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Horticulture Farmers and Domestic Supermarkets in Kenya

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  • Reardon, Thomas
  • Odera, Michael M.
  • Neven, David

Abstract

Are the rural poor excluded from the market opportunities created by the rise of supermarkets in developing countries? We analyzed the farm-level impact of supermarket growth in Kenya's produce sub-sector which is dominated by smallholder producers. Two main findings emerged. First, the existence of a threshold capital vector at the entrance of the supermarket channel does hinder the entry of small, rainfed farms. Instead, the main supply response has come from a new group of medium-sized, fast-growing farms managed by well-educated farmers. Second, the heavy reliance on and higher wages paid to hired farm workers on supermarket-channel farms help to alleviate poverty for rural households with little land.

Suggested Citation

  • Reardon, Thomas & Odera, Michael M. & Neven, David, 2006. "Horticulture Farmers and Domestic Supermarkets in Kenya," Staff Paper Series 11534, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  • Handle: RePEc:ags:midasp:11534
    DOI: 10.22004/ag.econ.11534
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    References listed on IDEAS

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    Cited by:

    1. Hildegunn E. Stokke, 2009. "Multinational supermarket chains in developing countries: does local agriculture benefit?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(6), pages 645-656, November.
    2. Jalang'o, Dorcas Anyango & Otieno, David Jakinda & Kosura, Willis-Oluoch, 2016. "Factors influencing smallholder farmers’ participation in domestic high value markets for African Indigenous Vegetables in rural Kenya," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246390, African Association of Agricultural Economists (AAAE).
    3. Jalang'o, Dorcas Anyango, 2016. "Economic Analysis Of Smallholder Farmers’ Participation In Domestic High-Value Markets For Indigenous Vegetables In Siaya County, Kenya," Research Theses 276431, Collaborative Masters Program in Agricultural and Applied Economics.
    4. Jalang’o, Dorcas Anyango & Otieno, David Jakinda & Oluoch-Kosura, Willis, 2016. "Economic Analysis Of Smallholder Farmers’ Participation In Domestic High-Value Markets For Indigenous Vegetables In Siaya County, Kenya," Dissertations and Theses 269269, University of Nairobi, Department of Agricultural Economics.
    5. Neven, David & Katjiuongua, Hikuepi & Adjosoediro, Ingrid & Reardon, Thomas & Chuzu, Pia Nwanza & Tembo, Gelson & Ndiyoi, Mukelabai, 2006. "Food Sector Transformation and Standards in Zambia: Smallholder Farmer Participation and Growth in the Dairy Sector," Staff Paper Series 11701, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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