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Contract Farming in China: Perspectives of Farm Households and Agribusiness Firms

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  • Hongdong Guo

    () (Center for Agricultural and Rural Development, Zhejiang University, Hangzhou, Zhejiang Province 310029, P.R. China.)

  • Robert W Jolly

    () (Center for Agricultural and Rural Development, Zhejiang University, Hangzhou, Zhejiang Province 310029, P.R. China.)

  • Jianhua Zhu

Abstract

Contract farming in China has grown rapidly over the past 10 years. This paper examines the evolution of contract farming, and explores the incentives to engage in contract farming, preferred contract forms and contract performance from the perspective of both Chinese farmers and contracting firms. Firm and household perceptions of contracting are assessed using data obtained from village- and firm-level surveys. Farmers identify price stability and market access as the key advantages to contracts, while firms consider improved product quality as the primary incentive to use contracts. Comparative Economic Studies (2007) 49, 285–312. doi:10.1057/palgrave.ces.8100202

Suggested Citation

  • Hongdong Guo & Robert W Jolly & Jianhua Zhu, 2007. "Contract Farming in China: Perspectives of Farm Households and Agribusiness Firms," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 49(2), pages 285-312, June.
  • Handle: RePEc:pal:compes:v:49:y:2007:i:2:p:285-312
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    Cited by:

    1. Hrabrin I. BACHEV, 2016. "Unpacking Agrarian and Agri-business Contracts," Journal of Economics Library, KSP Journals, vol. 3(3), pages 524-547, September.
    2. Jia, Xiangping & Hu, Yamei & Hendrikse, George & Huanga, Jikun, 2010. "Centralized versus individual: Governance of farmer professional cooperatives in China," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52699, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    3. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: The case of sweet pepper in Thailand," Food Policy, Elsevier, vol. 36(5), pages 667-677.
    4. Hrabrin BACHEV, 2010. "Framework For Analisis Of Agrarian Contracts," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 2(1), pages 39-66, March.
    5. Lorenzo Casaburi & Michael Kremer & Sendhil Mullainathan, 2014. "Contract Farming and Agricultural Productivity in Western Kenya," NBER Chapters,in: African Successes, Volume IV: Sustainable Growth, pages 137-160 National Bureau of Economic Research, Inc.
    6. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: the case of sweet pepper in Thailand," Discussion Papers 108349, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    7. JIA, Xiangping & HUANG, Jikun & XU, Zhigang, 2012. "Marketing of farmer professional cooperatives in the wave of transformed agrofood market in China," China Economic Review, Elsevier, vol. 23(3), pages 665-674.
    8. Waldron, Scott & Brown, Colin & Longworth, John, 2010. "A critique of high-value supply chains as a means of modernising agriculture in China: The case of the beef industry," Food Policy, Elsevier, vol. 35(5), pages 479-487, October.
    9. Henningsen, Arne & Mpeta, Daniel F. & Adem, Anwar S. & Kuzilwa, Joseph A. & Czekaj, Tomasz G., 2015. "The Effects of Contract Farming on Efficiency and Productivity of Small-Scare Sunflower Farmers in Tanzania," 2015 Conference, August 9-14, 2015, Milan, Italy 212478, International Association of Agricultural Economists.
    10. Henningsen, Arne & Mpeta, Daniel F. & Adem, Anwar S. & Kuzilwa, Joseph A. & Czekaj, Tomasz G., 2015. "A Meta-Frontier Approach for Causal Inference in Productivity Analysis: The Effect of Contract Farming on Sunflower Productivity in Tanzania," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 206200, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    11. Bachev, Hrabrin, 2010. "Study on Agrarian Contracts in Bulgaria," MPRA Paper 22946, University Library of Munich, Germany.
    12. Kunte, Sebastian & Wollni, Meike & Keser, Claudia, 2014. "Making it personal: breach and private ordering in a contract farming experiment," Discussion Papers 186136, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    13. Guo, Hongdong & Jolly, Robert W., 2008. "Contractual arrangements and enforcement in transition agriculture: Theory and evidence from China," Food Policy, Elsevier, vol. 33(6), pages 570-575, December.
    14. Sultan, Tursinbek & Wolz, Axel, 2012. "Agricultural Cooperative Development in China and Vietnam since Decollectivization: A Multi-Stakeholder Approach," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 40(2).
    15. Waldron, Scott A. & Brown, Colin G. & Longworth, John W., 2009. "China’s Agricultural Modernisation Program: an assessment of its sustainability and impacts in the case of the high-value beef chain," 2009 Conference, August 16-22, 2009, Beijing, China 50784, International Association of Agricultural Economists.

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