This paper uses the mixed-methods approach to analyze farmer position in contract farming (CF) value chain, challenging simplistic “win-win” narratives that ignore power dynamics and “win-lose” ones that overlook economic factors. PepsiCo hires intermediaries as principal agents to control many smallholders, thereby reducing transaction costs and exerting control over quality raw materials. Through secure commissions to agents and fixed prices to farmers, PepsiCo transfers capital and production risks, respectively. The value chain analysis at each farming stage reveals that although CF addressed specific inputs and output constraints for smallholders, the unequal power dynamics and monopsony position of PepsiCo and intermediaries raise sustainability concerns. The existing unequal power relations within CF value chains underline the urgency of establishing a regulatory mechanism. Without such oversight, individual farmers may find it challenging to advocate for their interests in the face of corporations and intermediaries in cultivating high-value crops, for which demand is rising.