Contract Farming Resource Centre

The econometric analysis of tomato production with contracting in Turkey

Organization Ankara University, Department of Agricultural Economics
Year 2007

Turkey is the largest grower of processing tomatoes in the world after the US, Italy, China and Spain. Growing tomatoes for sauce is one of the two major uses of contract farming in Turkey and this activity involves arrangements between private sauce companies and farms. This practice is now wide spread since the 1970s, especially in the Marmara Region. Before the production season begins, sauce industry firms sign contracts with farms that guarantee the quality and quantity of their raw material and guarantee the growers sales at predetermined prices. In addition, plants served to farmers for more productivity by techniques such as drop irrigation and also their extension services and field demonstrations at this region. This research is based on interviews with 100 farms that growing tomatoes for sauce factories in Bursa province to determine relationships between plants and farms and factors affecting tomato cultivation land. At this research, farms were divided to two groups based on tomatoes cultivation land. It was found that plants had highly effective on tomatoes land by means of input and supports on finance to the farms with logarithmic models