From October 5-8, the Portuguese markets' association, SIMAB, will host the 23rd World Union of Wholesale Markets (WUWM) congress in Lisbon. WUWM president Marc Spielrein told Philippe Gautier that the event takes place at a crucial moment in the evolution of the wholesale sector.

“The congress will take place after negotiations on the new Common Agricultural Policy and during the CMO summit. This is an opportunity for us to look at the possible effects on the markets, supply conditions and the products sold to consumers,” says Spielrein. “The congress is going to be a very interesting mind exercise. Programme wise we will focus on offer and demand from the market-relevant industries.”

Never before, he adds, have the wholesale markets been so central to the international thought process on produce.

The EU has now created a definition of a market in its health and safety regulations, the black and white nature of which are causing a few concerns at the Union. “We want to emphasise two specifics of markets,” says Spielrein. “Firstly there are some common areas used by tenants, such as commercial alleys, cold storage facilities etc.. A definition cannot be simply looked at by the square-metre, premises or individual company.” He says that each market and each individual tenant is completely different.

“Secondly, markets are generally run by a “market authority”. It is relevant to define the rights and duties for both the authority and its tenants. For instance who's in charge of cold storage on the market? The answer is important because responsibility will lie with one party or the other in case of emergency.

“We cannot be vague on any issues. This is the aim of our soon-to-be-completed good practices guide ñ to identify the shared responsibility of authority and wholesalers and to draw crystal-clear borders.” WUWM and European trade association Freshfel have worked closely on the guide.

The existing situation at Nine Elms reflects another important question for the entire industry. Who should own the wholesale markets? Spielrein says: “In Europe, there are three main categories of market owner ñ States, local authorities and the private sector. Ideal solutions vary from one country to another but there is always a mix of the three.

“I do not favour any particular formula. Nevertheless, even a profitable wholesale market cannot afford alone some of its components, such as heavy infrastructure or road services. One way or another the markets need public authority help in certain areas.

“In return, markets perform a public service. Then practices are different: in France for instance, we have state concession; in Italy Mercasa is a 100 per cent State-owned body; and in the UK regional, local authorities play a big part ñ New Covent Garden remains a peculiarity in the UK context.”

Next year 10 new countries are due to join the European Union community. Spielrein who in his capacity as president has travelled to most of the accession countries, is in a good position to analyse the situation and likely results:

He says: “Wholesale markets and private wholesaling companies that couldn't exist in a communist economy are developing at the same pace, although the speed of emergence of a solid company network differs from one country to the next.

“The eastern European wholesale markets express a strong need to be recognised by public authorities, who are too often easily seduced by the big retailers' siren song. We are working tirelessly to explain the need for an independent distribution channel.

“The other main issue is the existence of a strong black market in many of these countries, sometimes harboured by an inadequate tax system that creates a lack of business acumen. Despite the apparent obstacles, I think eastern markets will reach the European level in a reasonable time.”

Through all this, the fact is that wholesale markets represent around 16 per cent of all the fresh produce distributed in Europe, according to WUWM. Big retailers may be buoyant, but Spielrein is calm: “I am entirely of Nick Saphir's opinion on the future of fresh produce distribution: the ideal situation would be a market split equally between the big retailing groups and the wholesale markets supplying independent retailers and catering.

“To my eyes this illustrates the best outlook for wholesalers who want to maintain, and even increase, their market share.”

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