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New Directions for Smallholder Agriculture$
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Peter B. R. Hazell and Atiqur Rahman

Print publication date: 2014

Print ISBN-13: 9780199689347

Published to Oxford Scholarship Online: April 2014

DOI: 10.1093/acprof:oso/9780199689347.001.0001

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Corporate agribusiness development and small farms

Corporate agribusiness development and small farms

Chapter:
(p.288) 10 Corporate agribusiness development and small farms
Source:
New Directions for Smallholder Agriculture
Author(s):

Martin Evans

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199689347.003.0010

The growing corporate presence in a wider variety of agricultural value chains can open up new opportunities for contract farming to the advantage of smallholders in agriculture, but more ‘corporatization’ also has downsides such as less competitive markets, more vertical integration in agricultural value chains, and changes in systems and modalities (e.g. land development modality in sub-Saharan Africa) that makes little provision for small farm participation. This chapter suggests that harnessing the economic power of corporate agribusiness for the benefit of small farmers requires purposive action from the three parties involved: farmers to self-organize into large enough producer groups, companies to make small farm supply an integral part of their business models, and governments to provide the necessary enabling environment. The open question is the extent to which such corporate commitment will only be forthcoming through enterprises and partnerships that have access to non-commercial capital.

Keywords:   corporate agribusiness, large scale land development, agricultural value chains, small farm commercialization, contract farming

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