Contract Farming. Is It a Win-Win Relationship?

In the wake of the launch of Zimbabwe's land-reform programmes and the subsequent deterioration of the formal farming industry, contract farming has emerged as a significant economic activity. It offers communal farmers the opportunity to sell their produce to agribusinesses at predetermined terms and prices. The concept has gradually taken off to provide a degree of stability in crop production that might otherwise have totally collapsed. The author investigated contract farming in Zimbabwe and came up with suggestions for improving the system and how it can be applied across Africa. It was clear from the research that the practical implementation is not without problems, and that opinions differ on crucial matters. Yet there is a great amount of goodwill and willingness to make contract farming work. Participants were largely positive about the impact it has made on smallholder community farming. Lessons and benefits from the Zimbabwean contract farming model can be transferred to many African countries where land reform programs are unfolding as a process for economic emancipation.