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Farmer Participation in Supermarket Channels, Production Technology and Technical Efficiency: The Case of Vegetables in Kenya

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  • Rao, Elizaphan J.O.
  • Brümmer, Bernhard
  • Qaim, Matin

Abstract

Supermarkets are currently gaining ground in the agri-food systems of many developing countries. While recent research has analyzed income effects in the small farm sector, impacts on farming efficiency have hardly been studied. Productivity effects in previous studies are also estimated with respect to different frontiers. Using a survey of Kenyan vegetable growers and a meta-frontier approach, we control for self-selection using propensity score matching and show that participation in supermarket channels increases farm productivity by 35-38%. Effects on technical efficiency are, however, insignificant. Supermarket expansion therefore presents opportunities for realizing agricultural growth, thus enhancing poverty alleviation and rural development.

Suggested Citation

  • Rao, Elizaphan J.O. & Brümmer, Bernhard & Qaim, Matin, 2010. "Farmer Participation in Supermarket Channels, Production Technology and Technical Efficiency: The Case of Vegetables in Kenya," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61190, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61190
    DOI: 10.22004/ag.econ.61190
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    File URL: https://ageconsearch.umn.edu/record/61190/files/AAEA_2010_10933a.pdf
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    References listed on IDEAS

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    1. Christopher O’Donnell & D. Rao & George Battese, 2008. "Metafrontier frameworks for the study of firm-level efficiencies and technology ratios," Empirical Economics, Springer, vol. 34(2), pages 231-255, March.
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    Cited by:

    1. Asekenye, Cresenia & Bravo-Ureta, Boris E. & Deom, Mike & Kidula, Nelson & Okello, David Kalule & Okoko, Nasambu & Puppala, Naveen, 2016. "Productivity gaps among groundnut farmers in Kenya and Uganda: A stochastic production frontier analysis," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 11(2), pages 1-16.

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