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The impact of South African supermarkets on agricultural development in the SADC: a case study in Zambia, Namibia and Botswana

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  • Emongor, Rosemary A.
  • Kirsten, Johann F.

Abstract

Supermarkets have expanded rapidly in SADC during the last decade, leading to fears that small-scale farmers and food processors could be excluded from access to urban markets. To assess the impact of supermarket chains on various participants in the supply chain, a survey was carried out in Botswana, Namibia and Zambia in 2004, 2005 and 2007. To determine the factors that influence the choice between the supermarket or traditional market channel and the impact of participation in the supermarket supply chain, a two-step treatment model was used. The results showed that over 80% of all processed food products in Botswana, Namibia and Zambia were imported from South Africa, and that supermarkets used a mixture of procurement systems for fresh fruit and vegetables and processed food products. Participation in the supermarkets channel had a positive impact on small-scale farmers’ incomes. Farmers who supplied fresh fruit and vegetables to supermarkets had a significantly higher income than those who supplied to traditional markets in Zambia. The expansion of South African supermarkets into the SADC countries may be beneficial to small-scale farmers and therefore efforts should be made to incorporate them into the supermarkets’ fresh fruit and vegetable supply chain.

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Bibliographic Info

Article provided by Agricultural Economics Association of South Africa (AEASA) in its journal Agrekon.

Volume (Year): 48 (2009)
Issue (Month): 1 (March)
Pages:

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Handle: RePEc:ags:agreko:49289

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Web page: http://www.aeasa.org.za/
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Keywords: Agricultural and Food Policy;

References

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  1. C. Dolan & J. Humphrey, 2000. "Governance and Trade in Fresh Vegetables: The Impact of UK Supermarkets on the African Horticulture Industry," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 147-176.
  2. Ricardo Hernández & Thomas Reardon & Julio Berdegué, 2007. "Supermarkets, wholesalers, and tomato growers in Guatemala," Agricultural Economics, International Association of Agricultural Economists, vol. 36(3), pages 281-290, 05.
  3. Paul W. Dobson & Michael Waterson & Stephen W. Davies, 2003. "The Patterns and Implications of Increasing Concentration in European Food Retailing," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 111-125.
  4. Douglas Cooper, 2003. "Findings from the Competition Commission's Inquiry into Supermarkets," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 127-143.
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Cited by:
  1. Stephanie Barrientos & Margareet Visser, 2012. "South African horticulture: opportunities and challenges for economic and social upgrading in value chains," Brooks World Poverty Institute Working Paper Series ctg-2012-12, BWPI, The University of Manchester.

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