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Alternative marketing options for small-scale farmers in the wake of changing agri-food supply chains in South Africa

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  • Louw, Andre
  • Jordaan, Daniel du Plessis Scheepers
  • Ndanga, Leah Z.B.
  • Kirsten, Johann F.

Abstract

With South Africa’s urban population approaching 60%, supermarkets and fast food chains have become important players in the South African food system. These large players in the food sector have systematically modified their procurement practices especially with regard to fresh fruit and vegetables and are now circumventing spot markets in favour of sourcing via in-house sourcing companies who mainly procure from preferred supplier producers. This paper draws extensively from a global research programme which seeks to highlight the market changes that potentially contribute to continued exclusion of the small producers from mass consumer markets. This paper illustrates, through a series of case studies, how integration of small-scale farmers into the urban retail market can be facilitated and how the challenges posed by the changing food system could possibly be overcome. The case studies illustrate various initiatives through which small-scale farmers and agribusinesses can be integrated into mainstream agri-food systems and may be used as models for an innovative approach to include small-scale farmers while still maintaining profitable business operations. They highlight the need for a multi actor approach for the successful participation of smallholder farmers in order to allow them to join the supply chain at any point within the channel.

Suggested Citation

  • Louw, Andre & Jordaan, Daniel du Plessis Scheepers & Ndanga, Leah Z.B. & Kirsten, Johann F., 2008. "Alternative marketing options for small-scale farmers in the wake of changing agri-food supply chains in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(3), pages 1-22, September.
  • Handle: RePEc:ags:agreko:44025
    DOI: 10.22004/ag.econ.44025
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    References listed on IDEAS

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    1. 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.
    2. Graciela Ghezán & Mónica Mateos & Laura Viteri, 2002. "Impact of Supermarkets and Fast–Food Chains on Horticulture Supply Chains in Argentina," Development Policy Review, Overseas Development Institute, vol. 20(4), pages 389-408, September.
    3. D'Haese, Marijke & Van Huylenbroeck, Guido, 2005. "The rise of supermarkets and changing expenditure patterns of poor rural households case study in the Transkei area, South Africa," Food Policy, Elsevier, vol. 30(1), pages 97-113, February.
    4. Dave D. Weatherspoon & Thomas Reardon, 2003. "The Rise of Supermarkets in Africa: Implications for Agrifood Systems and the Rural Poor," Development Policy Review, Overseas Development Institute, vol. 21, pages 333-355, May.
    5. Thomas Reardon & Julio A. Berdegué, 2002. "The Rapid Rise of Supermarkets in Latin America: Challenges and Opportunities for Development," Development Policy Review, Overseas Development Institute, vol. 20(4), pages 371-388, September.
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    Cited by:

    1. Mengyi Zhang & Peter Dannenberg, 2022. "Opportunities and Challenges of Indigenous Food Plant Farmers in Integrating into Agri-Food Value Chains in Cape Town," Land, MDPI, vol. 11(12), pages 1-17, December.
    2. Peter Dannenberg, 2013. "The rise of supermarkets and challenges for small farmers in South African food value chains," Economia agro-alimentare, FrancoAngeli Editore, vol. 15(3), pages 15-34.
    3. Riungu, Claris Karimi, 2011. "Effects of Supermarkets on Fresh Fruit and Vegetables Small-Scale Farmers in Central Kenya," Research Theses 134484, Collaborative Masters Program in Agricultural and Applied Economics.
    4. Jordaan, Henry & Grove, Bennie, 2010. "Analysis of the Governance Structure used by Eksteenskull Raisin Producers: Is there a need for more Vertical Coordination?," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96645, African Association of Agricultural Economists (AAAE).
    5. Nuhu, Ahmed Salim & Liverpool-Tasie, Lenis Saweda O. & Awokuse, Titus & Kabwe, Stephen, 2021. "Do benefits of expanded midstream activities in crop value chains accrue to smallholder farmers? Evidence from Zambia," World Development, Elsevier, vol. 143(C).
    6. Wiśniewska-Paluszak, J. & Paluszak, G. & Fiore, M. & Coticchio, A. & Galati, A. & Lira, J., 2023. "Urban agriculture business models and value propositions: Mixed methods approach based on evidence from Polish and Italian case studies," Land Use Policy, Elsevier, vol. 127(C).

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    Marketing; Agribusiness;

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