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The global rise and impact of supermarkets: an international perspective

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  • Reardon, Thomas

Abstract

A ‘supermarket revolution’ has occurred in developing countries in the past two decades. We focus on three specific issues that reflect the impact of this revolution, particularly in Asia: continuity in transformation, innovation in transformation, and unique development strategies. First, the record shows that the rapid growth observed in the early 2000s in China, Indonesia, Malaysia, and Thailand has continued, and the ‘newcomers’ — India and Vietnam — have grown even faster. Although foreign direct investment has been important, the roles of domestic conglomerates and even state investment have been significant and unique. Second, Asia’s supermarket revolution has exhibited unique pathways of retail diffusion and procurement system change. There has been ‘precocious’ penetration of rural towns by rural supermarkets and rural business hubs, emergence of penetration of fresh produce retail that took much longer to initiate in other regions, and emergence of Asian retail developing-country multinational chains. In procurement, a symbiosis between modern retail and the emerging and consolidating modern food processing and logistics sectors has arisen. Third, several approaches are being tried to link small farmers to supermarkets. Some are unique to Asia, for example assembling into a ‘hub’ or ‘platform’ or ‘park’ the various companies and services that link farmers to modern markets. Other approaches relatively new to Asia are found elsewhere, especially in Latin America, including ‘bringing modern markets to farmers’ by establishing collection centres and multi-pronged collection cum service provision arrangements, and forming market cooperatives and farmer companies to help small farmers access supermarkets.

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Bibliographic Info

Paper provided by Crawford Fund in its series Conference Proceedings 2011 with number 125312.

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Date of creation: Aug 2011
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Handle: RePEc:ags:cfcp11:125312

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Keywords: Agribusiness;

References

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  1. Wei, Anning & Cacho, Joyce A., 1999. "Competition Among Foreign And Chinese Agro-Food Enterprises In The Process Of Globalization," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 2(03/04).
  2. Minten, Bart & Reardon, Thomas & Sutradhar, Rajib, 2010. "Food Prices and Modern Retail: The Case of Delhi," World Development, Elsevier, vol. 38(12), pages 1775-1787, December.
  3. Hamish R. Gow & Johan F. M. Swinnen, 2001. "Private Enforcement Capital and Contract Enforcement in Transition Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 686-690.
  4. Vernon Henderson, 2002. "Urbanization in Developing Countries," World Bank Research Observer, World Bank Group, vol. 17(1), pages 89-112.
  5. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
  6. Gorton, Matthew & Sauer, Johannes & Supatpongkul, Pajaree, 2009. "Investigating Thai Shopping Behavior: Wet-Markets, Supermarkets and the ‘Big Middle’," 2009 Conference, August 16-22, 2009, Beijing, China 50332, International Association of Agricultural Economists.
  7. Mergenthaler, Marcus & Weinberger, Katinka & Qaim, Matin, 2009. "The food system transformation in developing countries: A disaggregate demand analysis for fruits and vegetables in Vietnam," Food Policy, Elsevier, vol. 34(5), pages 426-436, October.
  8. Christin Schipmann & Matin Qaim, 2010. "Spillovers from modern supply chains to traditional markets: product innovation and adoption by smallholders," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3-4), pages 361-371, 05.
  9. Wang, Honglin & Dong, Xiaoxia & Rozelle, Scott & Huang, Jikun & Reardon, Thomas, 2009. "Producing and Procuring Horticultural Crops with Chinese Characteristics: The Case of Northern China," World Development, Elsevier, vol. 37(11), pages 1791-1801, November.
  10. Wilkinson, John, 2004. "The Food Processing Industry, Globalization and Developing Countries," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 1(2).
  11. Moustier, Paule & Tam, Phan Thi Giac & Anh, Dao The & Binh, Vu Trong & Loc, Nguyen Thi Tan, 2010. "The role of farmer organizations in supplying supermarkets with quality food in Vietnam," Food Policy, Elsevier, vol. 35(1), pages 69-78, February.
  12. Key, Nigel & Runsten, David, 1999. "Contract Farming, Smallholders, and Rural Development in Latin America: The Organization of Agroprocessing Firms and the Scale of Outgrower Production," World Development, Elsevier, vol. 27(2), pages 381-401, February.
  13. Ali, Jabir & Singh, Surendra P. & Ekanem, Enefiok P., 2009. "Efficiency and Productivity Changes in the Indian Food Processing Industry: Determinants and Policy Implications," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 12(1).
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