Contract Farming Resource Centre

Contract farming: a case study of small scale sunflower farmers in Bojanala district of North West province

Organization University of South Africa
Year 2008

A study was conducted at the University of South Africa, Department of Agriculture, Animal Health and Human Ecology Pretoria during 2006-07. The objective was to investigate factors contributing to contract farming among small-scale sunflower farmers in Bojanala district of North West province using discriminate analysis technique. The results indicate that out of 49 sunflower farmers included in study, 24 (48.97%) had contract farming with buyers at the time of interview. The study further revealed that there were few contract farming business linkages between buyers and small sunflower suppliers in the area. Lack of quality sunflower seeds, entrepreneurial skills, and formal contract arrangements are the most important factors inhibiting contract farming in the area. It is recommended that access of farmers to support services, improved technologies, legal policies aimed to encourage contract farming and short-term training in business entrepreneurs be made available to small-scale sunflower farmers in the area to promote growth of micro and small enterprises.