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Urban food retailing and food prices in Africa: the case of Addis Ababa, Ethiopia

Urban food retailing and food prices in Africa: the case of Addis Ababa, Ethiopia Despite the large interest in urban food markets, there are, however still relatively few good studies that have empirically documented the functioning of retail markets in developing countries, especially in Africa. The purpose of this paper is to look in particular at the case of Addis Ababa, a city of more than four million people and the capital of Ethiopia, one of the most populous countries in Sub-Saharan Africa. To better understand urban food retail, the authors rely on a large primary survey.Design/methodology/approachTo better understand urban food retail, the authors rely on a large primary survey. Based on a stratified sampling scheme representative for the city as a whole, 1,226 urban food retail outlets were interviewed in March and April 2012.FindingsThe authors find increasing differentiation in food retail markets in recent years. Despite the prohibition of foreign direct investment in food retail, a domestic modern private retail sector is quickly emerging. However, its share is still very small and, in contrast to roll-outs of modern retail in other countries, it has not yet entered the cereal sector, which remains in the hands of local flour mills, cereal shops, and cooperative retail outlets. The importance of cooperative retail is growing even more rapidly. It is especially important for those products where supply chains are controlled by the government. On the high-end, domestic private modern retail outlets deliver high-quality products at significantly higher prices, ceteris paribus. At the other side, the authors see cooperative retail that delivers food at significantly lower – and subsidized – prices. However, the latter shops are characterized by typical price control problems, reflected in regular lack of supplies and queuing.Research limitations/implicationsThe study is limited to the city of Addis Ababa and it seems useful if similar studies could be conducted in other cities in Africa.Originality/valueDespite the large interest in urban food markets, there are still relatively few good studies that have empirically documented the functioning of retail markets in developing countries, especially in Africa. The paper therefore contributes to fill this lacuna by studying urban food retail markets using new and unique data for Africa. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Agribusiness in Developing and Emerging Economies Emerald Publishing

Urban food retailing and food prices in Africa: the case of Addis Ababa, Ethiopia

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Publisher
Emerald Publishing
Copyright
© Emerald Group Publishing Limited
ISSN
2044-0839
DOI
10.1108/jadee-02-2015-0009
Publisher site
See Article on Publisher Site

Abstract

Despite the large interest in urban food markets, there are, however still relatively few good studies that have empirically documented the functioning of retail markets in developing countries, especially in Africa. The purpose of this paper is to look in particular at the case of Addis Ababa, a city of more than four million people and the capital of Ethiopia, one of the most populous countries in Sub-Saharan Africa. To better understand urban food retail, the authors rely on a large primary survey.Design/methodology/approachTo better understand urban food retail, the authors rely on a large primary survey. Based on a stratified sampling scheme representative for the city as a whole, 1,226 urban food retail outlets were interviewed in March and April 2012.FindingsThe authors find increasing differentiation in food retail markets in recent years. Despite the prohibition of foreign direct investment in food retail, a domestic modern private retail sector is quickly emerging. However, its share is still very small and, in contrast to roll-outs of modern retail in other countries, it has not yet entered the cereal sector, which remains in the hands of local flour mills, cereal shops, and cooperative retail outlets. The importance of cooperative retail is growing even more rapidly. It is especially important for those products where supply chains are controlled by the government. On the high-end, domestic private modern retail outlets deliver high-quality products at significantly higher prices, ceteris paribus. At the other side, the authors see cooperative retail that delivers food at significantly lower – and subsidized – prices. However, the latter shops are characterized by typical price control problems, reflected in regular lack of supplies and queuing.Research limitations/implicationsThe study is limited to the city of Addis Ababa and it seems useful if similar studies could be conducted in other cities in Africa.Originality/valueDespite the large interest in urban food markets, there are still relatively few good studies that have empirically documented the functioning of retail markets in developing countries, especially in Africa. The paper therefore contributes to fill this lacuna by studying urban food retail markets using new and unique data for Africa.

Journal

Journal of Agribusiness in Developing and Emerging EconomiesEmerald Publishing

Published: Nov 14, 2016

Keywords: Africa; Agricultural products; Agriculture; Food retail; Ethiopia; Urban markets; Urban food prices

References