Cooperatives, contract farming, and farm size: The case of tomato producers in Nepal

Ashok Mishra, Anjani Kumar, Pramod K. Joshi, Alwin Dsouza

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This study investigates the impact of contract farming (CF) through cooperatives in tomatoes on employment and economic performance of smallholders in a low-income developing country. Using farm-level data from Nepal and a nonparametric matching estimator, the study finds a negative and significant effect of CF on employment. However, CF through cooperatives has a positive and significant impact on profits, and yield. We find that small farms (≤0.51 ha) with contracts tend to gain in profits and yield per hectare. However, large farms (>0.85 ha) with contracts employ significantly less hired labor per hectare. Finally, our estimates reveal that, compared to independent producers, smallholder households in Nepal that engaged in CF with both input and output conditions received, on average, higher profits and yield. Findings underscore the importance of cooperatives and CF.

Original languageEnglish (US)
JournalAgribusiness
DOIs
StateAccepted/In press - Jan 1 2018
Externally publishedYes

Fingerprint

contract farming
Nepal
farm size
Lycopersicon esculentum
Contracts
Agriculture
cooperatives
producer
farm
farming systems
tomatoes
profits and margins
smallholder
profit
hired labor
large farms
economic performance
small farms
developing countries
households

ASJC Scopus subject areas

  • Food Science
  • Geography, Planning and Development
  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics

Cite this

Cooperatives, contract farming, and farm size : The case of tomato producers in Nepal. / Mishra, Ashok; Kumar, Anjani; Joshi, Pramod K.; Dsouza, Alwin.

In: Agribusiness, 01.01.2018.

Research output: Contribution to journalArticle

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