contract farming - partnerships for growth

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ownership or long-term leases which are positive advantages for the stability of a contract. Table 1a Example of an inventory of preconditions for contract farming - Socio-political assessment COMPONENT RATING REMARKS F A M Political environment National National political stability. Stated support for project. Regional-district Modest support for project. Village-community Positive response from local community leaders Public utilities & services Roads Well maintained but limited road network. Public transport Sponsor provides project transportation Telephones Poor. Project to provide own communications. Electricity supply On national grid for processing. Water supply Adequate for project. Hospitals & health One hospital and two health clinics. Schools One high school and three primary schools. Government agencies Positive response from research and extension sections Quarantine services Good location and well administered. F = Favourable A = Adequate M = Marginal

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Page 1: Contract Farming - Partnerships for Growth

ownership or long-term leases which are positive advantages for the stability of a contract.

Table 1aExample of an inventory of preconditions for contract farming - Socio-political assessment

COMPONENT RATING REMARKS

F A M Political environment National National political stability.

Stated support for project.

Regional-district Modest support for project.

Village-community Positive response fromlocal community leaders

Public utilities & services Roads Well maintained but limited

road network.

Public transport Sponsor provides projecttransportation

Telephones Poor. Project to provide own communications.

Electricity supply On national gridfor processing.

Water supply Adequate for project.

Hospitals & health One hospital and two health clinics.

Schools One high school and three primary schools.

Government agencies Positive response from research andextension sections

Quarantine services Good location and well administered.

F = Favourable A = Adequate M = Marginal

Page 2: Contract Farming - Partnerships for Growth

Table 1bExample of an inventory of preconditions for contract farming - Physical and social assessment

COMPONENT RATING REMARKS

F A M

Market Identification Manufactured product Proven demand for manufactured product.

Fresh produce Adequate demand for secondary grades in fresh form.

Physical environment General climatic factors Adequate, no frosts in season, 80% sunlight hours.

Rainfall Erratic and unreliable.

Natural water availability Adequate for crop requirements.

Irrigation availability Favourable irrigation system for project.

Soil fertility Soils very suitable for crop.

Topography Only a small percentage of farms have steep eroded slopes.

Natural vegetation No effect on natural vegetation and proposed crop.

Social and farming environment Existing cropping mix Practice of interrow and relay planting.

Historic productivity Very productive farming community.

Cultural influences Cultural obligations no obstruction to project.

Land tenure

Page 3: Contract Farming - Partnerships for Growth

Landowning farmers 58% of farmers cultivate their own land.

Tenancy farmers 32% of farmers on long-term leases.

Customary farmers 10% of farmers growing on temporary customary tenure.

F = Favourable A = Adequate M = Marginal

11 Roling, N. in Beets, W., 1990: 256.12 FAO, 1999.13 Panganiban, D.F., 1998:19-20.14 Glover, D. and Kusterer, K., 1990: 89.15 SARC-TSARRD, 1998.16 NABARD, 1999: 56.