Plural contracting and adoption drivers for avocado contract farming in Njombe District, Tanzania

Abstract

Spreading risks among farmers from production to market access is vital, and the opportunity to console is plural contracting. This study assessed plural contracting adoption among avocado farmers in Tanzania. Specifically, multiple contracts incurred for avocado farmers were examined, and access to credit finance and infrastructure were adoption drivers examined to influence adoption of avocado contract farming in Njombe District, Tanzania. Guided by agency theory, cross-sectional data were collected from a sample size of 385 respondents using questionnaires. Descriptive statistics and inferential analysis were employed to analyse both qualitative and quantitative data, respectively. The study identified four categories of contract farming among avocado cultivators: input, production, marketing, and full-service contracts.Variables such as age, gender, education, and geographic region significantly influenced participation rates.The predominant demographic of farmers consisted of middle-aged individuals who operated on a small scale and lived in rural areas.The findings indicate that various contract forms incentivise farmers to adopt practices, with these four types being the most significant.Moreover, pivotal elements that significantly facilitate the adoption of avocado contract farming include access to credit (OR=0.579, p=0.002), infrastructure (OR=2.564, p<0.001), advisory help (OR=0.623, p=0.023), and contract enforcement methods (OR=0.470, p<0.001). Moreover, access to credit finance and infrastructure, in addition to advisory support and clear contracts that include efficient enforcement procedures, significantly influences farmers' willingness to adopt contract farming.The results demonstrate the significance of socio-demographic characteristics, institutional support, and well-structured contracts in facilitating the adoption of avocado contract farming. It is recommended that plural contracts, access to credit finance and infrastructure need policies and regulatory frameworks for guiding farmers to have appropriate contractual arrangements. Further, a replicate study should focus on the relationship of avocado quantities sold, price, and income of the farmers.