Contracting by small farmers in commodities with export potential: Assessing farm profits of lentil growers in Nepal
This study is undertaken to quantify the benefits of contract farming (CF) on farmers’ income in a case where new market opportunities are emerging for smallholder farmers in Nepal. CF is emerging as an important form of vertical coordination in the agrifood supply chain. The prospect for CF in a co...
| Main Authors: | , , , , |
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| Format: | Artículo preliminar |
| Language: | Inglés |
| Published: |
International Food Policy Research Institute
2016
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/147408 |
| _version_ | 1855515799855300608 |
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| author | Kumar, Anjani Roy, Devesh Tripathi, Gaurav Joshi, Pramod Kumar Adhikari, Rajendra Prasad |
| author_browse | Adhikari, Rajendra Prasad Joshi, Pramod Kumar Kumar, Anjani Roy, Devesh Tripathi, Gaurav |
| author_facet | Kumar, Anjani Roy, Devesh Tripathi, Gaurav Joshi, Pramod Kumar Adhikari, Rajendra Prasad |
| author_sort | Kumar, Anjani |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This study is undertaken to quantify the benefits of contract farming (CF) on farmers’ income in a case where new market opportunities are emerging for smallholder farmers in Nepal. CF is emerging as an important form of vertical coordination in the agrifood supply chain. The prospect for CF in a country like Nepal with accessibility issues, underdeveloped markets, and a lack of amenities remains ambiguous. Contractors find it difficult to build links in these cases, particularly when final consumers have quality and safety requirements. However, a lack of other market opportunities makes the contracts more sustainable. The latter happens if there are product-specific quality advantages because of agroecology and, more important, lack of side-selling opportunities. Concerns remain about monoposonistic powers of the buyers when small farmers do not have outside options. Results of this study show that CF is significantly more profitable (81 percent greater net income) than independent production, the main pathway being higher yield and price realization. The positive impact of CF on farmers’ profits can help Nepal in harnessing the growing demand for pulses, especially in neighboring international markets, like India. |
| format | Artículo preliminar |
| id | CGSpace147408 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2016 |
| publishDateRange | 2016 |
| publishDateSort | 2016 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1474082025-11-06T05:17:28Z Contracting by small farmers in commodities with export potential: Assessing farm profits of lentil growers in Nepal Kumar, Anjani Roy, Devesh Tripathi, Gaurav Joshi, Pramod Kumar Adhikari, Rajendra Prasad income households monoposonistic lentils smallholders markets pulses contract farming This study is undertaken to quantify the benefits of contract farming (CF) on farmers’ income in a case where new market opportunities are emerging for smallholder farmers in Nepal. CF is emerging as an important form of vertical coordination in the agrifood supply chain. The prospect for CF in a country like Nepal with accessibility issues, underdeveloped markets, and a lack of amenities remains ambiguous. Contractors find it difficult to build links in these cases, particularly when final consumers have quality and safety requirements. However, a lack of other market opportunities makes the contracts more sustainable. The latter happens if there are product-specific quality advantages because of agroecology and, more important, lack of side-selling opportunities. Concerns remain about monoposonistic powers of the buyers when small farmers do not have outside options. Results of this study show that CF is significantly more profitable (81 percent greater net income) than independent production, the main pathway being higher yield and price realization. The positive impact of CF on farmers’ profits can help Nepal in harnessing the growing demand for pulses, especially in neighboring international markets, like India. 2016-05-20 2024-06-21T09:22:49Z 2024-06-21T09:22:49Z Working Paper https://hdl.handle.net/10568/147408 en https://hdl.handle.net/10568/149441 https://hdl.handle.net/10568/147922 https://hdl.handle.net/10568/160711 https://doi.org/10.2499/p15738coll2.134431 Open Access application/pdf International Food Policy Research Institute Kumar, Anjani; Roy, Devesh; Tripathi, Gaurav; Joshi, Pramod Kumar; and Adhikari, Rajendra Prasad. 2016. Contracting by small farmers in commodities with export potential: Assessing farm profits of lentil growers in Nepal. IFPRI Discussion Paper 1533. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/147408 |
| spellingShingle | income households monoposonistic lentils smallholders markets pulses contract farming Kumar, Anjani Roy, Devesh Tripathi, Gaurav Joshi, Pramod Kumar Adhikari, Rajendra Prasad Contracting by small farmers in commodities with export potential: Assessing farm profits of lentil growers in Nepal |
| title | Contracting by small farmers in commodities with export potential: Assessing farm profits of lentil growers in Nepal |
| title_full | Contracting by small farmers in commodities with export potential: Assessing farm profits of lentil growers in Nepal |
| title_fullStr | Contracting by small farmers in commodities with export potential: Assessing farm profits of lentil growers in Nepal |
| title_full_unstemmed | Contracting by small farmers in commodities with export potential: Assessing farm profits of lentil growers in Nepal |
| title_short | Contracting by small farmers in commodities with export potential: Assessing farm profits of lentil growers in Nepal |
| title_sort | contracting by small farmers in commodities with export potential assessing farm profits of lentil growers in nepal |
| topic | income households monoposonistic lentils smallholders markets pulses contract farming |
| url | https://hdl.handle.net/10568/147408 |
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