Recent literature has drawn attention to the speedy rise of supermarkets in different regions of the developing world and forecast their rapid spread. The emergence of supermarkets has transformed agri-food markets, but at different rates and to a different extent across regions and countries. This transformation is a challenge for smallholders. While the risk of their exclusion is real, it is argued that there are opportunities as well. Indeed, contrary to assertions, the demise of smallholders as a consequence of the growth of supermarkets and dramatic changes in the food supply chain is neither likely nor unavoidable.