1st Edition

Contract Farming and the Development of Smallholder Agricultural Businesses Improving markets and value chains in Tanzania

    254 Pages 10 B/W Illustrations
    by Routledge

    254 Pages 10 B/W Illustrations
    by Routledge

    Contract farming has received renewed attention recently as developing economies try to grapple with how to transform the agricultural sector and its associated value chains. This book examines different contract arrangements for selected crops, applying both qualitative and quantitative approaches in order to examine how contract farming affects smallholders and value chain dynamics in Tanzania.

    Major themes covered in the book include: contract farming policy; contract farming and value chain dynamics; contract farming adoption decisions; contract farming and income diversification. The authors also discuss alternative aspects of contract farming such as trust, conspiracy, empowerment and corporate social responsibility. The book presents original research from case studies conducted in Tanzania on sugarcane, tobacco, sunflower and cotton. These crops have a history of trials and errors with contract farming involving smallholders. Furthermore, they are targeted in national strategies as some of the main crops for establishment and upgrading of agro-industrial activities in Tanzania.

    Part I Contract farming in context

    1. Researching the potentials and limitations of contract farming in sub-Saharan Africa

    Joseph Andrew Kuzilwa, Niels Fold, Arne Henningsen, Marianne Nylandsted Larsen

    2. Contract farming: fluid concept on firm grounds

    Lotte Isager, Niels Fold, Marianne Nylandsted Larsen

    3. Overview of the agricultural sector in Tanzania

    Joseph Andrew Kuzilwa, Daniel Mpeta, Marianne Nylandsted Larsen, Niels Fold

    Part II Contract farming and value chain dynamics

    4. Evolving governance structures and contract farming in the tobacco value chain in Tanzania

    Bahati Ilembo, Joseph Andrew Kuzilwa, Marianne Nylandsted Larsen

    5. Successes and Barriers regarding small and medium-size enterprises (SMEs) in the value chain for sunflower in Tanzania: Does contract farming reduce value chain coordination problems for SMEs?

    Daniel Mpeta, Joseph Andrew Kuzilwa, Batimo Sebyiga, Niels Fold

    6. Contract farming and upgrading possibilities for smallholder sugarcane growers

    Thobias E. Nsindagi, Jennifer K. Sesabo

    7. Coordination and upgrading in agricultural value chains: Contract farming arrangements in the Tanzanian cotton sector

    Marianne Nylandsted Larsen, Paul Maganga Nsimbila

    Part III Contract farming and household economics

    8. Tobacco contract farming in the Urambo District of Tanzania: Which farmers obtain inputs on credit and which buy them for cash?

    Bahati M. Ilembo, Joseph Andrew Kuzilwa, Arne Henningsen

    9. Income diversification of small-scale sugarcane contract farmers in Kilombero and Turiani, Tanzania

    Thobias Nsindagi, Jennifer K. Sesabo, Arne Henningsen

    Part IV Alternative aspects of contract farming

    10. Trusting your partner? Sunflower contract farming in central Tanzania

    Frederik Brønd

    11. Contract farming in a covert sphere: conspiracy theories as counter-knowledge about sugarcane production in Tanzania

    Lotte Isager

    12. Does contract farming empower smallholder agricultural producers? Lessons from sunflower contract farming in Tanzania

    Joseph Andrew Kuzilwa, Daniel Mpeta

    13. Embedding the global tobacco value chain in social and environmental concerns: contract farming and corporate social responsibility projects in the Tanzanian tobacco sector

    Marianne Nylandsted Larsen, Jonas Gillett


    Joseph A. Kuzilwa is a Professor in the Department of Economics, Mzumbe University, Tanzania.

    Niels Fold is a Professor in the Department of Geosciences and Natural Resource Management, University of Copenhagen, Denmark. 

    Arne Henningsen is an Associate Professor in the Department of Food and Resource Economics, University of Copenhagen, Denmark. 

    Marianne Nylandsted Larsen is an Associate Professor in the Department of Geosciences and Natural Resource Management, University of Copenhagen, Denmark.