Abstract

We would like to thank Michael Maes and the anonymous reviewers for their insightful and constructive feedback. The first author, H. K. Nguyen, would like to acknowledge support from an Australian Government Research Training Program scholarship to study a PhD degree in Computer Science at The University of Newcastle, Australia. R. Chiong is the corresponding author of this paper. The third author, M. Chica, is supported through the Ramon y Cajal program (RYC-2016-19800)

Highlights

  • The proportions of marginal, small, and medium farmers were . %, . %, and . %, respectively. These values were calculated based on research reports from the Mekong Delta (MKD) region (IPSARD ; Chen et al )

  • We presented an agent-based model to investigate three obstacles of the expansion of contract rice farming in the MKD region from the perspective of large-scale contractors

  • The simulation model was designed in the context of the MKD’s rice supply chain with two contractors engaging in the contract rice farming scheme alongside with an open market in which both parties can renege on the agreement

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Summary

Introduction

. Contract farming, which is a form of vertical coordination among agricultural supply chain actors, is common practice in agriculture all around the world (Eaton & Shepherd ). The use of agricultural contracts has become attractive to many smallholder farmers, since the arrangement can assure stable income and access to reliable markets in the modern food supply chain. Figure : A traditional rice supply chain in the MKD region. Figure shows a traditional rice supply chain in the MKD with six actors between the farm gate and final consumers. It features a modest level of horizontal and vertical coordination (World Bank, ).

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