Factors influencing the choice of supermarket channel by smallholder vegetable farmer suppliers in Nairobi and Kiambu Counties, Kenya

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dc.contributor.authorBett, E.K.
dc.contributor.authorIsmail M
dc.contributor.authorKavoi, M.M
dc.date.accessioned2015-05-12T11:49:34Z
dc.date.available2015-05-12T11:49:34Z
dc.date.issued2013
dc.descriptionKenyatta Universityen_US
dc.description.abstractThe increasing demand for high-value food products in developing countries is creating incentives for expansion of supermarket chains as an alternative marketing system to the traditional marketing channels. However, smallholder farmers especially those in the vicinity of the urban cities and county capital townships in Kenya do not use supermarket channels effectively due to a number of factors. The purpose of this study is to determine the factors influencing the choice of participation in the supermarket supply channel as compared to that of traditional market channel. Data for the study were collected from a sample of 120 farmers - 60 supplying to supermarket supply chains and 60 supplying to traditional marketing channels. Multistage random sampling procedure was used to construct the sample. Descriptive statistics and the logit regression model were used as the methods of analysis. The results reveal that farmers participating in supermarket supply chain have significantly higher value of revenues, farm sizes, number of labourers, labour costs and input costs as compared to those supplying to traditional markets. Ultimately they had a higher gross margin of Kshs 35,346.00 compared to a loss of Kshs 1847.00 realized by the farmers supplying to traditional markets. Empirical results of the logit model indicated that the marginal probabilities for farm size, labour cost, education level, extension assistance, method of supply, group participation and formation of a supply relationship significantly influenced the choice of supermarket supply chain. Hence public and private policy needs to support the development of smallholder technical, social and institutional environments that can help them to get over the scale problem. Supermarkets can help in a number of ways such as providing technical and financial support, reviewing buying practices and treating smallholder farmers as equal partners.en_US
dc.description.sponsorshipThe authors acknowledge the Regional Universities Forum for Capacity Building in Agriculture (RUFORUM) for the financial assistance to undertake a Masters Degree program and a Thesis in Jomo Kenyatta University of Agriculture and Technology (JKUAT) from which this research article was extracted. They are also grateful to Kenyatta University for hosting and allowing the main author to undertake the research at the institution and availing the necessary facilities. Finally, special thanks to Miss. Marianne Nthenya and her team in the Agriculture office at Kiambu County for their assistance during the period of data collectionen_US
dc.identifier.citationJournal of Agricultural Economics and Development Vol. 2(9), pp. 333-344, September 2013en_US
dc.identifier.issn2327-3151
dc.identifier.urihttp://academeresearchjournals.org/journal/jaed
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/12608
dc.language.isoenen_US
dc.publisherAcademe Research Journals.en_US
dc.subjectSupermarket channelen_US
dc.subjecttraditional market channelen_US
dc.subjectsmallholder farmersen_US
dc.subjectlogit modelen_US
dc.titleFactors influencing the choice of supermarket channel by smallholder vegetable farmer suppliers in Nairobi and Kiambu Counties, Kenyaen_US
dc.typeArticleen_US
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