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Contracting Sugarcane Farming in Global Agricultural Value Chains in Eastern Africa: Debates, Dynamics, and Struggles

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  • Giuliano Martiniello
  • Ricardo Azambuja

Abstract

Integrating smallholders within global agricultural value chains through contract farming has regained momentum in the development agenda, particularly in Africa. Governments, corporate agri-business, and global development institutions have embraced sugarcane as a suitable commodity to promote the integration of smallholders within commercial agricultural circuits so as to improve the prospects of rural development and reduce rural poverty. Influenced by the new institutional economics paradigm, win-win scenarios in which agribusiness companies and smallholders reciprocally benefit—the former by getting regular and standardized quantities of produce; the latter through secure access to the market—are advocated. However, little evidence of success in contract farming has been provided. By exploring the socio-ecological implications of contract farming within two major agro-industrial complexes (in Uganda and Tanzania), we demonstrate that the incorporation of smallholders in these schemes is spearheading dispossession from below, selection of most competitive producers, ecological degradation, social differentiation, and conflict.

Suggested Citation

  • Giuliano Martiniello & Ricardo Azambuja, 2019. "Contracting Sugarcane Farming in Global Agricultural Value Chains in Eastern Africa: Debates, Dynamics, and Struggles," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 8(1-2), pages 208-231, April.
    • Handle: RePEc:sae:agspub:v:8:y:2019:i:1-2:p:208-231
    DOI: 10.1177/2277976019851955
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    References listed on IDEAS

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    3. Simmons, Paul, 2002. "Overview of smallholder contract farming in developing countries," ESA Working Papers 289109, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
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    5. Philip Mcmichael, 2013. "Value-chain Agriculture and Debt Relations: contradictory outcomes," Third World Quarterly, Taylor & Francis Journals, vol. 34(4), pages 671-690.
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