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Supermarkets and Michoacan Guava Farmers in Mexico

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  • Berdegue, Julio A.
  • Reardon, Thomas
  • Balsevich, Fernando
  • Martinez, Anabel
  • Medina, Ruben
  • Aguirre, Marx
  • Echanove, Flavia

Abstract

This paper analyzes the participation of small farmers in the fresh fruit and vegetable supply systems of supermarkets in Mexico, using the case of small-scale guava farmers in the state of Michoacán. Three findings emerge. (1) The most important determinant of access of these farmers to more modern markets is their territorial (spatial) context and the way in which those territories interact with different markets, followed by fixed capital assets. Farm size, education and participation in organizations are not significant determinants. (2) Farmers working in the more modern markets compared to those in the traditional markets, are labor-constrained and overuse chemical inputs to a lesser extent. (3) Farmers that have accessed the more modern market channels, have substantially higher net income per hectare. Policies and projects aimed at promoting the inclusion in more modern markets of small-scale farmers such as those producing guava in Michoacán, must act on the territorial dimension of the problem of inclusion/exclusion, and not restrict themselves to actions aimed at improving the supply chains or the capacities of the households or their farms and organizations.

Suggested Citation

  • Berdegue, Julio A. & Reardon, Thomas & Balsevich, Fernando & Martinez, Anabel & Medina, Ruben & Aguirre, Marx & Echanove, Flavia, 2006. "Supermarkets and Michoacan Guava Farmers in Mexico," Staff Paper Series 11474, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midasp:11474
    DOI: 10.22004/ag.econ.11474
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    References listed on IDEAS

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    1. Reardon, Thomas & Timmer, C. Peter, 2007. "Transformation of Markets for Agricultural Output in Developing Countries Since 1950: How Has Thinking Changed?," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 55, pages 2807-2855, Elsevier.
    2. Michael R. Carter & Keith D. Wiebe, 1990. "Access to Capital and Its Impact on Agrarian Structure and Productivity in Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(5), pages 1146-1150.
    3. Lau, Lawrence J & Yotopoulos, Pan A, 1971. "A Test for Relative Efficiency and Application to Indian Agriculture," American Economic Review, American Economic Association, vol. 61(1), pages 94-109, March.
    4. 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.
    5. Hernandez, Ricardo & Reardon, Thomas & Berdegue, Julio A., 2006. "Tomato Farmer Participation in Supermarket Market Channels in Guatemala: Determinants and Technology and Income Effects," Staff Paper Series 11771, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    Cited by:

    1. Christin Schipmann & Matin Qaim, 2010. "Spillovers from modern supply chains to traditional markets: product innovation and adoption by smallholders," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 361-371, May.
    2. Thomas Reardon & Julio A. Berdegué, 2008. "The Retail-Led Transformation of Agrifood Systems and its Implications for Development Policies," World Bank Publications - Reports 9233, The World Bank Group.
    3. Pacillo, Grazia, 2016. "Market participation, innovation adoption and poverty in rural Ghana," Economics PhD Theses 0916, Department of Economics, University of Sussex Business School.

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