Effect of organic contract farming on labor demand. A study case in the Western Uganda
In order to fully evaluate the impacts of organic contract farming scheme, spillovers on the local community, including people that do not directly participate in such scheme, need to be evaluated. One of these spillovers is the creation of employment opportunities and this is the focus of this study. An increase in labor demand may limit conversion to organic farming in country where labor supply is scarce. However, in a country like Uganda where rural poor are often underemployed and have no - or too little - land to meet their own needs, job creation is a positive and crucial contribution for poverty alleviation. This empirical analysis provides support for the main hypothesis that is tested: organic contract farming scheme increases farm labor demand. Yet, results suggest this does not come from more labor intensive organic farm practices but mainly comes from higher price and product quality that are associated with the participation in this organic contract farming arrangement.
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