IDEAS home Printed from https://ideas.repec.org/a/rnd/arjebs/v14y2022i3p1-10.html
   My bibliography  Save this article

Perceptions of Small-Scale Farmers on Tobacco Contract Farming: The Case of Marondera Rural District, Zimbabwe

Author

Listed:
  • Freddy Ruzhani
  • Mushunje Abbyssinia

Abstract

Small-scale farmers’ perceptions of tobacco contract farming schemes in the Marondera rural district of Zimbabwe were critically assessed in this paper. The multi-stage sampling design was used to select five wards with the highest number of tobacco contracted farmers from where 60 contract and 60 non-contract tobacco farmers were randomly selected. A 5-point Likert scale was used to rank farmers’ perceptions. The paper established that small-scale farmers in Marondera rural district strongly believe contract farming makes it possible for the majority of farmers to venture into the production of high-value crops as it provides access to the much-needed markets while reducing the risk of price fluctuations. However, the majority of the respondents believed that contract farming is not profitable and there is a manipulation of farmers in contract farming arrangements. The independent samples t-test indicated a significant difference in perception score between participants and non-participants of tobacco contract farming schemes (p<0.05). The farmers who were not participating in tobacco contract farming schemes had a more positive perception of these schemes while those who participated had a more negative perception. The major implication is that gains associated with tobacco contract arrangements are not always apparent to farmers while the disincentives may be more visible. It is therefore fundamental that contract companies address some of the shortcomings existing in these contractual arrangements as well as change the perception of the farmers to develop mutually beneficial lasting relationships with their major stakeholders.

Suggested Citation

  • Freddy Ruzhani & Mushunje Abbyssinia, 2022. "Perceptions of Small-Scale Farmers on Tobacco Contract Farming: The Case of Marondera Rural District, Zimbabwe," Journal of Economics and Behavioral Studies, AMH International, vol. 14(3), pages 1-10.
  • Handle: RePEc:rnd:arjebs:v:14:y:2022:i:3:p:1-10
    DOI: 10.22610/jebs.v14i3(J).3303
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/3303/2116
    Download Restriction: no

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/3303
    Download Restriction: no

    File URL: https://libkey.io/10.22610/jebs.v14i3(J).3303?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2009. "Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China," World Development, Elsevier, vol. 37(11), pages 1781-1790, November.
    2. Akinwumi A. Adesina & Jojo Baidu‐Forson, 1995. "Farmers' perceptions and adoption of new agricultural technology: evidence from analysis in Burkina Faso and Guinea, West Africa," Agricultural Economics, International Association of Agricultural Economists, vol. 13(1), pages 1-9, October.
    3. Kumar, A & Roy, D & Joshi, PK & Tripathi, G & Adhikari, R, 2019. "Impact of contract farming of paddy seed on smallholder farm profits: evidence from Nepal," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 32(1).
    4. Johann Kirsten & Kurt Sartorius, 2002. "Linking agribusiness and small-scale farmers in developing countries: Is there a new role for contract farming?," Development Southern Africa, Taylor & Francis Journals, vol. 19(4), pages 503-529.
    5. Glover, David J., 1987. "Increasing the benefits to smallholders from contract farming: Problems for farmers' organizations and policy makers," World Development, Elsevier, vol. 15(4), pages 441-448, April.
    6. Minot, Nicholas, 1986. "Contract Farming and Its Effect on Small Farmers in Less Developed Countries," Food Security International Development Working Papers 54740, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Adams, Timothy & Gerber, Jean-David & Amacker, Michèle, 2019. "Constraints and opportunities in gender relations: Sugarcane outgrower schemes in Malawi," World Development, Elsevier, vol. 122(C), pages 282-294.
    8. Key, Nigel & Runsten, David, 1999. "Contract Farming, Smallholders, and Rural Development in Latin America: The Organization of Agroprocessing Firms and the Scale of Outgrower Production," World Development, Elsevier, vol. 27(2), pages 381-401, February.
    9. Kumar, Jagdish & Kumar K., Prakash, 2008. "Contract Farming: Problems, Prospects and its Effect on Income and Employment," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 21(2).
    10. Adesina, Akinwumi A. & Baidu-Forson, Jojo, 1995. "Farmers' perceptions and adoption of new agricultural technology: evidence from analysis in Burkina Faso and Guinea, West Africa," Agricultural Economics, Blackwell, vol. 13(1), pages 1-9, October.
    11. Judith Carney, 1998. "Women‘s land rights in Gambian irrigated rice schemes: Constraints and opportunities," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 15(4), pages 325-336, December.
    12. Narayanan, Sudha, 2014. "Profits from participation in high value agriculture: Evidence of heterogeneous benefits in contract farming schemes in Southern India," Food Policy, Elsevier, vol. 44(C), pages 142-157.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nguyen Hung Anh & Wolfgang Bokelmann & Ngo Thi Thuan & Do Thi Nga & Nguyen Van Minh, 2019. "Smallholders’ Preferences for Different Contract Farming Models: Empirical Evidence from Sustainable Certified Coffee Production in Vietnam," Sustainability, MDPI, vol. 11(14), pages 1-26, July.
    2. Ragasa, Catherine & Lambrecht, Isabel & Kufoalor, Doreen S., 2018. "Limitations of Contract Farming as a Pro-poor Strategy: The Case of Maize Outgrower Schemes in Upper West Ghana," World Development, Elsevier, vol. 102(C), pages 30-56.
    3. Thomas Kopp & Ashok K. Mishra, 2022. "Perishability and market power in Nepalese food crop production," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 518-540, June.
    4. Felicetta Carillo & Francesco Caracciolo & Luigi Cembalo, 2017. "Do durum wheat producers benefit of vertical coordination?," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-13, December.
    5. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.
    6. Sokchea, An & Culas, Richard J., 2015. "Impact of Contract Farming with Farmer Organizations on Farmers’ Income: A Case Study of Reasmey Stung Sen Agricultural Development Cooperative in Cambodia," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 23, March.
    7. Kozhaya, Rodrique, 2020. "A systematic review of contract farming and it's impacts on broiler producers in Lebanon," MPRA Paper 99369, University Library of Munich, Germany.
    8. Freguin-Gresh, Sandrine & Anseeuw, Ward & D'Haese, Marijke F.C., 2012. "Demythifying Contract Farming: Evidence from Rural South Africa," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126567, International Association of Agricultural Economists.
    9. Ashok K. Mishra & Anjani Kumar & Pramod K. Joshi & Alwin D'Souza, 2018. "Cooperatives, contract farming, and farm size: The case of tomato producers in Nepal," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 865-886, October.
    10. Viet Hoang & Vinh Nguyen, 2023. "Determinants of small farmers' participation in contract farming in developing countries: A study in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 836-853, July.
    11. Maertens, Miet & Vande Velde, Katrien, 2017. "Contract-farming in Staple Food Chains: The Case of Rice in Benin," World Development, Elsevier, vol. 95(C), pages 73-87.
    12. repec:oup:apecpp:v:40:y:2018:i:3:p:353-378. is not listed on IDEAS
    13. Minot, Nicholas & Sawyer, Bradley, 2016. "Contract farming in developing countries: Theory, practice, and policy implications," IFPRI book chapters, in: Devaux, André & Torero, Maximo & Donovan, Jason & Horton, Douglas E. (ed.), Innovation for inclusive value-chain development: Successes and challenges, chapter 4, pages 127-158, International Food Policy Research Institute (IFPRI).
    14. Khan, Muhammad Fawad & Nakano, Yuko & Kurosaki, Takashi, 2019. "Impact of contract farming on land productivity and income of maize and potato growers in Pakistan," Food Policy, Elsevier, vol. 85(C), pages 28-39.
    15. Abebe, Gumataw K. & Bijman, Jos & Kemp, Ron & Omta, Onno & Tsegaye, Admasu, 2013. "Contract farming configuration: Smallholders’ preferences for contract design attributes," Food Policy, Elsevier, vol. 40(C), pages 14-24.
    16. Nhan, Tran Quoc & Gillette, Raulston & Yutaka, Tomoyuki & Can, Nguyen Duy, 2020. "Impact of Outgrower Scheme on Yield,Output Price,and Income: A Rice-Farm-Level Study in the Mekong Delta,Vietnam," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 61(1), pages 1-19, June.
    17. Mengistu Assefa Wendimu & Arne Henningsen & Tomasz Gerard Czekaj, 2017. "Incentives and moral hazard: plot level productivity of factory-operated and outgrower-operated sugarcane production in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 48(5), pages 549-560, September.
    18. Harshana PVS, 2019. "Analysis of Satisfaction of Small Cucumber Contract Famers in Predominantly Agriculture areas in Sri Lanka," Annals of Social Sciences & Management studies, Juniper Publishers Inc., vol. 2(4), pages 92-99, January.
    19. Hope C. Michelson, 2013. "Small Farmers, NGOs, and a Walmart World: Welfare Effects of Supermarkets Operating in Nicaragua," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(3), pages 628-649.
    20. Songsermsawas, Tisorn & Baylis, Kathy & Chhatre, Ashwini & Michelson, Hope & Prasanna, Satya, 2015. "Friends or traders? Do social networks explain the use of market mechanisms by farmers in India," 2015 Conference, August 9-14, 2015, Milan, Italy 211206, International Association of Agricultural Economists.
    21. Delelegne A. Tefera & Jos Bijman, 2021. "Economics of contracts in African food systems: evidence from the malt barley sector in Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arjebs:v:14:y:2022:i:3:p:1-10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/jebs .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.