Assessment of factors that impact on the viability of contract farming: A case study of maize and soya beans in Mashonaland West and central provinces in Zimbabwe

Abstract

This research analyses factors that affect the viability of contract farming in the Zimbabwean maize and soya sector. The objective was to analyse how sustainability factors (social, ethical, environmental and economic factors) were integrated to ensure the viability and sustainability of contract ventures. A sample of 70 farmers and 4 contracting firms involved in the contract farming production of maize and soya were used. A questionnaire survey and focus group interviews were used as data gathering tools. Quantitative and qualitative data analysis techniques were used and a probit regression model was applied to identify the factors that impacts significantly on the viability of the enterprises. The farmer’s scale, years of experience, availability of inputs, crop grown, production area and access to finances were all identified as the significant factors affecting contract farming viability. It was recommended that farmers refrain from side marketing and contractors stick to contractual agreements in terms of payments and timely provision of inputs.

Keywords: contract farming; viability; sustainability