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High-Value Agricultural Markets and Contract Farming: Implications for Rural Development in Africa
Project
Project code: 64959584
Contract period: 01.01.2008
- 31.12.2010
Purpose of research: Basic research
High-value agricultural markets are gaining in importance internationally, including in developing countries. One typical feature of these markets is tighter vertical coordination along supply chains, often involving contract farming. This is likely to have far-reaching implications for rural development. Previous studies on the impacts of contract farming have concentrated primarily on the direct effects, while indirect effects through various spillovers were largely neglected. This project uses a broader approach. A conceptual framework and appropriate quantitative methodologies are being developed to capture both the direct and spillover effects of contract farming. Empirically, the research focuses on high-value vegetable production in countries of Sub-Saharan Africa, where knowledge on how to promote pro-poor rural development is particularly needed. Using an innovative sampling design, comprehensive household survey data is collected for selected supply chains in Kenya. Econometric analyses focuses on productivity, efficiency, employment, and income effects, and the role of different institutional factors. The results can advance the research direction and add to the understanding of how to assess and guide contract farming schemes from a development perspective.
Section overview
Subjects
- Agricultural Sociology
- Agroeconomics