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Linking agribusiness and small-scale farmers in developing countries: Is there a new role for contract farming?

Author

Listed:
  • Johann Kirsten
  • Kurt Sartorius
Abstract
This article examines a new role for contract farming in developing countries in the light of the industrialisation of agriculture and the globalisation 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.

Suggested Citation

  • Johann Kirsten & Kurt Sartorius, 2002. "Linking agribusiness and small-scale farmers in developing countries: Is there a new role for contract farming?," Development Southern Africa, Taylor & Francis Journals, vol. 19(4), pages 503-529.
    • Handle: RePEc:taf:deveza:v:19:y:2002:i:4:p:503-529
    DOI: 10.1080/0376835022000019428
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    References listed on IDEAS

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    1. Martin, Laura L., 1999. "Navigating Production Contract Arrangements," Staff Paper Series 11591, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Binswanger, Hans P. & Deininger, Klaus & Feder, Gershon, 1995. "Power, distortions, revolt and reform in agricultural land relations," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 42, pages 2659-2772, Elsevier.
    3. Fafchamps, Marcel & Minten, Bart, 2001. "Property Rights in a Flea Market Economy," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 229-67, January.
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