Contract Farming Resource Centre

Potential of contract farming as a mechanism for the commercialisation of smallholder agriculture. The Zimbabwe case study

Year 2003

Contract farming, has in one form or another, been practiced since time immemorial and is a common feature of commercializing agriculture in developing countries as well as in developed countries. Its pre-eminence in developing countries is attributed to a response in the trend towards coordination of agricultural production and processing by agribusiness companies, and what some refer to as the �supermarketisation� of food production. It is widely acknowledged that contract farming has considerable potential in countries where smallholder agriculture is widespread, and where agricultural processing and export enterprises are being promoted, as indeed, is the case in Zimbabwe and most countries in the southern African region. Little wonder that it has been receiving increasing attention as an institutional approach to commercialization of smallholder agriculture and private sector-led agricultural development