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Supermarket Growth and Rural Welfare: Evidence from Kenya

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Organised Retailing and Agri-Business

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

Abstract

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.

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Author information

Authors and Affiliations

  1. International Livestock Research Institute (ILRI), Nairobi, Kenya

    Elizaphan James O. Rao

  2. Georg-August-University of Goettingen, Goettingen, Germany

    Matin Qaim

Authors
  1. Elizaphan James O. Rao
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  2. Matin Qaim
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Corresponding author

Correspondence to Matin Qaim .

Editor information

Editors and Affiliations

  1. Agricultural Economics Research Unit, Institute of Economic Growth, New Delhi, India

    N. Chandrasekhara Rao

  2. Centre for Economic and Social Stud, Hyderabad, India

    R. Radhakrishna

  3. Institute of Public Enterprise, Hyderabad, India

    Ram Kumar Mishra

  4. Centre for Economic and Social Stud, Hyderabad, India

    Venkata Reddy Kata

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Rao, E., Qaim, M. (2016). Supermarket Growth and Rural Welfare: Evidence from Kenya. In: Rao, N., Radhakrishna, R., Mishra, R., Kata, V. (eds) Organised Retailing and Agri-Business. India Studies in Business and Economics. Springer, New Delhi. https://doi.org/10.1007/978-81-322-2476-1_5

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  • DOI: https://doi.org/10.1007/978-81-322-2476-1_5

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  • Publisher Name: Springer, New Delhi

  • Print ISBN: 978-81-322-2475-4

  • Online ISBN: 978-81-322-2476-1

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

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