Chapter 4 (Minot and Sawyer) provides clarity on the opportunities and limitations of contract farming as an institution that facilitates agricultural intensification by smallholders. They find that contract farming is more viable in value chains of fruits and vegetables for quality-sensitive markets, commercial dairy and poultry production, and certain cash [...]

[Author: Mwambi, M.M., Oduol, J., Mshenga, P. and Saidi, M] Contract farming (CF) is seen as a tool for creating new market opportunities hence increasing incomes for smallholder farmers. Critics, however, argue that CF is likely to pass risks to small scale farmers, thus favouring large scale farmers at the expense [...]

We study the effect of alleviating the information asymmetry regarding product quality that is widespread in contracts between agricultural producers and buyers in developing countries. Opportunistic buyers may underreport quality levels to farmers to reduce the price that they have to pay. In response, farmers may curb investment, thereby negatively [...]

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 [...]

This report looks into the many challenges faced by stakeholders in agricultural value chains in the People’s Republic of China (PRC) and how these stakeholders are meeting these challenges head-on through the establishment of farmerenterprise partnerships. The document presents case studies and takes an indepth look into several enterprises in the PRC, highlighting experiences [...]

In developing countries, smallholder farmers face many constraints including lack of information, access to credit and to markets. To overcome these constraints, resource-poor farmers can engage in contract farming. However, contracts farming need to meet farmers’ demand in order to be sustainable. This study aimed to analyze the preferences of [...]

Out-grower schemes (often referred to as contract farming in academic and other literature) are an important component of many current public-private partnerships (PPPs) in developing countries, including the G8’s New Alliance. Such schemes often appeal to farmers because the company often provides inputs and production services. In addition, farming incomes can rise and such [...]

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 not [...]

The purpose of Volume II of GIZ’s Contract Farming Handbook is to provide practitioners (farmers and farmer groups’ representatives, buyers and facilitators) with tools and case studies that assist in taking informed decisions on starting up, implementing and scaling up contract farming schemes. This also means to support decision-making on desisting from venturing into heavy investments if a [...]

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 [...]