EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Agricultural Wholesale Markets John Millns Thursday 2 nd June 2011

EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Agricultural Wholesale Markets In Western Europe agricultural wholesale markets developed strongly in mid-20 th Century primarily for fresh produce sales (fruit/vegetables/meat/fish/flowers) Agricultural wholesale markets can be owned financed and managed by both the public (Central, Oblast or Rayon Government) and private sectors (company of user/farmer cooperative) or as a public/private partnership However in western European countries Municipalities or Government still mostly maintain responsibility for market management and continue to provide a place to trade Strong support from Municipality and City Administrations (finance and management) and as producer/trader membership organisations Mercabarna Barcelona 90 ha market Amsterdam 23 ha Market Rungis Paris 232 Ha market

EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Agricultural Wholesale Markets In the past 20 years there has been a major expansion of agricultural wholesale markets in Eastern European (EU accession countries in particular) and around major cities Wholesale markets were seen a key agri-policy tool in accession countries and with considerable public investment. International Finance Corporation/World Bank/European Bank for Reconstruction and Development were important funding sources ($72 million State guarantees in 1995 for 4 wholesale markets in Poland alone) Gdansk 56 ha marketSofia 45 ha marketLublin 18 ha market

EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Agricultural Wholesale Markets Across the world around 55% of markets are owned by the public sector (and are promoted as providing a public service) 32% are owned and managed as Public/Private Partnerships Only 13% are fully privatised

EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Public/Private Partnerships A Public–Private Partnership (PPP) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. It involves a contract between a public-sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in that project. Governments generally have a duty to spend public funds efficiently. The private sector aims to maximise returns to the company shareholders Typically, a private-sector consortium forms a special company called a “special purpose vehicle” (SPV) to develop, build, maintain and operate the asset for the contracted period The SPV often involves a building contractor, a maintenance company and a bank lender(s). In cases where the government has invested in the project, it is typically (but not always) allotted an equity share in the SPV Successful management of a public/private partnership will depends on a clear and fair balance between the parties according to their interest and with clear rules of authorities and responsibilities Rules, regulations and agreements should be as transparent, clear, practical and as simple as possible and so that they are easily understood and implemented

EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Market Rules Days/hours/opening times Fees and charges Authorised traders Allocation of space Access and circulation within the market Vehicle movement and parking; Produce handling Produce quality and packaging Produce inspections Market hygiene Penalties and dispute arbitration Market reporting/data and price collection and dissemination Communication channels Training and information Signs Traffic/public order security and safety Site maintenance Cleaning and garbage disposal Health and safety Security