Abstract

One of the disadvantages of traditional approaches to stimulating entrepreneurial activity in agriculture is the unresolved issue related to the sale of products, which limits the sustainable development of small businesses in this area. The strategy of contract production can become an effective tool for solving the issue of product sales. . It allows businesses to focus on their core competencies, manufacturing and improving the quality of their products. The article discusses three main models of contract farming depending on the supplier of resources. These models are universal for different markets and regions. Alternative models of contract farming are also presented, such as: centralized, a model with a main field, a multilateral model, an informal model, and an intermediary model. The organizational mechanism of interaction in each of them is determined. Based on the results of the analysis of foreign and Russian contract companies, the peculiarities in their business models are highlighted. The specific features of the contract agreement between farmers and the customer company are indicated. A list of advantages and disadvantages of contractual relations has been compiled for both the farmer and the customer.

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