The effects of contract farming on diets and nutrition in Ghana

Contract farming is becoming increasingly important in developing countries, to coordinate transactions along agricultural supply chains. In this paper, we examine the diet and nutrition implication of engaging in contract farming among smallholder farmers in Ghana. Previous studies have analyzed the effects of contract farming on farm production and household income. However, little is known about the effects of contract farming on household and individual nutrition. We know of no study that has analyzed the effects of contract farming on household and individual dietary diversity, as well as on anthropometric measures. Our study further contributes to the existing literature by investigating differences in effects across different types of contracts, which has largely been neglected. Results show that producing oil palm under contract has implications for household and individual nutrition. However, the effect depends on the type of contract. Resource-providing contracts lead to higher dietary diversity at the household level, as well as for female household members. Our findings also reveal that children in households with resource providing contracts have a higher height-for-age z-score (HAZ) and weight-for-age z-score (WAZ), suggesting positive long-term nutritional benefits for small children aged 2-6 years. The effects of marketing contracts are less clear. The results indicate positive effects on women’s dietary diversity and on the child’s weight-for-age z-score. Additionally, we find positive nutrition effects if the contracted farmer is female.