Contract Agriculture Lessons from Experiences in Costa Rica

Publication:
Contract Agriculture Lessons from Experiences in Costa Rica

dc.contributor.author	Chiriboga, Manuel
dc.contributor.author	Charnay, Romain
dc.contributor.author	Chehab, Carol
dc.date.accessioned	2012-06-26T15:37:23Z
dc.date.available	2012-06-26T15:37:23Z
dc.date.issued	2008
dc.description.abstract	Contract farming or contract agriculture is a practice by which agro-industrial processors, exporters, domestic suppliers to supermarkets and other interested actors contract primary production with producers. The factors that have encouraged contract farming in Costa Rica can be grouped in three major areas: 1) interest of the contractors to guarantee supply of the products under specific quality standards required by mass distribution systems or by importers; 2) avoiding problems related to administration of farms and particularly managing of personnel; and 3) distribution of risks that could be derived by high concentration of production. The study concludes are that there is a high variety in the modalities of contract farming; arrangements vary depending on crops or animal products; most contract agreements include clauses on technical assistance, quality controls and pricing, and few include financing; support and guarantee of purchase of the products helps farmers in their arrangements to obtain financing; the degree of formality of contracts is varied, being more stringent when contractors are private firms; and there is no special legislation for the specific case of contract farming. The benefits of contract farming accrue to producers and contractors, yet the former share a less significant portion of the benefits if one considers that they share most of the remaining risks.	en
dc.identifier.doi	10.1596/9072
dc.identifier.uri	https://hdl.handle.net/10986/9072
dc.language	English
dc.publisher	Washington, DC: World Bank
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo/
dc.subject	World Development Report 2008
dc.title	Contract Agriculture Lessons from Experiences in Costa Rica	en
dspace.entity.type	Publication
okr.crosscuttingsolutionarea	Jobs
okr.crosscuttingsolutionarea	Fragility, Conflict, and Violence
okr.date.doiregistration	2025-05-05T11:29:56.352400Z
okr.globalpractice	Macroeconomics and Fiscal Management
okr.globalpractice	Social, Urban, Rural and Resilience
okr.globalpractice	Agriculture
okr.globalpractice	Trade and Competitiveness
okr.language.supported	en
okr.region.administrative	Latin America & Caribbean
okr.relation.associatedurl	https://openknowledge.worldbank.org/handle/10986/5990
okr.topic	Agriculture
okr.topic	Conflict and Development
okr.topic	Finance
okr.topic	Industry
okr.topic	Labor
okr.topic	Macroeconomics and Economic Growth
okr.topic	Rural Development