Contract Farming in Developed and Developing Countries

Keijiro Otsuka (), Yuko Nakano and Kazushi Takahashi

Annual Review of Resource Economics, 2016, vol. 8, issue 1, 353-376

Abstract: Contract farming (CF) has long been practiced but is becoming increasingly common in both developed and developing countries with the heightened interest of consumers in food safety and quality. Under CF, farmers and buyers make advance agreements on volume, quality, time of delivery, use of inputs, and price or pricing formula. This article critically reviews the literature on CF to assess how it contributes to improving production efficiency and income of farmers in general and of small-scale farmers in particular. Although our review focuses on literature in developing countries because of its predominance, we refer to literature in developed countries (primarily the United States) to gain a deeper understanding of the impacts of CF. We find that although CF contributes to the improvement of farmers' income by introducing new crops and production methods, there is room for strengthening its effects on poverty reduction through policy.

Keywords: agricultural modernization; production contract; marketing contract; high-value products; small-scale farmers; producer cooperatives (search for similar items in EconPapers)
JEL-codes: O33 Q12 Q13 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (90)

Downloads: (external link)
http://www.annualreviews.org/doi/10.1146/annurev-resource-100815-095459 (application/pdf)
Full text downloads are only available to subscribers. Visit the abstract page for more information.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:anr:reseco:v:8:y:2016:p:353-376

Ordering information: This journal article can be ordered from
http://www.annualreviews.org/action/ecommerce

Access Statistics for this article

More articles in Annual Review of Resource Economics from Annual Reviews Annual Reviews 4139 El Camino Way Palo Alto, CA 94306, USA.
Bibliographic data for series maintained by http://www.annualreviews.org ().