Optimising contract design in modern food supply chains: The case of paprika sector in Central Malawi

Repar, Lana and Onakuse, Stephen and Bogue, Joe and Afonso Gallegos, Ana (2017). Optimising contract design in modern food supply chains: The case of paprika sector in Central Malawi. "Journal of Agriculture And Rural Development in the Tropics And Subtropics", v. 118 (n. 1); pp. 113-127. ISSN 1612-9830.

Description

Title: Optimising contract design in modern food supply chains: The case of paprika sector in Central Malawi
Author/s:
  • Repar, Lana
  • Onakuse, Stephen
  • Bogue, Joe
  • Afonso Gallegos, Ana
Item Type: Article
Título de Revista/Publicación: Journal of Agriculture And Rural Development in the Tropics And Subtropics
Date: 2017
ISSN: 1612-9830
Volume: 118
Subjects:
Faculty: E.T.S. de Ingeniería Agronómica, Alimentaria y de Biosistemas (UPM)
Department: Proyectos y Planificación Rural [hasta 2014]
Creative Commons Licenses: Recognition - No derivative works - Non commercial

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Abstract

Contract farming remains one of the most efficient tools for integrating small-scale farmers into modern food markets. However, the literature lacks evidence on best practices in designing contracts for food supply chains in developing countries. The purpose of this study is to analyse the design of an existing contract in the emerging Malawian paprika sector using a qualitative analytical approach. The study compared a contract design in Malawi?s paprika supply chain with four similar contracts from the horticultural sector in Malawi, India, Zambia and Cape Verde. This study employed a thematic qualitative analysis and developed 17 categories for analysing contracts. The findings showed that the Malawian contract contained in total eleven defined clauses. There were missing clauses that influenced the risk and power distribution between parties in the contract. The comparison of the Malawian contract with other contracts revealed that none of the analysed contracts included all clauses necessary for a sustainable and fair relationship. The study proposed improved contract design and future actions to contribute to decreasing inequalities between parties engaged in the Malawi?s paprika supply chain. The implications of the study include initiation of changes in public policies related to contract farming strategies as the findings suggest that vulnerable small-scale farmers might be left unprotected and generate low gains through supply contracts due to poorly formulated contract clauses.

More information

Item ID: 46206
DC Identifier: http://oa.upm.es/46206/
OAI Identifier: oai:oa.upm.es:46206
Official URL: http://www.jarts.info/index.php/jarts/article/view/2017031552220
Deposited by: Memoria Investigacion
Deposited on: 02 Jun 2017 17:19
Last Modified: 02 Jun 2017 17:19
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