Supermarket contracts and smallholder farmers: Implications for income and multidimensional poverty

Food systems in developing countries are changing rapidly with a growing role of modern supermarkets. Supermarkets influence supply chains and the way agricultural products are sourced from farmers. Especially for the procurement of fresh fruits and vegetables, supermarkets often contract farmers di...

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Main Authors: Ogutu, Sylvester Ochieng, Ochieng, Dennis O., Qaim, Matin
Format: Journal Article
Language:Inglés
Published: Elsevier 2020
Subjects:
Online Access:https://hdl.handle.net/10568/142571
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author Ogutu, Sylvester Ochieng
Ochieng, Dennis O.
Qaim, Matin
author_browse Ochieng, Dennis O.
Ogutu, Sylvester Ochieng
Qaim, Matin
author_facet Ogutu, Sylvester Ochieng
Ochieng, Dennis O.
Qaim, Matin
author_sort Ogutu, Sylvester Ochieng
collection Repository of Agricultural Research Outputs (CGSpace)
description Food systems in developing countries are changing rapidly with a growing role of modern supermarkets. Supermarkets influence supply chains and the way agricultural products are sourced from farmers. Especially for the procurement of fresh fruits and vegetables, supermarkets often contract farmers directly to ensure consistent and high-quality supply. One important question, which is addressed here, is whether smallholder farmers benefit from supermarket contracts. Previous studies address this question, but mostly focus on income effects without exploring implications for other dimensions of household welfare, such as nutrition, health, or housing conditions. Moreover, most existing studies rely on cross-section data. We add to the literature by analyzing effects of supermarket contracts on income and multidimensional poverty using three rounds of panel data collected from smallholder vegetable farmers in Kenya and econometric models with household fixed effects. On average, supermarket contracts increase household income by over 40%. We also find significant reductions in income poverty and multidimensional poverty. Quantile regressions show that farmers in all income groups benefit, but richer households benefit more than poorer ones in absolute terms. However, supermarket contracts cause the strongest reductions in multidimensional deprivations among the poorest households.
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spelling CGSpace1425712024-10-25T07:55:28Z Supermarket contracts and smallholder farmers: Implications for income and multidimensional poverty Ogutu, Sylvester Ochieng Ochieng, Dennis O. Qaim, Matin income regression analysis contracts multidimensional poverty index smallholders contract farming poverty supermarkets Food systems in developing countries are changing rapidly with a growing role of modern supermarkets. Supermarkets influence supply chains and the way agricultural products are sourced from farmers. Especially for the procurement of fresh fruits and vegetables, supermarkets often contract farmers directly to ensure consistent and high-quality supply. One important question, which is addressed here, is whether smallholder farmers benefit from supermarket contracts. Previous studies address this question, but mostly focus on income effects without exploring implications for other dimensions of household welfare, such as nutrition, health, or housing conditions. Moreover, most existing studies rely on cross-section data. We add to the literature by analyzing effects of supermarket contracts on income and multidimensional poverty using three rounds of panel data collected from smallholder vegetable farmers in Kenya and econometric models with household fixed effects. On average, supermarket contracts increase household income by over 40%. We also find significant reductions in income poverty and multidimensional poverty. Quantile regressions show that farmers in all income groups benefit, but richer households benefit more than poorer ones in absolute terms. However, supermarket contracts cause the strongest reductions in multidimensional deprivations among the poorest households. 2020-10-01 2024-05-22T12:10:41Z 2024-05-22T12:10:41Z Journal Article https://hdl.handle.net/10568/142571 en https://doi.org/10.1016/j.foodpol.2017.01.008 Open Access Elsevier Ogutu, Sylvester Ochieng; Ochieng, Dennis O.; and Qaim, Matin. 2020. Supermarket contracts and smallholder farmers: Implications for income and multidimensional poverty. Food Policy 95(August 2020): 101940. https://doi.org/10.1016/j.foodpol.2020.101940
spellingShingle income
regression analysis
contracts
multidimensional poverty index
smallholders
contract farming
poverty
supermarkets
Ogutu, Sylvester Ochieng
Ochieng, Dennis O.
Qaim, Matin
Supermarket contracts and smallholder farmers: Implications for income and multidimensional poverty
title Supermarket contracts and smallholder farmers: Implications for income and multidimensional poverty
title_full Supermarket contracts and smallholder farmers: Implications for income and multidimensional poverty
title_fullStr Supermarket contracts and smallholder farmers: Implications for income and multidimensional poverty
title_full_unstemmed Supermarket contracts and smallholder farmers: Implications for income and multidimensional poverty
title_short Supermarket contracts and smallholder farmers: Implications for income and multidimensional poverty
title_sort supermarket contracts and smallholder farmers implications for income and multidimensional poverty
topic income
regression analysis
contracts
multidimensional poverty index
smallholders
contract farming
poverty
supermarkets
url https://hdl.handle.net/10568/142571
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AT qaimmatin supermarketcontractsandsmallholderfarmersimplicationsforincomeandmultidimensionalpoverty