2016
DOI: 10.4102/sajems.v19i1.1183
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Contract farming risks: A quantitative assessment

Abstract: The objective of this study is to identify the key risks facing each of the stakeholders in the export-focused paprika value chain in Zambia. Although a deterministic cost-benefit analysis indicated that this outgrower scheme would have a very satisfactory net present value (NPV), a Monte Carlo analysis using an integrated financial-economic-stakeholder model identifies a number of risk variables that could make this system unsustainable. The major risks include the variability of the real exchange rate in Zam… Show more

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“…In some cases, neither fair trade nor contract farming offer a positive contribution to sustainable development or to the improvement of smallholder livelihoods. Indeed, contract farming may contribute to continued poverty or even poverty trap-generation [53,54], where there is a risk of self-exploitation in the case of contract farming [55].…”
Section: Two Sides Of the Equation And The Missing Link: Contribution...mentioning
confidence: 99%
“…In some cases, neither fair trade nor contract farming offer a positive contribution to sustainable development or to the improvement of smallholder livelihoods. Indeed, contract farming may contribute to continued poverty or even poverty trap-generation [53,54], where there is a risk of self-exploitation in the case of contract farming [55].…”
Section: Two Sides Of the Equation And The Missing Link: Contribution...mentioning
confidence: 99%