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Transcript of market 2.1
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Municipal Markets Policy & Linkage Study
Market Overview -
A brief Introduction to the studied markets
Punanga Nui Market – Cook Islands
The Punanga Nui market was established in 1992 and opened during the Pacific Arts and Cultural festival. The market has developed over the years and is now a major trading venue for fresh vegetables, fruits, root crops, handicrafts, cooked foods and other items. It is also a popular tourist attraction particularly on Saturdays.
The Port Vila Market is managed and owned by the Port Vila Municipal Council and can accommodate approximately 300 vendors. It is located in Port Vila and is the largest market on the island of Efate. Management of the market is done by the Port Vila Municipal Council, however there is no formal bylaw or policy that empowers the market management team in terms of control and enforcement.
Port Vila Market - Vanuatu
The new Nausori Market was officially opened in September 2015 and was built at a cost of approximately $9 Million. It is currently the largest municipal market in Fiji in terms of vendor numbers. The market is owned and managed by the Nausori Town Council.
In general it was observed that markets with a more defined management structure accompanied by a proper set of R&R, were operating far more efficiently than those that did not have a clear set of R&R. The R&R are deemed a vital support tool to the bylaws and to a large degree are far more informative as they address the intricacies of the market operations and practical vendor issues (such as behavioural requirements, settling of grievances, operating hours, product display policies etc.). For the market management team, a well-written RR is crucial for effective management control over the market.
4: Rules and Regulations should be developed as a support document to the by-laws. The R&R must be very clearly written and made available to vendors and farmers in the relevant vernacular for ease of understanding.
Objective 2: Youth Involvement in Municipal Markets
“Aim: Scope and recommend policies and actions that explicitly attract youths/youth farmer groups as vendors.”
The prime objective is to create a change in mind-set and the strategy should be based around having specific tailored information and programs that encourage linkage of youths with markets and the industry.
Lack of access to Information is a major constraint for youth farmers and vendors who want to engage with the sector. Such information includes access to markets for their produce, information on financial services offered and by whom, information on business training and services available for youth farmers etc. A start up tool kit would provide a proper foundation for the interested youths.
Municipal markets provide a great venue to link farmers to consumers. The shortage of stall space however means that other selling options will need to be explored. Such options include wholesaling to middlemen; setting up roadside stalls, selling to large buyers such as restaurants, super markets, hotels, food manufacturers, exporters etc. The latter (selling to large buyers) is considered a lucrative option for farmers but it does have its drawbacks such as low sale pricing structure, delayed payments terms, strict delivery timelines and specific product standards etc. If well managed though, securing a large buyer provides long term security and certainty and the pros can well outweigh the cons. To have youths participate in this option, incentives will need to be provided to the large buyer, whose first preference would naturally and normally be to contract with a seasoned farmer. Such incentives could come in the form of a youth ambassadorial scheme that would provide recognition to large buyers who enter into buying contract with youths. The scheme should allow the buyer to gain some business advantage over its competitors if it is to succeed and hence Government policies will need to support the programme. The proposed ‘YASG’ scheme (youth in agriculture support group scheme) is one such programme.
1.3 Objective 3: Market Information Services (MIS)
“Aim: Scope and recommend a market information service or strengthening of an existing MIS that connects farmers and vendors to larger key buyers such as hotels, retailers, restaurants and other stakeholders.”
Objective 4: Financial Services available to vendors and farmers at the market
“Aim: Scope the provision of basic financial services and training for vendors.”
A GOOD PRACTICE GUIDE
For the operations of municipal markets in the South Pacific
BASIC MARKET ENTRY GUIDE
Frequently asked questions
1. Q - Why should I sell at the Market?
Other Important Information you need to know:
1. Ownership of the Market
2. Opening Hours of the Market
3. Special Days
4. Priority Vendors
5. Market By-Laws and Rules & Regulations
6. Infringement Notices
7. Services offered within the market place
Success stories are great inspiration. Conclude the MEG with a short message from a proven successful vendor or farmer.
One of the most important strategies for improving livelihoods for smallholder farmers is to develop an effective and practical linkage channel that connects farmers to buyers of their produce. This link is essential as it provides these farmers with a source of income but this source needs to be consistent and have longevity if the business of farming is to be sustainable. The objective therefore is to have some form or degree of certainty of the consumer or buyers market hence the importance of the linkage.
In most Pacific Island Countries (PICs), the general trend for sale of farmer or vendor produce is through the municipal market infrastructure. This medium is seen as the most effective selling stream due to the affordable rent rates charged for market stalls and the high pedestrian traffic movement flowing through the market.
With the aim to increase farmer and vendor engagement with municipal markets and encourage youth participation, this study identifies how PIC municipal markets operate and how the market laws, policies, regulations & rules impact all stakeholders i.e. the market management team, the farmers and vendors, potential vendors, youths, national and local governments, agriculture sector etc.
To enable a more effective comparative analysis of markets, three (3) PICs with dissimilar municipal market infrastructures were assessed; namely the Nausori Municipal Market in Fiji (pilot market), the Punanga Nui Market in Cook Islands and Port Vila Market in Vanuatu.
Objective 1: General Market Operating Framework, Policy and Market Entry
“Aim: Review current policy/operating frameworks for selected municipal markets, undertake a comparative analysis of markets in other countries outside the Pacific and formulate a ‘Good Practice Guide’ aimed at providing tools and good practices for municipalities.”
In this study, the 3 markets covered were the Nausori Market in Fiji, the Punanga Nui Market in Cook Islands and the Port Vila Market in Vanuatu.
1. Municipal markets in the PIC’s normally come under the control of the respective local town, municipal councils or governing authority and is governed by the rules set out in their specific bylaws (or letting agreement/policies as in the case of the Cook Is market). For the markets assessed, the bylaws reviewed so far are either in draft form and awaiting approval from the relevant authorities or simply out dated and therefore in immediate need of review and update to ensure that the markets are able to be effectively managed and in line with current best practices.
Objective 1: General Market Operating Framework, Policy and Market Entry
Essential features of Bylaws need to include, among others, a clear description for ownership of the market, having a practical management structure and the incorporation of vital provisions that impact the overall operations of the market such as compliance to standards and penalties for non compliance, waste management, vendor selection criteria, handling of grievances, communication and decision making channels etc. It is imperative that bylaws be clearly written and made available in the various vernaculars for ease of understanding. Supporting the bylaws is a set of Rules and Regulations (R&R), which will contain all other remaining items not covered in the bylaw. The R&R may also expand on the bylaws where required.
The design of the market and its accompanying infrastructure is also crucial, as it will in many ways influence how the market premises is eventually managed. A poorly designed market centre with insufficient supporting infrastructure will provide challenges for the market operations and the vendors.
1: (a) Review current Bylaws that are out dated and formalise by-laws that are in draft form and awaiting formal approval.
(b) By-laws that are in need of review should be definitive and clear and specifically address ownership and management of the market.
For PICs that are developing new market premises, follow best practice guides that ultimately will translate into a more efficient management operating structure.
How a farmer gains access into the Market centre as a vendor or tenant differ from country to country. The participation of youths in PIC markets is greatly lacking with entry criteria and policies not containing much support for the younger generation. There is a need for a specific market entry guide that will provide necessary assistance and information for youths and others wanting to be a market vendor or tenant. The guide must address the main questions that applicants will have and should contain key information on market entry such as vendor criteria, policies and rules that govern the market, expectations of those operating from the market, operating hours, key points from the bylaws or policy and other services that vendors are able to benefit from whilst trading from the market centre (such as financial literacy programmes).
Develop a Market Entry Guide that will serve as the main toolkit for potential market vendors.
4. Municipal markets have noticeably changed and developed over the last 2 decades. The changes have resulted in increases in market size, higher demand for market entry, short supply of vendor stalls, increase in consumer demands, increase in market congestion, increased pressure on market infrastructure and widening of the market tenancy mix. With the Bylaws however remaining unchanged in most PICs over the past 25 plus years, pressure have been placed on the operational management of the markets. To address and better manage these operational challenges, there is a need to assess PIC markets against more modern operating trends. There is a need for comparisons against best practices. A general Good Practice Operating Guide for Municipal Markets in the Pacific is needed to give guidance and illustrate appropriate practices that PICs could use and adopt where necessary.
Develop a Good Practice Operating Guide for Municipal Markets in the Pacific.
1. In all 3 studied markets, it is observed that there are no provisions that specifically address youth participation and involvement in markets.
It is noted that the bylaws or policies have very little or are silent on promoting youth participation. Where some youth involvement is seen, they are mainly obligatory in nature where youths are assisting elder family members (who are vendors) at the market only when absolutely required e.g. during peak selling times or when the vendor is ill or to assist with heavy cartage of produce etc.
Further research has observed that young farmers prefer to sell their produce as a wholesaler and leave the retailing and vendoring to other vendors at the market centre.
A critical observation from the youths interviewed as part of this study revealed that most felt uncomfortable selling at the municipal market as they associated vendoring as being for women or older members of the community or the uneducated. This observation has also been made in other studies of PIC markets and as well as markets in developed countries. This trend of thought poses great risk to the future of the agriculture sector. If youths are to be the future leaders of this industry, than strategies and policies will need to be put in place to better engage, attract and entice them. Bylaws and national macro policies will need to advocate and accommodate youth links with markets and the sector as a whole
Municipal Market policies must specifically provide for youth involvement. This participation can for example come in the form of percentage allocation of stalls at the market for youths.
(a) Revamp existing national programmes that are aimed at promoting the sector to youths
(b) Create new and more enticing & exciting programs using information technology and modern techniques.
Develop an Agriculture Business start-up tool kit/handbook for youth farmers that will provide them with the information needed to assist them in their farming venture.
(a) SPC and appointed consultant to propose a scheme for consideration by the Ministry of Agriculture and Ministry of local Government
(b) Ministries to formalise national policy supporting the scheme and develop incentive package that will entice large buyers to participate – ‘Youth in Agriculture Support Group Scheme’
A wider range of information services on and for PIC markets is needed to enhance greater awareness and more knowledge and understanding which will better support research & development (R&D) efforts. The expanded information range should include vendor demographics, produce supply volumes, produce pricing trends, peak and off-peak produce and their respective periods or seasons etc. The MIS could also be used to more effectively publicise existing information such as Market By-Laws, R&R and Policies in mediums currently not utilised such as online presence.
The collected information and data need to be digitally recorded i.e. digitised.
: Existing MIS need to have online presence.
: Digitising Data – Create a database and mobile survey tool to collect data on vendors, produce supply, produce pricing, etc.
Create a Mobile Application to act as a distribution tool for produce and market pricing data, agriculture news, information on secondary markets, etc.
There are widely publicised financial services for farmers and vendors at the various market centres but the effects of these services have not been fully evaluated. From interviews with vendors, it was identified that there is a need for financial institutions to make genuine effort to support the services they were promoting. Whilst some programmes on financial literacy were conducted, these were not followed through to the next level with more demanded basic services such as opening of bank accounts, receiving deposits and conducting withdrawals, providing loans (soft loans) and assistance with other banking products. Support from micro finance bodies like FCOSS (Fiji Council of Social Services) in Fiji, were viewed as being more effective and accommodating. From interviews with 3 Banks, it was observed that all had little or no appetite for lending to the agriculture sector let alone municipal market vendors unless substantial collateral was offered. There is hence a need to reassess and if need be reinforce earlier set RBF (Reserve Bank Of Fiji) loan allocation per sector policies for lending institutions. Following on from here, there are opportunities for these lenders to take such services direct to the market place.
(a) RBF to assess effectiveness of sector allocation policies for banks and take appropriate measures for enforcement.
(b) Conduct a pilot service with a commercial bank to bring basic bank services to the market centre.
Users of this guide
Main Governing Policy – By Laws
Rules and Regulations (R&R) of the market
Functional Organisational Structure
Market Infrastructure: Basic infrastructure A Must
Location & Design of market premises
Vendors at the Market
Standard Operating Procedure (SOP)
A Market Entry Guide
Online presence of Markets
Training and Services provided in the market
Vendor Associations – for large markets
1. Welcome Message
‘Welcome to the …………Market - the place to trade, do business, make friends and grow ……….. Agriculture sector. This Guide is aimed at those who want to be a Vendor or tenant at the market. It provides you with the basic information you need to know and answers some of the immediate questions you may have. The guide also includes application forms and rules and regulations. If you want to go a step further after this reading, feel free to contact the Market Manager …………….…, on email ……………….. or better still call him/her or his/her office now on ……………. for immediate assistance. I look forward to meeting you soon and I hope this Guide book will help you take a step into an exciting business journey. Enjoy the reading’ - ……………………… Market Centre Manager
2. Q - What are the categories of Vendor that I can apply for at the Market?
3. Q - I am a youth and have just started farming, but I don’t have any
experience running a business. Is there any form of assistance I could get if I wanted to start selling as a market vendor?
4. Q - Do I have to be a full time Vendor or can I sell just on certain days?
5. Q - What is the stall fee at the market?
6. Q - Why must I pay stall fees?
7. Q - Can I set the price for my produce or is there a price structure set by
the vendors association or the market?
8. Q - What happens if I am unable to pay my stall fees in any given week or
9. Q - How do I apply to be a Vendor?
10. Q - How long will it take before I know if my application is approved or not?