Improving farm-to-market linkages through contract farming: A case study of smallholder dairying in India
Contract farming is emerging as an important form of vertical coordination in the agrifood supply chain in India, and its socioeconomic consequences are attracting considerable attention in public policy debates. This study is an empirical assessment of the costs and benefits of contract farming in...
| Autores principales: | , , , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2008
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/161661 |
| _version_ | 1855530017904132096 |
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| author | Birthal, Pratap Singh Jha, Awadhesh K. Tiongco, Marites Narrod, Clare |
| author_browse | Birthal, Pratap Singh Jha, Awadhesh K. Narrod, Clare Tiongco, Marites |
| author_facet | Birthal, Pratap Singh Jha, Awadhesh K. Tiongco, Marites Narrod, Clare |
| author_sort | Birthal, Pratap Singh |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Contract farming is emerging as an important form of vertical coordination in the agrifood supply chain in India, and its socioeconomic consequences are attracting considerable attention in public policy debates. This study is an empirical assessment of the costs and benefits of contract farming in milk using information generated through field surveys in the western state of Rajasthan. Contract farming is found to be more profitable than independent production. Its major benefits come from a reduction in marketing and transaction costs, which are otherwise much higher in the open markets. Contract farming also contributes toward improving milk yield and reducing production costs, albeit not significantly. Dairy producers also benefit from provision of services and technical advice by integrators/firms who secure milk supplies from farmers through contract. The benefits of contract farming vary by scale of operation. Economies of scale are also important determinants of competitiveness, in which large farms (both contract and independent) have lower per unit cost due to buying of inputs in bulk and greater access to markets. Smallholders, on the other hand, derive significant benefits from a reduction in marketing and transaction costs due to their participation in contract farming.--Authors' Abstract |
| format | Artículo preliminar |
| id | CGSpace161661 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2008 |
| publishDateRange | 2008 |
| publishDateSort | 2008 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1616612025-11-06T06:42:41Z Improving farm-to-market linkages through contract farming: A case study of smallholder dairying in India Birthal, Pratap Singh Jha, Awadhesh K. Tiongco, Marites Narrod, Clare contract farming smallholders dairies market structure milk supply chains Contract farming is emerging as an important form of vertical coordination in the agrifood supply chain in India, and its socioeconomic consequences are attracting considerable attention in public policy debates. This study is an empirical assessment of the costs and benefits of contract farming in milk using information generated through field surveys in the western state of Rajasthan. Contract farming is found to be more profitable than independent production. Its major benefits come from a reduction in marketing and transaction costs, which are otherwise much higher in the open markets. Contract farming also contributes toward improving milk yield and reducing production costs, albeit not significantly. Dairy producers also benefit from provision of services and technical advice by integrators/firms who secure milk supplies from farmers through contract. The benefits of contract farming vary by scale of operation. Economies of scale are also important determinants of competitiveness, in which large farms (both contract and independent) have lower per unit cost due to buying of inputs in bulk and greater access to markets. Smallholders, on the other hand, derive significant benefits from a reduction in marketing and transaction costs due to their participation in contract farming.--Authors' Abstract 2008 2024-11-21T09:57:07Z 2024-11-21T09:57:07Z Working Paper https://hdl.handle.net/10568/161661 en Open Access application/pdf International Food Policy Research Institute Jha, A. K.; Tiongco, Marites; Narrod, Clare A.; Birthal, Pratap Singh. 2008. Improving farm-to-market linkages through contract farming. IFPRI Discussion Paper 814. https://hdl.handle.net/10568/161661 |
| spellingShingle | contract farming smallholders dairies market structure milk supply chains Birthal, Pratap Singh Jha, Awadhesh K. Tiongco, Marites Narrod, Clare Improving farm-to-market linkages through contract farming: A case study of smallholder dairying in India |
| title | Improving farm-to-market linkages through contract farming: A case study of smallholder dairying in India |
| title_full | Improving farm-to-market linkages through contract farming: A case study of smallholder dairying in India |
| title_fullStr | Improving farm-to-market linkages through contract farming: A case study of smallholder dairying in India |
| title_full_unstemmed | Improving farm-to-market linkages through contract farming: A case study of smallholder dairying in India |
| title_short | Improving farm-to-market linkages through contract farming: A case study of smallholder dairying in India |
| title_sort | improving farm to market linkages through contract farming a case study of smallholder dairying in india |
| topic | contract farming smallholders dairies market structure milk supply chains |
| url | https://hdl.handle.net/10568/161661 |
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