Supermarkets, farm household income and poverty: Insights from Kenya
Expansion of supermarkets in developing countries is increasingly providing opportunities for farmers to participate in modern supply chains. While some farmers are excluded by stringent supermarket requirements, there are important gains for participating farmers. However, studies analyzing income effects of high-value chains use approaches that either show no causality or ignore structural differences between farmers in different channels. Using endogenous switching regression and data from a survey of vegetable growers in Kenya, we account for systematic differences and show that participation in supermarket chains yields 50% gain in household income leading to 33% reduction in poverty. Supermarket expansion is therefore likely to have substantial welfare effects if more farmers are supported to overcome inherent entry barriers.
|Date of creation:||Jan 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 254 20 6752866
Web page: http://www.aaae-africa.org
More information through EDIRC
Web page: http://www.aeasa.org.za/
More information through EDIRC
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.:
- 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.
- 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, 05.
- Bart Minten & Lalaina Randrianarison & Johan F.M. Swinnen, 2006.
"Global Retail Chains and Poor Farmers: Evidence from Madagascar,"
LICOS Discussion Papers
16406, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Minten, Bart & Randrianarison, Lalaina & Swinnen, Johan F.M., 2009. "Global Retail Chains and Poor Farmers: Evidence from Madagascar," World Development, Elsevier, vol. 37(11), pages 1728-1741, November.
- Bolwig, Simon & Gibbon, Peter & Jones, Sam, 2009. "The Economics of Smallholder Organic Contract Farming in Tropical Africa," World Development, Elsevier, vol. 37(6), pages 1094-1104, June.
- Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2007.
"Impact of contract farming on income: Linking small farmers, packers, and supermarket in China,"
IFPRI discussion papers
742, International Food Policy Research Institute (IFPRI).
- Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2009. "Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China," World Development, Elsevier, vol. 37(11), pages 1781-1790, November.
- Michael Lokshin & Zurab Sajaia, 2004. "Maximum likelihood estimation of endogenous switching regression models," Stata Journal, StataCorp LP, vol. 4(3), pages 282-289, September.
- Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
- Neven, David & Reardon, Thomas & Chege, Jonathan & Wang, Honglin, 2005. "Supermarkets And Consumers In Africa: The Case Of Nairobi, Kenya," Staff Papers 11584, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- 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.
- Willis, Robert J & Rosen, Sherwin, 1979.
"Education and Self-Selection,"
Journal of Political Economy,
University of Chicago Press, vol. 87(5), pages S7-36, October.
- Neven, David & Odera, Michael Makokha & Reardon, Thomas & Wang, Honglin, 2009. "Kenyan Supermarkets, Emerging Middle-Class Horticultural Farmers, and Employment Impacts on the Rural Poor," World Development, Elsevier, vol. 37(11), pages 1802-1811, November.
- 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.
- 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.
When requesting a correction, please mention this item's handle: RePEc:ags:aaae10:95771. 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: (AgEcon Search)
If references are entirely missing, you can add them using this form.