Advanced Search
MyIDEAS: Login

Farmer participation in supermarket channels and technical efficiency: The case of vegetable production in Kenya

Contents:

Author Info

  • Elizaphan J.O. Rao

    (University of Göttingen)

  • Matin Qaim

    (University of Göttingen)

Registered author(s):

    Abstract

    Supermarkets and high-value exports are currently gaining ground in the agri-food systems of many developing countries. While recent research has analyzed income effects in the small farm sector, impacts on farming efficiency have hardly been studied. Using a survey of Kenyan vegetable growers and a stochastic frontier approach, we show that participation in supermarket channels increases mean technical efficiency by 19%. This gain is bigger at lower levels of efficiency, suggesting the potential for positive income distribution effects. However, disadvantaged farms often have problems in meeting strict supermarket requirements. Innovative market linkage initiatives can increase the probability of participation significantly.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_18.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Courant Research Centre PEG in its series Courant Research Centre: Poverty, Equity and Growth - Discussion Papers with number 18.

    as in new window
    Length:
    Date of creation: 25 Nov 2009
    Date of revision:
    Handle: RePEc:got:gotcrc:018

    Contact details of provider:
    Postal: Platz der Goettinger Sieben 3; D-37073 Goettingen, GERMANY
    Phone: +49 551 39 14066
    Fax: + 49 551 39 14059
    Web page: http://www.uni-goettingen.de/en/82144.html

    Related research

    Keywords: supermarkets; small farms; technical efficiency; stochastic frontier; sample selection; Kenya;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Maertens, Miet & Swinnen, Johan F.M., 2009. "Trade, Standards, and Poverty: Evidence from Senegal," World Development, Elsevier, vol. 37(1), pages 161-178, January.
    2. Awudu Abdulai & Hendrik Tietje, 2007. "Estimating technical efficiency under unobserved heterogeneity with stochastic frontier models: application to northern German dairy farms," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 34(3), pages 393-416, September.
    3. Jayne, Thomas S. & Yamano, Takashi & Weber, Michael T. & Tschirley, David L. & Benfica, Rui M.S. & Neven, David & Chapoto, Antony & Zulu, Ballard, 2002. "Smallholder Income And Land Distribution In Africa: Implications For Poverty Reduction Strategies," 2002 Annual meeting, July 28-31, Long Beach, CA 19692, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(03), December.
    5. Solis, Daniel & Bravo-Ureta, Boris E. & Quiroga, Ricardo E., 2007. "Soil conservation and technical efficiency among hillside farmers in Central America: a switching regression model," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(4), December.
    6. Meike Wollni & Manfred Zeller, 2007. "Do farmers benefit from participating in specialty markets and cooperatives? The case of coffee marketing in Costa Rica-super-1," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 243-248, 09.
    7. Pingali, Prabhu, 2007. "Westernization of Asian diets and the transformation of food systems: Implications for research and policy," Food Policy, Elsevier, vol. 32(3), pages 281-298, June.
    8. George E. Battese, 1997. "A Note On The Estimation Of Cobb-Douglas Production Functions When Some Explanatory Variables Have Zero Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 250-252.
    9. William Greene, 2010. "A stochastic frontier model with correction for sample selection," Journal of Productivity Analysis, Springer, vol. 34(1), pages 15-24, August.
    10. Schipmann, Christin & Qaim, Matin, 2009. "Modern Supply Chains and Product Innovation: How Can Smallholder Farmers Benefit?," 2009 Conference, August 16-22, 2009, Beijing, China 51046, International Association of Agricultural Economists.
    11. Bart Minten & Lalaina Randrianarison & Johan Swinnen, 2007. "Spillovers from high-value agriculture for exports on land use in developing countries: evidence from Madagascar," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 265-275, 09.
    12. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    13. Guido W. Imbens, 2004. "Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 4-29, February.
    14. David Neven & Thomas Reardon, 2004. "The Rise of Kenyan Supermarkets and the Evolution of their Horticulture Product Procurement Systems," Development Policy Review, Overseas Development Institute, vol. 22(6), pages 669-699, November.
    15. 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.
    16. 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.
    17. Daniel Solís & Boris E. Bravo-Ureta & Ricardo E. Quiroga, 2007. "Soil conservation and technical efficiency among hillside farmers in Central America: a switching regression model ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(4), pages 491-510, December.
    18. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:got:gotcrc:018. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dominik Noe).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.