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Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries

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  • Barrett, Christopher B.
  • Bachke, Maren E.
  • Bellemare, Marc F.
  • Michelson, Hope C.
  • Narayanan, Sudha
  • Walker, Thomas F.

Abstract

Supermarkets, specialized wholesalers, processors, and agro-exporters are transforming the marketing channels into which smallholder farmers sell produce in low-income economies. We develop a conceptual framework with which to study contracting between smallholders and a commodity-processing firm. We then synthesize results from empirical studies of contract farming arrangements in five countries (Ghana, India, Madagascar, Mozambique, and Nicaragua). The resulting meta-narrative documents patterns of participation, the welfare gains associated with participation, reasons for nonparticipation, the significant extent of contract noncompliance, and the considerable dynamism of these value chains as farmers and firms enter and exit frequently.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 40 (2012)
Issue (Month): 4 ()
Pages: 715-730

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Handle: RePEc:eee:wdevel:v:40:y:2012:i:4:p:715-730

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: agricultural value chains; contract farming; Africa; Asia; Latin America;

References

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Citations

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Cited by:
  1. Linda Kleemann & Awudu Abdulai & Mareike Buss, 2013. "Is Organic Farming Worth its Investment? The Adoption and Impact of Certified Pineapple Farming in Ghana," Kiel Working Papers 1856, Kiel Institute for the World Economy.
  2. Michelson, Hope C., 2012. "Small farmers, NGOs, and a Walmart World: Welfare effects of supermarkets operating in Nicaragua," MPRA Paper 42458, University Library of Munich, Germany.
  3. Julie Subervie & Isabelle Vagneron, 2012. "Can fresh produce farmers benefit from global gap certification? The case of lychee producers in Madagascar," Working Papers 172039, Institut National de la Recherche Agronomique, France.
  4. Bellemare, Marc F., 2010. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," MPRA Paper 23638, University Library of Munich, Germany.
  5. Julie Subervie & Isabelle Vagneron, 2013. "A drop of water in the Indian ocean? The impact of GlobalGap certification on lychee farmers in Madagascar," Working Papers 189575, Institut National de la Recherche Agronomique, France.
  6. Patlolla, Sandhyarani & Goodhue, Rachael E. & Sexton, Richard J., 2014. "Managing quantity, quality, and timing in Indian cane sugar production : ex post marketing permits or ex ante production contracts ?," Policy Research Working Paper Series 6975, The World Bank.
  7. Lorenzo Casaburi & Michael Kremer & Sendhil Mullainathan, 2014. "Contract Farming and Agricultural Productivity in Western Kenya," NBER Chapters, in: African Successes: Sustainable Growth National Bureau of Economic Research, Inc.
  8. Abebe, Gumataw K. & Bijman, Jos & Kemp, Ron & Omta, Onno & Tsegaye, Admasu, 2013. "Contract farming configuration: Smallholders’ preferences for contract design attributes," Food Policy, Elsevier, Elsevier, vol. 40(C), pages 14-24.
  9. Hazell, Peter B.R., 2012. "Elmhirst Lecture, 27th International Conference of Agricultural Economists, Foz do Iguaçu, Brazil August 2012 : Options for African Agriculture in an Era of High Food and Energy Prices," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil, International Association of Agricultural Economists 127070, International Association of Agricultural Economists.
  10. Lemeilleur, Sylvaine, 2013. "Smallholder Compliance with Private Standard Certification: The Case of GlobalGAP Adoption by Mango Producers in Peru," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), International Food and Agribusiness Management Association (IAMA), vol. 16(4).
  11. Neda Trifković, 2013. "Governance Strategies and Welfare Effects: Vertical Integration and Contracts in the Catfish Sector in Vietnam," IFRO Working Paper 2013/20, University of Copenhagen, Department of Food and Resource Economics.
  12. Harou, Aurélie P. & Upton, Joanna B. & Lentz, Erin C. & Barrett, Christopher B. & Gómez, Miguel I., 2013. "Tradeoffs or Synergies? Assessing Local and Regional Food Aid Procurement through Case Studies in Burkina Faso and Guatemala," World Development, Elsevier, Elsevier, vol. 49(C), pages 44-57.
  13. Linda Kleemann, 2012. "Sustainable Agriculture and Food Security in Africa: An Overview," Kiel Working Papers 1812, Kiel Institute for the World Economy.

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