IDEAS home Printed from https://ideas.repec.org/p/ags/midasp/11667.html
   My bibliography  Save this paper

Farm-Level Perspectives On The Impact Of Domestic Supermarkets On Kenya'S Fresh Fruits And Vegetables Supply System

Author

Listed:
  • Neven, David
  • Reardon, Thomas
  • Odera, Michael M.
  • Wang, Honglin

Abstract

The rise of supermarkets in Kenya has given rise to a new group of medium-sized farms managed by well-educated farmers. Focusing on kale, the essay shows that nearly all supermarket-channel farmers have the capacity to supply larger volumes year round and have transportation vehicles, an irrigation system, a packing shed, a cellular phone, and so on, pointing to the existence of a threshold capital vector which farmers must have in order to access supermarkets. Especially farm size and irrigation were found to be significant determinants of participation in the supermarket channel. Kale suppliers to supermarkets use more capital intensive production technologies, leading to average labor and land productivities which are 60-70% higher than in the traditional channel. Eighty percent of labor consists of hired workers, indicating that these farmers could be important in alleviating poverty for rural households with little or no land. While most traditional-channel kale farmers sell to brokers and get a price that lets them break-even at best, supermarket-channel farmers have a 40% gross profit margin. These margins and lower market risks in the supermarket channel have resulted in a strong growth dynamic of supermarket-channel farmers which have doubled the size of their operations over the last five years.

Suggested Citation

  • Neven, David & Reardon, Thomas & Odera, Michael M. & Wang, Honglin, 2005. "Farm-Level Perspectives On The Impact Of Domestic Supermarkets On Kenya'S Fresh Fruits And Vegetables Supply System," Staff Papers 11667, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  • Handle: RePEc:ags:midasp:11667
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/11667
    Download Restriction: no

    More about this item

    Keywords

    Marketing;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:midasp:11667. 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). General contact details of provider: http://edirc.repec.org/data/damsuus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.