Over the last two decades, structural transformation in the agricultural sector of developing countries has seen the spread of contract farming in the production and marketing of agricultural products in general and of livestock products in particular. The main objective of this literature review is to determine the extent to [...]
This Occasional Paper examines experiences of linking farmers to markets, in order to
reach some tentative conclusions regarding success factors. It considers examples of
linkages promoted both by linking organizations and by the private sector without external
support and then reviews in detail the linkage activities of the former. Emphasis is placed
on markets [...]
The interest in contract farming as a mechanism to coordinate linkages between farmers and agribusiness firms has increased considerably in the recent past. This paper reviews the changes in agri-food systems that are leading to tighter coordination of supply chains and discusses the theoretical basis for contract farming as a [...]
The purpose of this guide is not to replicate past socio-economic studies on the subject of contract farming. Rather, the aim is to provide advice: first, to management of existing contract farming companies on how to improve their operations; second, to companies that are considering starting such ventures on the [...]
This brief gives an overview of contract farming including the types of contract farming arrangement, its advantages and disadvantages. It shows, among others, why companies are interested in contracting with smallholders and the role of farmers organizations.
Organization: CTA, Technical Centre for Agricultural and Rural Cooperation (ACP-EU)
In a laboratory experiment, we study behaviour in a contract farming game without
third-party enforcement but with an external spot market as outside option. We examine
if and how relational contracts and personal communication support private-order
enforcement. We find mixed evidence for our private ordering hypothesis. While
relational contracting significantly reduces contract breach in [...]
Organization: Georg-August-University Göttingen, Germany
The participation of women in agricultural production is essential to food security and rural
development. However, female farmers face many constraints when linking to modernizing,
closely coordinated agrifood value chains.
Indeed, women are often excluded from market
access opportunities offered by agribusinesses that contract farmers for the production and
delivery of agricultural products, because [...]
Organization: University of Rome Tor Vergata, School of Economics
Contract farming (CF) is increasingly seen as an effective mechanism to maximise the
inclusion of and benefits for small-scale farmers, while giving some control over production
to agribusinesses without requiring land ownership. In Cambodia, CF takes many forms
and involves food and industrial crops, yet the different CF models and contract types have
Due to changes in the global agricultural system and support from various organizations,
contract farming has recently been significantly expanded in many developing countries.
A considerable body of literature analyses the impact of contract farming on the welfare
of smallholders, whereas its impact on efficiency and productivity is mostly overlooked.
This study addresses this [...]
Organization: University of Copenhagen (Denmark), Institute of Rural Development Planning (Tanzania), Mzumbe University (Tanzania)