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Horticulture Farmers and Domestic Supermarkets in Kenya

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

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.

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File URL: http://purl.umn.edu/11534
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Paper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Staff Papers with number 11534.

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Date of creation: 2006
Date of revision:
Handle: RePEc:ags:midasp:11534
Contact details of provider: Postal: Justin S. Morrill Hall of Agriculture, 446 West Circle Dr., Rm 202, East Lansing, MI 48824-1039
Phone: (517) 355-4563
Fax: (517) 432-1800
Web page: http://www.aec.msu.edu/agecon/
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  1. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
  2. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-98, January.
  3. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 7(3-4), October.
  4. 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.
  5. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  6. Dries, Liesbeth & Swinnen, Johan F. M., 2004. "Foreign Direct Investment, Vertical Integration, and Local Suppliers: Evidence from the Polish Dairy Sector," World Development, Elsevier, vol. 32(9), pages 1525-1544, September.
  7. Tjalling Dijkstra & Matthew Meulenberg & Aad van Tilburg, 2001. "Applying marketing channel theory to food marketing in developing countries: Vertical disintegration model for horticultural marketing channels in kenya," Agribusiness, John Wiley & Sons, Ltd., vol. 17(2), pages 227-241.
  8. 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.
  9. C. Dolan & J. Humphrey, 2000. "Governance and Trade in Fresh Vegetables: The Impact of UK Supermarkets on the African Horticulture Industry," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 147-176.
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