Integrating small farmers into regional & global value chains through contract farming
Updated: Sep 29, 2014 01:09:42pm
New Delhi, Sept 29 (KNN) Asian Productivity Council (APO) is organising a workshop on ‘Integrating Small Farmers into Regional and Global Value Chains through Contract Farming’ to help those in the business of agribusiness.
To be implemented by the Vietnam National Productivity Institute, the international workshop is scheduled to be held in Hanoi, Vietnam from November-3 to 7.
According to a notification from APO, the objectives of the workshop are – “to enhance participants’ understanding of the value chain approach in agribusiness and its importance for small farmers to increase their productivity and incomes; and to develop their ability to train and facilitate setting up contract farming operations involving small farmers, purchasing firms, and agribusinesses under the value chain approach.”
Modules that will be covered during the workshop are – value chain and supply chain basics, enabling environment for farmers’ involvement in value chains; contract farming concepts and principles; planning and setting up contracting operations; legal aspects of contract design and enforcement; and case studies on contract farming models for selected commodities.
The workshop will consist of interactive sessions on theme presentations, sharing of country experiences, case studies, group exercises and field visits.
Globalization and the liberalization of trade in agriculture and food products have been reshaping the organization of markets and relationships of the players. Traditional supply-driven, open marketing systems for agrifood products are being replaced by market-driven, closed, coordinated value chains. This trend could leave many unorganized small farmers at a great disadvantage with no bargaining power in markets and unable to compete with well-connected players. They also have to bear all the risks associated with crop failures due to climate change, physical damage due to poor postharvest handling, and depressed market prices, among others.
One way of enabling fanners to reduce their exposure to various risks and have a guaranteed market outlet for their products is through contract farming. The scheme offers great potential to be mutually beneficial to small farmers and purchasing firms.
Although the contract farming concept was introduced several years ago, many small farmers are still unable to benefit from such schemes, and some of those who have participated in a scheme faced many issues due to their lack of knowledge and the absence of enabling environments and effective facilitators. There is a huge demand for information and technical support on contract fanning practices and issues in various countries, especially in the Asian region.
The Food and Agriculture Organization of the United Nations (FAO) has been responding to this growing demand by disseminating knowledge and publications on the conceptual, operational, and legal aspects of contract farming. To complement FAO's efforts, the APO has integrated the subject into a few workshops conducted in its member countries in the past. This project follows such initiatives and will be implemented with the cooperation of the FAO for greater synergy. (KNN/ES)
To be implemented by the Vietnam National Productivity Institute, the international workshop is scheduled to be held in Hanoi, Vietnam from November-3 to 7.
According to a notification from APO, the objectives of the workshop are – “to enhance participants’ understanding of the value chain approach in agribusiness and its importance for small farmers to increase their productivity and incomes; and to develop their ability to train and facilitate setting up contract farming operations involving small farmers, purchasing firms, and agribusinesses under the value chain approach.”
Modules that will be covered during the workshop are – value chain and supply chain basics, enabling environment for farmers’ involvement in value chains; contract farming concepts and principles; planning and setting up contracting operations; legal aspects of contract design and enforcement; and case studies on contract farming models for selected commodities.
The workshop will consist of interactive sessions on theme presentations, sharing of country experiences, case studies, group exercises and field visits.
Globalization and the liberalization of trade in agriculture and food products have been reshaping the organization of markets and relationships of the players. Traditional supply-driven, open marketing systems for agrifood products are being replaced by market-driven, closed, coordinated value chains. This trend could leave many unorganized small farmers at a great disadvantage with no bargaining power in markets and unable to compete with well-connected players. They also have to bear all the risks associated with crop failures due to climate change, physical damage due to poor postharvest handling, and depressed market prices, among others.
One way of enabling fanners to reduce their exposure to various risks and have a guaranteed market outlet for their products is through contract farming. The scheme offers great potential to be mutually beneficial to small farmers and purchasing firms.
Although the contract farming concept was introduced several years ago, many small farmers are still unable to benefit from such schemes, and some of those who have participated in a scheme faced many issues due to their lack of knowledge and the absence of enabling environments and effective facilitators. There is a huge demand for information and technical support on contract fanning practices and issues in various countries, especially in the Asian region.
The Food and Agriculture Organization of the United Nations (FAO) has been responding to this growing demand by disseminating knowledge and publications on the conceptual, operational, and legal aspects of contract farming. To complement FAO's efforts, the APO has integrated the subject into a few workshops conducted in its member countries in the past. This project follows such initiatives and will be implemented with the cooperation of the FAO for greater synergy. (KNN/ES)
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