Seminar room 418, Graduate School of International Agricultural Technology
6. Main contents
○ To explore the relative importance of different contract design attributes that could differentially affect the motivation of smallholders to participate in CF (Contract Farming)
○ Combined a literature review to define contract design attributes, an analytical hierarchy process (AHP) method to identify the most important contract design attributes (6 attributes are like price option, form of contract, seed quality and product quality, input supply arrangement and technical assistance) and a discrete choice experiment (DCE) to elicit individual preferences.
○ Experiments were conducted in Ethiopia between September and November 2011 for farmers (half of them were growing seed potatoes under the CF, the other were not participated in CF before)
○ The conditional logit model to model the choice among alternatives as a function of the characteristics of the alternatives rather than the characteristics of the individual making the choice.
○ Farmer’s preferred contract design attributes are written contract, variable quality specification, seed from buyer, variable price (yield-based), inputs by buyer and technical assistance by buyer.
○ The coefficients of the individual-specific variables were not statistically significant.
○ Input market uncertainty is more important than output market uncertainty in smallholder’s decision to participate.