Making Globalization Work Better for the Poor through Contract Farming

Abstract

The changing structure of agricultural trade in a globalizing world has become an integral part of effective rural development. In this context, contract farming has emerged as a promising rural development strategy that has gained momentum in the region, providing technical training, production inputs, and market linkages to smallholders. Contractors, often multinational agribusiness companies, in turn benefit from a steady supply of consistent quality produce. This volume shows that the practice of contract farming has been improving lives in rural areas in various parts of Asia, especially of small-scale farmers who now have assured markets for their produce. Contract farming is also evolving and now comes in modified forms to better address the needs and capacities of all parties involved. Its service of linking producers and markets, however, remains unchanged, along with the gains it brings to smallholder producers, agribusiness firms, and eventually consumers.