Determining Socio-Economic Factors for Contract Farming Success in Iran.

Subject Areas : Agricultural Extension and Education Research

Hossein Hossein Abadi ¹ , Amir Mohammadinejad ² , omid gilanpoor ³ , mohammad khaledi ⁴

1 - PhD student in Agricultural Economics, Islamic Azad University , Science and Research Branch
2 - Assistant Professor, Department of Agricultural Economics, Islamic Azad University, Science and Research Branch, Tehran, Iran.
3 - Institute for Research and Planning in Agricultural Economics and Rural development
4 - Institute for Research and Planning in Agricultural Economics and Rural development

Received: 2021-11-30 Accepted : 2022-12-12 Published : 2022-07-23

Keywords: Contract Farming, ANP, Agricultural Development,

Abstract :

In the last two decades, contract farming has turn-into a method for maximum resources utilization. However, this method has been neglected in Iran; and only developed for a limited number of agricultural commodities in small regions. Because of considerable advantages of contract farming,, this study focused on analysis the success factors of tomato contract farming in Kermanshah province. For this purpose, a desk review alongside a structural interview was designed. The questionaries' was completed by company experts and 246 farmers who work with the company. Finally, the Analytic Network Process (ANP) method was applied for data analysis. The main results indicated that tomato contract farming in Kermanshah leads to a 65% increase in tomato yield and an 11% decrease in water consumption. Moreover, it causes a higher income for farmers due to the higher tomato price relative to market prices. Based on the ANP analysis, an increase in farmers' income per hectare with a weight of 0.097 is the main success factor from the farmers' point of view. On the other hand, from the company's point of view, access to high-quality raw materials with the weight of 0.117 is the most vital success factor of tomato's contract farming. Based on these results, supporting contract farming should be considered as a priority of the country's development plan for selected agricultural products in different regions. For instance, export facilities for the final goods of contract farming are a strong incentive for the development of contract farming.

References:

اصغرپور، م. 1385. تصمیم‌گیری گروهی و تئوری بازی‌ها با نگرش تحقیق در عملیات. چاپ سوم، انتشارات دانشگاه تهران، تهران.

افسری، س. و خالدی، م. 1393. ارزیابی عملکرد کشاورزی قراردادی درایران، مطالعه موردی: محصول گوجه فرنگی در استان کرمانشاه. پایان نامه کارشناسی ارشد، بخش علمی علوم کشاورزی دانشگاه پیام نور.

آمارنامه کشاورزی، جلد اول، محصولات زراعی. 1399. مرکز فناوری اطلاعات و ارتباطات معاونت برنامه‌ریزی و امور اقتصادی وزارت جهاد کشاورزی، https://www.maj.ir.

بانک مرکزی جمهوری اسلامی ایران. 1399. حساب‌های ملی ایران، https://www.cbi.ir/simplelist/2054.aspx

بخشایش، م.، کشاورز، ع.، شریعتمدار، ح. و فکاری سردهایی، ب. 1399. گزارش اقتصاد کشاورزی ایران، مرکز ملی مطالعات راهبردی کشاورزی و آب اتاق ایران.

درگه، م. و زرافشانی، . ک. 1397. ارائه الگوی ترویج کشاورزی قراردادی در استان کرمانشاه. پایان نامه کارشناسی ارشد، دانشکده کشاورزی دانشگاه رازی.

درگه، م،. زرافشانی، ک. و شرفی، ل. ۱۴۰۰. کارکردها و چالش های کشاورزی قراردادی در استان کرمانشاه، فصلنامه پژوهشهای روستایی، ۱۲(۲)، ۲۵۸-۲۷۳.

 

قدسی‌پور، ح. 1385. مباحثی در تصمیم‌گیری چندمعیاره (فرآیند تحلیل سلسله مراتبی). انتشارات دانشگاه صنعتی امیرکبیر، تهران.

قربانی, م., دهقانیان, س., & فیروز زارع, ع. (1383). سازه‌های اقتصادی- اجتماعی موثر برقرارداد چغندرکاران با کارخانه‌های قند استان خراسان شمالی. علوم و صنایع کشاورزی , 2, 205-214.

گمرک جمهوری اسلامی ایران. 1399. آمار سالیانه گمرک ایران، https://www.irica.ir/.

محودی، م. و کرباسی، ع. 1398. بررسی عامل‌های موثر بر انعقاد و اجرای قراردادهای کشاورزی (رهیافت سویچینگ رگرسیون). فصلنامه اقتصاد کشاورزی، سال سیزدهم شماره ۳: ۱۳۳ -۱۶۸.

مرکز آمار ایران. 1399. طرح آمارگیری از نیروی کار. https://www.amar.org.ir/

Barrett, C. B., Bachke, M. E., Bellemare, M. F., Michelson, H., Narayanan, S., & Walker, T. F. (2012). Smallholder participation in contract farming: Comparative evidence from five countries. World Development , 40 (4), 715-713.

Dagdeviren, M., and Yuksel, I. 2008. A Fuzzy Analytic Network Process Model to Identify Behavior Risk (FBR) in Work System. Safety science, 46: 771-783.

English Contract Farming Agreement Survey. (2018). Harvest 2017 (provisional results) and Harvest 2016 (final results) | Spring 2018 .

FAO. (2001). Contract farming (Partnerships for growth). FAO AGRICULTURAL SERVICES BULLETIN , 145.

Forrest Zhang, Q. (2012). The Political Economy of Contract Farming in China's Agrarian Transition. Journal of Agrarian Change , 12 (4), 460-483.

Gatto, M., wolni, M., Asnawi, R., & Qaim, M. (2017). Oil Palm Boom, Contract Farming, and Rural Economic Development: Village-Level Evidence from Indonesia. World Development , 95, 127-140.

Gulati, A., Nicholas Minot, Christopher L. Delgado, S. Bora, and Jo Swinnen. 2006. "Growth in high-value agriculture in Asia and the emergence of vertical links with farmers." 91-108. doi: 10.1079/9781845931858.0091.

Higgs, G. 2006. Integrating Multi-criteria Techniques with Geographical Information System in Waste Facility Location to Enhance public Participation. Journal of Waste Management ;  Research,24: 105-117.

International trade statistics (ITC). 2020. https://www.intracen.org/itc/market-info-tools/trade-statistics/

Key, N. D., & Runsten, D. (1999). Contract Farming, Smallholders, and Rural Development in Latin America: The Organization of Agroprocessing Firms and the Scale of Outgrower Production. World Development , 27 (2), 381-401.

Khasan, A., Rondhi, M., & Aji, J. M. (2018). Who Bear the Most Risk? Risk and Risk Shifting in Indonesian Broiler Contract.

Kurttila, M., Pesonen, M., Kangas, J. and Kajanis, M. 2000. Utilizing the Analytic Hierarchy Process in SWOT Analysis: A Hybrid Model and its Application to a Forest Certification Case. Forest Policy and Economics, 1: 41-52.

Little, P. D., & Watts, M. (1994). Living Under Contract: Contract Farming and Agrarian Transformation in Sub-Saharan Africa. Madison: University of Wisconsin Press.

Meade, L.M. and Sarkis, J. 1999. Analyzing Organizational Project Alternative for Agile ManuFacturing processes: An Analytic Network approach. International Journal of Production Research, 37(2): 241-261.

Mishra, A. K., Kumar, A., Joshi, P. K., & D'Souza, A. (2016). Impact of contracts in high yielding varieties seed production on profits and yield: The case of Nepal. Food Policy , 110-121.

Paul Maganga Nsimbila, 2021. "Determinants of Contract Farming Adoption and its Impact on Productivity of Smallholder Cotton Producers in Tanzania," International Journal of Social and Administrative Sciences, Asian Economic and Social Society, vol. 6(2), pages 55-69.

Saaty, T.L. 2005. Theory and Aplication of the Analytic Network Process: Decision Making with Benefits, opportunities, Costs and Risks. RWS Publications, USA

Ashish Aman Sinha ;  Hari Charan Behera ;  Ajit Kumar Behura ;  Braja Bandhu Swain, 2021. "Land Allocation Choice in Both Contract and Non-Contract Farming: A Study of Potato Growers in West Bengal, India," SAGE Open, , vol. 11(3), pages 21582440211, September.

Wang, H. H., Wang, Y., & S. Delgado, M. (2014). The Transition to Modern Agriculture: Contract Farming in Developing Economies. American Journal of Agricultural Economics , 96 (5), 1257-1271.

Wilson, J. (1986). The Political Economy of Contract Farming. Review of Radical Political Economics , 18 (4), 47-70.