Where food marketing institutions are working to increase market access for poor people, there is potential to raise incomes, lower the cost of food for consumers and reduce vulnerability to poverty and hunger. However, there is little specific knowledge and understanding of formal and informal market institutions in Africa, particularly their impact on urban food systems.

Research from the University of Durham, UK, and Middlesex University, UK, used a new approach: fifteen researchers from Nigerian universities each examined trade in one commodity, in a region where they had prior local experience. The researchers used a study framework agreed by the research group. These case studies covered seven different food commodity types (vegetables, maize, cowpea, fufu, gari, livestock and fish) and brought together specific empirical information for Nigeria on current marketing problems, including transport issues. 

The research identified several common issues:

• Intermediaries and their associations, who work with both producers and retailers, are important for the effective operation of food markets.
• Informal institutions for access to credit and information dominate food systems.
• Women usually occupy the lowest and least profitable roles in food market operations.
• Producers, consumers or traders do not perceive public sector involvement to be beneficial, because of corruption and rent seeking.

To make markets work better for poor people requires greater understanding of existing market systems. The research demonstrates the importance of different commodity chains and market institutions in reducing poverty.

The research recommends:

• Promote associations of traders and producers where they can support poor people’s access to markets, such as trader associations.
• Identify the appropriate role of the public sector in providing better market places: for example, state and local governments should stop subsidising market stalls since this does not help poor people.
• Expand access to market information on prices and standards: for example, donors and non-governmental organisations (NGOs) should fund access to telephones for poor people and provide information about trusted suppliers.
• NGOs and schools should offer market-based education on measures and quality standards.
• State and local government should make decisions about market and transport intermediaries based on locally specific evidence. This should identify both the benefits of intermediaries and specific occasions where intermediaries exert excessive control over market places.
• When reorganising urban markets, local governments must take particular care not to disturb the employment niches occupied by the poorest people (such as petty retailers and porters).

Source(s):
‘Investigations on building a food marketing policy evidence base in Nigeria’ Briefing report, by Gina Porter, Fergus Lyon and The Nigerian Marketing Network, November 2005 Full document.

Funded by: UK Department for International Development

id21 Research Highlight: 24 March 2006

Further Information:
Gina Porter
Department of Anthropology
University of Durham
43 Old Elvet
Durham DH1 3 HN
UK

Tel: +44 191 33 46181
Fax: +44 191 33 46180
Contact the contributor: r.e.porter@durham.ac.uk

University of Durham, UK

Fergus Lyon
Centre for Enterprise and Economic Development Research (CEEDR)
Middlesex University
The Burroughs
London NW4 4BT
UK

Tel: +44 020 84116856
Contact the contributor: f.lyon@mdx.ac.uk

Middlesex University, UK

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