Factors influencing long term tomato seed production under contract farming

Chalee Gedgaew,Suchint Simaraks,A Terry Rambo

doi:10.24259/fs.v2i2.4340

Chalee Gedgaew, Suchint Simaraks + Show 1 more

Open Access

https://doi.org/10.24259/fs.v2i2.4340

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Abstract

Hybrid tomato seed production under contract farming in Northeast Thailand has been declining after three decades of initial introduction. However, some growers in some villages remain as long-term growers. This study was designed to identify factors influencing their long-term production decision making process. A purposive sampling technique was used to select the study sites and key informants for in-depth semi-structured interviews. Group interviews were conducted to validate the data. The contract hybrid tomato seed production system is a centralized model. It is based on a two-way contractual relationships between the company and the individual grower. The companies specify production systems and produce quality standards at a fixed time and price. They support a complete package of inputs credit, loans and extension services to the growers. Costs of all inputs and loans are deducted from the seed payment. These costs are usually forgiven when the crop fails through no fault of the growers. The growers cannot produce hybrid tomato seeds without a contract due to the proprietary germplasm. The quality of the product and marketing are also controlled by the companies. The companies must depend on the farmers’ knowledge however, for the management and technical skills. Therefore, the companies must allow considerable flexibility and leniency in enforcing the terms of the contracts. As a result, knowledgeable and skillful growers are vital factors in sustaining long term hybrid tomato seed production. Furthermore, grower’s personal characteristics stand out as an important factor for long term production. This is why the companies are lenient and flexible with the growers to sustain their mutual benefit.

Highlights

Technological developments, demographic changes, consumer preference changes, trade liberalization and financial capital mobility have shifted agricultural production and trade to High Value Foods (HVFs) such as fruit and vegetables, poultry, seeds, dairy products and shellfish
Since the late 1970s, tomato seed production greatly expanded into many villages in Mueang district in Khon Kaen province
Tomato seedlings were transplanted into the production plots in December and the ripe fruit was harvested in March

Summary

Introduction

Technological developments, demographic changes, consumer preference changes, trade liberalization and financial capital mobility have shifted agricultural production and trade to High Value Foods (HVFs) such as fruit and vegetables, poultry, seeds, dairy products and shellfish. Since the 1990s, HVFs were roughly twice the value of the traditional export crops such as coffee, tea, sugar, cotton, cocoa and tobacco. Production of these HVF crops is structured by contracts between agribusiness firms and smallholders in developing countries (Rosset et al, 1999; Da Silva, 2005; Winters et al, 2005). Beginning with sugarcane and tobacco, this system has expanded to vegetable crops, seeds and processed foods such as canned fish, pineapples and tomato products (Saenjan, 1998; Singh, 2005; Sriboonchitta and Wiboonpongse, 2008). The contract system has raised serious concerns regarding social justice, environmental sustainability and corporate control and has in many cases, become an elaborate way of exploiting small farmers (Siamwalla 1996; Delforge 2007)

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