Contract Farming Resource Centre

Contract farming handbook: a practical guide for linking small-scale producers and buyers through business model innovation, Volume I – Manual

Organization Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Year 2013

This guide has been developed to serve practitioners involved in starting up and managing or supporting the initiation and implementation of contract farming schemes: companies (buyers) interested to develop networks of small-scale farmers as competent and reliable preferred suppliers; farmers’ organisations (farmer groups, associations, cooperatives) interested to service members (e.g. joint learning and possibly joint contract negotiation, input distribution, collection, marketing); sector organisations like national inter-professional bodies or regional federations interested to develop trade and exchange platforms or codes of conduct for contract farming; and third parties (governmental, non-governmental and development organisations or consultants) interested to promote CF as innovative business arrangement in a broader development context. The handbook provides: the conceptual foundations of contract farming and its facilitation as basis for understanding the proposed phases and steps for contract farming development;a process-structure for CF development with three phases (initiate & plan, implement & learn, sustain & grow) and eight steps; a systematic description of the three phases and respective steps in a clearly structured and easy-to-capture format; speci4c guidance on selected key features of contract farming (e.g. contract terms, pricing mechanisms, causes of con_ict and con_ict resolution); and for each phase and step, references for literature on the subject. This publication is downloadable from GIZ publication database.