1. SUPPLY CHAINS OF SUPERMARKETS AND THEIR IMPACT ON VEGETABLE FARMERS IN SRI LANKA: AN EXPLORATORY CASE STUDY Sarath S. Kodithuwakku and Jeevika Weerahewa

4. METHODOLOGY Case Study Strategy was Adopted: Study consisted two stages Stage one : To investigate the existence and the nature of Emerging Supermarket related Supply Chains (SVSC) Stage two: To investigate the Impacts of newly emerged supply chains on farmers vis-à-vis TVSC

6. FINDINGS Stage 1: The Nature of Emerging Supermarket Related Vegetable Supply Chains (SVSC) Nature of SVSC associated with supermarkets varied with the size of the supermarket chain (no. of branches per chain) Three main categories identified: Small: supermarkets with one or two outlet Medium: supermarket chains with a branch network of about 7-8 outlets Large:

12. Hanguranketha Nuwara-Eliya SVSC+ A limited # of variants of TVSC (connected with the country’s main whole sale markers viz., Colombo, Dambulla Dedicated Economic Centre (DDEC) and Katugasthota-Kandy) More variants of TVSC + SVSC + other alternative supply chains (TVSC connected via wholesale mkts in Meegoda and Thambuthhegama + supply chain operated by a group of companies 3 with higher price benefits to farmers) Suppliers to SVSC also supplied to one other TVSC Other farmers: exclusive suppliers 1 to a TVSC of their own choice (long standing mutually beneficial 2 and/or credit bound relationships) A higher range of actors compared to Hanguranketha- more competitive market environment No exclusive affiliation of farmers Choice in the order of priority DDEC, Colombo, Katugasthota-Kandy No such priority 94 % of farmers of vegetable suppliers of SVPC were full time farmers Suppliers to the SVPC - Mostly part time farmers 4 (of which majority are collectors)-less benefits to farmers

14. Figure 4: Income comparison between farmers by their selling options in Hanguranketha Note: The graph compares the income per harvest of tomato from 0.25Ac of land by farmer types based on place of selling Incremental average income per harvest per 0.25 acres of tomato is only about two hundred rupees

21. some TVSC offer mutual benefits to farmers in terms of advance payments and granting loans to purchase inputs. TVSC found to be the most assured selling option for farmers despite its weaknesses.

22. Thank You

23. Figure 2: Various other Selling Options Adopted by Farmers in Hanguranketha who Supplied to Supermarket To Collectors attached to Dambualla TVSC To Colombo via Transport Agents To Kandy via Transport Agents F

24. Figure 3: Selling Options Adopted by Farmers in Hanguranketha who did not Supply to Supermarket To Collectors attached to Dambualla TVSC To Colombo via Transport Agents To Kandy via Transport Agents

25. Figure 4: Composition of the Suppliers of Vegetables to the Supermarket Procurement Centre in Nuwara Eliya Full time small scale farmers Full time large scale farmers Part time farmers Collector farmers Full time collectors

26. Table 1: Spatial Price Variation Created by the Presence of Supermarket Procurement Centre in Hanguranketha Note: The data indicates the average price (Rs/kg) paid by vegetable collectors for Tomato Date of Data Collection Distance to the Supermarket Procurement Centre Decreases  Padiyapalalla Dehipe Denike Rikillagaskada Day 1 26 25 28 30 Day 2 28 32 32 34 Day 3 26 26 30 32 Day 4 30 32 32 34 Day 5 30 32 32 34