Large Agricultural Investments and Inclusion of Small Farmers: Lessons of Case Studies in 7 Countries

In order to check and promote the positive synergies between private companies and rural households, an analysis of past and ongoing experiences of contract farming is required. It represents the main objective of this report. The objectives of this study are to: describe the effects of contract farming schemes, characterize the factors limiting or promoting these various impacts, identify key findings to promote the emergence of positive synergies. The study’ considers a long-term time scale (10 to 50 years) and pays particular attention to changes in agricultural farming, production systems, access to markets and governance patterns of value chains. The study also analyzes how crops initially introduced thanks to contract farming schemes develop “off contract” and induce new value chain. The study focuses on seven countries - Ivory Coast, Ghana, Burkina Faso, Kenya, South-Africa, Laos and Indonesia – and major commodities such as: oil palm, rubber tree, fruits and vegetables, cereals, cotton and sugar cane. It is organized into 4 sections: i) the contract schemes, ii) the effects of these schemes, iii) the factors determining the nature and intensity of these effects and iv) key findings to promote positive synergies. Case studies are briefly presented in the appendix.