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The supermarket revolution in developing countries: Policies for "competitiveness with inclusiveness"

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Author Info

  • Reardon, Thomas
  • Gulati, Ashok

Abstract

"A “supermarket revolution” has been underway in developing countries since the early 1990s. Supermarkets (here referring to all modern retail, which includes chain stores of various formats such as supermarkets, hypermarkets, and convenience and neighborhood stores) have now gone well beyond the initial upper- and middle-class clientele in many countries to reach the mass market. Within the food system, the effects of this trend touch not only traditional retailers, but also the wholesale, processing, and farm sectors. The supermarket revolution is a “two-edged sword.” On the one hand, it can lower food prices for consumers and create opportunities for farmers and processors to gain access to quality-differentiated food markets and raise incomes. On the other hand, it can create challenges for small retailers, farmers, and processors who are not equipped to meet the new competition and requirements from supermarkets. Developing-country governments can put in place a number of policies to help both traditional retailers and small farmers pursue “competitiveness with inclusiveness” in the era of the supermarket revolution. Some countries are already taking such steps, and their experiences offer lessons for others." from Author's text

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series Policy briefs with number 2.

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Date of creation: 2008
Date of revision:
Handle: RePEc:fpr:polbrf:2

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Related research

Keywords: Supermarkets; Wholesalers; Modern retail; Small farmers; Traditional retail; Supply chains; Competitiveness; Inclusiveness;

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Cited by:
  1. Barry DESKER & Mely CABALLERO-ANTHONY & Paul TENG, 2013. "Thouhgt/Issues Paper on ASEAN Food Security: Towards a more Comprehensive Framework," Working Papers DP-2013-20, Economic Research Institute for ASEAN and East Asia (ERIA).
  2. Narayanan, Sudha, 2014. "Profits from participation in high value agriculture: Evidence of heterogeneous benefits in contract farming schemes in Southern India," Food Policy, Elsevier, vol. 44(C), pages 142-157.
  3. Glendenning, Claire J. & Babu, Suresh & Asenso-Okyere, Kwadwo, 2010. "Review of agricultural extension in India: Are farmers' information needs being met?," IFPRI discussion papers 1048, International Food Policy Research Institute (IFPRI).
  4. Andersson, Camilla I.M. & Kiria, Christine G. & Qaim, Matin & Rao, Elizaphan J.O., 2013. "Following up on smallholder farmers and supermarkets," Discussion Papers 158142, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
  5. World Bank, 2011. "Trade Expansion through Market Connection : The Central Asian Markets of Kazakhstan, Kyrgyz Republic, and Tajikistan," World Bank Publications, The World Bank, number 2333, October.
  6. Gorton, Matthew & Sauer, Johannes & Supatpongkul, Pajaree, 2011. "Wet Markets, Supermarkets and the "Big Middle" for Food Retailing in Developing Countries: Evidence from Thailand," World Development, Elsevier, vol. 39(9), pages 1624-1637, September.

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