THE RISE OF KENYAN SUPERMARKETS AND THE EVOLUTION OF THEIR FRESH FRUITS AND VEGETABLES PROCUREMENT SYSTEMS

Supermarkets are rapidly penetrating urban food retail in Kenya and spreading well beyond their initial tiny market niche into the food markets of lower-income groups. Having penetrated processed and staple food markets much earlier and faster than fresh foods, they have recently begun to make inroads into the fresh fruits and vegetables category. The important changes in their procurement systems bring significant opportunities and challenges for small farmers, and have implications for agricultural diversification and rural development programmes and policies.Marketing,

SUPERMARKETS AND CONSUMERS IN AFRICA: THE CASE OF NAIROBI, KENYA

Supermarkets are rapidly penetrating urban food retail in Kenya and spreading well beyond their initial tiny market niche into the food markets of lower-income groups. Having penetrated processed and staple food markets much earlier and faster than fresh foods, they have recently begun to make inroads into the fresh fruits and vegetables category. The important changes in their procurement systems bring significant opportunities and challenges for small farmers, and have implications for agricultural diversification and rural development programmes and policies.Consumer/Household Economics, Marketing,

ECONOMIC AND SOCIAL CONSEQUENCES OF BIOTECHNOLOGY: A SCENARIO ANALYSIS

Over the years agricultural technology has created remarkable commodity production growth rates and enhanced general economic growth through food production, manufactured goods and trade for most nations. Biotechnology holds the promise of continuing this remarkable record. There is a long list of potential benefits of biotechnology but unfortunately the perceived costs/risks are also many. These concerns have lead to significant consumer reluctance to accept the technology and, in some cases, outright consumer rejection of the technology. To discuss the future of biotechnology, scenario analysis is used to examine the social and economic impact of biotechnology on industrialized and emerging nations. Four scenarios are discussed in detail: biotechnology may be formally or informally banned (Scenario 1), fully accepted (Scenario 2), marketed through strict labeling (Scenario 3), or limited to non-food applications (Scenario 4). Consumer acceptance of this technology will be key to determining which scenario becomes the future for each nation. The likelihood of each scenario is different for each nation, the U.S. will most likely evolve into scenario 2 or 3, while in the EU scenarios 1 or 4 are more likely. Determining the future for emerging nations is extremely complex and dependent on several factors like malnutrition rates, environmental safety and historical trading routes. Each scenario has a major impact on small producers worldwide which ultimately influences the health of rural communities. The analysis indicates that emerging nations are the most sensitive to the timing of decisions being made about the future of biotechnology. If biotechnology becomes a reality, new data will be required to assess the social and economic impact of this technology.Research and Development/Tech Change/Emerging Technologies,

FARM-LEVEL PERSPECTIVES ON THE IMPACT OF DOMESTIC SUPERMARKETS ON KENYA'S FRESH FRUITS AND VEGETABLES SUPPLY SYSTEM

The rise of supermarkets in Kenya has given rise to a new group of medium-sized farms managed by well-educated farmers. Focusing on kale, the essay shows that nearly all supermarket-channel farmers have the capacity to supply larger volumes year round and have transportation vehicles, an irrigation system, a packing shed, a cellular phone, and so on, pointing to the existence of a threshold capital vector which farmers must have in order to access supermarkets. Especially farm size and irrigation were found to be significant determinants of participation in the supermarket channel. Kale suppliers to supermarkets use more capital intensive production technologies, leading to average labor and land productivities which are 60-70% higher than in the traditional channel. Eighty percent of labor consists of hired workers, indicating that these farmers could be important in alleviating poverty for rural households with little or no land. While most traditional-channel kale farmers sell to brokers and get a price that lets them break-even at best, supermarket-channel farmers have a 40% gross profit margin. These margins and lower market risks in the supermarket channel have resulted in a strong growth dynamic of supermarket-channel farmers which have doubled the size of their operations over the last five years.Marketing,

Fertilizer Consumption in Rwanda: Past Trends, Future Potential, and Determinants

Paper prepared for the Policy Workshop on Fertilizer Use and Marketing, organized by MINAGRI and USAID, Rwanda, 22-23 February 20001.food security, food policy, Rwanda, fertilizer consumption, Crop Production/Industries, Q18,

Food Sector Transformation and Standards in Zambia: Smallholder Farmer Participation and Growth in the Dairy Sector

Market liberalization in Zambia has led to a rapid and fundamental transformation of its dairy sector. Mainly through foreign direct investment and international partnerships, a new formal dairy sector, characterized by institutional, organizational and technological innovation, emerged from the ashes of abandoned government projects. Sensing the development opportunity that arose from an untapped milk supply potential in Zambia's traditional smallholder livestock production and a growing milk demand from the newly emerging formal dairy processing sector, numerous donor-funded smallholder dairy farmer support programs emerged. At the same time, in order to protect its domestic market as well as to be in a better position to enter demanding export markets, stakeholders from the private, public and NGO sector have recently joined forces to develop technical dairy product standards for Zambia based on the CODEX.Livestock Production/Industries,

Smallholder Income and Land Distribution in Africa: Implications for Poverty Reduction Strategies

This paper provides a micro-level foundation for discussions of income and asset allocation within the smallholder sector in Eastern and Southern Africa, and explores the implications of these findings for rural growth and poverty alleviation strategies in the region. Results are drawn from nationally-representative household surveys in five countries between 1990 and 2000: Ethiopia, Kenya, Rwanda, Mozambique, and Zambia. The paper addresses five major points: (1) why geographically-based poverty reduction or targeting strategies-e.g., focusing on marginal areas-is likely to miss a significant share of the poor in any particular country regardless of targeting efficiency in these areas; (2) why current enthusiasm for community-driven development approaches will require serious attention to how resources are allocated at local levels; (3) why sustained income growth for the poorest strata of the rural population will depend on agricultural growth in most countries, even though the poor generally lack the land and other productive resources to respond directly or immediately to policies and investments to stimulate agricultural growth; (4) why agricultural productivity growth, while most easily generating gains for better-off smallholder farmers, is likely to offer the best potential for pulling the poorest and land-constrained households out of poverty; and (5) why meaningful poverty alleviation strategies in many countries will require fundamental changes to make land more accessible to smallholder farmers. This could be accomplished through various processes, including improvement in land rental markets or perhaps land redistribution. We briefly elaborate on each of these findings.Food Security and Poverty, Land Economics/Use,

Smallholder Income and Land Distribution in Africa: Implications for Poverty Reduction Strategies

Farm Management, Food Security and Poverty, Downloads July 2008-July 2009: 15,