Kenyan Supermarkets, Emerging Middle-Class Horticultural Farmers, and Employment Impacts on the Rural Poor

Neven, David; Odera, Michael M.; Reardon, Thomas; Wang, Honglin

doi:10.1016/j.worlddev.2008.08.026

Cited by 216 publications

(204 citation statements)

References 22 publications

Supporting

Mentioning

181

Contrasting

Unclassified

Order By: Relevance

“…Indeed, recent studies show that supermarket contracts have contributed to higher farm productivity and household welfare in some smallholder situations (Minten et al, 2009;Rao and Qaim, 2011;Rao et al, 2012;Michelson, 2013;Chege et al, 2015). However, some also show that smallholders are sometimes unable to participate in supermarket channels (Hernández et al, 2007;Neven et al, 2009), or they drop out of contracts for reasons that are not always entirely clear . To some extent, the inability to participate can be explained by lack of human and financial capital, but also unfavorable contract design may play an important role (Otsuka et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

Farmers’ preferences for supermarket contracts in Kenya

Ochieng

Veettil²,

Qaim

2017

Food Policy

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWith the modernization of global agri-food systems, the role of contract farming is increasing. This also involves smallholder farmers in developing countries. While previous studies have looked at economic impacts of contract schemes on smallholder farmers, little is known about farmers' preferences for contracting in general, and for specific contract design attributes in particular. Better understanding farmers' preferences and constraints is important to make smallholder contract schemes more viable and beneficial. This article builds on a choice experiment to analyze farmers' preferences and preference heterogeneity for contracts in Kenya. In the study region, supermarkets use contracts to source for fresh vegetables directly from preferred suppliers. However, farmer dropout rates are high. Mixed logit models are estimated to examine farmers' attitudes towards critical contract design attributes. Having to deliver their harvest to urban supermarkets is costly; hence farmers require a significant output price markup. Farmers also dislike delayed payments that are commonplace in contract schemes. The most problematic contract attribute is related to unpredictable product rejection rates, which substantially add to farmers' risk. Designing contracts with lower transaction costs, more transparent quality grading, and fairer risk-sharing clauses could enhance smallholder participation in supermarket procurement channels.

show abstract

Section: Introductionmentioning

confidence: 99%

Farmers’ preferences for supermarket contracts in Kenya

Ochieng

Veettil²,

Qaim

2017

Food Policy

View full text Add to dashboard Cite

show abstract

“…Coordination through cooperatives may compensate for these aspects in some settings, however. In the context of SSA, largely unimodal land tenure systems may enable eluding the general pattern of smallholder exclusion in scale dualistic settings, while the indirect effects on rural labour markets may also be positive as noted by Neven et al (2009).…”

Section: Changes In Urban Demand and Shifts In Rural Production Systemsmentioning

confidence: 99%

Urbanization and linkages to smallholder farming in sub-Saharan Africa: Implications for food security

Djurfeldt

2015

Global Food Security

View full text Add to dashboard Cite

“…On the other hand, the available evidence suggests that contract-farming often excludes the poorest households (e.g. Dolan and Humphrey, 2000;Hernández et al, 2007;Maertens and Swinnen, 2009;Neven et al, 2009;Reardon et al, 2009). …”

Section: Introductionmentioning

confidence: 99%

Global value chains, large-scale farming, and poverty: Long-term effects in Senegal

2017

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper is the first to present panel data evidence on the longer-term impact of expansion of global value chains and large-scale export-oriented farms in developing countries. Using panel data from two survey rounds covering a seven-year period and fixed effects regression, we estimate the longer-term income effects of wage employment on large-scale farms in the rapidly expanding horticultural export sector in Senegal. In addition to estimating average income effects, we estimate heterogeneous income effects using fixed effects quantile regression. We find that poverty and inequality reduced much faster in the research area than elsewhere in Senegal. Employment in the horticultural export sector significantly increases household income and the income effect is strongest for the poorest households. Expansion of the horticultural export sector in Senegal has been particularly pro-poor through creating employment that is accessible and creates substantial income gains for the poorest half of the rural population. These pro-poor employment effects contrast with insights in the literature on increased inequality from rural wage employment.

show abstract

Kenyan Supermarkets, Emerging Middle-Class Horticultural Farmers, and Employment Impacts on the Rural Poor

Cited by 216 publications

References 22 publications

Farmers’ preferences for supermarket contracts in Kenya

Farmers’ preferences for supermarket contracts in Kenya

Urbanization and linkages to smallholder farming in sub-Saharan Africa: Implications for food security

Global value chains, large-scale farming, and poverty: Long-term effects in Senegal

Contact Info

Product

Resources

About