Agricultural Value Chains and Smallholder Producer Relations in the Context of Supermarket Chain Proliferation in Southern Africa

Abstract

Access to regional markets by small scale producers remains a problem in Southern Africa, yet retailing is becoming big business. A proliferation of supermarkets has been witnessed since the 1990s with South Africa's Shoprite supermarket becoming a major player in African markets. Supermarkets play a critical role of food systems development in Southern Africa but theissues of concern pertain to how increased aggregate value can be generated for agricultural produce whilst at the same time retaining more value nationally/locally for smallholder agricultural producers. This paper focuses on small producers, characterising food systems evolution in Southern Africa and highlighting how small producers are relating with supermarkets. Drawing on existing empirical work to examine successful agribusiness initiatives for smallholder farmers in Africa in accessing regional value chains, the paper argues that ineffective regional policies contribute to forces preventing upgrading of smallholder farmers into regional markets. An analysis that synthesises various emerging issues regarding the relations between supermarkets and small producers is presented to inform research themes for uptake into policy formulation.