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...
| Main Authors: | , , |
|---|---|
| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Elsevier
2020
|
| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/142571 |
| _version_ | 1855521967219671040 |
|---|---|
| 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. |
| format | Journal Article |
| id | CGSpace142571 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2020 |
| publishDateRange | 2020 |
| publishDateSort | 2020 |
| publisher | Elsevier |
| publisherStr | Elsevier |
| record_format | dspace |
| 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 |
| work_keys_str_mv | AT ogutusylvesterochieng supermarketcontractsandsmallholderfarmersimplicationsforincomeandmultidimensionalpoverty AT ochiengdenniso supermarketcontractsandsmallholderfarmersimplicationsforincomeandmultidimensionalpoverty AT qaimmatin supermarketcontractsandsmallholderfarmersimplicationsforincomeandmultidimensionalpoverty |