There has been rise of supermarkets in Africa since 1990and this growth of supermarkets has involved an increase in variety of products offered including agricultural products. The main objective of this study is to determine the effects of local supermarkets on small-scale vegetable farmers in Lesotho. The study involved population of 32 farmers and 4 supermarkets, the sample size was chosen using random sampling technique. The study was carried out in 2 districts, where 4 leading supermarkets were chosen, and their suppliers being local farmers. Data were collected from farmers and supermarkets. A questionnaire was used for collecting data which were analyzed using descriptive analysis and producer surplus model. The findings revealed that farmers who supply supermarkets have potentially large opportunities and they get chances of being exposed to new innovations due to the strategies supermarkets require them to use in order to improve their production. The results from the producer surplus model calculations revealed that farmers who supply supermarkets have higher producer surplus as compared to their counterparts. Therefore, the study recommends that in order to improve production extension services need to be improve and farmers need to act collectively to market their produce.
