Environmental Impact of contract farming
Subject Areas : Environmental managment
seyed mohammad jafar Esfahani
1
*
1 - Assistant Professor of Agricultural Planning, Economic and Rural Development Research Institute(APERDRI)
Keywords: Environmental Impact, sustainable Development, Contract farming.,
Abstract :
Background and Objective: Contract farming is increasingly used in developing countries to link smallholder farmers to export markets. Despite the extensive literature on the economic impact of contract farming, very few studies have examined its effects on the environment and sustainable agricultural operations. Considering that the relationship between agriculture and the environment any reduction in the quality of the environment can affect the performance and production of agricultural products; Therefore, it is very important to examine the environmental aspects of contract farming.
Material and Methodology: This research is a systematic review based on the PRISMA process. To collect information, the methods of library and documentary studies were used, and the appropriate sources were refined and selected through a systematic review. In this review study, in the first stage, 53 articles that were written in the field of contract farming, environmental effects of agriculture, and factors affecting it were reviewed, and during a three-stage screening process, 32 related articles were reviewed in this field.
Findings: The review of the articles showed that some of the consequences and effects of contract farming, such as increasing farmers' knowledge, increasing productivity, increasing farmers' income, and product traceability, can have favorable environmental effects, and more use of chemicals that are usually provided in the framework of contracts. Intensive land use, and expansion of mono-crop cultivation are major threats to ecosystems that affect the dynamics of rural landscapes. Based on this, it can be said that not paying attention to environmental considerations in contract farming can cause irreparable damages.
Discussion and Conclusion: Based on the results of this study, policymakers and planners must create a framework with coordinated policymaking in the two sectors of agriculture and natural resources so that while increasing the protection of natural resources and the environment, the benefits of contract farming can also be taken.
1. Liu, Y., D. Sun, H. Wang, X. Wang, G. Yu, and X. Zhao. (2020). An evaluation of China’s agricultural green production: 1978–2017. Journal of Cleaner Production, 243, 118483.
2. Kirsten, J. and K. Sartorius. (2002). Linking agribusiness and small-scale farmers in developing countries: is there a new role for contract farming? Development Southern Africa, 19(4), 503-529.
3. Eaton, C. and A. Shepherd. (2001). Contract farming: partnerships for growth (prevajalec, Trans.). Food & Agriculture Org.
4. Pingali, P.L. (2001). Environmental consequences of agricultural commercialization in Asia. Environment and Development Economics, 6(4), 483-502.
5. Rasmussen, L.V., B. Coolsaet, A. Martin, O. Mertz, U. Pascual, E. Corbera, N. Dawson, J.A. Fisher, P. Franks, and C.M. Ryan. (2018). Social-ecological outcomes of agricultural intensification. Nature Sustainability, 1(6), 275-282. https://doi.org/10.1038/s41893-018-0070-8
6. Wang, X., A. Sarkar, H. Wang, and F. Zhang. (2021). Does Participation in Agricultural Value Chain Activities Influence Smallholder Fruit Grower Production Performance? A Cross-Sectional Study of Apple Farmers in Shandong, China. Horticulturae, 7(6), 153.
7. Schrama, M., J.J. De Haan, M. Kroonen, H. Verstegen, and W.H. Van der Putten. (2018). Crop yield gap and stability in organic and conventional farming systems. Agriculture, ecosystems & environment, 256, 123-130.
8. Knickel, K., A. Ashkenazy, T.C. Chebach, and N. Parrot. (2017). Agricultural modernization and sustainable agriculture: Contradictions and complementarities. International journal of agricultural sustainability, 15(5), 575-592.
9. Jianping, L., L. Minrong, W. Jinnan, L. Jianjian, S. Hongwen, and H. Maoxing. (2014). Report on global environmental competitiveness (2013) (prevajalec, Trans.). Springer.
10. Zangeneh, M. and N. Banaeian. (2022). Analysis and Evaluation of Energy, Economic, and Environmental Impact Indicators of Horticultural and Greenhouse Production Systems in Iran using PRISMA Method. Journal of Agricultural Machinery, 12(3), 423-451. https://doi.org/10.22067/jam.2021.67892.1004
11. Yakhchali, M., R. Tahmasebi, M. Latifi, and A. Faraji Mollaie. (2020). Investigating Government as a Platform Characteristics: A Systematic Literature Review and Meta-Synthesis. Journal of Public Administration, 12(2), 204-237. https://doi.org/10.22059/jipa.2020.303652.2755
12. Ibanez, M. and A. Blackman. (2016). Is eco-certification a win–win for developing country agriculture? Organic coffee certification in Colombia. World Development, 82, 14-27.
13. Chen, J. and Y.J. Chen. (2021). The impact of contract farming on agricultural product supply in developing economies. Production and Operations Management, 30(8), 2395-2419.
14. Vicol, M., N. Fold, C. Hambloch, S. Narayanan, and H. Pérez Niño. (2022). Twenty‐five years of Living Under Contract: Contract farming and agrarian change in the developing world. Journal of Agrarian Change, 22(1), 3-18.
15. Cholez, C., M.-B. Magrini, and D. Galliano. (2020). Exploring inter-firm knowledge through contractual governance: A case study of production contracts for faba-bean procurement in France. Journal of Rural Studies, 73, 135-146. https://doi.org/https://doi.org/10.1016/j.jrurstud.2019.10.040
16. Labarthe, P. and C. Laurent. (2013). Privatization of agricultural extension services in the EU: Towards a lack of adequate knowledge for small-scale farms? Food Policy, 38, 240-252. https://doi.org/https://doi.org/10.1016/j.foodpol.2012.10.005
17. Carballo‐Penela, A., I. Mateo‐Mantecón, S. Alvarez, and J.L. Castromán‐Diz. (2018). The role of green collaborative strategies in improving environmental sustainability in supply chains: Insights from a case study. Business Strategy and the Environment, 27(6), 728-741.
18. Powell, W.W. and S. Grodal. (2006). Networks of innovators,[in:] J. Fagerberg, DC Mowery, RR Nelson. V: The Oxford handbook of innovation.
19. Minot, N. (2018). Contract farming in developing countries: patterns, impact, and policy implications (6–3). Case studies in food policy for developing countries: Domestic policies for markets, production, and environment, 2, 37.
20. Ton, G., W. Vellema, S. Desiere, S. Weituschat, and M. D'Haese. (2018). Contract farming for improving smallholder incomes: What can we learn from effectiveness studies? World Development, 104, 46-64.
21. Wang, H.H., Y. Wang, and M.S. Delgado. (2014). The transition to modern agriculture: Contract farming in developing economies. American Journal of Agricultural Economics, 96(5), 1257-1271.
22. Mulwa, C.K., M. Muyanga, and M. Visser. (2021). The role of large traders in driving sustainable agricultural intensification in smallholder farms: Evidence from Kenya. Agricultural Economics, 52(2), 329-341. https://doi.org/https://doi.org/10.1111/agec.12621
23. Bellemare, M.F. (2010). Agricultural extension and imperfect supervision in contract farming: evidence from Madagascar. Agricultural Economics, 41(6), 507-517.
24. Dubbert, C. and A. Abdulai. (2022). Does the contract type matter? Impact of marketing and production contracts on cashew farmers’ farm performance in Ghana. Journal of Agricultural & Food Industrial Organization, 20(2), 119-134.
25. Olanipekun, I.O., G.O. Olasehinde-Williams, and R.O. Alao. (2019). Agriculture and environmental degradation in Africa: The role of income. Science of The Total Environment, 692, 60-67.
26. Hoang, V. (2021). Impact of contract farming on farmers’ income in the food value chain: A theoretical analysis and empirical study in Vietnam. Agriculture, 11(8), 797.
27. Young, L.M. and J.E. Hobbs. (2002). Vertical linkages in agri‐food supply chains: changing roles for producers, commodity groups, and government policy. Applied Economic Perspectives and Policy, 24(2), 428-441.
28. Kumari, R., K. Suman, S. Karmakar, V. Mishra, S.G. Lakra, G.K. Saurav, and B.K. Mahto. (2023). Regulation and safety measures for nanotechnology-based agri-products. Frontiers in Genome Editing, 5, 1200987.
29. Giovannucci, D. and T. Purcell. (2008). Standards and agricultural trade in Asia. ADBI Discussion Paper
30. Saitone, T.L. and R.J. Sexton. (2010). Product differentiation and quality in food markets: industrial organization implications. Annu. Rev. Resour. Econ., 2(1), 341-368.
31. Banterle, A. and S. Stranieri. (2013). Sustainability standards and the reorganization of private label supply chains: A transaction cost perspective. Sustainability, 5(12), 5272-5288.
32. Laurance, W.F., J. Sayer, and K.G. Cassman. (2014). Agricultural expansion and its impacts on tropical nature. Trends in ecology & evolution, 29(2), 107-116.
33. Foley, J.A., N. Ramankutty, K.A. Brauman, E.S. Cassidy, J.S. Gerber, M. Johnston, N.D. Mueller, C. O’Connell, D.K. Ray, and P.C. West. (2011). Solutions for a cultivated planet. Nature, 478(7369), 337-342.
34. Mishra, A.K., A. Kumar, P.K. Joshi, and A. D’souza. (2018). Production risks, risk preference and contract farming: Impact on food security in India. Applied Economic Perspectives and Policy, 40(3), 353-378.
35. Vicol, M. (2017). Is contract farming an inclusive alternative to land grabbing? The case of potato contract farming in Maharashtra, India. Geoforum, 85, 157-166.
36. Bijman, J. (2008). Contract farming in developing countries: an overview.
37. Singh, S. (2002). Multi‐national corporations and agricultural development: a study of contract farming in the Indian Punjab. Journal of International Development, 14(2), 181-194.
38. Sethi, N., S. Sucharita, and H.K. Pradhan. (2016). Environmental Implications of Contract Farming: The Case of Cotton Cultivation in Odisha. Journal of Economic Policy and Research, 11(2), 104.
39. Kleemann, L., A. Abdulai, and M. Buss. (2014). Certification and access to export markets: Adoption and return on investment of organic-certified pineapple farming in Ghana. World Development, 64, 79-92.
40. Popp, J., K. Pető, and J. Nagy. (2013). Pesticide productivity and food security. A review. Agronomy for Sustainable Development, 33(1), 243-255. https://doi.org/10.1007/s13593-012-0105-x
41. Maitra, S., A. Hossain, M. Brestic, M. Skalicky, P. Ondrisik, H. Gitari, K. Brahmachari, T. Shankar, P. Bhadra, and J.B. Palai. (2021). Intercropping—A low input agricultural strategy for food and environmental security. Agronomy, 11(2), 343.
42. Warra, A. A. and M.N.V. Prasad. (2020). Chapter 16- African perspective of chemical usage in agriculture and horticulture—their impact on human health and environment (prevajalec, Trans.). V M.N.V. Prasad (ur.), Agrochemicals Detection, Treatment and Remediation (str. 401-436). Butterworth-Heinemann. https://doi.org/https://doi.org/10.1016/B978-0-08-103017-2.00016-7
43. Montanarella, L., M. Badraoui, V. Chude, I. Costa, T. Mamo, M. Yemefack, M. Aulang, K. Yagi, S.Y. Hong, and P. Vijarnsorn. (2015). Status of the world's soil resources: main report.
44. Miller, L. (1995). Agribusiness, contract farmers and land‐use sustainability in North‐West Tasmania. The Australian Geographer, 26(2), 104-111.
45. Key, N. and D. Runsten. (1999). Contract farming, smallholders, and rural development in Latin America: the organization of agroprocessing firms and the scale of outgrower production. World Development, 27(2), 381-401.
46. Putra, R.P., M.R.R. Ranomahera, M.S. Rizaludin, R. Supriyanto, and V.A.K. Dewi. (2020). Investigating environmental impacts of long-term monoculture of sugarcane farming in Indonesia through DPSIR framework. Biodiversitas Journal of Biological Diversity, 21 (10).