The New Wave of Contract Farming in Ghana: The Role of Contract Design in Facilitating Sustainable Outgrower Schemes
Many of the prevalent horticultural and tree crop outgrower schemes in Ghana have failed over time. There is, however, a new wave of contract farming in Ghana involving staple crops. This is due to agro-industrialization and increasing domestic demand for biomass-based raw materials. It is the objective of this brief to highlight the role of contract design in facilitating sustainable contract farming arrangements between small-scale farmers and agro-processing companies. Specific recommendations that can be employed by agro-processing companies in Ghana are also made to help promote the long-term sustainability of outgrower schemes, which are mutually beneficial for the small-scale farmers and companies.