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Linking Agribusiness And Small-Scale Farmers In Developing Countries: Is There A New Role For Contract Farming?

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  • Kirsten, Johann F.
  • Sartorius, Kurt

Abstract

This article examines a new role for contract farming in developing countries in the light of the industrialization of agriculture and the globalization of world markets. A theoretical rationale for contracting in developing countries is developed on the basis of adopting new institutional economic theory for the purpose of matching governance forms to market failure problems and transaction characteristics. The history of contract farming is reviewed, together with the advantages and disadvantages to the various players, for the purpose of developing a list of key success factors, problems and some possible solutions.

Suggested Citation

  • Kirsten, Johann F. & Sartorius, Kurt, 2002. "Linking Agribusiness And Small-Scale Farmers In Developing Countries: Is There A New Role For Contract Farming?," Working Papers 18025, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
  • Handle: RePEc:ags:upaewp:18025
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    File URL: http://purl.umn.edu/18025
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    References listed on IDEAS

    as
    1. Fafchamps, Marcel & Minten, Bart, 2001. "Property Rights in a Flea Market Economy," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 229-267, January.
    2. Martin, Laura L., 1999. "Navigating Production Contract Arrangements," Staff Papers 11591, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Fafchamps, Marcel & Minten, Bart, 2001. "Property Rights in a Flea Market Economy," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 229-67, January.
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    Keywords

    Agribusiness; Farm Management;

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