Contract Farming Resource Centre

Contract farming in Indonesia: Smallholders and agribusiness working together

Organization University of New England, Australia
Year 2003

This study by ACIAR examines the experiences of agribusiness firms and smallholders in Indonesia participating in contract farming arrangements. It provides an introduction to background, theory and practice of contract farming and then presents two in-depth case studies of contract farming in Bali and Lombok. The study finds that there are a range of contractual types that can be mutually beneficial to both smallholders and agribusiness in Indonesia. It also highlights key factors that need to be considered to ensure contract farming benefits all participants involved.