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Farmer Participation in Supermarket Channels, Production Technology, and Efficiency: The Case of Vegetables in Kenya

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  • Elizaphan J. O. Rao
  • Bernhard Brümmer
  • Matin Qaim

Abstract

Supermarkets are gaining ground in agrifood systems of many developing countries. While recent research has analyzed income effects in the small farm sector, impacts on productivity and efficiency have hardly been studied. We use a meta-frontier approach and combine this with propensity score matching to estimate treatment effects among vegetable farmers in Kenya. Participation in supermarket channels increases farm productivity in terms of meta-technology ratios by 45%. We also find positive and significant impacts on technical efficiency and scale efficiency. Supermarket expansion therefore presents opportunities for agricultural growth in the small farm sector, which is crucial for poverty reduction in Africa. Copyright 2012, Oxford University Press.

Suggested Citation

  • Elizaphan J. O. Rao & Bernhard Brümmer & Matin Qaim, 2012. "Farmer Participation in Supermarket Channels, Production Technology, and Efficiency: The Case of Vegetables in Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(4), pages 891-912.
  • Handle: RePEc:oup:ajagec:v:94:y:2012:i:4:p:891-912
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    Citations

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    Cited by:

    1. Watto, Muhammad, 2013. "Measuring Groundwater Irrigation Efficiency in Pakistan: A DEA Approach Using the Sub-vector and Slack-based Models," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152204, Australian Agricultural and Resource Economics Society.
    2. Qaim, Matin & Andersson, Camilla I.M. & Chege, Christine G.K. & Kimenju, Simon Chege & Klasen, Stephan & Rischke, Ramona, 2014. "Nutrition Effects of the Supermarket Revolution on Urban Consumers and Smallholder Farmers in Kenya," Discussion Papers 180976, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    3. Jin Yang & Hui Wang & Songqing Jin & Kevin Chen & Jeffrey Riedinger & Chao Peng, 2016. "Migration, local off-farm employment, and agricultural production efficiency: evidence from China," Journal of Productivity Analysis, Springer, vol. 45(3), pages 247-259, June.
    4. Chege, Christine G. K. & Andersson, Camilla I.M. & Qaim, Matin, 2014. "Impacts of supermarkets on farm household nutrition in Kenya," Discussion Papers 167910, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    5. Rob Kuijpers & Johan Swinnen, 2016. "Value Chains and Technology Transfer to Agriculture in Developing and Emerging Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1403-1418.
    6. Rao, Elizaphan J.O. & Qaim, Matin, 2013. "Supermarkets and agricultural labor demand in Kenya: A gendered perspective," Food Policy, Elsevier, vol. 38(C), pages 165-176.
    7. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    8. Pallante, Giacomo & Drucker, Adam G. & Sthapit, Sajal, 2016. "Assessing the potential for niche market development to contribute to farmers' livelihoods and agrobiodiversity conservation: Insights from the finger millet case study in Nepal," Ecological Economics, Elsevier, vol. 130(C), pages 92-105.
    9. Chiputwa, Brian & Spielman, David J. & Qaim, Matin, 2015. "Food Standards, Certification, and Poverty among Coffee Farmers in Uganda," World Development, Elsevier, vol. 66(C), pages 400-412.
    10. Schwarz, Jana & Mathijs, Erik & Maertens, Miet, 2015. "Changing patterns of global agri-food trade and virtual water flows," Working Papers 200308, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    11. Chege, Christine G.K. & Andersson, Camilla I.M. & Qaim, Matin, 2014. "Impacts Of Supermarkets On Farm Household Nutrition In Kenya," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182724, European Association of Agricultural Economists.
    12. Henningsen, Arne & Mpeta, Daniel F. & Adem, Anwar S. & Kuzilwa, Joseph A. & Czekaj, Tomasz G., 2015. "A Meta-Frontier Approach for Causal Inference in Productivity Analysis: The Effect of Contract Farming on Sunflower Productivity in Tanzania," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 206200, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    13. repec:eee:wdevel:v:95:y:2017:i:c:p:73-87 is not listed on IDEAS
    14. Maertens, Miet & Vande Velde, Katrien, 2017. "Contract-farming in Staple Food Chains: The Case of Rice in Benin," World Development, Elsevier, vol. 95(C), pages 73-87.
    15. repec:oup:erevae:v:44:y:2017:i:4:p:592-633. is not listed on IDEAS
    16. Chege, Christine G.K. & Andersson, Camilla I.M. & Qaim, Matin, 2015. "Impacts of Supermarkets on Farm Household Nutrition in Kenya," World Development, Elsevier, vol. 72(C), pages 394-407.
    17. Ochieng, Dennis O. & Veettil, Prakashan C. & Qaim, Matin, 2017. "Farmers’ preferences for supermarket contracts in Kenya," Food Policy, Elsevier, vol. 68(C), pages 100-111.
    18. 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.
    19. Saenger, Christoph & Torero, Maximo & Qaim, Matin, 2016. "Impact of third-party enforcement of contracts in agricultural markets—A field experiment in Vietnam," IFPRI book chapters,in: Innovation for inclusive value-chain development: Successes and challenges, chapter 11, pages 343-374 International Food Policy Research Institute (IFPRI).
    20. Alphonse Singbo & Alfons Oude Lansink & Grigorios Emvalomatis, 2014. "Estimating farmers’ productive and marketing inefficiency: an application to vegetable producers in Benin," Journal of Productivity Analysis, Springer, vol. 42(2), pages 157-169, October.
    21. Huang, Wei & Bruemmer, Bernhard & Huntsinger, Lynn, 2016. "Incorporating measures of grassland productivity into efficiency estimates for livestock grazing on the Qinghai-Tibetan Plateau in China," Ecological Economics, Elsevier, vol. 122(C), pages 1-11.
    22. Watto, Muhammad Arif & Mugera, Amin William, 2013. "Measuring Groundwater Irrigation Efficiency in Pakistan: A DEA Approach Using the Sub-vector and Slack-based Models," Working Papers 144943, University of Western Australia, School of Agricultural and Resource Economics.
    23. 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.
    24. Seng, Kimty, 2016. "The Effects of Market Participation on Farm Households’ Food Security in Cambodia: An endogenous switching approach," MPRA Paper 69669, University Library of Munich, Germany.

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