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Traditional food traders in developing countries and competition from supermarkets: Evidence from Indonesia

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  • Suryadarma, Daniel
  • Poesoro, Adri
  • Akhmadi
  • Budiyati, Sri
  • Rosfadhila, Meuthia
  • Suryahadi, Asep

Abstract

Indonesia's urban centers recently underwent an explosion of supermarkets. With cheaper, higher quality commodities and better services, supermarkets have the potential to drive traders in traditional markets out of business. In this paper, we evaluate whether this is indeed the case. We find that traditional traders experienced declines in their business. However, both qualitative and quantitative findings indicate that the main cause of decline is not supermarkets. Instead, traditional markets are plagued with internal problems and face increasingly bitter competition from street vendors. Therefore, the policy recommendations include strengthening traditional traders and seriously tackling the problem of street vendors.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jfpoli:v:35:y:2010:i:1:p:79-86
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    References listed on IDEAS

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    Cited by:

    1. Baker, Derek & Mtimet, Nadhem, 2013. "It depends who you ask: How to establish a sampling frame for traders?," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 159701, African Association of Agricultural Economists (AAAE).
    2. Hengky K. Salim & Rory Padfield & Ali Yuzir & Shaza Eva Mohamad & Naoko Kaida & Effie Papargyropoulou & Shohei Nakamura, 2018. "Evaluating the organizational intention to implement an Environmental Management System: evidence from the Indonesian food and beverage industry," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1385-1398, December.
    3. Makaiko G. Khonje & Matin Qaim, 2019. "Modernization of African Food Retailing and (Un)healthy Food Consumption," Sustainability, MDPI, vol. 11(16), pages 1-18, August.
    4. Chamhuri, Norshamliza & Batt, Peter J., 2013. "Segmentation of Malaysian shoppers by store choice behaviour in their purchase of fresh meat and fresh produce," Journal of Retailing and Consumer Services, Elsevier, vol. 20(6), pages 516-528.
    5. Maruyama, Masayoshi & Wu, Lihui & Huang, Lin, 2016. "The modernization of fresh food retailing in China: The role of consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 30(C), pages 33-39.
    6. Widadie, Fanny & Bijman, Jos & Trienekens, Jacques, 2021. "Value Chain Upgrading through Producer Organisations: Linking Smallholder Vegetable Farmers with Modern Retail Markets in Indonesia," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 12(01), January.
    7. Paule Moustier, 2012. "Some insights on the organization and the performances of food chains in Southern countries: the proximity role. Synthesis of works for the accreditation to supervise research," Post-Print hal-02811071, HAL.
    8. Angga Dwiartama & Matthew Kelly & Jane Dixon, 2023. "Linking food security, food sovereignty and foodways in urban Southeast Asia: cases from Indonesia and Thailand," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 15(2), pages 505-517, April.
    9. Moustier, P., 2012. "Organisation et performance des filières alimentaires dans les pays du Sud : le rôle de la proximité. Synthèse des travaux pour l’habilitation à diriger des recherches," Research serial MoISA, UMR MoISA : Montpellier Interdisciplinary center on Sustainable Agri-food systems (social and nutritional sciences): CIHEAM-IAMM, CIRAD, INRAE, L'Institut Agro, Montpellier SupAgro, IRD - Montpellier, France, number 201207, April.
    10. Yuan, Yuan & Si, Zhenzhong & Zhong, Taiyang & Huang, Xianjin & Crush, Jonathan, 2021. "Revisiting China’s supermarket revolution: Complementarity and co-evolution between traditional and modern food outlets," World Development, Elsevier, vol. 147(C).
    11. Maruyama, Masayoshi & Wu, Lihui, 2014. "Quantifying barriers impeding the diffusion of supermarkets in China: The role of shopping habits," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 383-393.
    12. Maspaitella, Marcus & Garnevska, Elena & Siddique, Muhammad I. & Shadbolt, Nicola, 2018. "Towards high value markets: a case study of smallholder vegetable farmers in Indonesia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(1).
    13. Alim Setiawan Slamet & Akira Nakayasu & Masahiro Ichikawa, 2017. "Small-Scale Vegetable Farmers’ Participation in Modern Retail Market Channels in Indonesia: The Determinants of and Effects on Their Income," Agriculture, MDPI, vol. 7(2), pages 1-16, February.
    14. Kulke, Elmar & Suwala, Lech, 2015. "Internationalization of grocery retailers in emerging markets – general considerations and economic impacts," EconStor Preprints 247642, ZBW - Leibniz Information Centre for Economics.
    15. Fanny Widadie & Jos Bijman & Jacques Trienekens, 2021. "Farmer preferences in contracting with modern retail in Indonesia: A choice experiment," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 371-392, April.

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