Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries

17 Pages Posted: 10 Jul 2015 Last revised: 21 Jul 2015

See all articles by Christopher B. Barrett

Christopher B. Barrett

Cornell University - Charles H. Dyson School of Applied Economics & Management

Maren E. Bachke

Independent

Marc F. Bellemare

University of Minnesota - Twin Cities - Department of Applied Economics

Hope C. Michelson

Columbia University - Columbia Earth Institute

Sudha Narayanan

Indira Gandhi Institute of Development Research (IGIDR); International Food Policy Research Institute

Thomas F. Walker

World Bank; Cornell University

Date Written: April 1, 2012

Abstract

Supermarkets, specialized wholesalers, processors, and agro-exporters are transforming the marketing channels into which smallholder farmers sell produce in low-income economies. We develop a conceptual framework with which to study contracting between smallholders and a commodity-processing firm. We then synthesize results from empirical studies of contract farming arrangements in five countries (Ghana, India, Madagascar, Mozambique, and Nicaragua). The resulting meta-narrative documents patterns of participation, the welfare gains associated with participation, reasons for nonparticipation, the significant extent of contract noncompliance, and the considerable dynamism of these value chains as farmers and firms enter and exit frequently.

Keywords: agricultural value chains, contract farming, Africa, Asia, Latin America

Suggested Citation

Barrett, Christopher B. and Bachke, Maren E. and Bellemare, Marc F. and Michelson, Hope C. and Narayanan, Sudha and Walker, Thomas F. and Walker, Thomas F., Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries (April 1, 2012). World Development Vol. 40, No. 4, pp. 715–730, 2012, Available at SSRN: https://ssrn.com/abstract=2628762

Christopher B. Barrett (Contact Author)

Cornell University - Charles H. Dyson School of Applied Economics & Management ( email )

315 Warren Hall
Ithaca, NY 14853-7801
United States
607-255-4489 (Phone)
607-255-9984 (Fax)

HOME PAGE: http://aem.cornell.edu/faculty_sites/cbb2/

Maren E. Bachke

Independent ( email )

Marc F. Bellemare

University of Minnesota - Twin Cities - Department of Applied Economics ( email )

MN
United States

Hope C. Michelson

Columbia University - Columbia Earth Institute ( email )

314 Low Library
535 West 116th Street, MC 4327
New York, NY 10027
United States

Sudha Narayanan

Indira Gandhi Institute of Development Research (IGIDR) ( email )

Gen A.K. Vaidya Marg Santoshnagar
Goregaon (East)
Mumbai, Maharashtra 400065
India

International Food Policy Research Institute ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

HOME PAGE: http://https://www.ifpri.org/profile/sudha-narayanan

Thomas F. Walker

Cornell University ( email )

Department of Economics
414 Uris Hall
Ithaca, NY 14853-7601
United States

HOME PAGE: http://sites.google.com/a/cornell.edu/thomaswalker/

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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