Contract Farming: DİTAP Model

Abstract

Purpose: The participation of smallholder farmers in modern supply chains is an important contribution to rural economic development and poverty reduction. Contract farming has emerged as an institutional response to market failures, with the potential to reduce farmers' production risks, increase investments in inputs and technologies, thereby achieving higher productivity and income. The aim of this study is to define the contract farming, to describe the historical development process in the world and in Turkey, to introduce successful examples of contract farming and to explain DİTAP platform established by the Ministry of Agriculture and Forestry under the contract farming model. Design/Methodology/Approach: In this study, firstly, a conceptual analysis is made for contract farming based on the important studies in the literature. In this context, the concept of contract farming is explained, the historical development is introduced and current status of contract farming in Turkey and in the world is examined. Finally, the structure, functioning and contribution of the contract farming platform established by the Ministry of Agriculture and Forestry of Turkey to the rural development are examined. Findings: As the historical development and the current situation of contract farming in the world economy are analysed, it is determined that contract farming supports rural economic development, Turkey has a high potential in contract farming, and in this context, DİTAP is as an important platform to support our Turkey's agricultural policies. Originality/value: This study is valuable in terms of demonstrating that contract farming is an important tool for rural development especially in developing countries, and considering the application of contract farming model in Turkey.