Vertical Coordination to Smallholder Small Grain Growers in Zimbabwe: Benefits of Contract Farming and Policy Implications

Abstract

Zimbabwe’s agro-ecological regions IV and V lie in low rainfall areas and food security is a perennial concern. Vertical coordination strategies and market institutions provide hope for building farmer resilience in regions affected by climate change in Zimbabwe. This study focused on four districts (Binga, Chiredzi, Hwange, Matobo) which are in regions IV and V. A questionnaire was used to collect data from 281 respondents. Probit and Multiple linear regression models were used to evaluate the determinants. Results show that contract farmers allocated more than 3 hectares to small grains agricultural enterprise. The research established that long distances to markets, access to credit, extension services and affiliation to farming groups are some critical determinants which influence market participation and yields sold.