Why Contract Farming in Africa Mohammad Karaan Dean AgriSciences University of Stellenbosch NAMC/FAO Workshop Indaba Hotel Johannesburg May 2009.

Slides:

Advertisements

Similar presentations

Transactions Costs Inside the black box Certain products require teamwork – either to be produced at all or to be produced efficiently Markets are not.

Advertisements

Food Parks Initiative FAO/AGS Presentation on the basic concepts in ‘Food Parks Initiative’ for discussion, Strategy with Rome- Based Food Agencies Organisation”

AMAP BDS: A VALUE CHAIN FRAMEWORK FOR PROMOTING ECONOMIC GROWTH THAT REDUCES POVERTY JEANNE DOWNING 7/28/05.

Propose merge with: Partnerships including Private Sector, Agribusiness trade Financing Market Access Cross-Cutting issues: Address GENDER separate from.

Law, Economics and Organization in Proactive International Contracting A presentation at the Future Law, Lawyering, and Language - Helping People and.

Absa AgriBusiness Bank Agri Commodity outlook

Building Empowering Value Chains: Integrating Smallholders into the New Opportunities in Agriculture IFAD and WB Presentation to ECOSOC High Level Segment.

Agribusiness Investments on the LAKAJI Corridor: Promising Opportunities and Shared Value August 28-29, 2013 Abuja, Nigeria.

V ertical C oordination I n M alting B arley A S ilver B ullet for C oors ? L indsey H iggins P ablo R amirez Texas A & M University College Station, Texas.

Expanding Sustainable Aquaculture to help meet MDGs partnership. excellence. growth.

Moving USB – QSSB Partnership Forward Under USB’s New LRSP INTERNATIONAL OPPORTUNITIES.

KEY DEVELOPMENTS AND VISION FOR THE SECTOR IN THE KZN AUTO HUB ANDREW VELLEMAN Chairman Durban Automotive Cluster.

Foreign Investment Foreign Direct Investment (FDI)

Introduction to the economics of the firm. Overview of issues Tomasz Żylicz.

Introduction to the economics of the firm. Summary Tomasz Żylicz.

DJ, 2003 Theories of the Firm Transaction Cost. DJ, 2003 Introduction z Coase – on the nature of the firm y Firms exist to minimise transaction costs.

Rabobank Group The Rabobank approach to value chain finance.

Farmer-to-Farmer Program Strengthening Global Food Security with Volunteer Technical Assistance.

Introduction to Agribusiness (Chapter 1) Agriculture ? Plowing a field, planting seed, harvesting a crop, milking cows, feeding live stock…. Business?

Economic Foundations of Strategy Chapter 2: Transaction Costs Theory

Producer decision Making City University Producer Decision Making The firm Production Function Q = F(L,K, N)

JOHN MALONE Agriculture and Business

Current & Long-term Prospects for US Dairy Trade Cooperative Network Dairy Policy Conference April 3, 2012 Jim Sleper Land O’Lakes, Inc.

BRAZIL’S AGRIBUSINESS: MORE OPPORTUNITIES FROM NAFTA EXPANSION? Third Workshop of the North American Agri-food Market Integration Consortium (NAAMIC),

Sesame Business Network Ethiopia Mekelle, March 21 st 2015 Results group 1 : In-country value addition.

Determining the boundary of firm The consideration of transaction cost.

PREVENTION, PROTECTION, PROMOTION THE WORLD BANK’S EVOLVING FRAMEWORK OF SOCIAL PROTECTION IN AFRICA MILAN VODOPIVEC WORLD BANK Prepared for the conference.

The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration Oliver D. Hart, Professor of Economics at Harvard University Sanford.

Paper Discussion Market Frictions as Building Blocks of an Organizational Economics Approach to Strategic Management Authors Joseph T. Mahoney and Lihong.

Changing Agribusiness and Agriculture Organization: Implications for Reforms in Karnataka Gopal Naik Professor Indian Institute of Management Bangalore.

1 Commercialization Presentation by: Jim Grey General Manager Ontario Soybean Growers.

Improving Small Farmer’s Access to Finance: The Pros and Cons of Contract Farming Carlos Arthur B. da Silva, Ph.D. FAO Agricultural Management, Marketing.

How Can CAADP Aligned Initiatives Help to Foster Private Sector Financing in Support of Country Plans: Harnessing Private Sector Financing to Generate.

Dairying in Asia: Strategic opportunities, challenges and the response Vinod Ahuja Livestock Policy Officer Food and Agriculture Organization of the UN.

Rosa S. Rolle Senior Agro-Industry and Post-harvest Officer FAO Regional Officer for Asia and the Pacific Integration of Small Farmers into Horticultural.

The Canadian Experience using the Exporter/Importer Register Databases Philip Armstrong Policy Applications of Linked Trade Data.

CREATING INCLUSIVE GROWTH THROUGH AGRO-PROCESSING INNOVATION.

New World, New World Bank Group Presentation to Fiduciary Forum On Post Crisis Direction and Reforms March 01, 2010.

RETURN MIGRATION IN CHINA: A Rural Development Opportunity?

Livestock & Dairy Investment Opportunities Global AgInvesting Conference London 2 nd – 3 rd December 2014 David Sackett Managing Director, Growth Farms.

Methodology for preparing national cotton strategies in Africa Alexander Sarris Director, Commodities and Trade Division Food and Agriculture Organization.

1 FOREIGN AND LOCAL DIRECT INVESTMENTS IN AGRICULTURE: Lessons from Financing Agricultural Investments in Tanzania ________________________________________________.

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved. Vertical integration and outsourcing.

AB LINAS AGRO GROUP OVERVIEW OF ACTIVITY AND FINANCE FOR FY 2014/15 Tomas Tumėnas, Finance Director.

What We Will Discuss Today u Distribution channels What are their functions? How are they organized? u Distribution channel decisions Design decisions.

* As played by George Clooney

The Vertical Boundaries of the Firm

Week 2 Poulton & Lyne Peter Klaassen. Q.1. What do you understand by the terms ex ante and ex post transaction costs and what are their implications for.

Elise Golan Economic Research Service June 17, 2003 Consumer Driven Agriculture: New Demands and New Supply Chains Consumer Driven Agriculture: New Demands.

……Motivation: contracts, information and incentives M/R Chapter 5.

1 New Institutional Economics: An Evolutionary View of the Literature James N. Barnes, Ph.D. Assistant Professor of Rural Development Department of Agricultural.

Strengthening Supply Chains through Value Additions and Enterprise Development Agriculture, Fisheries & Related Sectors Ranjit H Singh.

Innovare & L3 Consortium; Leveraging Leasing for Livelihoods

Strategy Research: Governance and Competence Perspectives Oliver E

International Livestock Research institute

New approach to promoting agricultural innovation and improving agribusiness opportunities Global expert meeting on Agriculture & agro industry Development.

INSTRUMENTS TO INCREASE FINANCIAL EFFICIENCY

Financing the cashew value chain Fanja Ravoavy

Theory of Firms Oluwatobi

Directore General for Agriculture and Rural Development

The Choice of Organizational Form: Vertical Financial Ownership versus Other Methods of Vertical Integration (Joe Mahoney, SMJ 1992) I-Chen Wang.

The Costs of Organization

Friend or foe: Customer-supplier relationships and innovation

Dairying in Asia: Strategic opportunities, challenges and the response

Economic Foundations of Strategy Chapter 2: Transaction Costs Theory

Economics of Organization Chapter 2: Transaction Costs Theory

Determining the boundary of firm

Opportunities for Australian agriculture – and how to secure them.

The Information Society

Economic Foundations of Strategy Chapter 2: Transaction Costs Theory

Presentation transcript:

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 –Opportunism –Bounded rationality

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

Examples Sugar Cotton Grains Dairy Flowers Seeds Oilseeds Poultry Aquaculture Hydroponics

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

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