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Securing small farmer participation in supermarket supply chains in South Africa

Author

Listed:
  • Andre Louw
  • Hester Vermeulen
  • Johann Kirsten
  • Hilton Madevu

Abstract

Urbanisation and a growing middle class with changing consumption patterns provide an ideal setting for supermarkets to prosper. With South Africa's urban population approaching 60 per cent, supermarket retail chains are now important players in the agro-food sector. Over the last two decades they have begun to purchase produce from in-house sourcing companies who buy mainly from large-scale farmers. Together with the strict requirements of the retail groups, this makes it difficult for small-scale farmers to supply these retailers. This paper highlights the market changes that could continue to exclude small producers from mass consumer markets. It uses a case study to show how small farmers can be integrated into the urban retail market and, using evidence from this study, proposes a number of strategies to help them participate in the mainstream agro-food supply chains and an innovative model for including them while maintaining profitable business operations.

Suggested Citation

  • Andre Louw & Hester Vermeulen & Johann Kirsten & Hilton Madevu, 2007. "Securing small farmer participation in supermarket supply chains in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 24(4), pages 539-551.
  • Handle: RePEc:taf:deveza:v:24:y:2007:i:4:p:539-551
    DOI: 10.1080/03768350701577657
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    Citations

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    Cited by:

    1. Rahi Jain & Prashant Narnaware, 2018. "Role of Local Context in the Success of Farmer Collectives: A Review," Millennial Asia, , vol. 9(3), pages 318-335, December.
    2. Meng, Ting & Florkowski, Wojciech J. & Sarpong, Daniel B. & Chinnan, Manjeet S. & Resurreccion, Anna V.A., 2014. "Consumer’s Food Shopping Choice in Ghana: Supermarket or Traditional Outlets?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(A), pages 1-24, March.
    3. Otterbach, Steffen & Rogan, Michael, 2017. "Spatial Differences in Stunting and Household Agricultural Production in South Africa: (Re-)Examining the Links Using National Panel Survey Data," IZA Discussion Papers 11008, Institute of Labor Economics (IZA).
    4. Felix Adamu Nandonde, 2019. "Building Commitment in Supplier–Retailer Relationship in Developing Economies: The Case of Tanzania," FIIB Business Review, , vol. 8(1), pages 39-50, March.
    5. Fezile Mdluli & Joyce Thamaga-Chitja & Stefan Schmidt, 2013. "Appraisal of Hygiene Indicators and Farming Practices in the Production of Leafy Vegetables by Organic Small-Scale Farmers in uMbumbulu (Rural KwaZulu-Natal, South Africa)," IJERPH, MDPI, vol. 10(9), pages 1-16, September.
    6. M. S. Sibomana & T. S. Workneh & K. Audain, 2016. "A review of postharvest handling and losses in the fresh tomato supply chain: a focus on Sub-Saharan Africa," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(2), pages 389-404, April.
    7. Andersson, Camilla I.M. & Kiria, Christine G. & Qaim, Matin & Rao, Elizaphan J.O., 2013. "Following up on smallholder farmers and supermarkets," GlobalFood Discussion Papers 158142, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    8. Herman Geyer, 2016. "Poverty Traps in South African Agriculture," Agrekon, Taylor & Francis Journals, vol. 55(4), pages 356-376, October.
    9. Otterbach, Steffen & Rogan, Michael, 2017. "Spatial differences in stunting and household agricultural production in South African: (re-)examining the links using national panel survey data," Hohenheim Discussion Papers in Business, Economics and Social Sciences 13-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.

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