The role of contract farming to provide agricultural inputs
Msc. Shpresim Domi
Fakulteti i Ekonomisë dhe Agrobiznesit, UBT
Farmers’ problems are wide and complex. There are many factors that cause this, but these problems mainly come as a result of non-properly functioning relationships with the actors that surround them in the value chains’ links.
This paper based on exploratory design technique, makes it possible to identify the role of contracts in improving relations between farmers and suppliers and in some cases between farmers and intermediaries for the provision of agricultural inputs at the right quality and quantity.
By analyzing data, it can be concluded that Albanian’ farmers face with lack of financial and economic profitability by using agricultural inputs. This situation serves as an incentive for farmers to find contracts as a possible solution. Simultaneously using comparative method referring to the results of different studies on different countries, it may be concluded that participation of small farmers in contracts brings advantages such as increased income, reduced risk, credit opportunities and information.
Keywords: Value chain, contract farming, agricultural inputs, financial and economic Profitable.