CONTRACT FARMING AND OUTGROWER SCHEMES IN EAST AND SOUTHERN AFRICA

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Abstract
This article examines the experience of seven countries in East and Southern Africa with contract farming and outgrower schemes. In such schemes, farmers sell their crops under contract to private or public enterprises for processing or export in return for various price guarantees, inputs and services. The article identifies some of the key determinants of success or failure, evaluates performance and examines the constraints to replication. In most cases, performance in delivering services and providing income increases to farmers has been quite good, although high management costs limit the extent to which this form of organisation could be more widely applied. Looser control, relying more on price incentives and farmer participation, might lower overhead costs while developing management capability among growers.