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Agrekon
Agricultural Economics Research, Policy and Practice in Southern Africa
Volume 40, 2001 - Issue 4
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Contributed Papers

MEASURING THE IMPACT OF SUPPLY CHAIN INTERVENTION ON UTILITY IN POOR HOUSEHOLDS: THE QUEDENI COMMUNITY IN KWAZULU-NATAL

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Pages 688-697 | Published online: 09 Jun 2010
 

Abstract

Improving the utility of households lies at the core of most development initiatives. Households act as an integral part of supply chains by supplying resources to supply chains and acting as the final consumer for the products produced by these chains. This article seeks to develop a conceptual framework to measure the impact of several possible supply chain interventions on household utility in the food sector. The effect of supply chain interventions is analysed by applying mathematical programming to the household utility model anti estimating the utility effects of the interventions on the households. The analysis shows that transportation costs are the biggest constraint to production and processing expansion by the households. Maize supply chain interventions are beneficial to households, but other products will have to be considered that are not as susceptible to transportation costs.

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