Better access to markets is key to improving livelihoods for many small-scale
farmers in developing countries. Recently, contract farming has been presented as an
optimal solution, benefiting firms as buyers, small-scale farmers as suppliers and
Governments. This report identifies the issues raised by the expansion of contract
farming and notes seven areas in which Governments and firms could ensure that it
results in pro-poor outcomes and contributes to the full realization of the right to
food. Contract farming rarely encourages farmers to climb up the value chain and
move into the packaging, processing or marketing of their produce. The report
therefore also examines other business models that could be more inclusive, such as
farmer-controlled enterprises, joint ventures or direct-to-consumer food marketing
practices by farmers. It is vital to ensure a diversity of outlets for the produce of
small-scale farmers to strengthen their position in the food chain, which contributes
to the realization of the right to food in rural communities and rural development in
general.
