How to deal with uncontrolled buyers in contract farming

11th Dec, 2019
JKUAT expert Dr.Robert Mbeche, he warns farmers to do background checks.

Dr. Robert Mbeche, a Social Economist at JKUAT, says, farmers who do due diligence and follow the right procedure when they enter contract farming usually have many options to deal with uncommitted buyers and conniving contract firms.

Here are the measures that a farmer should take according to the JKUAT economist.

Make it formal. Always ensure that the agreement is formal. Have the local chief, local agricultural officers, and county corporate officer sign the contract.

If the firm starts playing hide and seek games with you, these officers will help you.

Work in a group. Farmers minimise hold-ups in contract farming by enhancing their bargaining power through collective power. It, therefore, helps that farmers operate as groups rather than as individuals.

Take legal action. If the deal flops, seek legal redress. Sometimes, a demand letter from the county corporate officer is enough to jolt the stubborn contract firm into action. They are likely to act fast to avoid being denied a license to operate.

Identify another seller. Legal procedures can sometimes be tiring and expensive. This is why farmers sometimes only vent out on social media and chose to move on. Moving on could mean identifying another buyer for your produce.

Is it something that can find a local market? Then get busy and sell your produce.

 

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