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Determinants of Fresh Fruits and Vegetables (FFV) Farmers’ Participation in Contract Farming in Peninsular Malaysia

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  • Arumugam, Nalini
  • Arshad, Fatimah Mohamed
  • Chiew, Fook C. Eddie
  • Mohamed, Zainalabidin

Abstract

The purpose of this research was identifying socio-economic characteristics affected on respondents’ participation in contract farming. The survey was conducted using structured questionnaire in populous states namely Kedah, Kelantan, Terengganu, Pahang, Perak, Selangor and Johor in Peninsular Malaysia. A total of one-hundred and sixty seven FFV farmers were randomly selected and personally interviewed. Logit analysis was carried out to identify determinants that influenced fresh fruits and vegetables (FFV) farmers participating in contract farming. The findings in the paper show that, based on the output from logistic regression, ownership, land size, education background, perceived benefit, complicated process, lacking in opportunities and price risk are dominant variables influencing FFV farmers’ willingness to participate in contract farming. Land ownership, land size, education and perceived benefit are dominant variables that positively influenced FFV farmers to participate in contract farming. Complicated process, lack of opportunities and price risk negatively influenced FFV farmers’ participation in contract farming.

Suggested Citation

  • Arumugam, Nalini & Arshad, Fatimah Mohamed & Chiew, Fook C. Eddie & Mohamed, Zainalabidin, 2011. "Determinants of Fresh Fruits and Vegetables (FFV) Farmers’ Participation in Contract Farming in Peninsular Malaysia," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 1(2), pages 1-7, June.
    • Handle: RePEc:ags:ijamad:143495
    DOI: 10.22004/ag.econ.143495
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    Citations

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    Cited by:

    1. Anjani Kumar & Devesh Roy & Gaurav Tripathi, 2016. "Contracting by Small Farmers in Commodities with Export Potential: Assessing Farm Profits of Lentil Growers in Nepal," Working Papers id:10899, eSocialSciences.
    2. Daisy Delsile Dlamini & Jethro Zuwarimwe & Joseph Francis & Godwin R. A. Mchau, 2022. "Risk Factor Assessment of the Smallholder Baby Vegetable Production in Eswatini," Agriculture, MDPI, vol. 12(5), pages 1-11, April.
    3. Li, Xiaokang & Guo, Hongdong & Li, Lin, 2016. "Contract Farming in China: Perspectives of Smallholders in Vegetable Production," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235573, Agricultural and Applied Economics Association.
    4. Kumar, Anjani & Roy, Devesh & Trapathi, Gaurav & Joshi, Pramod Kumar & Adhikari, Rajendra Prasad, 2016. "Can contract farming increase farmers’ income and enhance adoption of food safety practices?: Evidence from remote areas of Nepal:," IFPRI discussion papers 1524, International Food Policy Research Institute (IFPRI).
    5. George Malindretos & Eleni Sardianou & Maria Briana, 2023. "Farmers’ Perception on Contract Farming in the Post-COVID Era: Empirical Study in Greece," Sustainability, MDPI, vol. 15(20), pages 1-14, October.
    6. Chin, Denise, 2015. "Supermarkets in Malyasia's Food Supply Chain: Influence on Traditional Supply Chain and Implications for Contract Farmers," 2015 Conference, August 9-14, 2015, Milan, Italy 211464, International Association of Agricultural Economists.
    7. Iro Ibrahim Kutawa, 2016. "Empirical evidence on contract farming in northern Nigeria: Case study of tomato production," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 6(12), pages 240-253, December.
    8. Kumar, Anjani & Roy, Devesh & Joshi, Pramod K. & Tripathi, Gaurav & Adhikari, Rajendra P., 2016. "Impact of Contract Farming on Profits and Yield of Smallholder Farms in Nepal: An Evidence from Lentil Cultivation," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235848, Agricultural and Applied Economics Association.
    9. Saroj & Kirtti Ranjan Paltasingh, 2024. "What promotes production contract in Indian agriculture? Managing market risk versus profit orientation," Agricultural Economics, International Association of Agricultural Economists, vol. 55(1), pages 140-153, January.
    10. Rebecca N. L. Kiwanuka & Charles Machethe, 2016. "Determinants of Smallholder Farmers’ Participation in Zambian Dairy Sector’s Interlocked Contractual Arrangements," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 9(2), pages 230-230, January.

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