1 / 6

Why Contract Farming in Africa Mohammad Karaan Dean AgriSciences University of Stellenbosch

Why Contract Farming in Africa Mohammad Karaan Dean AgriSciences University of Stellenbosch. NAMC/FAO Workshop Indaba Hotel Johannesburg May 2009. The Motivations (Theory). Why firms? (Coase) Markets & hierarchies (Williamson) Transaction Costs: Information asymmetry Asset specificity

kirestin-battle
Download Presentation

Why Contract Farming in Africa Mohammad Karaan Dean AgriSciences University of Stellenbosch

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Why Contract Farming in AfricaMohammad KaraanDean AgriSciencesUniversity of Stellenbosch NAMC/FAO Workshop Indaba Hotel Johannesburg May 2009

  2. The Motivations(Theory) • Why firms? (Coase) • Markets & hierarchies (Williamson) • Transaction Costs: • Information asymmetry • Asset specificity • Opportunism • Bounded rationality

  3. The Motivations(Practice) • Growth in global markets • Africa nett importer of processed goods • Diminishing share of world exports • Much potential for value addition • Latent resources • Underinvestment in agribusiness • Growth in chains • Efficiency of scale

  4. Examples • Sugar • Cotton • Grains • Dairy • Flowers • Seeds • Oilseeds • Poultry • Aquaculture • Hydroponics

  5. Challenges • Asymmetry • Trust • Opportunism • Enforcement • Asset specificity (infrastructure) • Incomplete contracts • Embeddedness • Induced innovations

  6. A development agenda • Incentives to engage • Safety nets • Incubators • PPP in investments • Integration

More Related