Contract Farming Resource Centre

Inventory of Smallholder Contract Farming Practices in Zimbabwe

Organization SNV Netherlands Development Organisation
Year 2009

This report documents the experiences of twenty-five companies contracting smallholder farmers in Zimbabwe to produce cotton, tobacco, paprika, sugar cane, vegetables, sorghum and various seed and legume crops in a hyperinflationary environment. The only company contracting farmers to produce livestock processes ostriches for their meat and leather. The report presents information on organisation of contracted farmers, quota specification, extension service delivery, supply of logistical and input support, calculation of producer prices and requirements for input loan repayments.The report is concluded by listing the factors and ‘best practices’ that companies may want to consider before and after contracting smallholder farmers at a particular site. Adoption of some of the recommendations should strengthen ties between the two contracting parties. One of the main recommendations is that companies consider investing in a directed farming approach because most productivity and default related issues can be managed. It is hoped that the adoption of some of these recommendations will improve the success of contract farming in Zimbabwe for the benefit of both farmers and companies.