IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/44025.html
   My bibliography  Save this article

Alternative marketing options for small-scale farmers in the wake of changing agri-food supply chains in South Africa

Author

Listed:
  • Louw, Andre
  • Jordaan, Daniel du Plessis Scheepers
  • Ndanga, Leah Z.B.
  • Kirsten, Johann F.

Abstract

With South Africa’s urban population approaching 60%, supermarkets and fast food chains have become important players in the South African food system. These large players in the food sector have systematically modified their procurement practices especially with regard to fresh fruit and vegetables and are now circumventing spot markets in favour of sourcing via in-house sourcing companies who mainly procure from preferred supplier producers. This paper draws extensively from a global research programme which seeks to highlight the market changes that potentially contribute to continued exclusion of the small producers from mass consumer markets. This paper illustrates, through a series of case studies, how integration of small-scale farmers into the urban retail market can be facilitated and how the challenges posed by the changing food system could possibly be overcome. The case studies illustrate various initiatives through which small-scale farmers and agribusinesses can be integrated into mainstream agri-food systems and may be used as models for an innovative approach to include small-scale farmers while still maintaining profitable business operations. They highlight the need for a multi actor approach for the successful participation of smallholder farmers in order to allow them to join the supply chain at any point within the channel.

Suggested Citation

  • Louw, Andre & Jordaan, Daniel du Plessis Scheepers & Ndanga, Leah Z.B. & Kirsten, Johann F., 2008. "Alternative marketing options for small-scale farmers in the wake of changing agri-food supply chains in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(3), pages 1-22, September.
  • Handle: RePEc:ags:agreko:44025
    DOI: 10.22004/ag.econ.44025
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/44025/files/1%20%20Louw%20et%20al.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.44025?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Graciela Ghezán & Mónica Mateos & Laura Viteri, 2002. "Impact of Supermarkets and Fast–Food Chains on Horticulture Supply Chains in Argentina," Development Policy Review, Overseas Development Institute, vol. 20(4), pages 389-408, September.
    2. D'Haese, Marijke & Van Huylenbroeck, Guido, 2005. "The rise of supermarkets and changing expenditure patterns of poor rural households case study in the Transkei area, South Africa," Food Policy, Elsevier, vol. 30(1), pages 97-113, February.
    3. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    4. repec:bla:devpol:v:21:y:2003:i::p:333-355 is not listed on IDEAS
    5. Thomas Reardon & Julio A. Berdegué, 2002. "The Rapid Rise of Supermarkets in Latin America: Challenges and Opportunities for Development," Development Policy Review, Overseas Development Institute, vol. 20(4), pages 371-388, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kuldeep Singh & Rebecca Abraham & Jitendra Yadav & Amit Kumar Agrawal & Prasanna Kolar & Madhvendra Misra & Avikshit Yadav, 2024. "Analysis of barriers for sustainable agro-food supply chain: an interpretive structural modeling and MICMAC approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(10), pages 25311-25333, October.
    2. Wiśniewska-Paluszak, J. & Paluszak, G. & Fiore, M. & Coticchio, A. & Galati, A. & Lira, J., 2023. "Urban agriculture business models and value propositions: Mixed methods approach based on evidence from Polish and Italian case studies," Land Use Policy, Elsevier, vol. 127(C).
    3. Riungu, Claris Karimi, 2011. "Effects of Supermarkets on Fresh Fruit and Vegetables Small-Scale Farmers in Central Kenya," Research Theses 134484, Collaborative Masters Program in Agricultural and Applied Economics.
    4. Peter Dannenberg, 2013. "The rise of supermarkets and challenges for small farmers in South African food value chains," Economia agro-alimentare, FrancoAngeli Editore, vol. 15(3), pages 15-34.
    5. Jordaan, Henry & Grove, Bennie, 2010. "Analysis of the Governance Structure used by Eksteenskull Raisin Producers: Is there a need for more Vertical Coordination?," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96645, African Association of Agricultural Economists (AAAE).
    6. Nuhu, Ahmed Salim & Liverpool-Tasie, Lenis Saweda O. & Awokuse, Titus & Kabwe, Stephen, 2021. "Do benefits of expanded midstream activities in crop value chains accrue to smallholder farmers? Evidence from Zambia," World Development, Elsevier, vol. 143(C).
    7. Mengyi Zhang & Peter Dannenberg, 2022. "Opportunities and Challenges of Indigenous Food Plant Farmers in Integrating into Agri-Food Value Chains in Cape Town," Land, MDPI, vol. 11(12), pages 1-17, December.
    8. repec:ags:ijag24:345268 is not listed on IDEAS
    9. Jordaan, Henry & Grové, Bennie & Backeberg, Gerhard R., 2014. "Conceptual framework for value chain analysis for poverty alleviation among smallholder farmers," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 53(1), February.
    10. Jordaan, H. & Grové, B., 2013. "PR - Smallholder Farmers Participating In Commercial Agri-food Chains: Learning From Eksteenskuil Raisin Producers," 19th Congress, Warsaw, Poland, 2013 345674, International Farm Management Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Asfaw, Abay, 2007. "Supermarket purchases and the dietary patterns of households in Guatemala:," IFPRI discussion papers 696, International Food Policy Research Institute (IFPRI).
    2. Meilin Ma & Richard J. Sexton, 2021. "Modern agricultural value chains and the future of smallholder farming systems," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 591-606, July.
    3. Wendy J. Umberger & Xiaobo He & Nicholas Minot & Hery Toiba, 2015. "Examining the Relationship between the Use of Supermarkets and Over-nutrition in Indonesia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(2), pages 510-525.
    4. Ola, Oreoluwa & Menapace, Luisa, 2020. "A meta-analysis understanding smallholder entry into high-value markets," World Development, Elsevier, vol. 135(C).
    5. Vermeulen, Hester & Kirsten, Johann F. & Sartorius, Kurt, 2008. "Contracting arrangements in agribusiness procurement practices in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(2), pages 1-24, June.
    6. Hildegunn E. Stokke, 2009. "Multinational supermarket chains in developing countries: does local agriculture benefit?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(6), pages 645-656, November.
    7. Nalini ARUMUGAM & Mohamed Arshad FATIMAH & Eddie F.C. CHIEW & Mohamed ZAINALABIDIN, 2010. "Supply chain analysis of fresh fruits and vegetables (FFV): Prospects of contract farming," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(9), pages 435-442.
    8. Thomas Reardon & David Zilberman, 2022. "Symbiotic, Resilient, and Rapidly Transforming Food Supply Chains in LMICs: Supermarket and E-commerce Revolutions Helped by Wholesale and Logistics Co-pivoting," NBER Chapters, in: Risks in Agricultural Supply Chains, pages 13-28, National Bureau of Economic Research, Inc.
    9. Etornam Kosi Anku & Gerald Kojo Ahorbo, 2017. "Conflict between Supermarkets and Wet-Markets in Ghana: Early Warning Signals and Preventive Policy Recommendations," International Journal of Business and Social Research, LAR Center Press, vol. 7(10), pages 1-17, October.
    10. Stamoulis, Kostas G. & Pingali, Prabhu L. & Reardon, Thomas, 2006. "Impacts of Agrifood Market Transformation during Globalization on the Poor's Rural Nonfarm Employment: Lessons for Rural Business Development Programs," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25556, International Association of Agricultural Economists.
    11. Donna Hornby & Adrian Nel & Samuel Chademana & Nompilo Khanyile, 2018. "A Slipping Hold? Farm Dweller Precarity in South Africa’s Changing Agrarian Economy and Climate," Land, MDPI, vol. 7(2), pages 1-25, March.
    12. Francesconi, Gian Nicola & Heerink, Nico & D'Haese, Marijke, 2010. "Evolution and challenges of dairy supply chains: Evidence from supermarkets, industries and consumers in Ethiopia," Food Policy, Elsevier, vol. 35(1), pages 60-68, February.
    13. Komendrovskaya, Irina & Bobojonov, Ihtiyor & Glauben, Thomas, 2015. "Retail Sector Transformation in Russia," 55th Annual Conference, Giessen, Germany, September 23-25, 2015 209253, German Association of Agricultural Economists (GEWISOLA).
    14. Suryadarma, Daniel & Poesoro, Adri & Akhmadi & Budiyati, Sri & Rosfadhila, Meuthia & Suryahadi, Asep, 2010. "Traditional food traders in developing countries and competition from supermarkets: Evidence from Indonesia," Food Policy, Elsevier, vol. 35(1), pages 79-86, February.
    15. Henson, Spencer & Reardon, Thomas, 2005. "Private agri-food standards: Implications for food policy and the agri-food system," Food Policy, Elsevier, vol. 30(3), pages 241-253, June.
    16. Masayoshi Maruyama & Le Viet Trung, 2007. "Supermarkets in Vietnam: Opportunities and Obstacles," Asian Economic Journal, East Asian Economic Association, vol. 21(1), pages 19-46, March.
    17. Bart Minten & Anneleen Vandeplas & Yashodhan Ghorpade & Johan F.M. Swinnen, 2010. "Horticulture Wholesale Trade and Governance in India," Journal of South Asian Development, , vol. 5(1), pages 113-136, April.
    18. Jan Falkowski & Pavel Ciaian, 2016. "Factors Supporting the Development of Producer Organizations and their Impacts in the Light of Ongoing Changes in Food Supply Chains: A Literature Review," JRC Research Reports JRC101617, Joint Research Centre.
    19. Javorcik, Beata S. & Li, Yue, 2013. "Do the biggest aisles serve a brighter future? Global retail chains and their implications for Romania," Journal of International Economics, Elsevier, vol. 90(2), pages 348-363.
    20. Cédric Durand, 2006. "Institutions et impact des IDE dans les pays en développement : le secteur de la grande distribution au Mexique," Post-Print halshs-00135918, HAL.

    More about this item

    Keywords

    Marketing; Agribusiness;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:agreko:44025. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeasaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.