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DEVS 492 Contract Farming

Authored by Megan Hoogaars

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DEVS 492 Contract Farming
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15 questions

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1.

MULTIPLE SELECT QUESTION

45 sec • 1 pt

What distinctive transformation processes of the agrifood systems around the world have led to the increase in contract farming?

 industrialisation of world agriculture

Rise of fast food 

globalization of technology

rapid rise of supermarkets

Answer explanation

Distinctive features of the agrifood systems leading to the increase of contract farming are "the “industrialisation” of world agriculture" and "the “rapid rise of the supermarkets”.... (which is) impacting agri-food chains internationally" (da Silva, 2005, pp.4)

2.

MULTIPLE CHOICE QUESTION

30 sec • Ungraded

True or false: Improved technical efficiency in producing, processing, and distribution, can be seen as one cause that brings about intensified competition and pressures in the global agrifood system?

True

False

Answer explanation

This is true! See da Silva, 2005, pp. 7

3.

FILL IN THE BLANK QUESTION

45 sec • 1 pt

involves agricultural production being carried out on the basis of an agreement between the buyer and farm producers

4.

MULTIPLE CHOICE QUESTION

45 sec • Ungraded

True or false: contract farming is one of the alternative forms of horizontal coordination in which firms can engage in?

True

False

Answer explanation

False:  “contract farming is seen as one of the alternative forms of vertical coordination in which firms can engage,which can also be spot markets, full vertical integration and different forms of vertical alliances” (da Silva, 2005, pp.11)

The vertical coordination continuum refers to cases where a firm exercises centralized ownership control over two or more different stages in a chain. Ownership, of course, ensures complete power over decisions regarding product attributes, location and timing of delivery

5.

MULTIPLE SELECT QUESTION

45 sec • 1 pt

What are the three widely used classifications of contracts?

market specification

resource providing

exportation of production

production management 

Answer explanation

For explanations of what each of these contracts refer to see da Silva, 2005, pp.11 

6.

MULTIPLE SELECT QUESTION

45 sec • 1 pt

What products seem to be the better candidates for contract farming?

low value crops

livestock

high value crops

exotic fruits

Answer explanation

High valued crops and livestock, destined to processing or to export markets are better candidate for contract farming  because “these characteristics either generate mutual asset specificity or require close control over production and delivery processes, so as to ensure adherence to the intended quality and safety attributes and to facilitate logistical scheduling” (da Silva, 2005, pp. 24)

7.

MULTIPLE CHOICE QUESTION

45 sec • Ungraded

True or false, the term ‘outgrowers schemes’ is interchangeable with the term ‘contract’ farming

True

False

Answer explanation

True, outgrower schemes “are ‘a form of vertical coordination between growers and buyer-processors that directly shape production decisions through contractually specifying market obligations’” (Adams, 2019, pp. 1435)

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