This draft model contract was developed on the basis of the drafts “Proclamation to Provide for Agricultural Production and Marketing Contracts in Ethiopia” later modified and renamed as “Proclamation to Provide for the Establishment of the Central and Regional Contract Farming Coordinating bodies and Regulation of Contract Farming Contract Formulation” as well as international best practices.
It contains clauses laying down basic requirements for the drafting of a contract between a large scale investor in agriculture and small hold regional farmers as well as trying to point out issues that should be observed by the contracting parties with the aim to provide a mutual and equitable relationship between them.
There are various types of contract famring activites, depending on special needs and particular situation of the parties and regional diffrenece. Therefore, this document sereves only informational purpose, and does not cover every situation and nor responds to sepcific needs.
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