ABSTRACT

This chapter analyses the consequences for small farmers and agrifood entrepreneurs. Asset-poor small farmers are almost universally excluded from supplying supermarket chains. The top third of asset-rich small farmers might be included, with targeted and appropriate effort and policy support. Policy makers, civil society and the private sector have responded to the evidence of adverse impacts by identifying policies and programmes that address the challenges and maximise the opportunities. The onset of the supermarket revolution has been abrupt; the rise of modern food retail extremely rapid and the scope for policy and strategic effort to pursue public good objectives in a market-driven process appears to be limited. At the early stage of supermarket take-off, modern retail poses an immediate and major challenge to traditional retailers serving the larger cities and the middle class as well as to processed food firms.