WHOLESALE MARKET
RE-DEVELOPMENT
PROGRAMMES
FEASIBILITY ISSUES FOR
CONSIDERATION
Redevelopment Programme Possible
Funding Options
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Public Sector Government, State, Regional Funding
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Private Sector
Institutions,
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International Donor Organisations / Agencies
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Banking Institutions through Commercial Private
Loans/Equity., or Concessional sector loans based
on specific laid down criteria
Any joint ventures above
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Enterprises,
NGO’s
BURCHELLCONSULTING
LIMITED NOV 2012
Agricultural
Development Issues
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Major New Development – New Green Field Site or
existing industrial commercial complex
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Refurbishment of existing services and facilities.
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New Market Design and Infrastructure within the
existing supply chain, new or modify ?
BURCHELLCONSULTING
LIMITED NOV 2012
Management and Ownership Implications of
Wholesale Market Development
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Public Sector.
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Private Sector
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Public Private Sector Partnership
BURCHELLCONSULTING
LIMITED NOV 2012
Public versus Private Sector
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Issues
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Constraints
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Strengths
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Weaknesses
BURCHELLCONSULTING
LIMITED NOV 2012
Public Sector – Wholesale Market
Responsibility
SOCIAL AND FINANCIAL IMPLICATIONS

Social – Create Jobs, promotes and develops new
businesses

Financial – Affects positively the cost and quality of
agricultural food by proving a competitive
environment for trade facilitated by new services and
facilities
Therefore there as a public feel good factor

BURCHELLCONSULTING
LIMITED NOV 2012
Public Sector – Strengths
• Public ownership will ensure that decisions is normally paid to
the ‘public interest’, ultimately to the good of the consumer.
• Public ownership will ensure fair play and the commercial
independence necessary to balance fairly the interest of
suppliers, wholesalers and buyers, and to be impartial between
wholesalers and impartiality will be attractive to tenants and
users.
• The great majority of wholesale markets in the UK and the West
(even in USA) are in the public sector, owned by municipalities.
Past attempts to attract private participation have not been very
successful.
BURCHELLCONSULTING
LIMITED NOV 2012
Public Sector – Weaknesses
• Public ownership tends to be bureaucratic, and to pays too little
regard to commercial considerations.
• Decisions of publicly owned bodies can be politically influenced
and often slow in reacting to changing circumstances and
reaching decisions..
• Wholesalers and other private traders may be suspicious of an
organization under government control.
• Funds maybe needed for expansion of facilities in the early
years, and these may not be readily available from the public
sector, as there will maybe different funding priorities.
• The role of the Market Company, is in effect running a property
operation, and commercial, and therefore best done by a
commercial organization.
BURCHELLCONSULTING
LIMITED NOV 2012
Private Sector – Strengths
• Private wholesalers will prefer to deal with a private
commercial company, not with official bureaucracy.
• A private company will give the right commercial
image for the market, a trading commercial
enterprise.
• Decisions can be arrived quickly by the
Board/General Manager of a private company,
without the need for widespread consultation and
possible bureaucratic delays of the public sector.
• A private company will be better placed to attract
private investors in the market.
BURCHELLCONSULTING
LIMITED NOV 2012
Private Sector – Weaknesses
• It is more difficult to preserve the public interest with
a private company, or to achieve a fair balance
between suppliers, wholesalers and buyers, or to
treat wholesalers equally.
• If wholesalers or trade interests are shareholders
represented on the Board, the Company will not have
an impartial image, and may not act with impartiality.
• If successful, the market will have to expand its
facilities in the early years. Profits will need to be
devoted to this expansion, and little will be able to be
spared for distribution to initial investors.
BURCHELLCONSULTING
LIMITED NOV 2012
Public Sector / Private Sector Wholesale
Market Management Worldwide
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EUROPEAN UNION
16% Private, 30% Public, 54% PPP
OTHER EUROPEAN COUNTRIES
60% Private, 40% Public, 0% PPP
NON EUROPEAN COUNTRIES
33% Private, 60% Public, 7% PPP
BURCHELLCONSULTING
LIMITED NOV 2012
Public Sector / Private Sector Wholesale
Market Ownership Worldwide
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EUROPEAN UNION
8% Private, 51% Public, 41% PPP
OTHER EUROPEAN COUNTRIES
40% Private, 60% Public, 0% PPP

NON EUROPEAN COUNTRIES
40% Private, 60% Public, 0%
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Source - WUWM

BURCHELLCONSULTING
LIMITED NOV 2012
Business / Marketing Plan / Feasibility Study
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Executive Summary and Introduction
Project Background – Horticultural Industry
Project Description
Legislative Framework and Corporate Governance
Project Economics – Financial Analysis
Source of Funding
Conditions Necessary for Success
Key Risks and Hazards
Conclusions and Recommendations
Next Steps
BURCHELLCONSULTING
LIMITED NOV 2012
Re-Development Examples – MINSK
BELARUS

Site owned by the municipality of Minsk City Council.

50% Public Private Sector Wholesale Management
Partnership.

EBRD $ 10 Million loan

Within 10 years Minsk City Council sold shares to
private sector investors, in line with the governance
of the loan, but retained an vested interest on the
management board as land owner
BURCHELLCONSULTING
LIMITED NOV 2012
Re-Development Examples – ALMATY
KAZAKHSTAN

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Private sector Management and Ownership of the
wholesale market site, formal state owned vegetable
base.
$ 2 million EU Tacis Programme offering technical
assistance in establishing the market operation.
50/50 refurbishment programme including services
and new facilities funded by Tacis and private sector
ownership, TACIS contribution made to the
Oblast/Regional Administration worked along with the
project supervised refurbishment works.
BURCHELLCONSULTING
LIMITED NOV 2012
Re-Development Examples – NORTHERN
KRYGYZSTAN

2012-14 Project to implement 5 logistical collection
centres at the initiative of the Ministry of Agriculture,
for the RoK .

MOA to provide appropriate land; sites to be privately
managed by agricultural private sector entrepreneurs,
supported by logistical assistance from national food
associations and their members
Proposed S10 million donor funding from JICA –
(Japan International Cooperation Association)

BURCHELLCONSULTING
LIMITED NOV 2012
Re-Development Examples – NOTTINGHAM
REGIONAL WHOLESALE MARKET- UK
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Site originally owned by private property developer
following a city centre regeneration project to relocate
the old market from the city centre
Managed under contract by Nottingham City Council
to ensure trader competition and a non-monopolistic
trading scenario – 32 wholesale businesses
Five years later, following a proposal by the traders
wholesale merchants association the council decided
to offer the opportunity for the traders association to
manage and own the market with the property
developer
Now operating with just 8 large wholesalers
BURCHELLCONSULTING
LIMITED NOV 2012
Re- Development Examples – KAGALI RWANDA

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New Agricultural Acts supporting new wholesale
activities introduced by the Government thereby
offering monopoly situations, based on zones of
protection.
Site and Ownership the municipality of Kagali
All Wholesalers and Buyers were required to be
registered and paid a levy on purchases and sales.
Technical Assistance in preparing the feasibility study
design, and market operations and management
provided by international consultants in the form of
donor funding from the Gatesby trust
BURCHELLCONSULTING
LIMITED NOV 2012
Re- Development Examples – BENTON
HARBOUR FRUIT MARKET, MICHIGAN, USA
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8 Private Market Operators assumed ownership
following a buy out of the council, at less value than
the site was worth as a commitment of the local
authority to future capital investment plans by
establishing a JSC
127 small scale investors mainly producers
purchased minor shares from the 8 market operators
Large proportion of Market profits are placed into an
investment fund for future capital investments.
Annual Dividend paid to market shareholders
BURCHELLCONSULTING
LIMITED NOV 2012
DEAR DELEGATES
THIS WAS MY 2ND LAST
PRESENTATION CAN I CARRY ON
WITH MY FINAL PRESENTATION WITH
YOU, IS THIS OK ??
OR QUESTIONS ??
BURCHELLCONSULTING
LIMITED NOV 2012
MARKET CASHLESS
PAYMENT AND MARKET
INFORMATION SYSTEMS
IMPLEMENTATION OF THE
MOROCCO NATIONAL
NETWORK OF FISH MARKETS
2009 -2013 - ONGOING
OPERATIONS -MIS
• 16 NATIONAL FISH MARKETS WILL OPERATE IN
MOROCCO, 8 BY L’OFFICE NATIONAL DES PECHES
(ONP) AND 8 PLANNED AND CURRENTLY
IMPEMNETED BY DONOR FUNDING FROM MILLENIUM
CHALLENGE CORPORATION (USA).
• ONP A FISH SPECIALIST PRIVATE FISH NGO
APPOINTED BY THE GOVERNMENT OF MOROCCO ARE
RESPONSIBLE FOR OVERSEEING AND THE
MANAGEMENT OF THE MARKETS.
• ALL MARKETS HAVE (OR WILL)) AN INTEGRATED
MIS SYSTEM ON MINUTE BY MINUTE BASIS, WHICH IS
PROVIDED BY (ONP) INFORMATION TECHNOLOGY DEPT
DISSEMINATION OF
NATIONAL MIS
INFORMATION
• Will be finally carried out by each of the
16 (ONP) Administration Offices within
minutes, to the National Internet System
• Feeds through cashless deals at each
of the sixteen markets
• How does it work ??
INDIVIDUAL MARKET
NETWORK EXAMPLE CASABLANCA
MEMBERSHIP
• ORGANISED AND FUNDED BY (ONP)ALL BUYERS
VISITING THE INDOOR MARKET MUST BE
REGISTERED BUYERS
• ALL BUYERS HAS A PERSONAL REGISTERED
BUYING ACCOUNT WITH THE WHOLESALE
MARKET COMPANY
• ALL BUYERS HAVE A MEMBERSHIP DEBIT CARD
AND WITHIN THE REGISTERED BUYERS TRADING
HALL, WILL OPERATE FROM A HANDHELD
ELECTRONIC MACHINE
BUYING AND SELLING
• English Auction System Operation.
• Starts Low bids increases to highest bidder
• Lot Number appears, Buyer highlights the quantity of
item on hand-held
• When the buyer is happy with the price they push the
activate button, seconds to cancel the bid
• If successful it registers GREEN and electronic
transaction is carried out
• If unsuccessful if registers RED and bid is cancelled
TRANSACTIONS
• ALL TRANSACTIONS ARE MADE AND
STORED ELECTRONICALLY WITH
THREE RECEIPTS AT THE MARKET
CASH OFFICES
• 1. WHOLESALER
• 2. BUYER
• 3. MARKET COMPANY
PAYMENT
• Is automatic, buyer given their receipt to
collect goods, account debited
• Two other receipts retained by market
cash office, and one sent to the seller
twice weekly in an account statement
• Information then displayed on market
transaction screens within the individual
market
MARKET INFORMATION
• FOLLOWING EACH ELECTRONIC TRANSACTION
BY AUCTION THE INFORMATION ON PRODUCT
TYPE, PRICE IN KILOS, QUANITY ON A MINUTE
BY MINUTE BASIS IS DELIVERED
• AND READILY AVAILABLE ON A NUMBER OF
ELECTRONIC MARKET INFORMATION SCREENS
WITHIN THE MARKET,
• THEN SHORTLY AFTERWARDS DISSEMINATED
TO OTHER 15 MOROCCAN FISH MARKETS ON A
SEPARATE MARKET INFORMATION SCREEN AND
AVAILABLE VIA THE INTERNET AND SMS
THANK YOU
AND FINALLY
BURCHELLCONSULTING
LIMITED NOV 2012
TO OUR HOSTS ON BEHALF OF BCL
THANK YOU FOR YOUR ORGANISATION, HOSPITALITY,
TIME AND ATTENTION DURING THIS FORUM
AND ALSO MY APPRECIATION TO THE WUWM FOR
ALLOWING ME THE OPPORTUNITY TO PARTICPATE IN
THIS IMPORTANCE CONFERENCE
MUCH APPRECIATED. THANK YOU VERY MUCH
BURCHELLCONSULTING
LIMITED NOV 2012