[GIZ. 2021. Promoting inclusive contract farming in agrifood value chains : Experiences from German Development Cooperation.]Cooperation with the private sector, such as through inclusive business models (IBM), is crucial in order to achieving rural economic transformation, better employment and income opportunities for improved livelihoods. Inclusive contract farming (ICF), one example of IBM, refers to agricultural production based on agreements between business parties: On the one side are producing and selling farmers while on the other are buying companies (industry and trade) who purchase agricultural products as agreed. Approaches to promoting cooperation between smallholder farmers and companies are now an established standard in the agricultural portfolio of international cooperation. ICF models are promising instruments for the long-term integration of smallholder farmers into sustainable agricultural value chains. The main task of development cooperation is to strengthen the negotiating position of small farmers and to work towards fair and transparent contractual arrangements. GIZ considers CF an IBM whose implementation requires a holistic view of the value chain and the framework conditions. This policy brief describes the GIZ methodology for ICF, shows the impacts and provides recommendations for further support of ICF in agricultural technical cooperation.
