Modern Food Supply Chains and Development: Evidence from Horticulture Export Sectors in Sub‐Saharan Africa

Abstract

The global food system is undergoing rapid processes of transformation and modernisation. This is causing important changes in developing‐country food supply chains, particularly in supermarket‐driven and high‐value export chains, but the welfare implications of these changes are poorly understood. This article analyses and compares the welfare effects in different horticulture export chains in sub‐Saharan Africa, disentangling different types of effects and the channels through which rural households are affected. Its main conclusion is that increased high‐value exports and the modernisation of export supply chains can bring about important positive welfare effects, which can occur in various ways through product‐ or labour‐market effects and through direct and indirect effects.