Transcript Supermarket Procurement systems in Dar es

Supermarket Procurement Systems
in Dar es Salaam:
A Food System in
Transition
Sierra Nickel // Joshua Rempel // Marie Verbenkob
// Jeremy Wagner
University of the Fraser Valley, Ardhi
Literature Review
Theoretical Framework: Supermarket
Proliferation in the Global South
• Multifaceted Process
• Globalization
• Liberalization
• Urbanization
“The overall image is of waves of diffusion rolling
along”
Literature Review
East Africa in the “Waves of Diffusion”
• Of the four identified waves, East Africa is within the
3rd
• Tanzania can be categorized as a food system in
transition
• Supermarkets in Dar es Salaam began proliferating
in the late 1990’s
• FDI is a major contributor
Literature Review
Food Security: Supermarkets and a
Changing Dynamic
• With many foreign owned supermarkets in
Tanzania, procurement strategies are often based
on the importation of products.
• This excludes local producers from the modern
food retail industry.
• 75% of Tanzanians depend on agriculture for their
livelihoods.
Literature Review
Policy for the Present: Can Supermarkets
Benefit Rural Farmers?
• Agriculture investment tax incentives
• Land acquisition
• Import/ export policies
• Division between how the policy is intended to operate
and how it is applied in practices.
Methodology
Methodology
Phase One: Observational Supermarket
Survey
Phase Two: Formal Interview Survey
Phase Three: Case Study Survey
Case Studies
Jennifer
• Married, 42 year old woman, two
children, and Government of
Canada employee
• Household purchases food at
supermarkets and roadside
stands (only avocados and eggs)
• Grows cucumbers and
watermelons (accidentally)
• Percentage of food from
Tanzania: 70% approx.
• Mode of transportation: Personal
Vehicle
Case Studies
Edward
• Married 41 year old male, two
children, and drives a Bajaj for
work
• Household purchases their
food at informal markets,
roadside stands, and
supermarket (only milk)
• Grows 50% of their own
produce
• Percentage of food from
Tanzania: 100%.
• Mode of transportation: Walk,
Local Bus, or Personal Bajaj
Case Studies
Miriam
• A married 37 year old female, 11
children, 5 other dependents, and
owns a bridal business
• Household purchases food at
butcher shops, informal
wholesaler market, roadside
stands, and supermarket
• Grows 21-40% of their own
produce
• Mode of transportation: Personal
Vehicle
Case Studies
Shamsa
• A widow 48 year old
female, 14 dependents,
and entrepreneur
• Household purchases food
at roadside stands,
butcher shops, and
informal market
• Grows 21-40% of their
own produce
• Percentage of food from
Tanzania: 100%
• Mode of transportation:
Bajaj, Local Bus, or House
delivered
Market Demographics and Supermarket
Location Strategy
Transportation Infrastructure: An Increase in
Trade Capacity
• The need for properly developed and maintained
roadway networks, both interregional and regional.
• Interregional: lack of paved roads—82% of Tanzanian
roads are unpaved. Major lack of road maintenance
adding to a longer & rough journey.
• Regional: traffic congestion in Dar es Salaam restrains
people from shopping at their preferred location.
• Refrigerator vs. Non-refrigerated transport trucks.
Formal and Informal Sourcing Strategies:
Questioning the Dichotomy
• Domestic Procurement Strategies
• Less expensive
• Lower quality/quantity/consistency
• Import Procurement Strategies
• More expensive
• Higher quality/quantity/consistency
Formal and Informal Sourcing Strategies:
Questioning the Dichotomy
• Supermarkets use formal and informal
procurement strategies
•
Hybridized landscape
• In Dar es Salaam, a true formal food
procurement economy does not exist
• Conceptualizing economic activities as informal and formal
• Falsely represents the reality of the situation
Cultural Resistance to Modern Food
Retailing
• While income remains a barriers for many, even
those who have access to supermarkets may choose
to shop elsewhere.
• Miriam Case Study
• She sees informal markets as being better for the economy
• Cultural Resistance to Modern Food Retailing
• Some supermarkets cater their supply of products to
a wider customer base
•
•
•
•
Mbezi Fresh
Uncurated Meat
Oranges
Game
Supermarkets and the Rural Poor: How
Smallholder Farmers Can Benefit
• The proliferation of supermarkets is creating
capital in food procurement development
• Land Acquisition vs. Development
• Supermarket Domestic Procurement Strategies
• Can Smallholder Farmers Compete?
• Who Stands to benefit?
Research Limitations
• Sample size of both supermarket chains and
individual households is small.
• Sampling techniques used for the selected groups
were not random.
• Credibility of the respondents
• Researcher’s bias.
Major Conclusions
• Supermarkets in Dar es Salaam are struggling to
procure domestically.
• Rural smallholder farmers are unable to provide the quantity &
quality of products that modern retail markets are demanding.
• The food procurement system in Tanzania is
widely informal & unstandardized.
• The procurement system remains relatively underdeveloped, &
as a result, smallholder farmers have difficulty accessing
modern retail markets.
• Policy construction will either benefit or
devastate smallholder farmers' livelihoods.
• Supermarket's & the subsequent development of the food
procurement system will either create economic & food security
for smallholder farmers, or further marginalize them.
policy problems:
the challenges ahead
• The Promotion of public and private sector investment in
agriculture
• Land tenure rights recognition and protection
• Rural Infrastructure and the development of trade-related
capacity
• Balancing the distribution of wealth in favour of rural
smallholders
Future Research
• Smallholder farmers' relationships with emerging
modern retail and informal markets
• Suppliers’ relationships with emerging retail markets
and informal markets
• The degree to which and in what manner informal
markets are struggling to compete with an emerging
modern retail market
• Socio-economic and cultural factors determining
consumer shopping patterns
• Current national policies and their implications.