Contract Agriculture Lessons from Experiences in Costa Rica

Contract farming or contract agriculture is a practice by which agro-industrial processors, exporters, domestic suppliers to supermarkets and other interested actors contract primary production with producers. The factors that have encouraged contract farming in Costa Rica can be grouped in three ma...

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Bibliographic Details
Main Authors:	Chiriboga, Manuel, Charnay, Romain, Chehab, Carol
Language:	English
Published:	Washington, DC: World Bank 2012
Subjects:	World Development Report 2008
Online Access:	http://hdl.handle.net/10986/9072

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recordtype	oai_dc
spelling	okr-10986-90722021-04-23T14:02:44Z Contract Agriculture Lessons from Experiences in Costa Rica Chiriboga, Manuel Charnay, Romain Chehab, Carol World Development Report 2008 Contract farming or contract agriculture is a practice by which agro-industrial processors, exporters, domestic suppliers to supermarkets and other interested actors contract primary production with producers. The factors that have encouraged contract farming in Costa Rica can be grouped in three major areas: 1) interest of the contractors to guarantee supply of the products under specific quality standards required by mass distribution systems or by importers; 2) avoiding problems related to administration of farms and particularly managing of personnel; and 3) distribution of risks that could be derived by high concentration of production. The study concludes are that there is a high variety in the modalities of contract farming; arrangements vary depending on crops or animal products; most contract agreements include clauses on technical assistance, quality controls and pricing, and few include financing; support and guarantee of purchase of the products helps farmers in their arrangements to obtain financing; the degree of formality of contracts is varied, being more stringent when contractors are private firms; and there is no special legislation for the specific case of contract farming. The benefits of contract farming accrue to producers and contractors, yet the former share a less significant portion of the benefits if one considers that they share most of the remaining risks. 2012-06-26T15:37:23Z 2012-06-26T15:37:23Z 2008 http://hdl.handle.net/10986/9072 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC: World Bank Latin America & Caribbean
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	World Development Report 2008
spellingShingle	World Development Report 2008 Chiriboga, Manuel Charnay, Romain Chehab, Carol Contract Agriculture Lessons from Experiences in Costa Rica
geographic_facet	Latin America & Caribbean
description	Contract farming or contract agriculture is a practice by which agro-industrial processors, exporters, domestic suppliers to supermarkets and other interested actors contract primary production with producers. The factors that have encouraged contract farming in Costa Rica can be grouped in three major areas: 1) interest of the contractors to guarantee supply of the products under specific quality standards required by mass distribution systems or by importers; 2) avoiding problems related to administration of farms and particularly managing of personnel; and 3) distribution of risks that could be derived by high concentration of production. The study concludes are that there is a high variety in the modalities of contract farming; arrangements vary depending on crops or animal products; most contract agreements include clauses on technical assistance, quality controls and pricing, and few include financing; support and guarantee of purchase of the products helps farmers in their arrangements to obtain financing; the degree of formality of contracts is varied, being more stringent when contractors are private firms; and there is no special legislation for the specific case of contract farming. The benefits of contract farming accrue to producers and contractors, yet the former share a less significant portion of the benefits if one considers that they share most of the remaining risks.
author	Chiriboga, Manuel Charnay, Romain Chehab, Carol
author_facet	Chiriboga, Manuel Charnay, Romain Chehab, Carol
author_sort	Chiriboga, Manuel
title	Contract Agriculture Lessons from Experiences in Costa Rica
title_short	Contract Agriculture Lessons from Experiences in Costa Rica
title_full	Contract Agriculture Lessons from Experiences in Costa Rica
title_fullStr	Contract Agriculture Lessons from Experiences in Costa Rica
title_full_unstemmed	Contract Agriculture Lessons from Experiences in Costa Rica
title_sort	contract agriculture lessons from experiences in costa rica
publisher	Washington, DC: World Bank
publishDate	2012
url	http://hdl.handle.net/10986/9072
_version_	1764408364537741312

Contract Agriculture Lessons from Experiences in Costa Rica

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