Present state and issues of farmers-agribusiness linkages through farmer organization/group in Sri Lanka: A case study of hybrid maize
2005
Esham, M.(Tottori Univ. (Japan)) | Usami, K.
For rural development in Sri Lanka, it is important to get the agribusiness industry involved in the development of small farmers. How to develop, strengthen, or replicate the existing farmers-agribusiness linkages in non-plantation agriculture is of prime interest. We examined determinants of small farmers' participation in farmers-agribusiness linkage, impact of their participation on agricultural income, and management issues of farmers-agribusiness linkage in Sri Lanka. In practice, one of the two largest contract-farming operations in Sri Lanka, hybrid maize production was studied. The better informed entrepreneurial farmers participated in the linkage. The performance of the linkage in terms of income distribution was good, as it did not favor the wealthier farmers at the expense of poorer farmers. Besides, participant farmers could significantly increase their agricultural incomes. Farmer groups/organizations contributed to reduce contract management costs and improve credit recovery, besides served as an important source of information to farmers. Management issues such as capacity building for farmer organizations, farmers-firm and farmers-farmer organization relationship, and contract enforcement were important preconditions for the sustainability of the linkage.
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