Farmers’ Perception on Contract Farming: A Case of Sunflower Seed Crop in Central Tanzania
2021 年 12 巻 2 号 p. 65-70
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2021 年 12 巻 2 号 p. 65-70
In most developing countries like Tanzania, poor farmers have limited access to agricultural inputs. In case of sunflower seed, one of the proposed solutions is through use of contract farming among the farmers. In the country, sunflower oil has been preferred as edible cooking oil for many households since it is much safer for human consumption. Despite the government’s new agricultural policy, contract farming has been facing some challenges in coordination such as pricing, trust, arrangement for the delivery of the inputs, procedures for paying farmers, poor credit (cash) services as agreed of the contract. The study aims to investigate the impact of contract farming program among sunflower farmers. Specifically, the study aims to (i) determine households’ background characteristics; (ii) examine contract arrangement of sunflower seeds in Tanzania; (iii) discuss the farmers’ perception in terms of trust, and personal relations play for their coordination. The field study was conducted in August and September 2019, selecting 80 farmers in two regions in Central Tanzania. Among them 40 farmers were sunflower producers with contract farming with Three Sisters Company Ltd and Ikungi Sunflower Edible Cooking Oil Company for eight (8) years; 40 farmers were sunflower producers without contract farming. Based on the field study, contract terms and conditions, hereafter called contract design attributes such as mode of payment and price setting of farmers’ crop produce can affect farmers’ decisions to participate in contract farming, varyingly affecting their expected level of utility from participation. On the other hand, in contract farming, farmers produce quality seeds with high cooking oil content. Surprisingly, in contract terms, prices are not set in advance, contract farmers sell their produce with similar price to the local sunflower seed. Finally, lack of education was the factor for non-contract farmers to participate in contract farming.
