Effects of the increase of supermarkets on vegetable supply systems of small-scale farmers in Kenya

Supermarkets are expanding rapidly in Africa and particularly in Kenya. As they consolidate and increase their market share, they may be large enough to exert market power and may have both negative and positive impacts on the suppliers and consumers of agricultural produce, especially small-scale vegetable producers. Vegetable production is an important cash crop for most rural and peri-urban farmers. However, the participation and access to supermarkets vegetables supply system is a key challenge influencing small farmers’ vegetable producers. The objectives of the study were: To determine the farmers supply practices and constraints of vegetable supply in Kiambu county; to determine the factors that influence the choice of participation in the supermarket channel and their impact on farmer income and to evaluate the supermarket requirements in terms of quantity, prices and inputs production cost compared to traditional market. Quantitative and qualitative data were used. Five supermarkets were purposively selected within Nairobi (Tusky’s, Uchumi, Naivas, Nakumatt and Ukwala) based on the volume and supply of vegetables. using statistical information from the district agricultural office on vegetable production vegetable farmers were sampled randomly. Farmers who participated in supermarket channels were sampled using complete lists obtained from supermarkets and supermarket traders. In total, the sample comprised 120 farmers , 60 were supermarket suppliers and 60 were supplying vegetables to traditional markets. A key informant interview for supermarket managers was done. The survey of farmers producing vegetable was carried out using a structured questionnaire. Data was analysed using descriptive statistics such percentages, logistic regression model and analysis of variance (T-test). The descriptive statistics results showed that 71.7 % of the farmers reported that the major constrain experienced in adhering to grade and standard was failure to meet standard produce and 44.2% of the farmers reported that major constrain in transporting produce to both markets was poor roads networks. The logistic regression showed that extension, access to credit, transport, farm size, labour quality and education level were highly important variables that positively influencing small-scale farmer participation in supermarket supply chain. The method of supply negatively affected the participation in supermarket supply chain. The mean comparisons of income between the two groups of farmers show that farmers supplying fresh vegetables to chain supermarkets had a significantly (p ≤ 0.001) higher income, compared to those supplying to traditional markets. The results showed that farmers’ supplying vegetables to supermarket used more inputs and labour, than those supplying to traditional markets (p ≤ 0.001).This study concludes that The major constraints were identified to be poor road networks, falling to access the credit for the production and were not able to adherence to grade and standard. extension, access to credit, transport, farm size, labour quality and education level these factors were found to be highly important variables that positively influencing small-scale farmer participation in supermarket supply channel. The methods of supply negatively affected the participation in supermarket supply channel. Supermarket required large quantity and pay better price compared to traditional market. It was recommended that public programs and government policies should aim at opening up access to credit, improvement of road networks and provide training through extension offices to help small-scale farmers to produce large and high quality of vegetable supplied on time. Farmers should expand farm sizes and also access to credit since such assets significantly influence supermarket channel access. The government should provide extension services to improve vegetable production. Supermarket plan and police should aim up to provide transport services to make that the vegetable reach on time to supermarket. Are these recommendation based on your conclusions