IDEAS home Printed from https://ideas.repec.org/a/eee/jfpoli/v35y2010i1p60-68.html
   My bibliography  Save this article

Evolution and challenges of dairy supply chains: Evidence from supermarkets, industries and consumers in Ethiopia

Author

Listed:
  • Francesconi, Gian Nicola
  • Heerink, Nico
  • D'Haese, Marijke

Abstract

In developing countries the demand for products of animal origin is expected to grow rapidly in the coming years. Using data collected from 200 urban households this study examines the evolution of the dairy market in Ethiopia. In particular, this study suggests that although the Ethiopian dairy market remains extremely thin and volatile, the commercialization of processed dairy products through supermarkets is expanding and is expected to keep doing so in the foreseeable future. Increasing urbanization and corresponding changes in consumer preferences, behaviour and purchasing power are the identified causes for the rise of supermarket-processor dairy chains. This study shows also that emerging dairy chains provide new market opportunities to Ethiopian farmers, but the existence of retail-industrial monopolies and monopsonies jeopardize farmers' economic benefits to a great extent. The study concludes with some implications for policy and further research.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jfpoli:v:35:y:2010:i:1:p:60-68
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306-9192(09)00057-8
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Roux, Cecile & Le Couedic, Philippe & Durand-Gasselin, Sabine & Luquet, Francois-Marie, 2000. "Consumption patterns and food attitudes of a sample of 657 low-income people in France," Food Policy, Elsevier, vol. 25(1), pages 91-103, February.
    2. Veeck, Ann & Veeck, Gregory, 2000. "Consumer Segmentation and Changing Food Purchase Patterns in Nanjing, PRC," World Development, Elsevier, vol. 28(3), pages 457-471, March.
    3. repec:bla:devpol:v:22:y:2004:i::p:525-556 is not listed on IDEAS
    4. John Humphrey, 2007. "The supermarket revolution in developing countries: tidal wave or tough competitive struggle?," Journal of Economic Geography, Oxford University Press, vol. 7(4), pages 433-450, July.
    5. Encaoua, David & Jacquemin, Alexis, 1980. "Degree of Monopoly, Indices of Concentration and Threat of Entry," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 87-105, February.
    6. Berdegue, Julio A. & Balsevich, Fernando & Flores, Luis & Reardon, Thomas, 2005. "Central American supermarkets' private standards of quality and safety in procurement of fresh fruits and vegetables," Food Policy, Elsevier, vol. 30(3), pages 254-269, June.
    7. repec:bla:devpol:v:22:y:2004:i::p:557-586 is not listed on IDEAS
    8. Fuller, Frank & Huang, Jikun & Ma, Hengyun & Rozelle, Scott, 2006. "Got milk? The rapid rise of China's dairy sector and its future prospects," Food Policy, Elsevier, vol. 31(3), pages 201-215, June.
    9. Mdoe, Ntengua & Wiggins, Steve, 1996. "Dairy products demand and marketing in Kilimanjaro Region, Tanzania," Food Policy, Elsevier, vol. 21(3), pages 319-336, July.
    10. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    11. 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.
    12. Jansen, Hans G. P., 1992. "Dairy consumption in northern Nigeria : Implications for development policies," Food Policy, Elsevier, vol. 17(3), pages 214-226, June.
    13. repec:bla:devpol:v:21:y:2003:i::p:333-355 is not listed on IDEAS
    14. 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.
    15. Reardon, Thomas & Berdegue, Julio A. & Timmer, C. Peter, 2005. "Supermarketization of the "Emerging Markets" of the Pacific Rim: Development and Trade Implications," Journal of Food Distribution Research, Food Distribution Research Society, vol. 36(1), pages 1-10, March.
    Full references (including those not matched with items on IDEAS)

    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. 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. Asfaw, Abay, 2007. "Supermarket purchases and the dietary patterns of households in Guatemala:," IFPRI discussion papers 696, International Food Policy Research Institute (IFPRI).
    3. 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, MIR Center for Socio-Economic Research, vol. 7(10), pages 1-17, October.
    4. H.H. Chang & C. van Marrewijk & R. Stringer & W. Umberger, 2013. "Investment, awareness, supermarkets, and profits: heterogeneous chili farmers in Indonesia," Working Papers 13-13, Utrecht School of Economics.
    5. Berdegue, Julio A. & Reardon, Thomas & Balsevich, Fernando & Martinez, Anabel & Medina, Ruben & Aguirre, Marx & Echanove, Flavia, 2006. "Supermarkets and Michoacan Guava Farmers in Mexico," Staff Paper Series 11474, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    6. 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.
    7. 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.
    8. Emongor, Rosemary A. & Kirsten, Johann F., 2009. "Supermarket expansion in developing countries and their role in development: Experiences from the Southern African Development Community (SADC)," 2009 Conference, August 16-22, 2009, Beijing, China 51401, International Association of Agricultural Economists.
    9. Thomas Reardon & Lenis Saweda O. Liverpool-Tasie & Bart Minten, 2021. "Quiet Revolution by SMEs in the midstream of value chains in developing regions: wholesale markets, wholesalers, logistics, and processing," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(6), pages 1577-1594, December.
    10. Akaichi, Faical & Chalmers, Neil & Revoredo-Giha, Cesar, 2016. "Consumers’ attitudes and willingness to pay for safer milk in Malawi," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246448, African Association of Agricultural Economists (AAAE).
    11. 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).
    12. Sara D. Elder, 2019. "The impact of supermarket supply chain governance on smallholder farmer cooperatives: the case of Walmart in Nicaragua," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(2), pages 213-224, June.
    13. Reena das Nair & Shingie Chisoro-Dube, 2016. "The expansion of regional supermarket chains and implications for local suppliers: A comparison of findings from South Africa, Botswana, Zambia, and Zimbabwe," WIDER Working Paper Series wp-2016-169, World Institute for Development Economic Research (UNU-WIDER).
    14. 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.
    15. Reena das Nair & Shingie Chisoro, 2016. "The expansion of regional supermarket chains and implications for local suppliers: A comparison of findings from South Africa, Botswana, Zambia, and Zimbabwe," WIDER Working Paper Series 169, World Institute for Development Economic Research (UNU-WIDER).
    16. Neven, David & Odera, Michael Makokha & Reardon, Thomas & Wang, Honglin, 2009. "Kenyan Supermarkets, Emerging Middle-Class Horticultural Farmers, and Employment Impacts on the Rural Poor," World Development, Elsevier, vol. 37(11), pages 1802-1811, November.
    17. Akaichi, Faiçal & Revoredo-Giha, Cesar, 2014. "The demand for dairy products in Malawi," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 9(3), pages 1-12, August.
    18. Reardon, Thomas & Echeverria, Ruben & Berdegué, Julio & Minten, Bart & Liverpool-Tasie, Saweda & Tschirley, David & Zilberman, David, 2019. "Rapid transformation of food systems in developing regions: Highlighting the role of agricultural research & innovations," Agricultural Systems, Elsevier, vol. 172(C), pages 47-59.
    19. Mainville, Denise Y. & Reardon, Thomas, 2007. "Supermarket market-channel participation and technology decisions of horticultural producers in Brazil," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 45(3), pages 1-23, September.
    20. Hernandez, Ricardo & Reardon, Thomas & Berdegue, Julio A., 2006. "Tomato Farmer Participation in Supermarket Market Channels in Guatemala: Determinants and Technology and Income Effects," Staff Paper Series 11771, Michigan State University, Department of Agricultural, Food, and Resource Economics.

    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:eee:jfpoli:v:35:y:2010:i:1:p:60-68. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/foodpol .

    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.