Presentation on theme: "Wholesale Market Investments in E. Europe- Lessons Learned Edward S. Seidler Senior Officer, (Marketing) FAO Rome 26 June 2006."— Presentation transcript:
Wholesale Market Investments in E. Europe- Lessons Learned Edward S. Seidler Senior Officer, (Marketing) FAO Rome 26 June 2006
The Changing Marketing Scene rapid urbanization; income growth and increasing middle class; increasing womens employment; increasing foreign travel; refrigerators and cars; Increasing importance of supermarkets; buyers want quality, variety and choice which traditional markets slow to accept;
Problems encountered in New WMs delays in constructing markets allowing informal markets to develop in the meantime; tendency to overbuild raising finance costs; continued competition from low cost private truck markets that allowed to operate outside the law; lack of interest/commitment from municipalities and governments in safeguarding new market operations; inability to attract important wholesalers as anchors; inadequate attention to waste management.
Customer Requirements of markets Convenience: location and good road links; Quality, fresh and wide variety of products; New products and out of season products Conserved and packed produce; One stop shopping: composite markets offering fruit, vegs, meat, dairy produce + catering supplies; Competitive and stable prices; Continuity of supply; Efficient logistics- space to handle produce, rapid entry and exit Vehicle parking and loading facilities Delivery services to overcome traffic delays
Wholesale Market Customers Looking for higher quality fresh produce; Assurance of supplies- volume and variety; New products and out of season produce; Conserved and packed produce; Competitive prices; Good service- produce variety +deliveries; Efficient logistics- space to handle produce, rapid entry and exit;
Wholesale Markets need to: Improve market facilities to achieve higher standards- hygiene, transport, logistics etc; Better coordinate with supermarkets – markets can reduce transaction costs of dealing with a myriad of small suppliers; Ensure continuing accessibility to and from the market- roads to highways in line with traffic growth; Establish close links with farmers and support their improvement and their compliance with changing standards and buyer requirements; Develop niche products e.g. organic produce, fair trade products to extend product offerings to clients Monitor supermarket standards and procurement models and adapt practices to meet these
Wholesale markets need to: identify possible new services for caterers, restaurants, convenience stores in city centres, by providing combined facilities for: – meat, dairy and fish; – Flowers and florist supplies; – cash-and-carry facilities; – value addition products such as pre-packing of salads – catering supplies- equipment etc
Wholesale markets need to: provide wholesalers with improved services: – Quality certification/branding; – Pesticide labs; – Space for product preparation; promote the market as a centre for quality and choice e.g. Rungis promote market produce- freshness, variety, choice through promotions, fairs etc.
Wholesale Markets as Landlords Involve wholesalers in decision making- encourage market traders associations; Practice Efficient Management – ensure rules compliance in market operations; Provide required services- cleaning, lighting, security, banking, catering; Ensure maintenance of facilities and plan improvements as required; Be aware of client problems and needs.
Thank You and have a good tour of the markets in the South.