This paper has three components. The first part argues that weather risk causes substantial inefficiencies in developing countries; agri-businesses, faced with underdeveloped formal financial markets, have to rely on traditional WRM that is associated with underinvestment and overdiversification. We discuss how new WRM can overcome the pitfalls of traditional WRM [...]
Organization: IFC, World Bank, Procom Agr
This article examines a new role for contract farming in developing countries in the light of the industrialisation of agriculture and the globalisation of world markets. A theoretical rationale for contracting in developing countries is developed on the basis of adopting new institutional economic theory for the purpose of matching [...]
Organization:
In the last ten years the seed and pesticide industries have undergone a substantial number of structural changes. These changes are due to a number of factors, some of which are common to all industries and some of which are specifically tied to the biotechnology that is increasingly important in [...]
Organization: University of Saskatchewan & University of Nebraska-Lincoln
The enforcement of contracts is necessary for efficient exchange and investment in economic activities. Contracts can be enforced through a variety of mechanisms, both public and private. However, in many developing and transitional countries these public institutions are either absent or ineffective in ensuring contract enforcement. Under such conditions, private [...]
Organization: University of Illinois, Cornell University, Catholic University of Leuven
A perceived change in the organizational focus of American agriculture has given rise to the increased use of the term industrialization. Essentially, this change is viewed as a movement from a homogeneous commodity system to one emphasizing product differentiation (Urban, (1991)). Movement toward increased product differentiation is associated with [...]
Organization: University of California, Davis
We define contract farming as an agreement between legally independent firms for the production of a commodity for a future market. Analyzing contract farming and the intensity (quality) of contracts is as important as the extent of the contractual arrangements. Current publications do not sufficiently distinguish between contracts, which have [...]
Organization: Department of Agricultural Economics, Kiel, Germany
This paper reviews the experience of contract farming and outgrower schemes for five agricultural tree crops: cocoa, rubber, palm oil, coffee and tea. The primary objective of the paper is to draw lessons from this experience to inform similar schemes with tree crops. Based on a review of the literature, [...]
Organization:
Organization: Department of Agricultural and Resource Economics, Oregon State University, USA
This study has five chapters. Chapter one serves as an introduction. Chapter 2 presents a short review of integration, vertical coordination concepts, vertical coordination theories and contract farming. The general overview of food industries and rather detailed information about contract farming both in Turkey and the USA are presented in [...]
Organization: Department of Agricultural Economics, Faculty of Agriculture, Uludag University, Turkey
When the Thai agriculture has gradually changed from export of raw materials to export of more value added goods through the development of agroindustries since the Sixth National Economic and Social Development Plan, contract farming is seen as a promising means of achieving fair benefit for both farmer producers and [...]
Organization: Chiang Mai University, Thailand
