Policy Brief: The New Wave of Contract Farming in Ghana: The Role of Contract Design in Facilitating Sustainable Outgrower Schemes

Poku, Adu-Gyamfi (2018). The New Wave of Contract Farming in Ghana: The Role of Contract Design in Facilitating Sustainable Outgrower Schemes. BiomassWeb Policy Brief No. 02.

Abstract

Many of the prevalent horticultural and tree crop outgrower schemes in Ghana have failed over time. There is, however, a new wave of contract farming in Ghana involving staple crops. This is due to agro-industrialization and increasing domestic demand for biomass-based raw materials. It is the objective of this brief to highlight the role of contract design in facilitating sustainable contract farming arrangements between small-scale farmers and agro-processing companies. Specific  recommendations that can be employed by agro-processing companies in Ghana are also made to help promote the long-term sustainability of outgrower schemes, which are mutually beneficial for the small-scale farmers and companies.