Contract Farming Resource Centre

Contracts and contract farming as potential mechanisms to improve market access for black farmers in South Africa

Organization School of Accountancy, University of the Witwatersrand, Johannesburg
Year 2006

The objective of this report is to demonstrate how the South African agribusiness sector can contribute to the transformation of the commercial farm sector by expanding the volume of procured from black farmers through various forms of contracting. The report illustrates a potential ‘win-win’ situation for government, agribusiness, and the agricultural input manufacturers. It also shows how limited government resources can be optimally leveraged by putting the onus on individual agribusiness companies to invest in, and procure from, black farmers and thereby suggesting appropriate government policy and programmes to make this happen.