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THE GROWING ROLE OF CONTRACT FARMING IN AGRI-FOODSYSTEMS DEVELOPMENT:DRIVERS,THEORY AND PRACTICE








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    Brochure, flyer, fact-sheet
    Contract Farming: For Improved Access to Market and Resources
    Contract Farming in the Pacific Islands Countries
    2016
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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.
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    Book (series)
    Evaluation of the project "Australia Balochistan Agri-business Programme-Phase Two (AusABBA II)
    Project code: GCP/PAK/141/AUL
    2021
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    The Australia Balochistan Agri-business Programme (AusABBA Phase II) (GCP/PAK/141/AUL) has been implemented by FAO in collaboration with the Government of Balochistan in six south-western districts with the objective to engage households in profitable agribusiness-based livelihoods and diversified strategies, and creating an enabling environment to increase their incomes, improve food security and enhance nutritional status. Working closely with men and women’s community organizations, farmers marketing collectives and mutual marketing organizations, AusABBA II has accomplished to establish 11 value chains businesses in dates, onions, grapes, cumin, tomatoes, alfalfa, carrots, pomegranate, sugar-melons, livestock fattening and wool, providing support in key interventions such as crops and livestock productivity, water resources management, market linkages and agribusiness. AusABBA II’s inclusive market system development approach is encouraging, innovative and has proven as one of FAO's flagship projects in the region, with an enormous potential for replication by relevant government departments and other development actors in Balochistan.
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    Policy brief
    Innovative contract farming arrangements in Asia and the Pacific 2022
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    Although informal transactions are still the norm in Asia and the Pacific, contractual agreements are on the rise, especially for high-value agricultural commodities. As contract farming arrangements grow in number and become more sophisticated, a series of innovations are emerging to enhance their inclusion and efficiency. The nature of these innovations can range widely – from the adoption of digital technologies, to new governance mechanisms and novel regulations. Governments in the region face the challenge to further mainstream contract farming while ensuring inclusiveness and fairness. Recent government interventions are targeting areas such as introducing gender sensitive regulations leading to the increased participation of women in economic transactions, facilitating insurance to reduce contract farming risks related to weather-based agriculture or natural disasters, utilizing third-party verification systems to combat power abuse, and promoting sustainable public-private partnerships that enhance inclusion and equity. The discussed policy measures can contribute to facilitating the shift towards more structured market channels that provide farmers the opportunity to integrate into modern and more complex agrifood value chains that serve remunerative markets. Nonetheless, governments should ensure that those interventions are able to create a suitable enabling environment to potentially lead to contractual arrangements that are fair to all value chain actors, including smallholder farmers.

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