Next steps for smallholder sugarcane contract farmers in developing countries:

Abstract

Contract farming (CF) is a critical pathway that supports many African smallholder growers in crop production for commercialisation. Most cash crops, including sugarcane, are grown under CF in developing countries (DCs). Thus, CF is an effective strategy for increasing farmer crop market competitiveness and a tool for smallholder crop cultivation, income sustenance, and input assurance. However, the success of CF varies across DCs and is context-specific depending on the existing CF models (CFMs), with most DCs operating in a single CFM and its out-growers remaining unsatisfied, perceiving CF benefits only to agribusiness firms (buyers). Understanding CFMs and smallholder farmers’ crop production can provide a phenotypic difference that edge for the future sustainability of the crops under the strategy. This article critically reviewed literature related to sugarcane CF service delivery and CF support models in DCs. It specifically explores the sugarcane CFM practices, and how they work; and documents lessons learned from well-progressing DCs like Brazil, India, Thailand, etc. To inform the way forward to address the challenges related to the CFMs. A thorough search was conducted in published journal articles, conference proceedings, books, reports, presentations, posters, and case studies related to CF among smallholders, out-growers, and operational CFMs in DCs. The review established that CF is an effective strategy for addressing production and marketing challenges for smallholder sugarcane farmers. However, smallholder farmers require effective intermediary institutions and ought to opt for the diversification of CFMs. This necessitates policy and legal frameworks from their respective governments