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| Title: | Nucleus Plantations in Contract Farming Schemes |
| Author: | Grosh, Barbara |
| Year: | 1996 |
| Periodical: | African Rural and Urban Studies |
| Volume: | 3 |
| Issue: | 3 |
| Pages: | 177-197 |
| Language: | English |
| Geographic term: | Africa |
| Subjects: | contract farming plantations small farms Agriculture, Natural Resources and the Environment Development and Technology Labor and Employment Economics and Trade |
| Abstract: | Contract farming schemes in Africa differ from each other in many dimensions. Here the author focuses on one, viz. the presence or absence of a nucleus estate operated by the processing firm, and explores the various ways in which the existence of a nucleus estate affects smallholders, commenting on the circumstances in which each factor is most relevant and differentiating between schemes which aim to maximize profits and those which aim to maximize outgrower returns. The simple rationale for the use of nucleus estates is that they provide a certain minimum supply of inputs. Smallholders might not provide enough reliable supply to make the scheme viable for reasons of price risk and capacity utilization, as well as yield seasonality. Nucleus estates may also be established to convince outgrowers to invest, because of political constraints on plantation size, in order to increase crop density and thereby reduce transport costs, or to enable technology transfer and research. One conclusion which stands out is that the effect of the nucleus estate on the returns to outgrowers depends on the way in which the scheme is managed. On the whole, however, there are serious reasons to suspect that a nucleus estate could damage the interests of smallholders. Bibliogr., notes, ref. |