Farmer Participation in Supermarket Channels, Production Technology, and Efficiency: The Case of Vegetables in Kenya

Elizaphan J.O. Rao, Bernhard Brümmer and Matin Qaim

No 113508, GlobalFood Discussion Papers from Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development

Abstract: Supermarkets are gaining ground in the agri-food 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 effects among vegetable 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.

Keywords: International Development; Marketing; Production Economics; Productivity Analysis (search for similar items in EconPapers)
Pages: 53
Date: 2011-08
New Economics Papers: this item is included in nep-afr, nep-agr and nep-eff
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Journal Article: Farmer Participation in Supermarket Channels, Production Technology, and Efficiency: The Case of Vegetables in Kenya (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:gagfdp:113508

DOI: 10.22004/ag.econ.113508

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