Integration Of Organizational Forms, Contractual Mechanisms, Value Chains, and Sustainability in Smallholder Commercial Farming

Abstract

Adoption of environmentally friendly and economically sustainable farming practices among others, aims at realizing Sustainable Development Goals Number Two and Number Thirteen on Zero Hunger and Climate Action respectively. However, inapt agribusiness arrangements and climate change impacts obstruct these efforts. Hence, a need for further assessments on possible
forms of institutional arrangements that are likely to enhance the adoption of sustainable farming practices. In that regard, this study explored the integration of smallholder organizational forms, contractual mechanisms, and value chains on the sustainability of smallholder commercial farming. The economic and ecological contexts of sustainability within conventional and organic farming
value chains that smallholders engage in are studied. The study used qualitative data gathered through seven in-depth interviews and thirteen focus group discussions from the contracted conventional, contracted organic, non-contracted conventional, and non-contracted organic cases of smallholder commercial farming models.
The findings show that formally organized smallholders who integrate and contract with agribusinesses for ventures in the organic farming value chain indicate a high enhancement of economic and ecological sustainability. Such is recommended for realizing smallholder commercial farming endeavors that are both economically and ecologically sustainable. This paper contributes to the
ongoing sustainability agenda, especially on methods that are adopted by smallholder commercial farming in developing economies. Different from other studies that reflect sustainable farming approaches on sole factors, the proposed approach is based on integrating three key parameters, which if actors take them on board, contribute to realizing sustainable development through sustainable smallholder-based commercial farming in developing economies.

Keywords: Institutional Arrangements, Organizational Forms, Contractual Mechanisms, Value Chains, Integration, Sustainability.