Organization Pro-Poor Livestock Policy Initiative (PPLPI), Food and Agriculture Organization of the U.N., Animal Production and Health Division, Viale delle Terme di Caracalla, Rome, Italy

Year 2008

In the case studies on contract farming in livestock in the selected developing countries of India, Thailand, Vietnam, and the Philippines, the products engaged in were dairy, poultry and pigs. Contracts were either formal (written) or informal. Formal contracts, in terms of their specific provisions, were of two types: (i) fixed-fee or wage contracts, and (ii) forward-price or profit-sharing contracts. Most fixed-fee or wage contracts had the properties of a ‘resource-providing’ contract, with also some features of a ‘management-providing’ contract, with intensive supervision of the production processes at the farm by the integrator company. Forward-price and profit-sharing contracts have closer relations to a ‘market-specification’ contract, but with certain features of a ‘management-providing’ contract from the receipt of the farmer of livestock services from the integrator.