Contract farming involves a pre-agreed price between the company and the farmer. The agreement is defined by the commitment of the farmer to provide an agricultural commodity of a certain type at a time and a price and the quantity required by a committed buyer, mostly a large company. The present paper is intended to conduct a case study of PEPSICO Plant, located in village Channo, district Sa...

Recent years have seen considerable interest in the impact of contract farming on farmers in developing countries, motivated out of belief that contract farming spurs the transition to modern agriculture. In this paper, we provide a thorough review of the empirical literature on contract farming in both developed and developing countries, paying careful attention to broad implications of this r...

Contract farming has been subject to intense debates regarding its role in development. Opponents argue that large agribusiness companies generally exploit the low labour costs of smallholders and transfer production risks to farmers, while smallholder farmers are often excluded from contract farming schemes. This means that such schemes result in greater income inequality and social tensions i...

Smallholder farmers in lower-income countries often lack access to agricultural inputs, services, and markets. This holds especially for female farmers, with important negative implications productivity, child welfare, rural development. Contract farming is promoted as a means improving farmers’ markets – thereby household income welfare. Could contract also reduce prevalent gender disparities?...

Contract farming is a growing practice in developing countries and first-world economies, alike. It generates necessary guarantees to sustain the continued operations of vulnerable farmers while enabling the manufacturers to manage the aggregate supply and price risk. We consider a single manufacturer who owns several manufacturing plants, each with a random demand for the crop. The manufacture...