IDEAS home Printed from https://ideas.repec.org/p/fpr/ifprid/2027.html

Contract farming, profitability, and adoption of food safety measures in broiler production in Bangladesh

Author

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

Abstract

This study, based on a primary survey conducted in Bangladesh in 2016, assesses the impact of contract farming in broiler production on profits and the adoption of food safety measures at the farm level. It also estimates the determinants for participation in contract farming, finding a farmer’s education and broiler-housing structure to be significant determinants. This study uniquely assesses the association of contract farming with the provision of well-defined food safety attributes. It finds that contract participation enhances farmers’ net returns by as much as 215–280% and raises compliance with food safety measures by around 13%. Increased productivity and provision of non-price attributes such as food safety in the product account for the difference in farmer returns.

Suggested Citation

  • Roy, Devesh & Tripathi, Gaurav & Islam, Abu Hayat Md. Saiful & Kumar, Anjani, 2021. "Contract farming, profitability, and adoption of food safety measures in broiler production in Bangladesh," IFPRI discussion papers 2027, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:2027
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/10568/143447
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Arthur Lewbel, 2012. "Using Heteroscedasticity to Identify and Estimate Mismeasured and Endogenous Regressor Models," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(1), pages 67-80.
    2. Key, Nigel & Runsten, David, 1999. "Contract Farming, Smallholders, and Rural Development in Latin America: The Organization of Agroprocessing Firms and the Scale of Outgrower Production," World Development, Elsevier, vol. 27(2), pages 381-401, February.
    3. Birthal, Pratap Singh & Joshi, Pramod Kumar & Gulati, Ashok, 2005. "Vertical coordination in high-value commodities: implications for smallholders," MTID discussion papers 85, International Food Policy Research Institute (IFPRI).
    4. Kalamkar, Shrikant S., 2012. "Inputs and Services Delivery System under Contract Farming: A Case of Broiler Farming," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(Conferenc).
    5. Birthal, Pratap Singh & Joshi, P.K. & Gulati, Ashok, 2005. "Vertical coordination in high-value commodities: Implications for Smallholders," MTID Discussion Papers 59824, CGIAR, International Food Policy Research Institute (IFPRI).
    6. repec:oup:apecpp:v:40:y:2018:i:3:p:353-378. is not listed on IDEAS
    7. Ani L. Katchova & Mario J. Miranda, 2004. "Two‐Step Econometric Estimation of Farm Characteristics Affecting Marketing Contract Decisions," American Journal of Agricultural Economics, John Wiley & Sons, vol. 86(1), pages 88-102, February.
    8. M. Shahe Emran & Forhad Shilpi, 2012. "The extent of the market and stages of agricultural specialization," Canadian Journal of Economics, Canadian Economics Association, vol. 45(3), pages 1125-1153, August.
    9. Warning, Matthew & Key, Nigel, 2002. "The Social Performance and Distributional Consequences of Contract Farming: An Equilibrium Analysis of the Arachide de Bouche Program in Senegal," World Development, Elsevier, vol. 30(2), pages 255-263, February.
    10. Arumugam, Nalini & Arshad, Fatimah Mohamed & Chiew, Fook C. Eddie & Mohamed, Zainalabidin, 2011. "Determinants of Fresh Fruits and Vegetables (FFV) Farmers’ Participation in Contract Farming in Peninsular Malaysia," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 1(2), pages 1-7, June.
    11. Goldsmith, Arthur, 1985. "The private sector and rural development: Can agribusiness help the small farmer?," World Development, Elsevier, vol. 13(10-11), pages 1125-1138.
    12. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    13. Narrod, Clare & Roy, Devesh & Okello, Julius & Avendaño, Belem & Rich, Karl & Thorat, Amit, 2009. "Public-private partnerships and collective action in high value fruit and vegetable supply chains," Food Policy, Elsevier, vol. 34(1), pages 8-15, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kumar, Anjani & Roy, Devesh & Trapathi, Gaurav & Joshi, Pramod Kumar & Adhikari, Rajendra Prasad, 2016. "Can contract farming increase farmers’ income and enhance adoption of food safety practices? Evidence from remote areas of Nepal," IFPRI discussion papers 1524, International Food Policy Research Institute (IFPRI).
    2. Tripathi, G. & Kumar, A. & Roy, D. & Joshi, P., 2018. "Profits from participation in contract farming: Evidence from cultivators of onion, okra and pomegranate in Maharashtra, India," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277106, International Association of Agricultural Economists.
    3. Kumar, Anjani & Roy, Devesh & Joshi, Pramod K. & Tripathi, Gaurav & Adhikari, Rajendra P., "undated". "Impact of Contract Farming on Profits and Yield of Smallholder Farms in Nepal: An Evidence from Lentil Cultivation," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235848, Agricultural and Applied Economics Association.
    4. Anjani Kumar & Devesh Roy & Gaurav Tripathi, 2016. "Contracting by Small Farmers in Commodities with Export Potential: Assessing Farm Profits of Lentil Growers in Nepal," Working Papers id:10899, eSocialSciences.
    5. Kumar, Anjani & Mishra, Ashok K. & Saroj, Sunil & Joshi, P.K., 2019. "Impact of traditional versus modern dairy value chains on food security: Evidence from India’s dairy sector," Food Policy, Elsevier, vol. 83(C), pages 260-270.
    6. Mishra, Ashok K. & Mayorga, Joaquin & Kumar, Anjani, 2021. "Technology and Managerial Gaps in Contract Farming:The Case of Specialty Crop Production," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(01), January.
    7. Rebecca N. L. Kiwanuka & Charles Machethe, 2016. "Determinants of Smallholder Farmers’ Participation in Zambian Dairy Sector’s Interlocked Contractual Arrangements," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 9(2), pages 230-230, January.
    8. Li, Xiaokang & Guo, Hongdong & Li, Lin, 2016. "Contract Farming in China: Perspectives of Smallholders in Vegetable Production," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235573, Agricultural and Applied Economics Association.
    9. Valentinov, Vladislav & Imami, Drini & Xhoxhi, Orjon, 2024. "Contract farming in transitional economies: A stakeholder theory perspective," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27(4), pages 633-649.
    10. Yuanyuan Peng & H. Holly Wang & Yueshu Zhou, 2022. "Can cooperatives help commercial farms to access credit in China? Evidence from Jiangsu Province," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(4), pages 325-349, December.
    11. Thomas Kopp & Ashok K. Mishra, 2022. "Perishability and market power in Nepalese food crop production," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 518-540, June.
    12. repec:oup:apecpp:v:40:y:2018:i:3:p:353-378. is not listed on IDEAS
    13. Minot, Nicholas & Sawyer, Bradley, 2016. "Contract farming in developing countries: Theory, practice, and policy implications," IFPRI book chapters, in: Devaux, André; Donovan, Jason; Horton, Douglas E.; Torero, Maximo (ed.), Innovation for inclusive value-chain development: Successes and challenges, chapter 4, pages 127-158, International Food Policy Research Institute (IFPRI).
    14. Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2009. "Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China," World Development, Elsevier, vol. 37(11), pages 1781-1790, November.
    15. Ragasa, Catherine & Lambrecht, Isabel & Kufoalor, Doreen S., 2018. "Limitations of Contract Farming as a Pro-poor Strategy: The Case of Maize Outgrower Schemes in Upper West Ghana," World Development, Elsevier, vol. 102(C), pages 30-56.
    16. Swinnen Johan & Vandeplas Anneleen, 2012. "Rich Consumers and Poor Producers: Quality and Rent Distribution in Global Value Chains," Journal of Globalization and Development, De Gruyter, vol. 2(2), pages 1-30, January.
    17. Jan Falkowski & Pavel Ciaian, 2016. "Factors Supporting the Development of Producer Organizations and their Impacts in the Light of Ongoing Changes in Food Supply Chains: A Literature Review," JRC Research Reports JRC101617, Joint Research Centre.
    18. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.
    19. Benfica, Rui M.S., 2007. "Interlinked Transactions in Cash Cropping Economies: Rationale for Persistence, and the Determinants of Farmer Participation and Performance in the Zambezi Valley of Mozambique," Food Security Collaborative Working Papers 56069, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    20. Vishnu, Kedar & Parmod, Kumar & Neharkar, Pratibha, 2021. "Transaction Costs, Institutional Arrangements and Smallholders Participation: Tomato Marketing By Small Producers in India," 2021 Conference, August 17-31, 2021, Virtual 315151, International Association of Agricultural Economists.
    21. Birthal, Pratap Singh & Jha, Awadhesh K. & Tiongco, Marites & Narrod, Clare, 2008. "Improving farm-to-market linkages through contract farming: A case study of smallholder dairying in India," IFPRI discussion papers 814, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    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:2027. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: the person in charge (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. RePEc uses bibliographic data supplied by the respective publishers.