Abstract
Our main aim was to analyze of the various types of contractual clauses framework of Agricultural Aggregation Projects (AAP) in the cereal sector in Morocco. We used the data from the content of the contracts and by individual interviews with key actors complicated in the process of implementation of the aggregation projects of cereals. The results reveal that only eight Agricultural Aggregation Project, out of 119, received the certificate of aggregation. This is reflecting the fact that, the implementation of this model of vertical coordination was underway. In addition, the analysis of the contract-farming data for clauses has shown us 5 important clauses categories: production (quantity and quality) and payment methods; agricultural extension systems; inputs supply; management of risks; and dispute resolution mechanisms. These findings highlight the value added to the contractual clauses and the need to strengthen the visibility and role of the contract farming as a framework to accompany the investments of ‘‘The Green Morocco Plan’’, in particular with regard to agricultural aggregation projects. We also show that the contract participation reduces the transaction costs in aggregation system, reduction in the number of intermediaries and ensure the link between the producers and markets. The study concludes that, despite enactment of laws on farm aggregation, contract smallholders remain vulnerable to opportunist behavior. It suggests that the contract clauses must be accompanied by commensurate controls and Involving farmers in negotiating contract terms to ensure ‘win-win’ outcomes for Aggregator (AG) and Aggregated (Ag).
Highlights
Agriculture is a strategic sector that is crucial to the Moroccan economy
This sector accounts for 14 per cent of Moroccan's gross domestic product (GDP) and provides employment to 38% of the countries workforce [1]
These investigations sensed the implementation of 119 Agricultural Aggregation Project (AAP) in the main cereal crops
Summary
Agriculture is a strategic sector that is crucial to the Moroccan economy This sector accounts for 14 per cent of Moroccan's gross domestic product (GDP) and provides employment to 38% of the countries workforce [1]. What is more, this sector plays a significant socio-economic role as 75% of the 14 million rural inhabitants depend on revenues from the agricultural sector [2]. Under the influence of global changes characterized mainly by climatic changes, major water stress, rising prices of farm inputs, and decline in food security In this regard, Morocco has felt the need to engage a new strategy to guard against the market requirements, and addressing major impediments in agriculture and rural development [1, 2]
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