IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/1833.html
   My bibliography  Save this paper

Dairy contract farming in Bangladesh: Implications for welfare and food safety:

Author

Listed:
  • Islam, Abu Hayat Md. Saiful
  • Roy, Devesh
  • Kumar, Anjani
  • Tripathi, Gaurav
  • Joshi, Pramod Kumar

Abstract

Contract farming is emerging as an important institutional innovation in the high value food chain in developing countries including Bangladesh, and its socioeconomic implications are topic of interest in policy debates. This study is an empirical assessment to explore the determinants of participation and the impact of contract farming on welfare and adoption of food safety practice in Bangladesh. Our analysis indicates that contract farmers are more likely to have better access to agricultural extension services, attended proportionately more community meetings, households members are member of organizations, access more credit, are located farther from output market, and have larger herd sizes. We also find that network variables such as time spent with cooperatives and other institutions and price fluctuation and average prices received experience before participation in contract are strongly associated with participation in contract farming. We find that contract farming has a robust positive impact on welfare measured by expenditure, farm profit and farm productivity, and food safety practice adoption even after innovatively controlling for observed and unobserved heterogeneity among dairy farmers. More specifically results indicate that a one unit increase in the likelihood of participating in contract farming is associated with a 42, 35,34 and 9 percent increase in household expenditure, gross margin and net margin per cow, and food safety practice adoption rate respectively, among other positive impacts.

Suggested Citation

  • Islam, Abu Hayat Md. Saiful & Roy, Devesh & Kumar, Anjani & Tripathi, Gaurav & Joshi, Pramod Kumar, 2019. "Dairy contract farming in Bangladesh: Implications for welfare and food safety:," IFPRI discussion papers 1833, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1833
    as

    Download full text from publisher

    File URL: https://www.ifpri.org/cdmref/p15738coll2/id/133227/filename/133439.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    BANGLADESH; SOUTH ASIA; ASIA; contract farming; welfare; food safety; dairy farming; household expenditure; profit; agricultural productivity; regression analysis; treatment regression model; contract farmers; dairy farmers; farm profit; farm productivity; O33 Technological Change: Choices and Consequences; Diffusion Processes; Q12 Micro Analysis of Farm Firms; Farm Households; and Farm Input Markets; Q13 Agricultural Markets and Marketing; Cooperatives; Agribusiness; Q18 Agricultural Policy; Food Policy;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:fpr:ifprid:1833. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    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.

    We have no bibliographic references for this item. You can help adding them by using 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: (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.