MARKET DEVELOPMENT PROPOSALS   

PEROSPECTS OF PHYSICAL FOOD MARKETING  

The next century has been designated the Century of Cities.  While in Latin America most people already live in urban areas, major Asian and African cities are likely to double their populations within a decade.  In particular, the number of low-income urban consumers will increase their food security, which will depend upon the level and stability of the cost of accessing food as well as on the variety and quality of food available to them.  

A very effective way of enhancing urban consumers' food availability is to improve the efficiency of all activities that bring food into cities and distribute it within urban areas, i.e. assembling, handling, sorting, packaging, storing, transporting, processing, wholesaling, retailing and cooking for sale as street food. It can do a great deal to improve local food marketing systems by addressing present constraints and expected requirements at the level of market infrastructure and services, transport and credit facilities, legislation and regulations, as well as technical, commercial and managerial skills. It would virtually make food marketing more efficient and improve rural – urban linkages.  This will greatly support local development initiatives. Cooperative action will improve consumers' access to food.  Cities will thus become less vulnerable, more sustainable and just and, therefore, better places to live.  Food insecurity exists when food is not available or when consumers cannot adequately meet their food and nutritional needs. 

Urban Markets and the Future of Cities

Urban Planners are usually concerned with the vulnerability and the sustainability of the development of their cities, as well as with the level of urban segregation and equity issues but often feel less concerned with urban food security.  

·        A city will be less vulnerable, the more its inhabitants are able to adequately feed themselves;

·        Urban food distribution will be more sustainable when public investments in market infrastructure and facilities make a real contribution to local economic and social development; 

·        If the food needs of low-income cities are not adequately met, in terms of well-managed and efficient market infrastructure and services, the tendency towards segregation within the city will be strengthened; 

·        Food access difficulties have been among the major causes of urban violence; 

·        The enhancement of equity within a city also requires that decision makers be adequately informed and make the best use of available instruments and resources to support the development of complex food systems composed of individuals with different economic, social and political powers and objectives.

The food security of low-income urban consumers is an important dimension of cities.  It should therefore be a priority.  

APMCs and Urban Food Marketing

No meaningful progress in enhancing the food marketing for urban consumers can be achieved without an adequate understanding of urban food marketing systems. The issues include  

·        The formulation of urban or municipal policies;

·        The execution of investment and development programmes;

·        The planning, construction and management of urban wholesale markets, food loading and unloading areas, docks, stations and transport infrastructure;

·        The maintenance and upgrading of public infrastructure as well as the provision of water, toilets, lighting, drainage, sewage and waste disposal;

·        The regulation of public land occupancy and construction;

·        The levying of municipal taxes and market fee;

·        The control of food quality and sale-point hygiene;

·        The promotion of security throughout the urban areas;

·        The regulation of commercial activities; and

·        The control of unauthorized food-trading activities.

·        Decision-makers are not fully aware of the issues involved;

·        Policy and investment decisions are often taken on a non-technical basis or are imposed by Central Government;

·        Available resources are insufficient to address the large number of problems.  Resources are not increased with the increase in responsibilities;

·        Available market infrastructure is inadequate;

·        Disbursement procedures for loans received from Central Government and other Agencies are cumbersome;

·     Staff is insufficient.  Its technical and managerial skills are inadequate with respect to food marketing, problem analysis, programme design, implementation, monitoring and follow-up, etc.

·        Dialogue with the private sector is insufficient;

·        Co-ordination and collaboration with Central Government is inadequate

·        Public investments in badly planned market infrastructure do not contribute to local economic and social development;

·        Private investments in food marketing are not stimulated;

·        Municipal revenues generated by market activities are adequately reinvested, markets are not properly maintained and services to market users remain insufficient;

·        Municipal regulations are not respected and not updated to reflect changes in the food economy and commercial practices;

·        Prices paid by urban consumers for accessing food are higher than they need be.  

An urban food supply and distribution policy requires clear goals and objectives as well as clearly defined institutional roles and responsibilities.  

Issues in Urban Growth on Food Availability

·        Urban food demand increases and gradually outstrips the capacity of the surrounding areas to meet urban needs.  Consequently food supply sources are increasingly distant from the urban and peri-urban areas.

·        Existing market and transport infrastructure and facilities in both rural and urban areas become increasingly inadequate to handle the growing food quantities.  Food supply flows grow to be more complex while transport and marketing costs increase.

·     Urban life styles, both spouses working, traffic conditions, longer distances between residential areas and central markets, increase the need for convenience foods for mid-day meals, more retail outlets nearer residential areas and more convenient shopping hours.  

With the growth of urban areas and of food demand, food distribution becomes more complex, food-marketing activities increase and the distance between supply and consumption areas widens.  Marketing costs and the cost of accessing food consequently increase.  

Urban Market Problems, Facilities and Management  

Public markets have burned down throughout the world over the last few years because of inadequate structures and maintenance, poor management, fire-hazard practices, … or to force traders into new markets.  These blows to the local economy have important financial implications for small traders and entrepreneurs as well as consumers.  

Existing market spaces and facilities are often insufficient in developing countries and countries in transition.  Consequently, many food traders occupy roads around markets.  

Urban markets are usually seem as a source of revenue to local town coffers, but those funds are often not reinvested in infrastructure maintenance and better services.  This leads the traders feel that market taxes are not justified and unrest when then rates are increased.

Food Retailing

Middle and high-income consumers shop at retail shop while low-income consumers, who spend as much as 80 per cent of their income on food, go to local petty shops, to market places near their homes or buy from street vendors. Public retail markets have not expanded rapidly enough in newly urbanized areas and existing markets have been unable to accommodate the increasing number of retailers.  

Lack of space or new market opportunities in satellite towns are thus the cause of spontaneous markets, which fill an important gap in the distribution chain.  However, their unplanned nature may create traffic, health and environmental problems.  

In low-income cities, a plurality of small family-run food shops competes for the local market.  Such competition, made more difficult by the growing presence of supermarkets and the lack of an entrepreneurial mentality as well as technical and managerial expertise, are responsible for low and even negative returns, which in turn, do not stimulate private investment.  

Informal Food Distribution

Informal retailing and street sales are an important and convenient source of cheap food for low-income urban consumers.  Informal activities are also a source of employment and income for the poor, particularly women. Food marketing is an important source of employment for low-income people, especially women.  

Most informal traders sell in the street because they believe that they can reach more customers.  Others do so because they don’t have access to market facilities and services, as they are unable to pay market charges.  Because of their illegal status, police often harasses informal traders.  

Wholesale Markets  

At many places both the construction and the expansion of wholesale markets have lagged behind the growth in urban populations and food flows.  All cities, with very few exceptions, totally lack specific wholesale market facilities.  Now the States are increasingly realizing the need for market infrastructure and facilities to support the transition to liberalized food markets.  

The inadequacy of wholesale facilities is not only the cause of food losses, traffic jams, hygiene and safety problems, but is also an impediment to achieving an efficient food marketing system.    

Wholesale Markets: Hygiene, Health, Security and the Environment

Market authorities usually guarantee cleaning inside the markets, but this is rarely adequate.  Toilet facilities are rare and seldom properly cleaned.  Water points, drainage and sewage are usually insufficient. Inadequate lighting in markets exposes users to additional risks and increases the likelihood of theft. The precarious hygiene conditions of established and spontaneous markets, the increasing quantities of waste, and the growing number of lorries required for food transport, have an adverse impact on the environment, as they pollute air and water, increase noise and threaten public health.  

Market Planning  

Plans to develop market facilities away from urban centres often result in under-utilized markets.  This may be due to the rents charged in the new markets are set too high for the smaller trader; inappropriate market design; retailers cannot afford the extra transport costs; traders fear losing their customers, etc.  

Legislation and Regulations  

The rationalization of food marketing systems may require appropriate changes in the rules governing them.  National legislation and local regulations require that fruit and vegetables be transported through a series of wholesale markets where apparently unnecessary yet compulsorily middlemen and a series of market taxes lead to higher retail prices.  

Multiple Municipal Authorities

  As cities expand, food should travel freely through areas under different, and sometimes conflicting municipal authorities. Food can thus be subjected, for example, to multiple taxes.