The influence of supplier development, in the form of contract farming, on performance in Zimbabwean tobacco industry

Abstract

Supplier development in the farming industry takes the form of contract farming. Contract farming was introduced to tobacco farming in 2004. Prior to that contract farming has been thriving in other crops such as cotton and sugarcane. Previous studies on tobacco farming had an unbalanced focus on the social aspects of contract farming thereby largely neglecting the economic benefits of the same phenomenon. This study therefore seeks to determine how supplier development in the form of contract farming impact on supplier performances. A survey of 20 tobacco firms who had to rate 400 farmers was conducted, and the findings indicated that contract farming leads to improved cost performance and quality performance. However, the study recorded no statistically significant effects of contract farming on delivery performance. It was therefore recommended that contract farming structures must be strengthened in order to reap on the achieved benefits in terms of improved cost performance and quality performance.

Sustainable Farmer Development for Agri-Food Supply Chains in Developing Countries

“…The literature suggests that SD has been prevalent in the agri-food sector in developing economies [60,68], but mostly under the umbrella term of "contract farming". The concept of contract farming was prevalent in both developed and developing countries including Greece, China, and the United States, and in the 20th century, European colonial powers established formal farmer-corporate agreements in some of their colonies.…”

An assessment of differential supplier category performance in the agro processing industry: A case for supplier development in the Zimbabwean tobacco industry

“…More specifically, strategic sourcing enables the identification and selection of competent suppliers (Lysons & Farrington, 2020). Through strategic sourcing firms can reduce their total cost of ownership and improve the quality of sourced materials (Mukucha & Chari, 2021). Sourcing in the agro processing industry emphasises on various supplier performance metrics (Chopra, Meindl, & Kalra, 2018) such as crop yield, purchase price, crop quality, and delivery timing (Mukucha & Chari, 2021).…”

“…Through strategic sourcing firms can reduce their total cost of ownership and improve the quality of sourced materials (Mukucha & Chari, 2021). Sourcing in the agro processing industry emphasises on various supplier performance metrics (Chopra, Meindl, & Kalra, 2018) such as crop yield, purchase price, crop quality, and delivery timing (Mukucha & Chari, 2021). This study will focus on crop yield which is widely emphasised in the agribusiness in general and tobacco industry (Shonhe & Scoones, 2022).…”

“…A supply base is a segment of the entire supply network that a merchant controls (Lysons & Farrington, 2020). A wide supply base misses out on the benefits of supply base optimisation such as supplier development (Mukucha & Chari, 2021). It is therefore imperative to have a closer analysis of the performance of various farm categories involved in strategic crops such as maize (Mazwi, Chemura, Mudimu & Chambati, 2019) and tobacco (Prowse & Perez Nino, 2022) as part of strategic sourcing (Mukucha & Chari, 2023).…”

Supply chain resilience: the role of supplier development in the form of contract farming in fast-food outlets in Zimbabwe

“…The information related to the progress in the growing of the contracted crop or the reared animal is fully available through the constant monitoring by the agricultural extension officers employed by the agro-processing firms to monitor and supervise the contracted farmers (Scoones et al, 2018). The harvesting and delivery of the crops is equally in the purview of the contractor (Mukucha and Chari, 2021). It is therefore anticipated that: H3.…”