Journal
WORLD DEVELOPMENT
Volume 33, Issue 10, Pages 1721-1733Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.worlddev.2005.04.016
Keywords
contract farming; Zimbabwe; export agriculture; Sub-Saharan Africa; small-scale producers
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This article explores the motivations behind the decision of small-scale producers to grow nontraditional vegetables under contract for export. Based on a survey of small-scale producers in Zimbabwe, four factors are identified as motivating contracting, namely, market uncertainty, indirect benefits (e.g., knowledge acquisition), income benefits, and intangible benefits. Respondents are clustered according to the relative importance of these factors in their contracting decision. Four clusters are identified and related to the characteristics of these fanners including size of the farm, amount of land devoted to export crops, access to alternative markets, and the proportion of family income derived from export crops. The results suggest that there are systematic differences between farmers in their decisions to contract which needs to be recognized in contract design and management. (c) 2005 Elsevier Ltd. All rights reserved.
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