Kenyan Supermarkets, Emerging Middle-Class Horticultural Farmers, and Employment Impacts on the Rural Poor

Are the rural poor excluded from supermarket channels in developing countries? We analyzed the farm-level impact of supermarket growth on Kenya's horticulture sector, which is dominated by smallholders. The analysis reveals a threshold capital vector for entrance in the supermarket channel, which hinders small, rainfed farms. Most of the growers participating as direct suppliers to that channel are a new group of medium-sized, fast-growing commercial farms managed by well-educated farmers and focused on the domestic supermarket market. Their heavy reliance on hired workers benefits small farmers via the labor market. (C) 2009 Elsevier Ltd. All rights reserved.