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The Rapid Rise of Supermarkets in Chile: Effects on Dairy, Vegetable, and Beef Chains

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  • Sergio Faiguenbaum
  • Julio A. Berdegué
  • Thomas Reardon

Abstract

Focusing on the recent expansion of supermarkets in Chile, from large to medium and small cities and across income strata, this article analyses the driving forces behind the process, including the extent and limits of concentration and foreign firm participation. Supermarkets’ procurement practices are examined in terms of their technological, organisational, management, and financial impact on traditional retailers, suppliers, processors and producers in the dairy, horticulture and meat chains. Public policies are proposed to expand the access of small and medium stakeholders in those chains to the opportunities opened directly and indirectly by supermarket expansion, as well as to limit and reduce the harmful effects of the process.

Suggested Citation

  • Sergio Faiguenbaum & Julio A. Berdegué & Thomas Reardon, 2002. "The Rapid Rise of Supermarkets in Chile: Effects on Dairy, Vegetable, and Beef Chains," Development Policy Review, Overseas Development Institute, vol. 20(4), pages 459-471, September.
    • Handle: RePEc:bla:devpol:v:20:y:2002:i:4:p:459-471
    DOI: 10.1111/1467-7679.00183
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    Citations

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    Cited by:

    1. 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.
    2. Roy, Devesh & Thorat, Amit, 2008. "Success in High Value Horticultural Export Markets for the Small Farmers: The Case of Mahagrapes in India," World Development, Elsevier, vol. 36(10), pages 1874-1890, October.
    3. Liang Lu & Thomas Reardon, 2018. "An Economic Model of the Evolution of Food Retail and Supply Chains from Traditional Shops to Supermarkets to E-Commerce," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(5), pages 1320-1335.
    4. 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.
    5. Vishnu, Kedar & Rai, Ruchika, 2022. "Measuring The Impact of Transaction Costs on Profitability of Farmers: Empirical Evidence from India," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322593, Agricultural and Applied Economics Association.
    6. Reardon, Thomas & Gulati, Ashok, 2008. "The rise of supermarkets and their development implications: International experience relevant for India," IFPRI discussion papers 752, International Food Policy Research Institute (IFPRI).
    7. Chamhuri, Norshamliza & Batt, Peter J., 2013. "Exploring the Factors Influencing Consumers’ Choice of Retail Store When Purchasing Fresh Meat in Malaysia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 16(3), pages 1-24, September.
    8. 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.
    9. 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.
    10. Altenburg, Tilman & Kulke, Elmar & Reeg, Caroline & Peterskovsky, Lisa & Hampel-Milagrosa, Aimée, 2016. "Making retail modernisation in developing countries inclusive: a development policy perspective," IDOS Discussion Papers 2/2016, German Institute of Development and Sustainability (IDOS).
    11. Tandon, Sharad & Landes, Maurice R. & Woolverton, Andrea, 2011. "The Expansion of Modern Grocery Retailing and Trade in Developing Countries," Economic Research Report 262237, United States Department of Agriculture, Economic Research Service.
    12. Stipe Lovreta & Siniša Milošević & Ljiljana Stanković, 2013. "Competition Policy And Optimal Retail Network Development In Transitional Economies," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 58(199), pages 57-84, October -.
    13. Chekenya, Nixon S. & Chikoko, Laurine, 2022. "operations in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 61(3), May.

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