Contract farming and high-value agriculture

There is growing interest in transforming subsistence crop farming into high-value agriculture in developing countries. To produce high-value agricultural products, new inputs (e.g., improved seeds and seedlings and safe pesticides) and new cultivation methods are required. This is similar to the introduction of the Green Revolution, which required improved seeds, inorganic fertilizer, and new improved cultivation practices. Furthermore, high-value agricultural products must be processed or packaged before shipping to urban and foreign markets, and the quality and safety of products must be ensured. Thus, processors of high-value agricultural products are similar to component manufacturers who deliver their products to assemblers. Considering such unique characteristics of high-value agriculture, this chapter attempts to provide effective development strategies for this type of agriculture. Specifically, I argue that appropriate training must be offered to both farmers and agroprocessors simultaneously for the successful transformation of agriculture in developing countries.