DEVS 492 Contract Farming
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Megan Hoogaars
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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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