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Supermarkets, New-Generation Wholesalers, Tomato Farmers, and NGOs in Nicaragua

Author

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  • Balsevich, Fernando
  • Berdegue, Julio A.
  • Reardon, Thomas

Abstract

Based on a survey of 145 tomato farmers and interviews with supermarket chains, NGOs, wholesalers, and farmer organizations in 2004, this paper examines the determinants and effects of farmers' participation in supermarket channels, with and without assistance from NGOs in "business linkage" programs. It finds that absent that assistance, the farmers that work with supermarket chains tend to be the "upper tier" of small farmers, better capitalized with various assets. The smaller and less-capitalized farmers that work with supermarkets tend to do so in association with NGO assistance. Despite higher input expenditures and entry requirements, farmers in the supermarket chain earn more. The paper discusses the issue of whether this development program approach is sustainable and can be upscaled, and wrestles with the tradeoff of helping poor farmers gain access to dynamic markets, of making it affordable at a larger scale by national governments with tight budgets, and at the same time field programs that are market-sustainable and market-responsive.

Suggested Citation

  • Balsevich, Fernando & Berdegue, Julio A. & Reardon, Thomas, 2006. "Supermarkets, New-Generation Wholesalers, Tomato Farmers, and NGOs in Nicaragua," Staff Paper Series 11479, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midasp:11479
    DOI: 10.22004/ag.econ.11479
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    References listed on IDEAS

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    Cited by:

    1. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: the case of sweet pepper in Thailand," GlobalFood Discussion Papers 108349, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    2. Yanqi Xie & Apurbo Sarkar & Md. Shakhawat Hossain & Ahmed Khairul Hasan & Xianli Xia, 2021. "Determinants of Farmers’ Confidence in Agricultural Production Recovery during the Early Phases of the COVID-19 Pandemic in China," Agriculture, MDPI, vol. 11(11), pages 1-22, October.
    3. 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.
    4. Moustier, Paule & Tam, Phan Thi Giac & Anh, Dao The & Binh, Vu Trong & Loc, Nguyen Thi Tan, 2010. "The role of farmer organizations in supplying supermarkets with quality food in Vietnam," Food Policy, Elsevier, vol. 35(1), pages 69-78, February.
    5. 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.

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