LINKING AGRIBUSINESS AND SMALL-SCALE FARMERS IN DEVELOPING COUNTRIES: IS THERE A NEW ROLE FOR CONTRACT FARMING?

Johann Kirsten and Kurt Sartorius

No 18025, Working Papers from University of Pretoria, Department of Agricultural Economics, Extension and Rural Development

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.

Keywords: Agribusiness; Farm Management (search for similar items in EconPapers)
Pages: 26
Date: 2002
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Journal Article: Linking agribusiness and small-scale farmers in developing countries: Is there a new role for contract farming? (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:upaewp:18025

DOI: 10.22004/ag.econ.18025

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