Contract Farming in China: Perspectives of Smallholders
This paper explores the current status of contract farming in China by examining data from a survey of Chinese householders. The survey indicates that the actual proportion of householders engaged in contract farming is relatively low and significantly less than the proportion of householders willing to produce under contract. The primary reason for householders not participating in contract farming is the absence of opportunities, particularly for small size farms. Householders identify price stability and market access as the key motivations to participate in contract farming. Middleman and agribusiness firms were the most important organizations for householders to contract with.