Is contracting farming recommended for all type of agriculture products?
In principle, there is no restriction to the types of agriculture products that can be the object of a contract. There are numerous examples of successful contract farming arrangements for most types of crops and livestock. Examples also exist for forestry, aquaculture and fibre products, as well as for flowers and tobacco, to name a few. While the applicability is fairly general, there is evidence that the most successful schemes are associated with agricultural products that are high-valued or produced for processing and /or exports. Products for which there is high local demand may be more susceptible to side selling and thus may be less suitable for contract farming.
