Contract Farming
Contract farming is a form of vertical integration where the farmer is contractually bound to supply a given quantity and quality of product to a processing or marketing enterprise. The buyer agrees in advance to pay a certain price to the farmer and often provides technical advice and inputs (the cost of the inputs being deducted from the farmer's revenue once the product has been sold to the buyer). Contract farming has arguably not resulted so far in a significant improvement in the livelihoods of small farmers in developing countries because buyers generally prefer to deal with large-scale producers who are better placed to meet the stringent quality and timeliness requirements.
Read more about this topic: Corporate Farming
Famous quotes containing the words contract and/or farming:
“A good businessman never makes a contract unless he’s sure he can carry it through, yet every fool on earth is perfectly willing to sign a marriage contract without considering whether he can live up to it or not.”
—Dalton Trumbo (1905–1976)
“... farming conservatism, which consisted in holding that whatever is, is bad, and any change is likely to be worse.”
—George Eliot [Mary Ann (or Marian)