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Supermarket Procurement Systems in Dar es Salaam: A Food System in Transition Sierra Nickel // Joshua Rempel // Marie Verbenkob // Jeremy Wagner University.

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Presentation on theme: "Supermarket Procurement Systems in Dar es Salaam: A Food System in Transition Sierra Nickel // Joshua Rempel // Marie Verbenkob // Jeremy Wagner University."— Presentation transcript:

1 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 University

2 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”

3 East Africa in the “Waves of Diffusion” Of the four identified waves, East Africa is within the 3 rd 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

4 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.

5 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.

6 Methodology

7 Phase One: Observational Supermarket Survey Phase Two: Formal Interview Survey Phase Three: Case Study Survey

8 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

9 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

10 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

11 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

12 Market Demographics and Supermarket Location Strategy

13 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.

14 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

15 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

16 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

17 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?

18 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.

19 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.

20 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 policy problems: the challenges ahead

21 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.


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