Wednesday, May 29, 2013

Walmart and Small Farmers (in Nicaragua)

In 2010, Walmart announced a “global commitment to sustainable agriculture” that set forth the goal that by 2015 the company would sell $1 billion in food sourced from 1 million small and medium farmers worldwide. In 2012, Walmart was the world's third largest public corporation, with 8,500 retail stores in fifteen countries. Their operations in the developing world increasingly are designed to source directly from small and medium farmers.

However, the jury is still out when it comes to the benefits to small farmers in linking to corporations like Walmart. An interesting analysis is done in Nicaragua by a recent publication in the American Journal of Agricultural Economics. The study concludes that there is not enough evidence, over a period of 8 years, to confirm that farmers did indeed benefit in terms of welfare. Very generalistic comment. But worth digging into.
Read the article.

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