Palengke

From Wikipedia, the free encyclopedia

This article is about public markets in the Philippines. For the pre-Columbian Maya archaeological
site in Chiapas, Mexico, see Palenque. For other uses and related spellings, seePalenque
(disambiguation).

A typical public market, in Danao, locally known as a "palengke" in the Philippines

A palengke is a type of public market common throughout the Philippines.

Contents
[hide]

1Etymology
2Description
3Issues
o 3.1Competition
4Gallery
5See also
6References

Etymology[edit]
The EDSA Central public market inMandaluyong City, Metro Manila.

The word palengke is a local variant of the Spanish word palenque, literally meaning
"(wooden) palisade or stockade" and by extension the area enclosed by such a structure for
defense, public festivals or some other purpose.[1] The Spanish word is also used to describe a
pathway or cluster of tables set up at some place of gathering such as a theatre, tournament or
market,[1] and it is from this latter sense that palengke likely derives its usage in the Filipino context.

In the former Spanish colonies of New Spain in the Americas palenque also described a gathering-
place of indios.[1] One false etymology forpalengke/palenque appearing in some popular sources
mistakenly presumes that palenque is instead a word from the indigenous Mayan
languagesof Central America meaning "gathering place",[2][3] and that in colonial times the Spanish
adopted it to describe a gathering of indigenous groups.[2]While its use in Latin America to describe
such a gathering is attested, the word itself originates from Spanish and not any of the indigenous
languages; the mistaken belief of the word's indigenous origin is probably reinforced by Palenque
the famous Maya archaeological site in Chiapas, Mexicowhich was named after the nearby
Spanish village when the site was rediscovered in the mid-18th century.

Description[edit]
A palengke is usually composed of several dozen stalls arranged in rows under a shared roof.
Management is usually by the local governmental units whose jurisdiction encompasses the physical
location of the markets. Certain pieces of legislation, however, such as the Cooperatives Code (RA
7160) and the Agriculture and Fisheries Modernization Act (RA 8435) have prescribed that
management of the markets be accomplished through cooperatives.[4] There is little control over the
day-to-day management of individual stalls, including commodity pricing. This has resulted in what
has been called "palengke mechanics". A cited example would be the price of chicken during the
local 2007 holiday season; lack of demand for the product resulted in prices going up rather than
down. It was stated that this was the result of local retailers raising prices to recover financial losses
from low demand.[5] The Philippine government retains some control over the price of some
commodities sold in palengkes, especially critical foods such as rice.[6] The National Food
Authority calls this regulation campaign (specifically for rice),Palengke Watch.[7]

Issues[edit]
The concept has its criticisms, citing several drawbacks. Palengkes have been described as sites
where illicit electric and water connections are rampant. In 2002, the Caloocan public market was
described by city officials as unsanitary.[4] Some are known to use wells, some illegally constructed,
as water sources leading to possibly unsanitary water conditions.[8] Another criticism of the
traditional palengke is that it is an old concept that must make way for modern development; a Pasig
City mayor once opined that the palengke was outdated.[9]
The concept of the palengke is usually taken hand-in-hand with the local concept poverty. Because
of this, a few local politicians have used as their nicknames, such as "Mr. Palengke" (or some
iteration) to signify affinity with the masses.[10] Prominent local politician Mar Roxas used the
nickname "Mr. Palengke" to his advantage, gaining a Senate seat in the 2004 Philippine elections.[11]
Competition[edit]

In recent years, the typical palengke has been supplanted by larger, more commercialized shopping
centers. The rise of shopping malls and supermarkets have also been cited as threats to the old-
school public markets. In a 2002 article, the president of the National Federation of Market Vendors
Cooperatives, a cooperative of market vendors throughout the country, stated that the concept of
the palengke was an integral part of Philippine culture. He stressed that the public market instilled a
sense of community that was not evident in the more-commercialized shopping malls.[4] In spite of
this, at least one traditional market has been renovated to appeal to more commercialized
consumers. A specific case is the "Mutya ng Pasig Market" which was renovated in late 2008, from a
traditional palengke into more of a shopping mall.[9]

MARKET?
A Public Market is a year-round, carefully crafted, intentional and diverse medley of owner-
operated shops, stalls and/or daytables.
Public Markets exist to fulfill a public purpose, showcase a communitys unique character
and culture while serving its everyday shopping needs.
They typically focus on the sale of a full array of fresh, healthful, value added, and prepared
foods often locally grown or produced. They are sometimes rounded out by crafts and/or
a variety of needed neighborhood businesses. They usually include a seasonal, outdoor
farmers market component.
Public Markets prohibit chain stores and franchises. They focus on businesses that are
locally owned and operated which highlight the best of local foods, crafts, music, heritage
and culture.

Typically, Public Markets are owned and operated by public or non-profit entities.
They exist for multiple public purposes, such as a job creation, small business incubator,
tourist attraction, access tofresh, healthful foods, increase surrounding property values,
historic preservation, etc.
Public Markets are powerful economic engines. They create entrepreneurial opportunities
for citizens and immigrants who often find it difficult to enter into the mainstream
economy.
Public Markets are potent job creators. In 1977, The federal Office of Technological
Assessment (O.T.A.) conducted an audit of a $6,000,000 federal grant award to Seattles
Pike Place Market from the Economic Development Administration (E.D.A.). They concluded
that the Public Market renovation was the most successful community economic
development project in the history of the U.S., at turning one time capital support, into long
term, permanent, well-paying jobs.
Public Markets are proven generators of surrounding, privately financed economic
development. Historically, for example, at the Pike Place Market in Seattle, each dollar
invested in Public Market renovation or development has generated more than twenty
dollars in surrounding privately funded economic development. The neighborhood around
Pike Place Market has been transformed from a skid road of derelict SROs, bawdy houses,
and vacant buildings into one of the most vital, attractive, and successful, downtown
communities in the country.
Similarly, the redevelopment of the Public Market in Roanoke, VA, has transformed a
downtown known for crime, prostitution, and drug dealing into a successful downtown with
several new surrounding bank towers and the successful renovation of the Roanoke Hotel
(which had stood empty for decades) as a Convention Center.
Public Markets often incorporate a seasonal farmers market for the sale of in season,
fresh, and value-added farm products sold on tables rented by the day. These daytables
are frequently augmented with locally made crafts.
Public Markets encourage diverse vendors that reflect the ethnic make-up of their
communities. A mix of experienced vendors and start-ups is encouraged. Typically, training
in display, marketing, etc. is provided to help new businesses prosper.
Public Markets typically require initial capital grant assistance. Once through their start-up
period (typically about 3 years) they should be self-supporting and should not require
ongoing operational support.
There are two different forms of Public Markets. Stand-alone Public Market buildings, also
called Market Halls, such as Philadelphias Redding Terminal Market, and Public Market
Districts that incorporate the above purposes and uses through zoning or other regulations
in a larger, multi-building, defined area. Pike Place Market is an example of a Public Market
District. It contains 11 acres and is carefully regulated to assure compatible uses, design,
and signage in its fifteen mixed use buildings.
Public Markets typically include a farmers market which may be outside the Market building
or incorporated into the Market.
These Markets encourage diverse vendors that reflect the ethnic make-up of their
communities. A mix of experienced vendors and start-ups is encouraged.
Typically, training in display, marketing, etc. is provided to help new businesses prosper.
In Public Markets across the country, customers closely mirror the demographic makeup of
the larger communities where the Market is located. Unlike malls which are typically
geared toward a particular economic and/or ethnic slice of the local population Public
Markets have historically proven their ability to cut across economic and racial lines in
bringing together a broad cross section of the local population in a safe, lively, and exciting
venue, where everyone feels welcome.
For example, according to survey data, 98% of the adults living within a 30 mile radius of
Seattles Pike Place Market had visited the Public Market at least twice during the preceding
year. Pike Place Market enjoys roughly 14,500,000 customer visits annually. In doing so, it
supports over 120 local farmers and 250 local merchants.
In addition to attracting a broad cross section of the local population, Public Markets have
proven their ability to become significant tourist attractions. The customer base at most
Public Markets is roughly 1/3 tourists. In many of the cities where they are located, the
Public Market is the #1 tourist attraction.
Sales at Public Markets typically will translate into many tens of millions of dollars in new
revenue to local entrepreneurs, hundreds of new jobs, scores of entrepreneurial
opportunities, and millions of dollars in new tax revenues.
SURVEY

Second of three parts

In a survey conducted by the BusinessMirror, 100 out of 153 respondents, or

nearly 70 percent, said they prefer buying groceries in supermarkets rather than
in the public market.

Fewer people flock to the Dagonoy market in San Andres, Manila.

This has caused stall owners like Dindo Reyes to go bankrupt. Reyes, who once
sold goods in Imus Public Market in Cavite, is now looking for other possible
sources of income after he has decided to close shop.

Reyes is one of the many stall owners in public markets that have lost their
livelihood due to Filipinos increasing preference for convenience.

Times have changed. The supermarket offers almost everything offered by the
public market, said Al Faithrich Navarette, chairman of the Business
Economics department of the University of Santo Tomas.

A study by state-run Philippine Institute for Development Studies (Pids) noted

that the increase in dual-income families in the country has led to a greater
demand for convenience among
Filipino consumers.

This may be the reason some Filipinos prefer one-stop shopping to minimize
time and energy, regardless of the additional cost. It may not be surprising at all
to see supermarkets displacing small retailers and growing larger in size, since
consumers themselves search for convenience, the study read.

Experts said concerns over the safety of meat are also among the reasons behind
consumers increasing preference for shopping in supermarkets. In the case of
public markets, delivery of goods starts very early in the morning. Those who
can shop early are almost always guaranteed of getting fresh and quality meat
from wet markets.

People sometimes recommend the public market only if you could arrive early
so you could buy directly from the delivery, or if you know how to check meat,
Navarrete said. The general convention is to switch to supermarkets if you
dont know how to do the other two. Youre going to be extra sure about the
quality, but sometimes the prices are higher in general.

Despite the increasing preference of Filipino consumers for one-stop shopping

in supermarkets, Navarette said public markets remain an important part of the
countrys economy. For one, many small businesses, such as eateries
or carinderia, continue to procure their goods from public markets.

But quantifying the contribution of public markets in gross domestic product

(GDP) may be difficult, given the dearth of studies that focus on these areas.
Past studies said the share of public markets in economic output goes largely
unnoticed because
microenterprises, such as sari-sari stores, are not always covered by
surveys of establishments.
In fact, should people show interest in studying it [public markets], private
corporations and companies would be the ones to be capable of researching
them. Unfortunately, they wouldnt be able to grasp the entire phenomenon in a
country-wide scale, Navarrete said.

The PIDS study conducted by Digal said that, while the retail sector contributes
more than 10 percent of total GDP, this figure may be underestimated because
the majority of microenterprises in the Philippines are not covered by the
Census of Establishments.

Data is hard to gather because some establishments and stalls decide not to
register at all, Navarrete said.

Their reasons are reasonable: it is too costly, it would take a lot of documents,
and the money you could use to start treatment or buying essential commodities
would have to be used in business or investments. If you could start selling right
away, why would you bother to complete those requirements, right? he asked.

Despite the difficulties facing vendors in public markets, enterprising Filipinos

still try their luck at selling goods in these areas. Some Filipinos are wont to say
that they would rather sell vegetables in wet markets than resort to robbery to
feed their families.

Setting up sari-sari stores or a small shop in a public market requires minimum

capital and skills. Those who do not have the requisite college degree often
become part of the so-called underground economy to survive.

But increasing land values may have been a major factor behind the exponential
rise in the price of stalls in public markets. Vendors lament that the rent has
risen 400 percent in recent years. In the past, we only had to pay P2,000 a
month. Now, a stall costs P10,000, Reyes said.
While consumers prefer shopping in supermarkets because of the availability of
more items, Navarrete said public markets help ensure that prices would remain
stable. He said public markets play a critical role when it comes to price
variations and supply.

In essence, the public market could be a price regulator to ensure that

supermarkets do not sell products at a very high price, Navarrete said.

For example, if the price of the supermarket is costly relative to the public
markets cost, then people would naturally go to the latter.

If public markets didnt exist and only supermarkets had products, buyers would
not have a say whether or not they plan on changing prices
very quickly.

But the increase in business costs and the declining interest of consumers to
shop in public markets are making it more difficult for vendors to stay afloat.
Reyes said government support is needed to help public markets survive and
stay relevant in the changing times.

4. Identifying the space required

Stage 4 analyses data collected from market users and from field surveys and desk studies.
Facilities to be accommodated in the new or expanded market are defined and, based on this,
calculations of overall space requirements are made in preparation for site selection. On
completion of Stage 4 there should be a clear and quantified brief that can be used for market
site selection and infrastructure design. The following should have been done:

The retail and assembly sales areas of the market should have been calculated.

The potential number of traders in the market should have been estimated.
A list of possible facilities for the different functions of the market should have been drawn up
and checked with the users.

The overall site area should have been calculated and, for an existing market, checked against
what presently exists.

STAGE 4
IDENTIFYING THE SPACE REQUIRED

Introduction

On the basis of the projections made in Stage 2 an estimate can be made as to whether an existing
market could cope with increased trade. This applies both to its building floor space (sales area and other
uses) and to the overall site area. For a new market the floor space and site requirements will be key
factors in the preparation of any plan.

Step 4.1
Estimate sales space requirements

Rural markets normally achieve an annual turnover ranging from 5 to 15 tonnes per square metre of
sales area. Appropriate annual throughput values that can be used for projections are:

small-scale fruit and vegetable primary markets, from 3 to 7 tonnes per m 2;

fruit and vegetable year-round assembly markets, from 10 to 15 tonnes per m 2;
small-town fruit and vegetable open markets, from 5 to 10 tonnes per m 2.

These standards can be used both for designing a new market and assessing an existing market. If an
existing market broadly matches such standards then the sales space should be examined to see if there
is scope for it to be used in a more efficient manner in order to meet future demand. Additional space may
not be required.

For best results the sales space should be around 20 percent of the total site area and, except in
exceptional circumstances, should not exceed 40 percent. Space should be allowed for sales and general
internal circulation and daily and seasonal fluctuations should be taken into account. The standards given
above are based on experience of the relationship between space requirements and annual turnover. The
figures assume an average mix of produce, with fruit and vegetable sales predominating. If a market
specializes in a particular commodity such as livestock, some adjustment may be necessary.

With the introduction of physical and managerial improvements, the utilization of market space should
become more efficient over time. This means that the unit space required for the various activities can be
gradually reduced. For example, a standard of four tonnes per m 2 might be used for the initial period of
operation for a primary market, increasing to five tonnes per m 2 as management improves. A calculation
of space requirements is shown in Table 4.

Table 4
Sales space calculation (covered and open) for a basic rural market

Throughput Space standard Space needs

(tonnes per annum) (tonnes/m2) (m2)
a b c
(a b)
Present needs
Primary market section 5 400 4 1 350
Assembly market section 2 600 10 260
Total - present 8 000 1 610
Future needs (in 10 years)
Primary market section 7 560 5 1 512
Assembly market section 3 920 12 327
Total - future 11 480 1 840

In the example in Table 4, the calculation indicates that the present need for sales space is around 1 600
m2 and there is a future need of 1 840 m 2. If the sales area of an existing market is less than 1 600
m2there may be a case for expanding it to at least that area and, to meet future needs, probably up to 1
840 m2. This figure should also be used as the target for the design of a market on a new site. Space for
livestock trading must be added separately. In addition, if the market is going to trade in non-food items
such as charcoal, cloth and household goods, additional space should be allowed.

Step 4.2
Identify trading spaces

It is possible to calculate the number of trading spaces that might be allocated from the estimate of overall
sales space required. An important consideration is that all those wishing to trade in a retail market
should be given the opportunity to do so. In assembly markets, on the other hand, it may be necessary to
restrict space to existing traders, with allocation for some growth. It is not unknown for people with no
previous trading experience to seek to gain access to a new market. Allocating space to all those who
request it may limit the amount of space that can be given to experienced and bona fide traders.

In order to check whether the space allocations match traders needs an assumption has to be made
about the proportion of retailing that will be undertaken by farmers. Some primary markets are exclusively
used by farmers, whilst in others all the space is allocated to permanent traders. A mixed approach is,
however, often the best.

Using the previous example of 1840 m 2 of sales space the calculation of the number of trading spaces
might be as shown in Table 5. The space allocation is based on experience of average rural market
conditions. The amount of space allocated to users is usually around 10 m 2 for each permanent retail
trader, 6m2 for an assembly trader (who requires less space as most trade is done from vehicles) and
3m2 for a farmer.

Table 5
Estimating trading spaces for a basic rural market

Space needs Space per user

Number of users
(m2) (m2)
a b c
(a b)
Present needs
Primary market section 1 512
traders (60% of space) 907 10 90

farmers (40% of space) 605 3 200

Assembly market section 328 6 55
Total 1 840 345

The figures need to be checked against present use but, obviously, the amount of space allocated per
user could be varied. This is an issue that would need to be discussed with the users during Stage 3.
However, it is important to be cautious. Traders will inevitably ask for much more space than they really
need. Maximizing the efficient use of space must be one of the clear objectives of market planning. Space
used badly is a misuse of resources, particularly if there is a shortage of suitable land or if construction
costs are high.

A decision must also be made as to how to sub-divide the space between covered and open use. For
example, in the dry season temporary users might sell in the open, using tables and umbrellas.
Permanent traders would then be allocated the covered areas. However, one great danger with this
approach is that all food items might end up being sold in the open areas with the permanent stalls only
allocated to those traders selling non-food items.

Step 4.3
Decide on the markets facilities

From the discussions with the users carried out in Stage 3, initial proposals can be made regarding the
facilities that might need to be included in the market. There are three broad types of facilities: those that
are standard to all markets; specialized uses that may be required in some markets; and non-market
facilities.

Standard uses

Retail traders stalls. These are likely to be fixed-roofed stalls, rented on a monthly or annual basis.
Often the stalls are provided with lock-up storage facilities (for example, under a raised platform or
counter). In some circumstances, such as for the sale of meat, fish or dairy products, the stall may be
enclosed with wire mesh. Sometimes separate lock-up shops for butchers and fishmongers are also
provided. Stalls for non-food items should be located in a separate area.

A. Shepherd
A fixed-roof market in Papua New Guinea with built-in sales counters.

A. Shepherd

Producers stalls. These may be similar to the retailers stalls, but are usually rented on a daily basis.
The premises normally have a roof over them, but are not usually provided with lock-up storage facilities.
Sales may be made from a marked area on the floor, from a raised platform or fixed counter, or from
trestle tables that can be folded and stored at the end of the trading day (see details in Stage 7).

Assembly market sales area. Assembly activities often take place on temporary spaces, which are
mainly used during the peak harvesting season. The simplest form is where the sales take place in a
parking area, the producers bringing their produce up to the trucks of the traders. Alternatively, a roofed
market hall can be provided, in which the producers lay out their crops for purchase by traders who carry
them to their trucks. In some countries, such as many in the Near East, commission agents operate in
assembly markets. An alternative sales method is for crops to be auctioned to the assemblers, either by
commission agents or by the market operators. In this case it is normal to provide a separate auction area
on a raised concrete slab.

Pedestrian and vehicle circulation areas. In rural markets these are usually the same areas (unlike
larger urban retail or wholesale markets where there is often segregation).There must be adequate
circulation around all the trading areas, so that produce can be brought in or taken out with minimum
obstruction.

Parking. Parking provision is needed for service vehicles, delivery vehicles and visitors. This should
include space for non-motorized transport, such as bicycles, motor bikes and ox-carts. In most primary
retail markets the provision can be minimal, but in assembly markets greater consideration must be given
to providing organized parking areas.

Ancillary facilities. These usually include a cleaners store, an office for the market manager, public
toilets, standpipes for fresh water and garbage collection points.

Other marketing uses

Specialist users stalls. Retailers or producers stalls provided for specialist or targeted users, such as
women traders, producer groups or cooperatives.

Livestock sales areas. Livestock sales are normally undertaken outdoors, preferably in a fenced
enclosure or ring. A livestock market needs space for holding live animals, with temporary shade space
and water points. Many rural markets also have a separate area for live poultry.

Slaughter slabs. Sales are usually of live animals, but slaughter facilities are sometimes provided,
particularly in rural retail markets. The simplest arrangement is a concrete slab, with a hoisting rail, water
supply and effective drainage.

Storage. Most rural markets deal in fresh produce for which storage provision is not necessary. However,
small lockable chests for overnight storage may be provided, for example, in markets where grains or
other nonperishable crops are sold.

Non-market uses

Other facilities that should be located near the market may be identified from discussions with the users.
It might not be possible to accommodate these facilities on the market site, but provision can often be
made on adjacent land. This is particularly important when a market is constructed in an entirely new
location. If the market is to play an important role in the life of the community, services and businesses
will want to be close to it. These could include:

agricultural extension service office;

police post;
dispensary or clinic;
banks;
post office and public telephones;
space for grain millers (e.g. rice or maize mills);
cooked food stalls;
bus or lorry stand;
crche or nursery for mothers working in the market;
dormitory accommodation for farmers and traders who need to make an overnight stay; and
space for second-hand clothes sales. Clothing traders often locate close to a market because the
visiting farmers have money to spend after selling their produce.

In many countries local markets have become outlets for second-hand clothes.
 A. Shepherd

Here produce sellers in the foreground are almost overwhelmed by second-hand clothes sellers to
be seen in the background.

A. Shepherd

Step 4.4
Determine the area needed for the site

The final step at this stage is to estimate the overall space requirements for a market. As noted in Step
4.1, the built-up area of the site should be around 20 percent of the total site and under no circumstances
should exceed 40 percent.

In addition to the sales space some allowance should be made for other buildings that may need to be
accommodated on the market site (if this is concluded from Step 4.3).For a normal small-scale rural
market this is likely to consist of a market managers office, latrines and security and cleaning
arrangements. Based on the sales space calculations in Step 4.1, the method of calculation of the site
area is shown in Table 6.
In this example, the total site requirement is around one hectare (10 000 m 2), assuming the buildings take
up 20 percent of the site area. The absolute minimum site requirement would be 0.5 hectare, assuming a
building coverage of 40 percent. These figures can be used to check the area of an existing market, to
determine the additional land needed to expand an existing market or to use as a basis for selecting a
new market site.

At this stage it is usually not possible to accurately determine the areas for specialized and other uses.
These will need to be reconsidered at the detailed building design stage (Stage 7).

Table 6
Estimating overall land uses (m2)

Sales space Ancillary space Total built space Site area

Land use needs a b c d
(a + b) (c 5)
Primary market section:
traders (60% of space) 907 - 907
farmers (40% of space) 605 - 605
Assembly market section 328 - 328
Managers office at 10-15 m2 per office worker - 60 60
Cleaners store plus guardhouse at 10 m 2 - 10 10
Toilets at 15 m2 - 15 15
Total built space m2 1 840 85 1 925
Total site area m 2 9 625