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

Year: 2012

Type: article

Abstract: 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 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.

Source: American Journal of Agricultural Economics

DOI: 10.1093/ajae/aas024

Authors: Elizaphan J. O. Rao, Bernhard Brümmer, Matin Qaim

Institutions: International Livestock Research Institute, University of Göttingen

Language: English

Topic: Efficiency Analysis Using DEA

Subfield: Management Science and Operations Research

Field: Decision Sciences

Domain: Social Sciences

SDGs: Zero hunger, Decent work and economic growth, No poverty

Open Access status: green

Funder: Deutsche Forschungsgemeinschaft