Contract Farming: For Improved Access to Market and Resources
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Contract Farming (CF) is a proven, workable mechanism for the coordination of transactions in agri-food supply chains. It is also a tool to promote the access of smallholder farmers to markets. Through CF, local farmers and food processors could improve the efficiency of their operations and thus contribute to increase the share of domestic markets for fresh and processed fruits, vegetables, coconut, cocoa, meat, dairy and staple foods, and could help Pacific Islands Countries (PICs) in import substitutions and food self-sufficiency . Close collaboration between farmers and buyers under win-win Contract Farming agreements can address some of the agriculture and food security challenges in PICs, addressing many of the production and marketing problems faced by small farmers and agribusiness firms.