of 1.9 to 3 m2. In addition, some space was taken up for insulated boxes that could not fit below the display table and the chopping board. A typical area for a seafood stall would be in the range of 3 to 4 m2. Table 16 shows the total distribution of licensed stallholders (including street hawkers) in Pudu market, by ethnicity.

Table 16: Distribution of Licensed Stall Holders in Pudu Market, by Ethnicity (including Street Hawkers)

Ethnic Group

Number of Stall Holders (Percentage)

Chinese

1,316 (81.4%)

Malay

237 (14.6%)

Indian

64 (4%)

Total

1,617 (100%)

Source: Kuala Lumpur City Hall

Figure 35: Layout of a Typical Street Food Market in Kuala Lumpur (Pudu Market Area)

Table 17 shows details of technical features and estimated costs of basic equipment of a typical street fish hawker in Pudu market.

Table 17: Technical Features and Estimated Costs of Basic Equipment used by a Typical Street Fish Hawker in Pudu Market

Description of Item

Quantity

Unit Cost
(M. Ringgit)

Display tabletop
(stainless steel);
(Dimensions: 120 cm x 164 cm x 6 cm)

1

500

Set of folding trestles
(wood)

1

80

Insulated container
(expanded polystyrene, 50 mm thick)
50 kg capacity

4

15

Insulated container
(HDPE walls and polyurethane foam)
100 kg capacity

1

250

Umbrella
(waxed canvas)

1

120

Stand pole for the umbrella

1

50

Plastic trays

12

2

Chopping board
(hardwood)

1

65

Filleting knives

1

40

Plastic container
(for carrying water);
5 gallons capacity

2

8

Price board

1

10

Plastic bin
(offal collection)

1

6

Plastic bucket

1

6

Weighing scale
(10 kg capacity);
platform type

1

75

Portable calculator

1

20

Total Cost of Basic Equipment


1,322

Source: field surveys conducted by the author and counterparts

3.5 Improved Equipment for Street Seafood Vending

3.5.1 “Fish on Wheels” Marketing Scheme

A successful seafood marketing scheme known as “Fish on Wheels”, based on motorised retail vans and sponsored by the Fisheries Development Authority of Malaysia (LKIM), was initiated in 1997. This marketing scheme was implemented in the Kuala Lumpur area, in co-ordination with other local agencies/institutions, catering to mostly Government employees. A sales officer and driver operate these motorised mobile facilities. Figure 36 illustrates a typical “Fish on Wheels” van for retail sales of fish.

The concept of this scheme is based on the following criteria:

a) All purchasing is done in bulk at a wholesale market

b) An adequate market mix can be offered, including appropriate prices, adequate quality products and good product variety (fresh seafood, frozen fish/squid balls, dried fish, and vegetables and poultry products)

c) Retailing through mobile fresh seafood outlets reduces fixed overhead costs, which is a clear advantage in comparison to conventional fish shops and supermarkets

d) The concept capitalises on the increasing demand for fresh/chilled seafood of consistently high quality. Fish is a staple food for the local population

e) The “Fish on Wheels” concept is an innovative marketing scheme which can allow a relatively large volume of sales, as well as consistent standard of operation and product quality

f) The high level of mobility permits an extensive area of the city and increased number of government agencies to be reached.

However, such motorised retail vans involve comparatively high capital investment and operating costs, which requires careful planning and adequate marketing strategies. Features of the “Fish on Wheels” scheme are as follows:

a) It comprises a small fleet of four (4) motorised retail vans. Each van is supplied solely from the company’s depot (located in Kuala Lumpur) on a daily basis. The central depot also provides facilities including crushed ice supply, engine services and maintenance as well as services for the placing of individual orders for the following day

b) The retail van has a special purpose-built body, which incorporates a full width platform made in stainless steel, lift-up sides to provide additional protection to seafood and a multiple compartment for storing and displaying other food items such as vegetables, poultry, condiments and dried fish/shrimp. Insulated fish boxes, HDPE fish boxes, chopping boards and weighing scales are placed on the stainless steel platform. On the lift-up side an attractive price board is placed at the start of sales operations. The vehicle is a standard one (1) tonne van with a 4 - cylinder SOHC engine, 1,400 cc and 78hp/5,500 rpm. The retail price of the van is about RM 38,700 (US$ 10,200) including basic insurance. The total cost of the truck body and display unit is about RM 8,000 (US$ 2,105).

c) A central buying point (Selayang wholesale market) ensures the best possible availability and price of seafood. However, during the survey period there were some problems with regular supplies of seafood; management personnel indicated that in the previous months, about 60% of the fresh fish was imported from Thailand due to shortage of fish supplies from local landings.

d) A good variety of seafood is offered regularly (about 10 - 15 species). On average, each retail van sells about 450 - 500 kg of fresh fish daily and serves three (3) Government agencies. There are well-established sales periods in each location namely: a) 09:00 to 11:00 hours; b) 12:30 to 14:30 hours; c) 14:30 to 16:30 hours; operating from Mondays to Saturdays (6 days/week).

e) Adequate supervision and motivation of the retail van operators is carried out to improve productivity and services to consumers. The general profile of consumers served by retail vans could be described as mostly housewives from socio-economic levels B, C and D. They usually purchase food items on a regular basis and to a lesser extent, on impulse. They buy because of assured regular supplies, convenience for them, competitive prices and consistently good quality.

f) Average daily sales were as follows:

Type of Product

Average Daily Sales (kg)

Fresh/chilled seafood

450-500

Frozen fish/squid balls

25

Dried shrimp

2.5

Dried anchovy/cured squid

2.5

Poultry, beef and vegetable

200

Figure 36: Van used in “Fish on Wheels” Marketing Scheme

Table 18 shows details of the technical features and estimated costs of basic equipment used by a “Fish on Wheels” unit, based on data provided by LKIM.

Table 18: Technical Features and Estimated Costs of Basic Equipment of “Fish on Wheels”

Description of Item

Quantity

Unit Cost
(RM)

Retail van (including special purpose-built body)

1

38,700

Insulated container (HDPE walls and polyurethane foam) 50 kg capacity

1

150

HDPE fish boxes (25-kg capacity)

16

20

HDPE trays (15 kg capacity)

20

5

Chopping board (hardwood)

1

45

Filleting knives

1

40

HDPE baskets

5

6

Price board

1

10

Portable table (HDPE top)

2

35

Weighing scale (30 kg capacity); platform type, digital

1

1,000

Portable calculator

1

35

Total Cost of Basic Equipment


40,500

Table 19 shows the retail prices of seafood and meats offered through the “Fish on Wheels” marketing scheme in Kuala Lumpur at the time of the survey.

Table 19: Retail Prices of Seafood and Meats Offered by “Fish on Wheels” Vans in Kuala Lumpur

Products

Retail Prices
(RM/kg)

Seafood:


Silver Pomfret

17.0

Black Pomfret

15.0

Spanish Mackerel

14.0

Threadfin

16.0

Wolf-herring

12.0

Mangrove Snapper

15.0

Seabass

17.0

Sand Velvet Shrimp

25.0

Giant Freshwater Prawn

20.0

Mangrove Crab

13.0

Loligo Squid

10.0

Red Snapper

13.0

Threadfin Bream

7.5

Yellow Striped Trevally

6.0

Hardtail Scad

5.0

Indian Mackerel

7.5

Dried Anchovy

15.0

Dried Shrimp

30.0

Meat &Poultry:


Beef Cutlets

8.0

Dressed Chicken

5.0

Source: Data collected during field surveys conducted by the author and counterparts

Table 20 shows the estimated operational costs of a standard “Fish on Wheels” unit in Kuala Lumpur.

Table 20: Estimated Operational Costs of a “Fish on Wheels” Unit

Cost Item

Daily Expenses (RM)

Days worked per month

Monthly Amount

I) Fixed Costs

68.75

24-30

2,062.50

Depreciation of major equipment:

30.00


(4.50%)
900.00

Transport van




Chest freezer




Weighing scales & fish boxes




Maintenance of equipment:

6.25


187.50

Transport van




Chest freezer




Weighing scales




Labour costs:

5.00


150.00

Driver




Assistant




Transportation costs of fish/fishery products from wholesale market/dealer

10.00


300.00

Miscellaneous expenses:

17.50


525.00

Road taxes




Insurance




Rental of premises




II) Variable Costs

1,451.85

24-30

43,305.90
(95.45%)

Purchase of fish and fishery products

1,375.00


41,250.00

Ice supplies (4 blocks of ice/day; 70 kg/block)




Packaging materials:

41.60


998.40

Plastic bags

5.75


172.50

Losses of fishery products

25.00


750.00

Other costs:

4.50


135.00

Water




Parking charges




Electricity




III) Total Operational Costs

1,520.60

24-30

45,368.40
(100%)

Source: Fisheries Development Authority of Malaysia (LKIM)

3.5.2 “Pasar Tani” (Farmers’ Market) Scheme

An interesting marketing scheme known as Pasar Tani has as its main objectives to encourage farmers’ and fishermen’s organisations to participate directly in the marketing of their produce, enabling them to obtain higher prices, expand the market size for agricultural and fisheries produce and provide consumers with a wider choice of foodstuff at reasonable prices.

This marketing scheme is co-ordinated and organised by the Federal Agricultural Marketing Authority (FAMA). Figure 37 shows the organisational chart of the Pasar Tani marketing scheme.

Figure 37: “Pasar Tani” Organizational Chart

The main characteristics of the Pasar Tani scheme are as follows:

i) This marketing scheme operates usually once a week in selected areas of the city. The retailers can operate in several locations provided that they can assure reasonably regular supply of produce. A selection of strategic locations is done by FAMA in co-ordination with local authorities

ii) At each Pasar Tani, a good variety of fresh vegetables, fruits, seafood, chicken, red meat, dairy products, flowers, traditional medicine and handicrafts is regularly offered.

iii) FAMA provides the following services:

iv) A total of 28 Pasar Tani outlets were set up in Kuala Lumpur, with 2 outlets operating every day of the week, 9 on Sundays, 8 on Saturdays, 5 on Thursdays, 3 on Wednesdays and 1 on Fridays. Market hours vary, most operating from 07:00 hours to 13:00 hours and 14:00 hours to 20:00 hours. Retailers are charged a monthly fee (by FAMA) for stall space allocation and an annual license fee (by municipal authorities).

v) Most seafood retailers operate from vans; fish is displayed on trestle tables with an umbrella to provide protection from rain and sun. They usually carry fish with crushed ice in insulated boxes. This type of stall has the advantage that it can be easily assembled, and after market hours, it can be loaded onto the vans and moved to another market location. The typical sales or table area per retailer would be in the range of 1.7 to 3.4 m2. The most common material used to manufacture the display tabletops is fibreglass. In most locations visited, retailers displayed their fish on a standard fibreglass tabletop (91.44 cm wide and 182.9 cm long) with folding trestles provided by FAMA. They were equipped with cutting boards, weighing scales, plastic boxes and wash basins for washing fish and cleaning the stall area. After market hours all equipment was washed with clean water, wastes were collected in plastic bags and placed in offal bins and the stall area was rinsed with clean water. The services of the cleaning personnel are included in the monthly stall space fee.

vi) Seafood supplies in most Pasar Tani visited were from Fishermen’s Associations. All retailers interviewed indicated that they were not fishermen, but were linked to these Associations; therefore the concept of direct marketing from producers to consumers was somehow met. They also indicated that the frequency of purchases of fresh seafood was 3 - 4 days/week. Average daily sales were about 120 kg of fresh fish. In most cases, the driver was the owner of the business and was in charge of all trading operations. Table 21a shows the technical features and estimated costs of the basic equipment used by a typical Pasar Tani fishmonger operating in Kuala Lumpur.

Table 21a: Technical Features and Estimated Costs of Basic Equipment used by Pasar Tani Fishmongers

Description of Item

Quantity

Unit Cost
(RM)

Van (1.8 tonne) wooden body;
secondhand

1

21,000

Insulated container
(HDPE walls and polyurethane foam)
50 kg capacity

5

150

Insulated container
(HDPE walls and polyurethane foam)
100 kg capacity

1

250

Display tabletop (fibreglass);
(Dimensions: 92 cm x 182 cm x 7 cm)

2

170

Set of folding trestles
(wood)

2

78

Umbrella

2

120

Plastic trays

12

1.5

Chopping board
(hardwood)

1

65

Filleting knives

1

40

Plastic container (for carrying water);
5 gallons capacity

2

8

Price board

1

10

Plastic bin
(offal collection)

1

6

Plastic bucket

1

6

Weighing scale (10 kg capacity); 70
platform type

1


Portable calculator

1

20

Total Cost of Basic Equipment


22,987

Source: Field surveys conducted by the author and counterparts

Table 21b shows the estimated operational costs incurred by a typical Pasar Tani fishmonger operating in Kuala Lumpur.

Table 21b: Estimated Operational Costs incurred by a Pasar Tani Fishmonger (Kuala Lumpur)

Cost Item

Daily Expenses (RM)

Days worked per month

Monthly Amount

I) Fixed Costs

156.90

12

1,882.80
(22.84%)

Depreciation of major equipment:

16.90


202.80

Transport van




Weighing scales & fish boxes




Display tables




Insulated containers




Maintenance of equipment:

15.00


180.00

Transport van




Weighing scales




Folding trestles




Labour costs (including meals):

90.00

12

1,080.00

Driver




Assistant




Transportation costs of fish/fishery products from landing places

20.00

12

240.00

Miscellaneous expenses:

15.00

12

180.00

Road taxes




Insurance




Rental of premises




II) Variable Costs

529.80

12

6,357.60
(77.15%)

Purchase of fish and fishery products

480.00


5,760.00

Ice supplies (2 blocks of ice/day; 70 kg/block)

20.80


249.60

Packaging materials:

10.00


120.00

Plastic bags




Losses of fishery products

15.00


180.00

Other costs:

4.00


48.00

Water




Parking charges




III) Total Operational Costs

686.70

12

8,240.40
(100%)

Source: Field surveys conducted by the author and counterparts

Figure 38. Fresh fish displayed at a street fish retailing stall. Pudu Market area, Kuala Lumpur.

Figure 39. Side view of a typical street fish-retailing stall at a busy street food market. Kuala Lumpur.

Figure 40. Fresh shrimp displayed at a street fish retailing stall. Pudu market area, Kuala Lumpur.

Figure 41. Well-iced fish displayed at a street food market. Kuala Lumpur.

Figure 42. Typical small-size fresh fish retail stall at a busy street food market. Kuala Lumpur.

Figure 43. Side view of a typical fresh minced fish retail stall at a street food market. Kuala Lumpur.

Figure 44. Live shellfish displayed at a street food market outlet. Kuala Lumpur.

Figure 45. Display of fresh minced fish packed in plastic bags at a street food market. Kuala Lumpur.

Figure 46. Well-iced squid displayed at street food market. Kuala Lumpur.

Figure 47. Display of dried anchovies in a pushcart at a street food market. Kuala Lumpur.

Figure 48. Typical stainless steel display top used in street fish retail stalls. Kuala Lumpur.

Figure 49. Overall view of stalls at a Pasar Tani street food market. Kuala Lumpur.

Figure 50. Basic fish retailing equipment used by Pasar Tani stallholders. Kuala Lumpur.

Figure 51. Side view of a typical fish retail stall at a Pasar Tani street food market. Kuala Lumpur.

Figure 52. Side view of a fibreglass display top and foldable trestle table frame at a Pasar Tani street market. Kuala Lumpur.

Figure 53. Disassembling and loading fish retailing equipment onto vans during closing hours. Pasar Tani street market, Kuala Lumpur.

Figure 54. Solid fish waste collection at a Pasar Tani street market. Kuala Lumpur.

Figure 55. Fish filleting operations in a “Fish on Wheels” van. Kuala Lumpur.

Figure 56. Overall view of an operational “Fish on Wheels” van, Kuala Lumpur.

Figure 57. Display of boxed fresh fish in a “Fish on Wheels” van. Kuala Lumpur.

Figure 58. Fresh fish selection in a “Fish on Wheels” van. Kuala Lumpur.

Figure 59. Side view of a typical live fish retail stall at a public market. Kuala Lumpur.

Figure 60. Display of live catfish and snakehead at a fish retail stall. Kuala Lumpur.

Figure 61. Typical low-cost live fish transport container (plastic body with nylon mesh) used in wholesale and retail operations. Kuala Lumpur.

Figure 62. Display of traditional deep-fried minced fish products on a folding trestle table, at a temporary fish retail stall. Ipoh, Malaysia.

Figure 63. Typical display of pre-packed dried-salted and dried fish, dried shrimp and fermented fish products on a folding trestle table, at a temporary fish retail stall. Ipoh, Malaysia.


[9] Based on the total midyear population data for the year 2000; international database of the US Bureau of the Census, International Programs Center. (http://www.census.gov).
[10] Association of Southeast Asian Nations (ASEAN), with the following member countries: Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Vietnam and Thailand.
[11] Based on FAO statistical database (http://www.fao.org).
[12] Markets for cultured grouper and other marine finfish, by Sudari Pawiro (INFOFISH).
[13] In February 2000, the rate of exchange was US$ 1.00 equal to 3.8 Malaysian Ringgit.
[14] Development of street food activities - Kuala Lumpur experience by Zainol Ariffin bin Pawanchee, 1999.

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