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Determinants and Effects of Small Chilli Farmers' Participation in Supermarket Channels in Indonesia

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  • Sahara Sahara
  • Nicholas Minot
  • Randy Stringer
  • Wendy J. Umberger

Abstract

The number of supermarkets in Indonesia is increasing, but small-scale farmers may be at risk of being excluded from these emerging marketing channels. Drawing on data from our survey of 600 small-scale chilli farmers in West Java, we examine the factors that influence farmers' decisions to participate in supermarket channels. We use a treatment-effect model to examine the effect of supermarket participation on income, while controlling for the possibility of selectivity bias. Our results indicate that participation in the supermarket channel significantly increases farm income, even after we controlled for differences in education, chilli-farming experience, storage-house ownership, and the distance from the farmer's house to a bitumen road.

Suggested Citation

  • Sahara Sahara & Nicholas Minot & Randy Stringer & Wendy J. Umberger, 2015. "Determinants and Effects of Small Chilli Farmers' Participation in Supermarket Channels in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 51(3), pages 445-460, December.
    • Handle: RePEc:taf:bindes:v:51:y:2015:i:3:p:445-460
    DOI: 10.1080/00074918.2015.1110851
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    References listed on IDEAS

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    1. Sharma, Vijay Paul & Kumar, Kalpesh & Raj Vir Singh, 2009. "Determinants of Small-Scale Farmer inclusion in Emerging Modern Agrifood Markets: A Study of the Dairy Industry in India," IIMA Working Papers WP2009-02-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
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    Cited by:

    1. Tray, Bunthan & Garnevska, Elena & Shadbolt, Nicola, 2021. "Linking smallholder producers to high-value markets through vegetable producer cooperatives in Cambodia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(6), February.
    2. Yun-Cih Chang & Min-Fang Wei & Yir-Hueih Luh, 2021. "Choice of Modern Food Distribution Channels and Its Welfare Effects: Empirical Evidence from Taiwan," Agriculture, MDPI, vol. 11(6), pages 1-13, May.
    3. Keijiro Otsuka, 2021. "Strategy for Transforming Indonesian Agriculture," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 57(3), pages 321-341, September.
    4. 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.
    5. Nicholas Minot & Randy Stringer & Wendy J. Umberger & Wahida Maghraby, 2015. "Urban Shopping Patterns in Indonesia and Their Implications for Small Farmers," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 51(3), pages 375-388, December.

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