Challenges

Wholesale markets play a strategic role in the food supply of cities. These markets are key to guaranteeing a varied and healthy diet, promoting food culture, maintaining a functioning agri-food system and ensuring the food security of the population. Strengthening the development of wholesale markets is a priority in a context of growing urbanization, recurrent economic and health shocks, an environmental crisis and changing food demand patterns.

In the Latin American and Caribbean region, an estimated 300 public and private wholesale food markets exist, of different sizes and organizational forms. These are important economic units in terms of direct and indirect job creation and rural and urban development, fulfilling a significant role in national economies and in the daily life of cities.

Development of wholesale food markets is, however, a complex process involving varied stakeholders with different and possibly contradictory objectives. Supporting an upgrading process requires a tailored approach for each wholesale food market, considering the specifics of each project (creation, relocation or modernization), the state of the food economy, supply chain maturity and peculiarity and legal and fiscal frameworks. 

Toward a Solution

The Food and Agriculture Organization of the United Nations (FAO) Regional Office for Latin America and the Caribbean and the Latin American Federation of Wholesale Markets (FLAMA) established a joint, regional, South-South cooperation strategy to improve management of and promote the modernization of wholesale markets. The strategy seeks to enhance wholesaler efficiency, contribute to guaranteeing quality food, especially for the most vulnerable and food-insecure populations, and more strategically transform agri-food systems.

Specifically, the initiative aims to ensure the proper functioning of wholesale markets for basic food products and their derivatives and to facilitate timely access to information on markets (SDG2). The initiative promotes development-oriented policies that support productive activities, entrepreneurship, creativity and innovation and fosters the formalization and growth of micro, small and medium-sized enterprises. It supports positive economic, social and environmental linkages between urban, peri-urban and rural areas by strengthening national and regional development planning (SDG 11), encourages sustainable consumption and production patterns and reduces food losses in production and supply chains (SDG 12).

Between 2019 and 2022, eight surveys of whole food markets in the region were conducted, with 134 markets participating. The surveys analysed the main structural issues that interfere with market functions, provided insights on the dominant trends in various aspects of product supply, demand and prices, learned about the state of food distribution and supply chains at a territorial level and generated proposals for improvement.   

The Wholesale Market Communities of Practice (CoP) held 16 meetings, bringing together over 1,100 participants from 19 countries, including technicians and managers of markets, public institutions, non-governmental organizations and international organizations. At the meetings, participants shared experiences through the presentation of 38 lectures and thematic exhibitions, which was an important collection of knowledge. Participants discussed paths followed in the search for solutions for business and market development. They identified common problems and jointly found some solutions that could be applied to similar markets in different countries.

The project resulted in an extensive variety of technical products and publications, available as a public good, based on direct research and the exchange of experiences among the countries involved. These include eight bulletins (published in Spanish and English), three analytical technical studies and four audio-visual productions, available on the FAO-RLC website. A database was created with geo-referenced information for each market and an image database of markets with usage authorization available to FAO national offices and the public sector in the countries; this is unparalleled in other regions of the world. 

Several technical cooperation and technical assistance projects were established as strategies to counter the consequences of Covid-19, like the following: the modernization of wholesale and retail markets toward price transparency, improvement of digitalization and efficient management, reduction of food loss and waste, food banks, food safety and quality, traceability, circular economies and stimulus of family household agriculture. 

This initiative was based on three pillars: 1) institutional articulation; 2) generation of evidence and sharing of information; and 3) dialogue and the search for and systematization of evidence among different actors in the food system. It is an example of a good practice that can be replicated in other regions of the world and deepened in Latin America. The FAO-FLAMA alliance strengthens national capacities and promotes improved intersectoral and institutional work methodologies. The sharing of good practices across countries contributes to achieving the 2030 Agenda for Sustainable Development.

Seven countries have requested specific FAO technical support for the development, improvement and South-South cooperation of wholesale and retail markets; these are: Argentina (whole food market networks, food loss and waste, circular economies), Colombia (food loss and waste), Mexico (whole food market characterization), Panama (retail), Paraguay (market digitalization), Peru (retail and urban supply) and Uruguay (management and rules).