Contract Farming Resource Centre

Contract Farming rationale for small-scale farmers and agri-business

Organization CIRAD & University of Pretoria
Year 2012

Contract farming allows the sharing of production and marketing risks between farmers and agribusinesses. It therefore has the potential to benefit both stakeholders in several ways. However, contract farming can have several disadvantages for farmers and business too, especially in developing country contexts where weak government, policy and governance frameworks lead to contractual enforcement issues. This policy brief presents the advantages and disadvantages for the different actors engaged.