Part of the constraints facing contract farming are the lack of proper procedures for measuring quality in production. If the buyer handles quality assurance then they may have an incentive to report that production was of lower quality in order to offer a lower price.
06 May 2014 01:05 pm
Quality standards are increasingly important for farmers to be able to export in high-value markets. Two case studies illustrate both the risks and the potential benefits for farmers related to meeting export standards.
15 May 2014 08:05 am
Information and communication technologies (ICT's) can help effectively facilitate smallholder integration in agricultural value chains. Many farmers join supply chains as a response to market failures in insurance, financial inputs, and information.
22 May 2014 03:05 pm
Producer penalties and bonuses can help reduce the incidence of side-selling and better align farmers' incentives with purchasers'. Bonuses can help ensure that farmers take the necessary measurements to produce the quality charachteristics often present in contract farming arrangements.
19 May 2014 02:05 pm
Providing credit to a group of farmers lessens transaction costs associated with contracting with each individual. Moreover, peer effects allow the group to screen out un-creditworthy farmers.