Walmart’s impact on Nicaragua – Oxford University Press

Researcher Hope Michelson recently published the findings of a study on how chain supermarkets, such as Walmart, impact local farmers in Nicaragua:

Our previous work discovered that supermarkets don’t pay farmers a higher mean price than traditional markets but they do offer a more stable price. This analysis suggests a reason that household assets – and thus income — increase among farmers who sell to supermarkets; shielded from price fluctuations in the traditional markets by the supermarket contract, farmers invest in agriculture, in some cases moving to year-round cultivation. Farmers finance these investments through higher and more stable incomes and new credit sources. Income increases are attributable not to higher average prices but likely to increased production quantities.”

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