Managing Wholesale Markets

Rural Infrastructure and Agro-Industries Division

Managing Wholesale Markets

Year of publication 1999

Author Rural Infrastructure and Agro-Industries Division

Product type Book (stand-alone)

Series title FAO Agricultural Services Bulletin

Series number 10101365|1010-1365

Edition 1

Full item page

Synopsis (short abstract) In most countries wholesale markets remain an essential link between production and consumption. That such markets should be well managed is essential as the efficiency of their operation directly affects the cost of carrying out produce marketing. High marketing costs inevitably lead to lower prices for producers and higher prices charged to consumers. Inefficient markets also increase the risk of problems of hygiene, of environmental degradation and of transport cong estion, to name but a few.

Language English

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The paper discusses the importance, potential and limitations of wholesale markets in the supply and distribution of food in African cities. A brief overview of food marketing systems shows that most major African cities lack specialized and efficient wholesale markets, even though their function is a critical factor in the effectiveness of any food marketing system. In general urban food markets in Africa are characterized by inadequate marketing infrastructure leading to congestion and the ove rflow of traders onto streets and pavements, inefficient storage, handling and packaging of produce resulting in excessive waste (through spoilage), poor produce quality and rather high distribution costs. Another common problem in African food marketing systems is information asymmetry between traders and producers, which weakens the bargaining position of the producers and exposes them to considerable price uncertainty. The underdevelopment of the wholesale sector is in part a consequence of t hese problems and also accentuates inefficiency in food marketing.
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The third bulletin of wholesale markets presents the market survey that was carried out in 64 markets in Latin America and the Caribbean. The bulletin also has information on the different averages that are being applied in different wholesale markets in the region. This newsletter is a tool for governments and markets to stop the COVID-19 pandemic.