Contract farming or contract agriculture is a practice by which agro-industrial processors, exporters, domestic suppliers to supermarkets and other interested actors contract primary production with producers. The practice has grown in variety around the world, for many products, in developed and developing countries. Although generally recognized as beneficial to agricultural producers, processors and exporters, there are arguments in favor of its limitations. The conclusions here provided where reached on the basis of a study in one country. The factors that have encouraged agro-industries, distributors and exporters to engage in contract farming in Costa Rica can be grouped in three major areas: a) Interest of the contractors to guarantee supply of the products under specific quality standards required by mass distribution systems or by importers; b) avoiding problems related to administration of farms and particularly managing of personnel; and c) distribution of risks that could be derived by high concentration of production. The general stimulus was provided by market opportunities, domestically (with the growth of supermarkets) and abroad
