Economists struggle with predicting what makes an institutional arrangement successful for market access in Africa. According to New Institutional Economics theory, the rational farmer will chose to engage in the institutional arrangement that is best performing in minimizing transaction costs, or that create order in the economy. Yet, failures have [...]
As dairy farms grow and specialize in milking cows, raising replacement heifers is increasingly outsourced. Perhaps the largest challenge of outsourcing the heifer enterprise involves quality, measured as milk production potential, and the possibility for moral hazard due to hidden action on the part of the custom heifer grower. A [...]
Organization: Department of Agricultural Economics, Purdue University, West Lafayette, USA.
The objectives of this research were to compare the production costs and returns between contract and non-contract farming systems of baby corn production, and to analyze the procurement costs of the company through contract versus non-contract (open market) channels. The data were collected during the crop year 2005/2006 from 60 [...]
Organization: Department of Agricultural and Resource Economics, Faculty of Economics, Kasetsart University, Bangkok 10900, Thailand
In this paper, transaction cost is introduced into the general firm-level export behavior model. By so doing, we constructed a theoretical model to explain how connection modes between leading agribusiness enterprises and rural households affect the firm-level agricultural products export. Analyzing the dataset of 561 national leading agribusinesses of the [...]
Organization: Laboratory of Environmental Life Economics, Division of International Agricultural Resource Economics and Business Administration, Department of Agricultural and Resource Economics, Faculty of Agriculture, Kyushu University, Fukuoka, Japan.
This article describes the process of institutional transition of contract farming in Shandong Province. The changes in preparatory stage of contract farming express in: One, the information asymmetry of the two sides of the contract is reducing; Two, the security system of contract farming tends to be perfection; Three, the [...]
Organization: College of Economics and Management, Qingdao Agricultural University, Qingdao, China.
This paper highlights a few successful cases of contract farming in India and discusses the history, objectives, and types of contract farming as well as its benefits to farmers, firms and the public sector. Also discussed are several concerns about the desirability of contract farming from a poverty and equity [...]
Organization: Centre for Management Studies, Dharmsinh Desai University, Nadiad, Kheda (Gujarat), India.
A study of 49 contract broiler farmers under 4 leading integrators in and around Puducherry revealed that the contract is one sided favouring the integrator as the contract stipulates standards for the outputs from the farmer but it does not specify any standards for the inputs the integrator supplies such [...]
Organization: Rajiv Gandhi College of Veterinary and Animal Sciences, Puducherry 605 009, India
This article tests whether agricultural extension and imperfect supervision - conflated here into the number of visits by a technical assistant - increase productivity in a sample of contract farming arrangements between a processing firm and small agricultural producers in Madagascar. Production functions are estimated which treat the number of [...]
Organization: Sanford School of Public Policy, Duke University, Durham, USA
Linking small producers with markets has been identified as one of the major issues in policy and practice in improving livelihoods for millions of poor in the developing world. Small producers have many competitive advantages like lower costs, but they face threats from the demand for standardised products in [...]
Organization: Centre for Management in Agriculture (CMA), Indian Institute of Management (IIM), Ahmedabad - India.
There is an emerging body of literature analyzing how smallholder farmers in developing countries can be linked to modern supply chains. However, most of the available studies concentrate on farm and farmer characteristics, failing to capture details of institutional arrangements between farmers and traders. Moreover, farmers’ preferences have rarely been [...]
Organization: International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), Nairobi, Kenya