Abstract:
For contracting companies’ purposes, the size of holding or the level of capital of the producer isn’t important; the devolution of responsibility, exposure to risks, and access to goods is what’s valued. Contracted producers are aware they do not capture an equitable portion of the aggregated income along the chain. Contracting for specific products in a continuous manner causes producers to use land more intensively, use more agrochemicals and increase water exhaustion. Companies should be encouraged to increase benefits to producer organizations, such as locating processing plants near rural production areas. Other legislative and policy recommendations are made.
