Contract farming: A favourable agribusiness practice
August 6, 2019 5:10 am
Smallholder ginger farmers of the “Drekenivuci Ginger Farmers Cluster” have successfully integrated Contract Farming.
They have implemented this into their ginger production.
This after they learnt about the practice at a workshop organized by the Fiji Crop and Livestock Council and the Food and Agriculture Organization in 2017 and 2018.
Contract farming is a formal business agreement, between the farmers and a buyer, regarding the methods of production and marketing strategies best suited to the involved parties.
The Drekenivuci Farmers Group, based in the Naloto district in Tailevu, first signed a one-year agreement with Kaiming Agro Processor Limited last year.
Group head, Sakeasi Tivika says amongst its many benefits, contract farming has enabled a better flow of communication in both farmer circles as well as between farmers and exporters.
The 10-member Drekenivuci cluster managed to produce and sell 11,506kg of ginger, gaining an income of more than $13,000 within the first six months.
Encouraged by these results, in April this year the farmers signed a three-year extension of the same agreement, which will expire in 2021.