Farmer participation in supermarket channels, production technology, and efficiency: The case of vegetables in Kenya

Supermarkets are gaining ground in agrifood systems of many developing countries. While recent research has analyzed income effects in the small farm sector, impacts on productivity and efficiency have hardly been studied. We use a meta-frontier approach and combine this with propensity score matchi...

Full description

Bibliographic Details
Main Authors: Rao, E.J.O., Brummer, B., Qaim, M.
Format: Journal Article
Language:Inglés
Published: Wiley 2012
Subjects:
Online Access:https://hdl.handle.net/10568/35272
Description
Summary:Supermarkets are gaining ground in agrifood systems of many developing countries. While recent research has analyzed income effects in the small farm sector, impacts on productivity and efficiency have hardly been studied. We use a meta-frontier approach and combine this with propensity score matching to estimate treatment effectsamongvegetable farmers in Kenya. Participation in supermarket channels increases farm productivity in terms of meta-technology ratios by 45%.We also find positive and significant impacts on technical efficiency and scale efficiency. Supermarket expansion therefore presents opportunities for agricultural growth in the small farm sector, which is crucial for poverty reduction in Africa.