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Supermarket Procurement Practices in Developing Countries: Redefining the Roles of the Public and Private Sectors

The impact of supermarkets on small producers in developing countries has received much attention in recent years, predominantly focusing on global commodity chains for nontraditional agricultural products to industrialized country markets (see, e.g., Dolan, Humphrey, and Harris-Pascal; Dolan and Humphrey). More recently, attention has been focused on the evolution of supermarkets within developing countries, in particular Latin America (see, e.g., Reardon and Berdegue; Weatherspoon and Reardon). Experience in both contexts suggests that the increasing demand for high-value fresh produce can provide new opportunities for enhanced small producer livelihoods. However, the standards (including food safety and quality requirements) and supply reliability demanded by supermarkets, raise challenges for small producers. Indeed, there is evidence that supermarket buyers in both industrialized and developing countries are increasingly sourcing from large commercial growers. Significant benefits can be derived by both buyers and sellers from long-term partnerships along supply chains, particularly in satisfying nonprice demands (Perosio et al.). Fearne and Hughes suggest that effective communication between and within stakeholders is