[Author: Melese, A. T]
The paper provides an overview of contract farming by discussing CF business models and their potential advantages and disadvantages for both contracting parties (farmers and agribusinesses) as presented in the specialist literature. By referring to empirical literature, the paper also touches upon the question of whether smallholders are included in the practice of CF. Section III goes on to discuss contract specifications as one of the determining factors to ensure that CF business models are inclusive of and beneficial to smallholders. This is illustrated by three cases. The final section (IV) provides some concluding remarks and recommendations that stress the role of other actors (third parties) in rendering business models inclusive of and beneficial to smallholders. Suggestions for possible interventions by UNIDROIT are also discussed therein.
