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Supermarket Growth and Rural Welfare: Evidence from Kenya

In: Organised Retailing and Agri-Business

Author

Listed:
  • Elizaphan James O. Rao

    (International Livestock Research Institute (ILRI))

  • Matin Qaim

    (Georg-August-University of Goettingen)

Abstract

The role of supermarkets in food retailing is rapidly growing in many developing countries. In the early stages of growth, supermarkets primarily concentrate on selling processed foods, but over time they also start dealing with fresh products, including fruits and vegetables. This chapter presents findings from a study of smallholder farmers in Kenya who supply vegetables to different market outlets. The findings show that participation in supermarket supply chains increases household income and reduces poverty. Supplying to supermarkets increases farm productivity and causes higher labor demand. Positive employment effects are shown to be especially pronounced for female rural laborers. However, the technical requirements imposed by supermarkets present entry barriers to these emerging supply chains, which may have to be addressed through institutional support.

Suggested Citation

  • Elizaphan James O. Rao & Matin Qaim, 2016. "Supermarket Growth and Rural Welfare: Evidence from Kenya," India Studies in Business and Economics, in: N. Chandrasekhara Rao & R. Radhakrishna & Ram Kumar Mishra & Venkata Reddy Kata (ed.), Organised Retailing and Agri-Business, edition 1, chapter 5, pages 81-97, Springer.
  • Handle: RePEc:spr:isbchp:978-81-322-2476-1_5
    DOI: 10.1007/978-81-322-2476-1_5
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    Cited by:

    1. Giger, Markus & Mutea, Emily & Kiteme, Boniface & Eckert, Sandra & Anseeuw, Ward & Zaehringer, Julie G., 2020. "Large agricultural investments in Kenya’s Nanyuki Area: Inventory and analysis of business models," Land Use Policy, Elsevier, vol. 99(C).

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