2.3. Effect of Markets and Storage Facilities on Agricultural Transportation

The presence of markets and storage facilities play an important role in affecting choice of vehicle. Markets and storage facilities both provide the same role of acting as a place where agricultural produce can be amalgamated. This may be for the purpose of immediate sale or for transportation to the next destination. Access to markets and storage facilities therefore affect vehicle choice in two main ways.

Firstly, the ease of access to these facilities, whether in terms of distance or ability to use the facilities, will dictate the farmer’s decision on which vehicle to use. For example, if the storage facility is close he may decide to buy a non-motorised vehicle which would have been of no use if the facility was beyond a certain distance. Similarly, if once the farmer had reached the facility he was unable to use it either because of its expense or because of exclusionist type practises, the need for a vehicle becomes redundant, and the farmer’s produce may as well be sold to the village trader. The farmer will only demand a more advanced vehicle if it is the perception that the vehicle will enable an effective increase in farm gate prices.

Secondly, where goods are amalgamated it means that the density of demand for vehicle services increases. The density of demand is of vital importance in determining vehicle choice.

The larger the demand the more an efficient and cost effective vehicle can be justified and hence the unitary costs of transport are reduced. The existence of markets and storage facilities are important at any level. For example, at the village level a small grain store may be able to accumulate enough demand from all the farmers to justify the use of a donkey cart for transportation to market. Without the store individual farmers may only be able to justify head loading their surplus produce to market. Similarly, at the district level a market could attract city traders who bring large trucks to transport the produce bought at the market in bulk.

The ease with which farmers and traders have access to markets and storage facilities will be reflected in their distribution costs (transport and storage). If distribution costs are low this will effectively increase farm gate prices which will give farmers the incentive to increase production.