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The Quiet Rise of Large-Scale Trading Firms in East and Southern Africa

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  • Nicholas J. SITKO
  • William J. BURKE
  • T. S. Jayne

Abstract

The share of smallholder-produced maize sold to large-scale traders (LSTs) has increased from virtually nil 10 years ago to 12 per cent and 37 per cent in Zambia and Kenya, respectively. We examine the causes and consequences of this transformation. LST investment has responded to growing market demand as well as to changes in farm structure and has been especially prominent in areas where medium-scale farms are concentrated. After controlling for distances travelled and other factors, farmers selling to LSTs receive prices that are 4.9 per cent and 3.6 per cent higher than those offered by small-scale traders, and are more likely to access input credit, private extension services, and price information.

Suggested Citation

  • Nicholas J. SITKO & William J. BURKE & T. S. Jayne, 2018. "The Quiet Rise of Large-Scale Trading Firms in East and Southern Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 54(5), pages 895-914, May.
    • Handle: RePEc:taf:jdevst:v:54:y:2018:i:5:p:895-914
    DOI: 10.1080/00220388.2018.1430773
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    Citations

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    Cited by:

    1. Musa Abdu & Adamu Jibir, 2019. "Sources of Market Power among Firms in Sub-Saharan Africa: Do Institutions Matter in Competitive Policies?," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 24(2), pages 115-148, July-Dec.
    2. Benjamin Davis & Leslie Lipper & Paul Winters, 2022. "Do not transform food systems on the backs of the rural poor," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(3), pages 729-740, June.
    3. Chamberlin, Jordan & Jayne, T.S., 2020. "Does farm structure affect rural household incomes? Evidence from Tanzania," Food Policy, Elsevier, vol. 90(C).
    4. Ngoma, Hambulo & Pelletier, Johanne & Mulenga, Brian P. & Subakanya, Mitelo, 2021. "Climate-smart agriculture, cropland expansion and deforestation in Zambia: Linkages, processes and drivers," Land Use Policy, Elsevier, vol. 107(C).
    5. Khadjavi, Menusch & Sipangule, Kacana & Thiele, Rainer, 2024. "Exposure to large-scale farms increases smallholders’ competitive behavior and closes the gender gap," World Development, Elsevier, vol. 176(C).
    6. Jordan Chamberlin & T. S. Jayne & Nicholas J. Sitko, 2020. "Rural in‐migration and agricultural development: Evidence from Zambia," Agricultural Economics, International Association of Agricultural Economists, vol. 51(4), pages 491-504, July.
    7. Maggio, Giuseppe & Sitko, Nicholas, 2019. "Knowing is half the battle: Seasonal forecasts, adaptive cropping systems, and the mediating role of private markets in Zambia," Food Policy, Elsevier, vol. 89(C).
    8. Benjamin Davis & Leslie Lipper & Paul Winters, 2022. "IFAD Research Series 70: Do not transform food systems on the backs of the rural poor," IFAD Research Series 320710, International Fund for Agricultural Development (IFAD).
    9. 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).
    10. Ayala Wineman & Thomas S. Jayne & Emma Isinika Modamba & Holger Kray, 2021. "Characteristics and Spillover Effects of Medium-Scale Farms in Tanzania," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(6), pages 1877-1898, December.

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