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Exploring Contract Farming as a Business Model for Commercial Expansion of the Indigenous Poultry Subsector

Published by:
Publication date
Type of Publication:
Working Papers & Briefs
Focus Region:
Sub-Saharan Africa
Focus Topic:
Agricultural Value Chains / Agri-Businesses
Market / Trade
Type of Risk:
Type of Risk Managment Option:
Risk coping

This policy brief discusses contract farming as a potential business model for transforming the indigenous poultry subsector into a viable commercial enterprise. Using experiences from the Research-Into-Use (RIU) Indigenous Poultry Commercialisation Project, it demonstrates that contract farming can be highly beneficial to rural poultry farmers, poultry input suppliers, the contractor and the public sector in general. It shows that contract farming increases access to credit for farmers and drives production scales; opens up markets and increases income; provides farmers with price insurance against fluctuations; enhances extension services and use of new knowledge; improves business management skills of farmers; and stimulates rural development through multiplier effects for employment creation, infrastructure and market development. Consequently the policy brief advocates for the promotion of contract farming in the indigenous poultry subsector.