Main Article Content

Christina CHINAKI
MSc Agricultural Economist, Department of Agricultural Economics, Aristotle University of Thessaloniki, Greece
Greece
Panagiota SERGAKI
Assistant Professor, Department of Agricultural Economics, Aristotle University of Thessaloniki, Greece,
Greece
Vol 27 No 1 (2018), Articles, pages 111-122
DOI: https://doi.org/10.15304/rge.27.1.5230
Submitted: 26-06-2018 Accepted: 26-06-2018 Published: 26-06-2018
Copyright How to Cite

Abstract

In recent years, Greece experiences a very intensive financial crisis that -as it is expectedhas
important effects on the primary sector. ? new form of entrepreneurship for Greece,
contract farming, appeared the last years. A successful case study of contract farming in
Greece is between the large enterprise “ATHENIAN BREWERY” and the producersmembers
of two agricultural cooperatives of Northern Greece. The main aim of this paper
is to examine the process of contract farming through agricultural cooperatives.
Specifically, this paper investigates the production process of malted barley through
contracts of members of the cooperative of Epanomi and the cooperative of Trilofos, in the
Prefecture of Thessaloniki (Northern Greece) and the private firm “ATHENIAN BREWERY”.
Using a structured questionnaire that it was distributed in 132 producers- members of the
agricultural cooperative of Epanomi or Trilofoss it was examined the advantages and the
disadvantages of this form of cooperation for both growers-members of these two
cooperatives and the private firm. Moreover, it was investigated the role of agricultural
cooperatives in the process of contract farming. The results reveal that the most important
benefit for the growers is to ensure availability of the products in a predetermined price.
The most important benefit for “ATHENIAN BREWERY” is a better production plan which
ensures a certain quantity and quality of raw materials. The role of both cooperatives is
determinative as it guarantees the safety of the process for both contracting parties.
Cited by

Article Details

References

Allen, G.R. 1972. An appraisal of contract farming. In J. of Agric. Econ., 23:89-98.

Bijman, J., 2008. Contract Farming in Developing Countries: an overview. (May,2008).Wageningen University.

Bogetoft, P. and H.B. Olesen, 2004. Design of production contracts. Lessons from theory and agriculture. Copenhagen, Denmark: Copenhagen Business School Press.

Bolwig, S., Gibbon, P. and Jones, S. 2009. The economics of smallholder organic contract farming in tropical Africa.World Development, 37 (6), pp. 1094–1104.

Burch, D., Rickson, R.E. & Thiel, I., 1990. Contract farming and rural social change: Some implications of the Australian experience. Environmental Impact Assessment Review, 10(1-2), pp.145–155. Accesed March 9, 2015. Available at: http://www.sciencedirect.com/science/article/pii/019592559090014Q.

Chinaki, Chr. 2015. Contract farming through agricultural cooepratives: a case study of the cooperation between S.A. "ATHENIAN BREWERY" and the agricultural cooperatives of EPANOMI and TRILOFOS in Thessaloniki. MSc, Aristotle University of Thessaloniki (in greek).

Collins J. 1993. Gender, contracts and wage work: agricultural restructuring in Brazil's Sao Francisco Valley. Development and change 24, 53-82.

Dolinsky, D. 1992. Contract farming at Lam Nam Oon: an operational model for rural development. Institute Report, East Asian Institute, Colombia University.

Drucker, P. 1983. Management. London, Pan Books.

Eaton, C.S. 1998. Adaptation performance and production constraints of contract farming in China. (unpubl. Ph.D. thesis), p. 274. Department of Geography,University of Western Australia, Perth.

Eaton, C. & Shepherd, A.W., 2001. Contract Farming: Partnerships for Growth. A Guide. FAO Agricultural Services Bulletin, 145th ed., Rome: FAO. Accessed at Google Books.

Glover, D.J., 1984. Contract farming and smallholder outgrower schemes in less-developed countries. World Development, 12(11-12), pp.1143–1157. Available at: http://www.sciencedirect.com/science/article/pii/0305750X84900081 [Accessed March 9, 2015].

Glover, D.J. & Kusterer, K., 1990. Small farmers, big business: contract farming and rural development., New York: St. Martin’s Press.

Key, N. & Runsten, D., 1999. Contract farming, smallholders, and rural development in Latin America: The organization of agroprocessing firms and the scale of outgrower production. World Development, 27(2), pp.381–401.

Leite, J.G.B., Bijman, J., Giller, K. & Slingerland, M. 2013, "Biodiesel policy for family farms in Brazil: One-size-fits-all?", Environmental Science and Policy, 27, pp. 195-205.

Leonardo, W.J., Florin, M.J., van de Ven, G.W.J., Udo, H. & Giller, K.E. 2015, "Which smallholder farmers benefit most from biomass production for food and biofuel? The case of Gondola district, central Mozambique", Biomass and Bioenergy, 83, pp. 257-268.

Little, P. & Watts, M., 1994. Living Under Contract: Contract Farming and Agrarian Transformation in Sub-Saharan Africa, Wisconsin: Univ of Wisconsin Press.

MacDonald, J. et al., 2004. Contracts, Markets and Prices: Organising the Production and Use of Agricultural Commodities, pp.1-81. Available at: www.ers.usda.gov.

MacLeod, W.B., 2007. "Reputations, relationships, and contract enforcement." Journal of Economic Literature, 45(3): 595-628.

Michailidis, Α., Sergaki, P. & Semos, A. 2014. «Bringing closer farmers with the market: the contribution of agricultural cooperatives and contract farming», Proceedings of the 5ο Panhellinic Conference “Agrotica” "Aiming at the agricultural development: The connection of scientific knowledge with production" p. 16-18, Thessaloniki, 1-2 February.

Mighell, R.L.& Jones, L.A., 1963. Vertical coordination in Agriculture. Agricultural Economic Report 19. US Department of Agriculture.

Mishra, P.K. 1996. Agricultural risk, insurance and income: a study of the impact and design of India’s comprehensive crop insurance scheme. Aldershot,Avebury.

Moysidis, A., 1988. Contract farming in Greece. A modern shape of inclusion of agricultural sector in capitalism. Athens, Agricultural Bank of Greece (in greek).

Nooteboom, B. ,2002. Trust: forms, foundations, functions, failures and figures. Cheltenham, UK,Edward Elgar.

Ohara, K, 1980. Factors for the development of custom work and contract farming, Japan, Journal of Rural Problem.

Porter, G. & Phillips-Howard, K., 1997. Comparing contracts: An evaluation of contract farming schemes in Africa. World Development, 25(2), pp.227–238.

Prowse, M. 2012. Contract farming in developing countries: a review. ΐ Savoir, 12, February 2012. Agence Francaise de Developpement. Accessed at: http://www.afd.fr/webdav/site/afd/shared/PUBLICATIONS/RECHERCHE/Scientifiques/A-savoir/12-VA-A-Savoir.pdf.

Roberts, R.A.J. & Dick, W.J.A., eds. 1991. Strategies for crop insurance planning. Agricultural Services Bulletin, No. 135, FAO, Rome.

Singh, S., 2002. Contracting Out Solutions: Political Economy of Contract Farming in the Indian Punjab. World Development, 30(9), pp.1621–1638. Available at: http://www.sciencedirect.com/science/article/pii/S0305750X02000591 [Accessed March 9, 2015].

Smalley, R. 2013. Plantations, contract farming and commercial farming areas in Africa: a comparative review. PLAAS institute. Available at: http://FAC_Working_Paper_055.pdf [Accessed April 14, 2016]

Warning, M & Soo Hoo, W, 2000. The impact of contract farming on income distribution: Theory and evidence. In Western Economics Association International Annual Meetings. Fountain Valley, CA: Western Economics Association International.