Arbeitspapier
Farmers' preferences for supermarket contracts in Kenya
With the modernization of global agri-food systems, the role of contract farming is increasing. This also involves smallholder farmers in developing countries. While previous studies have looked at economic impacts of contract schemes on smallholder farmers, little is known about farmers' preferences for contracting in general, and for specific contract design attributes in particular. Better understanding farmers' preferences and constraints is important to make smallholder contract schemes more viable and beneficial. This article builds on a choice experiment to analyze farmers' preferences and preference heterogeneity for contracts in Kenya. In the study region, supermarkets use contracts to source for fresh vegetables directly from preferred suppliers. However, farmer dropout rates are high. Mixed logit models are estimated to examine farmers' attitudes towards critical contract design attributes. Having to deliver their harvest to urban supermarkets is costly; hence farmers require a significant output price markup. Farmers also dislike delayed payments that are commonplace in contract schemes. The most problematic contract attribute is related to unpredictable product rejection rates, which substantially add to farmers' risk. Designing contracts with lower transaction costs, more transparent quality grading, and fairer risk-sharing clauses could enhance smallholder participation in supermarket procurement channels.
- Sprache
-
Englisch
- Erschienen in
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Series: GlobalFood Discussion Papers ; No. 86
- Klassifikation
-
Wirtschaft
Microeconomic Analyses of Economic Development
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Agricultural Markets and Marketing; Cooperatives; Agribusiness
Agricultural Policy; Food Policy
- Thema
-
supermarkets
contracts
farmers' preferences
choice experiment
Kenya
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Ochieng, Dennis O.
Veettil, Prakashan Chellattan
Qaim, Matin
- Ereignis
-
Veröffentlichung
- (wer)
-
Georg-August-Universität Göttingen, Research Training Group (RTG) 1666 - GlobalFood
- (wo)
-
Göttingen
- (wann)
-
2016
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Ochieng, Dennis O.
- Veettil, Prakashan Chellattan
- Qaim, Matin
- Georg-August-Universität Göttingen, Research Training Group (RTG) 1666 - GlobalFood
Entstanden
- 2016