EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” John Millns Market Infrastructure Specialist Saki Tuesday 26 th January 2011 Agricultural Markets

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 European Union and Related Issues in Ukraine The break up of former production and trading systems in may cases has led to: Large numbers of smaller holder farms as a % of total production Disorganised and often chaotic trading during the main harvest season Unsafe, overcrowded and unhygienic markets High fresh produce losses (wastage/handling/transport) A lack of market opportunities or reliable market information Agricultural Products are living organisms. Food reaches consumers by a complex network of intermediaries - production, assembly, sorting, packing/processing, reassembly, distribution, retail

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 European Union and Related Issues in Ukraine In many countries assembly and wholesale markets are key linkages between the producer and enable economies of scale and a secure, safe and hygienic place to trade In Western Europe agricultural wholesale markets developed strongly in mid- 20 th Century primarily for fresh produce sales (fruit/vegetables/meat/fish/flowers/livestock) Strong support from Municipality and City Administrations (finance and management) and as producer/trader membership organisations In the past 20 years there has been a major expansion of agricultural markets in Eastern European (EU accession countries in particular) and around major cities Agricultural markets have been seen as a key policy tool in accession countries and with considerable public investment (72 million USD of State guarantees for 4 wholesale markets in Poland alone) They may also provide other services such as sites for storage, packing, adding value or market information

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 European Union and Related Issues in Ukraine 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 The World Union of Wholesale Markets (WUWM) estimate 25% of the worlds population eat food which has been handled through a wholesale 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 European Union and Related Issues in Ukraine Two types of market: Rural Markets are focal points outside of cities and where farmers can meet with traders to trade and exchange information Agricultural wholesale markets are places where producers, manufacturers, importers, retailers and traders sell large quantities of food goods to shops, canteens, kiosks and other commercial and institutional buyers In general, it is the sale of goods to anyone other than a standard individual consumer

EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Farmers markets may operate every day, one or two days a week or on a seasonal basis Often supported financially or managed by farmers/traders or local Administration as part of a regional markets strategy Normally they are located on main highways or at well known locations A market committee (farmers/traders/administration) are normally the main decision making body Location and design are crucial for successful operation A step by step plan for development Rural Markets

EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Agricultural Markets Assessing Market Trading Requirements -Catchment area -Production information (livestock/fruit/vegetables) -Trader information -Other market information -Estimate of likely throughput Preliminaries and Assessing the Space Required -Potential number of traders/spaces needed -List of facilities/open/covered/truck area -Site characteristics -Access -Road/electricity/water/infrastructure provision -Ease of development -Environmental impact -Land ownership -Planning Consents

EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Agricultural Markets Market Design and Preparing a Site Plan -Outline sketch on paper -Perimeter fence -Basic tarmac and infrastructure provisions -Building/equipment locations -Traffic circulation -Market expansion opportunities Financial Feasibility -Overall incomes and costs estimates over 5 years -Capital cost estimates (construction/equipment/permits/architects/engineers fees etc) -Running costs estimates (maintenance/services/cleaning/waste removal/staff fees/interest repayments etc) -Income estimates based on estimated fees/charges and throughput/use

EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Agricultural Markets Constructing the Market -Securing finance ( Own money/joint ventures/loans/grants) -Consents and permissions -Detailed and final design plans and budgets -Tender documents for buildings/conditions of contract/ specifications -Tender evaluation -Construction supervision Operating the market -Market rules to be established (simple/understandable and realistic) -Management to be decided

EU-funded Project “Implementation of Ukraine’s Commitments under WTO and ENP Frameworks in the Rural Sector (Sector-Wide Approach)” Agricultural Markets 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