Contract Farming Arrangements and Quality Performance. The Case of Vegetable Value Chains in Indonesia

Project: PhD

Project Details


Vegetable value chains in developing countries have become more integrated to meet the needs of modern food retail stores (supermarkets) and international food markets. Institutional innovations such as contract farming arrangements (CFAs) have been implemented for improved chain coordination. CFAs can support higher productivity and better quality. CFAs differ depending on the targeted market and the quality requirements. We evaluate how different characteristics of CFAs, particularly different coordination mechanisms used, motivations of farmers and firms, and the intensity of information exchange, affect quality performance. Empirical research will be conducted in Indonesia, in the Central Java Province. First, we will develop a typology of CFAs based on the coordination mechanisms used. Second, we will explore motivation among smallholders and firms to engage in CFAs. Third, we will study the impact of information exchange on achieving quality performance. Fourth, the characteristic of PO and enhancing quality performance will be investigated. We will use a mixed methods approach, combining case studies and cross-sectional research designs. For data collection, we use in-depth individual interviews, focus group discussions, and a large-scale survey among farmers. For data analysis, we use description, principal component analysis, and structural equation modeling.
Effective start/end date14/09/156/12/22


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