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The Effects of Contract Farming on Diets and Nutrition in Ghana

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  • Debela, Bethelhem Legesse
  • Ruml, Anette
  • Qaim, Matin

Abstract

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.
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  • Debela, Bethelhem Legesse & Ruml, Anette & Qaim, Matin, 2021. "The Effects of Contract Farming on Diets and Nutrition in Ghana," 2021 Conference, August 17-31, 2021, Virtual 315186, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae21:315186
    DOI: 10.22004/ag.econ.315186
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    1. Melaku, Astewale Bimr & Qaim, Matin & Debela, Bethelhem Legesse, 2024. "Maternal employment in high-value agriculture and child nutrition: Evidence from the Ethiopian cut-flower industry," Food Policy, Elsevier, vol. 128(C).
    2. Wanglin Ma & Puneet Vatsa & Hongyun Zheng & Yanzhi Guo, 2022. "Does online food shopping boost dietary diversity? Application of an endogenous switching model with a count outcome variable," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-19, December.
    3. Ayeduvor Selorm & D. B. S. Sarpong & Irene S. Egyir & Akwasi Mensah Bonsu & Henry An, 2023. "Does contract farming affect technical efficiency? Evidence from soybean farmers in Northern Ghana," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-22, December.
    4. repec:ags:aaea22:335848 is not listed on IDEAS
    5. Wanglin Ma & Awal Abdul‐Rahaman & Gazali Issahaku, 2023. "Welfare implications of participating in agri‐value chains among vegetable farmers in Northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 793-811, July.
    6. Hill, Daniel & Gregg, Daniel & Baker, Derek, 2025. "Trading off inclusion, value, and scale within smallholder targeted value chains," World Development, Elsevier, vol. 191(C).

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