Supermarket Growth and Rural Welfare: Evidence from Kenya

Part of the India Studies in Business and Economics book series (ISBE)


The role of supermarkets in food retailing is rapidly growing in many developing countries. In the early stages of growth, supermarkets primarily concentrate on selling processed foods, but over time they also start dealing with fresh products, including fruits and vegetables. This chapter presents findings from a study of smallholder farmers in Kenya who supply vegetables to different market outlets. The findings show that participation in supermarket supply chains increases household income and reduces poverty. Supplying to supermarkets increases farm productivity and causes higher labor demand. Positive employment effects are shown to be especially pronounced for female rural laborers. However, the technical requirements imposed by supermarkets present entry barriers to these emerging supply chains, which may have to be addressed through institutional support.


Supply Chain Smallholder Farmer Employment Effect Vegetable Farmer Traditional Channel 
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Copyright information

© Springer India 2016

Authors and Affiliations

  1. 1.International Livestock Research Institute (ILRI)NairobiKenya
  2. 2.Georg-August-University of GoettingenGoettingenGermany

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