Contract Arrangements in the Fruit and Vegetable Subsector in Sub-Saharan Africa

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CFAES_ESO_2280.pdf (2.03 MB)

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1995-12

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Ohio State University. Department of Agricultural, Environmental, and Development Economics

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Producers and marketing agents use a variety of formal and informal contractual arrangements in the fruit and vegetable subsector in Sub-Saharan Africa. Some of the more complicated forms of contracts exist for production that is exported to Europe. This paper summarizes the contract arrangements found in Ghana, Swaziland, The Gambia and Uganda. Low levels of asset specificity, uncertainty, access to financial services and information tend to be related with spot market mechanisms. Higher levels of each tend to lead to the use of completely vertically integrated arrangements. Other factors such as access to land markets are important in some cases in influencing the organization of production and marketing.

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http://hdl.handle.net/1811/66660

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ESO: Economics and Sociology Occasional Papers (AEDE)