Outgrower Schemes

This note provides guidance on the design and implementation of outgrower schemes to achieve mutually beneficial outcomes for investors and smallholders. Outgrower schemes have gained prominence as a business model that can benefit both smallholder...

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Bibliographic Details
Main Authors: UNCTAD, World Bank
Format: Brief
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
Online Access:http://documents.worldbank.org/curated/en/203541521090030245/Outgrower-schemes
http://hdl.handle.net/10986/29466
Description
Summary:This note provides guidance on the design and implementation of outgrower schemes to achieve mutually beneficial outcomes for investors and smallholders. Outgrower schemes have gained prominence as a business model that can benefit both smallholders and investors. Such schemes can improve smallholders’ access to markets, finance, infrastructure, and improved growing techniques; can enhance investors’ access to land, labor, and quality produce; and can improve investor-community relations. Associated risks include overdependency, exploitation of power differences, entrenchment of inequalities, lower-than-expected production, and side-selling. Achieving the potential benefits and minimizing the associated risks requires careful design and implementation.