Contract farming and smallholder outgrower schemes in less‐developed countries
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Contracting arrangements with agribusiness companies provide credit, inputs, extension support, and guaranteed markets, and potentially address many constraints of smallholder operations, offering opportunities for emergence of petty commodity production and accumulation from below.
“Providing credit, inputs, extension support, and guaranteed markets, contracting arrangements with agribusiness companies potentially address many of the constraints of smallholder operations, offering opportunities for the emergence of petty commodity production and a dynamic of accumulation from below.”
From Tobacco, contract farming, and agrarian change in Zimbabwe (2018) · cites this paper as Glover, 1984
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“The role of contract farming in developing countries has been a topic of interest and some controversy at least since the 1970s (Morrisey, 1974; Glover, 1984; Minot, 1986).”
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“Outgrower arrangements, too, are a model that has been encouraged across diverse crops – cocoa, cotton, tobacco, sugarcane, coffee and tea – as a means of integrating smallholder family farmers into commercial, and often transnational, value chains (Glover 1984; Oya 2012; Baglioni 2015).”
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Meemken, E., & Bellemare, M. F. (2019) · Proceedings of the National Academy of Sciences · doi:10.1073/pnas.1909501116 · Cited by 256 · see citing works
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“…often producers, processors, or traders of agricultural products or sellers of inputs or machinery, engage in a contracting system in which they assume a variety of responsibilities including providing technical assistance and marketing to developing world-based small farmers (Glover, 1984, 1987).”
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“In the United States, for example, contract farms are signi cantly bigger than non-contract farms (Sofranko et al, 2000) and, if the raw commodity offers economies of scale and is not labour intensive, large farmers have a production advantage (Glover, 1984; Runsten & Key, 1996).”
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“Positive impacts have been reported in cases where contracts provide credit, farm inputs and the technology necessary for increasing production of non-traditional lucrative crops and reduce marketing risk (Glover, 1984; Williams and Karen, 1985).”
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“Conversely, a lack of trust in high risk bilateral contracting conditions would suggest a move (right) to full vertical integration because this structure reduces the cost of coordinating the multiple legal arrangements (Glover, 1984; Levin, 1988; Currie and Ray, 1986; Mahoney, 1992; Porter and Phillips-Howard, 1997a,…”
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“Glover (1984) describes CF as institutional arrangements between advantages of plantations and smallholder production.”
BackgroundTobacco, contract farming, and agrarian change in Zimbabwe
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“However, contractual oil palm farming in Indonesia can lead to selection bias, for example, by excluding less-endowed smallholder farmers, as described in the literature on contract farming (Barrett et al., 2012; Glover, 1984), or it may pose other risks, such as opportunity losses from price hikes and increasing domi…”
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“Glover's ( 1983 , 1987 ) classic definition of contract farming refers to annual contracts typically specifying production calendars, minimum/maximum delivery volumes, inputs and services provided by the buyer, and quality requirements and prices.”
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“the years (Epale 1985; Glover 1984; Watts 1994), many commentators now argue that the outgrower model is the future of Africa’s agriculture (Kirsten and Sartorius 2002; World Bank 2010).”
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“(see Glover 1984; Watts 1990). Although the SVBGA does not sign individual contracts with farmers, its relationship with them is essentially contractual. It guarantees to purchase all bananas of exportable quality and to provide farmers with a variety of services. At the same time it regulates the industry. The organi…”
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“Contract farming can improve the linkages of small farmers with agroindustrial markets allowing them to get technical assistance, credit, or access to key inputs (Glover 1984; Goldsmith, 1985; Morrisy, 1974).”
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CONTRACT FARMING AND OUTGROWER SCHEMES IN EAST AND SOUTHERN AFRICA
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“The study, therefore, agrees with a large body of literature that has concluded that the spot market cannot be synchronised with respect to ensuring the continuous supply of a uniform quality raw commodity (Glover, 1984, 1994; Kilmer, 1986; Mahoney, 1992; Hennessy, 1996; Azzam, 1996).”
Peasants, grapes and corporations: The growth of contract farming in a Chilean community
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“need for access to credit in order to obtain input availability, the need for access to market information, opportunities to reduce factors of production, ability to enhance farm performance from access to technical assistance, or market integration [15,20,55,56].”
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“Contract farming, where a downstream processor/marketer provides inputs and technical advice to producers, has been a key approach to incorporating smallholders into high-quality export supply chains (Glover, 1984; Hayami, 2002; Key & Runsten, 1999; Minten, Randrianarison, & Swinnen, 2009; Mukras, Ayako, & Glover, 198…”
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“Out-grower schemes are often presented as a route through which farmers can engage with agribusiness and commercial agriculture (Glover 1984; Baumann 2000).”
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Demythifying contract farming: Evidence from rural South Africa
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“Consequently, contract farming could facilitate their access to information, technical assistance, credit and inputs, reduce the uncertainty around marketing their products, improve their integration into modern value-chains and consequently, increase their farm incomes (Glover, 1984; Key and Runsten, 1999; Minot, 198…”
BackgroundInfluentialVERTICAL INTEGRATION IN AGRICULTURE AND CONTRACT FARMINGPreprint
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“6 means the contract must specify one or more conditions of production and marketing (Glover 1984).”
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“…as ‘inclusive’ for women and men, thereby contributing to debates on the estate–outgrower model in developing countries, and the claim that it creates jobs and a win-win situation for private firms and contracted farmers, or outgrowers (Glover 1984; Kirsten and Sartorius 2002; World Bank 2007).”
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Fecal free: Biology and authority in industrialized Midwestern pork production
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“My analysis is not the only one that indicates a strong relationship between use of contracts and the perishability of the commodities raised (Glover, 1984; Jaffee, 1994; Morrissy, 1974).”
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“Since long researchers have tried to study the effects of commercial agriculture on smallholder livelihoods in general (See for example [26,36,37] and the effects of certain business models e.”
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Does contract farming improve profits and food safety? Evidence from tomato cultivation in Nepal
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Institutional arrangements of outgrower sugarcane production in Southern Africa
von Maltitz, G. P., Henley, G., Ogg, M., Samboko, P. C., Gasparatos, A., Read, M., Engelbrecht, F., & Ahmed, A. (2018) · Development Southern Africa · doi:10.1080/0376835x.2018.1527215 · Cited by 31 · see citing works
“In addition, many of the large sugar mills source additional sugarcane from small produces referred to as outgrowers(1) (Glover, 1984; Richardson, 2010).”
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Bijman, J. (2008) · Cited by 31 · see citing works
United Fruit Company in Latin America
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Contract farming and the remaking of agrarian landscapes: Insights from South India's chilli belt
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“Glover (1984) and Goldsmith (1985) attempted to demonstrate the technical efficiency of out-grower schemes and the positive role that they can play in overall agricultural development.”
BackgroundBrüntrup, M., Schwarz, F., Absmayr, T., Dylla, J., Eckhard, F., Remke, K., & Sternisko, K. (2018) · Food Security · doi:10.1007/s12571-018-0797-0 · Cited by 26 · see citing works
“Compared to pure large-scale farming, they are assumed to require fewer land acquisitions, distribute wealth more equitably, disturb rural social structures less radically, and have a higher support from governments (e.g. Glover 1984; Humado 2013).”
BackgroundInfluentialWhen do Agricultural Exports Help the Rural Poor? A Political-economy Approach
Berry, A. (2001) · Oxford Development Studies · doi:10.1080/13600810120059770 · Cited by 25 · see citing works
“Glover (1984), Tiffen (1995) and others have pointed to the fact that small farm links with, and subcontracting to, large intermediaries may be a good recipe for sharing the bene ts of trade.”
BackgroundUrban-Rural Linkages: Research Themes and Directions
Funnell, D. (1988) · Geografiska Annaler Series B Human Geography · doi:10.1080/04353684.1988.11879571 · Cited by 25 · see citing works
Grower heterogeneity and the gains from contract farming
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“Besides the above, papers that discuss the economic logic of these contracts include Glover (1984, 1987), Grosh (1994), Simmons et al. (2005) and Winters et al. (2005).”
BackgroundInfluentialWilson, B. (2013) · Human Organization · doi:10.17730/humo.72.3.f678404745007011 · Cited by 24 · see citing works
“Over the past three decades, there has 180 HUMAN ORGANIZATION been widespread support for contract farming by advocates of market-led rural development because it favors the integration of peasant farmers into global agro-food networks (Glover 1984; Glover and Kusterer 1990; Little and Watts 1994).”
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Impact of contract farming on income: Linking small farmers, packers, and supermarket in ChinaPreprint
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CAN SMALL-SCALE FARMERS BE LINKED TO AGRIBUSINESS? THE TIMBER EXPERIENCE
Sartorius, K., & Kirsten, J. F. (2002) · Agrekon · doi:10.1080/03031853.2002.9523600 · Cited by 21 · see citing works
“…that the spot market is unlikely to be as Agrekon, Vol 41, No 4 (December 2002) Sartorius & Kirsten synchronised as contracting with respect to ensuring the continuous supply of a uniform quality raw commodity (Glover, 1984; Kilmer, 1986; Glover, 1994; Mahoney, 1992; Hennessy, 1996; Azzam, 1996).”
Background2. Linking smallholder farmers to high quality food chains: appraising institutional arrangements
Royer, A., Bijman, J., & Bitzer, V. (2016) · Wageningen Academic Publishers eBooks · doi:10.3920/978-90-8686-825-4_2 · Cited by 21 · see citing works
“Several studies claim that farm groups, such as formal or informal POs, may support the efficiency and equity of CF (Glover, 1984; Coulter et al., 1999; Key and Runsten, 1999).”
BackgroundContracting Out: Plantations, Smallholders and Transnational Enterprise
Kirk, C. (1987) · IDS Bulletin · doi:10.1111/j.1759-5436.1987.mp18002008.x · Cited by 21 · see citing works
Contract farming in Costa Rica: opportunities for smallholders?
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“Contracts have the potential to provide mechanisms for the incorporation of small and lowincome farmers into the market economy (Glover, 1984; Key and Runsten, 1999).”
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Contract farming in Swaziland: Peasant differentiation and the constraints of land tenure
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One size fits all? Contract farming among broiler producers in China
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“In the past decades, contract farming has observed increasing popularity in agrarian economies (Glover 1984; Nguyen et al. 2015).”
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Perishability and market power in Nepalese food crop production
Kopp, T., & Mishra, A. K. (2021) · Journal of Agricultural Economics · doi:10.1111/1477-9552.12463 · Cited by 17 · see citing works
Making it personal: breach and private ordering in a contract farming experiment
Kunte, S., Wollni, M., & Keser, C. (2016) · European Review of Agricultural Economics · doi:10.1093/erae/jbw007 · Cited by 16 · see citing works
The production relations of contract farming in Honduras
Imbruce, V. (2008) · GeoJournal · doi:10.1007/s10708-008-9179-z · Cited by 15 · see citing works
“Contract farming is considered a way to unleash the potential of small farmers for rural development (Glover 1984).”
BackgroundRecompositions inattendues d’un système agraire malgache par l’agrobusiness
Medernach, K., & Burnod, P. (2013) · Études rurales · doi:10.4000/etudesrurales.9777 · Cited by 14 · see citing works
Itinéraires d'accumulation au Cameroun
(1993) · Collection Histoire africaine · doi:10.3917/kart.gesch.1993.01.0375 · Cited by 13 · see citing works
Sitko, N. J., Chisanga, B., Tschirley, D., & Jayne, T. S. (2018) · Food Security · doi:10.1007/s12571-018-0767-6 · Cited by 13 · see citing works
“2006); 3) increase product supply through investments in improved storage and technology provision to producers (Kirsten and Sartorius 2002; Rama 1998; Wendt and Pederson 2006; Warning and Key 2002; Glover 1984), and; 4) increase cross border trade (Ayadi et al.”
BackgroundPerformance of Broiler Contract Farmers: A Case Study in Perak, Malaysia
Majid, R. B., & Hassan, S. (2014) · UMK Procedia · doi:10.1016/j.umkpro.2014.07.003 · Cited by 12 · see citing works
“Glover (1983, 1987) is more positive about the potential of contract farming.”
BackgroundUpton, J., & Lentz, E. (2017) · Agricultural Economics · doi:10.1111/agec.12385 · Cited by 12 · see citing works
Smalley, R., Sulle, E. B., & Malale, L. (2014) · Cited by 12 · see citing works
- Authors
- Glover, D. J.
- Affiliations
- International Development Research Centre (CA)
- Corresponding author
- Glover, David J.
- Venue
- World Development
- Publisher
- Elsevier BV
- Published
- 1984-11
- Volume
- 12
- Issue
- 11-12
- Pages
- 1143-1157
- ISSN
- 0305-750X (ISSN-L)
- OpenAlex
- W1973212733
- Cited by
- 220
- References
- 15
- Citations by year
- 2026: 4 · 2025: 1 · 2024: 3 · 2023: 14 · 2022: 9 · 2021: 8 · 2020: 6 · 2019: 9 · 2018: 11 · 2017: 10 · 2016: 10 · 2015: 11 · 2014: 13 · 2013: 11 · 2012: 4
- FWCI
- 11.80
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- World Development (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Life Sciences › Agricultural and Biological Sciences › General Agricultural and Biological Sciences › Agricultural Innovations and Practices
- Social Sciences › Safety Research › Agricultural economics and policies
- Life Sciences › Agricultural and Biological Sciences › General Agricultural and Biological Sciences › Agriculture and Agroindustry Studies
- Keywords
- contract farming, outgrower schemes, smallholder farmers, technology transfer, market access, developing countries, agricultural development
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