The subject of the paper is the problem of prevention of food wastage at the production stage. A contract farming agreement is the legal instrument that performs the function of prevention of food wastage at this stage. The conclusion of a contract farming agreement affects the food wastage caused by both natural and climate related and economic causes. The primary function of this agreement is to plan and organize production by providing the agricultural producer with the ability to sell his agricultural products and the contracting party with access to feedstocks of a specified quantity and quality. Other functions of this agreement, such as modernizing the production process and providing economic support to the producer, also contribute to a reduction of food wastage.