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Contract farming
Author V. Poompiriyasup
Year 1970
Organization CP Group, Thailand
Contract farming is a business development concept that brings the CP Group back to the basics of agricultural business. CP has always realized that farmers are our lifetime partners so we do business for their development. CP projects have the objective of ensuring farmers get a sustainable income and better quality of life so that the whole country may develop. When operating an agribusiness, CP begins by analysing the market potential, i.e. global and domestic market conditions, production volume, export and import conditions, pricing, knowledge capacity, production potential, human resource potential, and food safety and environmental concerns. Contract farming finds its place in this method through CP’s “Complete package programme”, which also includes building links between farmers and financial institutions. Farms involved in the complete package programme benefit from cost reduction, risk reduction, increasing yield and income. CP also provides any new technologies needed for the business development of its contracted farmers. On fresh produce, CP is focusing on tropical fruit and flowers. The goal of the group is to produce fruit to the higher quality standards demanded in Japan, Australia, Europe, the People’s Republic of China and other Asian countries. The development of adequate technologies for managing quality during pre- and post-harvesting is one of the group’s priorities. In the flower business, CP fully meets the standard on producing seedlings and young plants that are free of any diseases. CP Flower products have been launched both in domestic and overseas markets such as Japan, the Netherlands, Denmark, Germany and North America.
Publisher Peter J. Batt and Jean-Joseph Cadilhon (eds) Proceedings of International Symposium On Fresh Produce Supply Chain Management, Chiang Mai, Thailand, 2006 pp.240-245