Group contracts and sustainability: Experimental evidence from smallholder seed production.

Contract farming in seed production has played an instrumental role in bringing private investment into seed research and production. As developing countries have predominantly small and marginal farmers, the number of inefficiencies that arise from seed contractual agreements hinders producers from...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	Prakashan Chellattan Veettil, Yashodha, Judit Johny
Formato:	article
Lenguaje:	EN
Publicado:	Public Library of Science (PLoS) 2021
Materias:	Medicine R Science Q
Acceso en línea:	https://doaj.org/article/19465667088e439785422cd86fd808fe
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:19465667088e439785422cd86fd808fe
record_format	dspace
spelling	oai:doaj.org-article:19465667088e439785422cd86fd808fe2021-12-02T20:14:59ZGroup contracts and sustainability: Experimental evidence from smallholder seed production.1932-620310.1371/journal.pone.0255176https://doaj.org/article/19465667088e439785422cd86fd808fe2021-01-01T00:00:00Zhttps://doi.org/10.1371/journal.pone.0255176https://doaj.org/toc/1932-6203Contract farming in seed production has played an instrumental role in bringing private investment into seed research and production. As developing countries have predominantly small and marginal farmers, the number of inefficiencies that arise from seed contractual agreements hinders producers from realizing the full potential benefits from seed contracts. We carried out an economic experiment with real producers and organizers currently engaged in seed production to analyze their preference for group seed contracts, its sustainability and welfare implications in the seed value chain. The producers are offered two types of group contracts: B and C. Contract B involves a company-organizer-seed producer group (SPG) whereas contract C removes the organizer and directly engages with the SPG (company → SPG). In the experiment, producers are asked to choose between an existing contract and either of the proposed group contracts. The experiment consists of two treatments: (i) concealed and revealed price information between agents, and (ii) presence and absence of a local organizer while making the decision. We find that the preference for group contract B is higher than for group contract C, suggesting the need for producers bargaining which can be achieved through group contract in the existing contract, Bargaining is high (6.3 percentage points) when price information is concealed. SPGs survive for about four out of five rounds and more than half of the groups (53%) formed in the first round survived throughout the five rounds, indicating a very high group sustainability.Prakashan Chellattan VeettilYashodhaJudit JohnyPublic Library of Science (PLoS)articleMedicineRScienceQENPLoS ONE, Vol 16, Iss 8, p e0255176 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	Medicine R Science Q
spellingShingle	Medicine R Science Q Prakashan Chellattan Veettil Yashodha Judit Johny Group contracts and sustainability: Experimental evidence from smallholder seed production.
description	Contract farming in seed production has played an instrumental role in bringing private investment into seed research and production. As developing countries have predominantly small and marginal farmers, the number of inefficiencies that arise from seed contractual agreements hinders producers from realizing the full potential benefits from seed contracts. We carried out an economic experiment with real producers and organizers currently engaged in seed production to analyze their preference for group seed contracts, its sustainability and welfare implications in the seed value chain. The producers are offered two types of group contracts: B and C. Contract B involves a company-organizer-seed producer group (SPG) whereas contract C removes the organizer and directly engages with the SPG (company → SPG). In the experiment, producers are asked to choose between an existing contract and either of the proposed group contracts. The experiment consists of two treatments: (i) concealed and revealed price information between agents, and (ii) presence and absence of a local organizer while making the decision. We find that the preference for group contract B is higher than for group contract C, suggesting the need for producers bargaining which can be achieved through group contract in the existing contract, Bargaining is high (6.3 percentage points) when price information is concealed. SPGs survive for about four out of five rounds and more than half of the groups (53%) formed in the first round survived throughout the five rounds, indicating a very high group sustainability.
format	article
author	Prakashan Chellattan Veettil Yashodha Judit Johny
author_facet	Prakashan Chellattan Veettil Yashodha Judit Johny
author_sort	Prakashan Chellattan Veettil
title	Group contracts and sustainability: Experimental evidence from smallholder seed production.
title_short	Group contracts and sustainability: Experimental evidence from smallholder seed production.
title_full	Group contracts and sustainability: Experimental evidence from smallholder seed production.
title_fullStr	Group contracts and sustainability: Experimental evidence from smallholder seed production.
title_full_unstemmed	Group contracts and sustainability: Experimental evidence from smallholder seed production.
title_sort	group contracts and sustainability: experimental evidence from smallholder seed production.
publisher	Public Library of Science (PLoS)
publishDate	2021
url	https://doaj.org/article/19465667088e439785422cd86fd808fe
work_keys_str_mv	AT prakashanchellattanveettil groupcontractsandsustainabilityexperimentalevidencefromsmallholderseedproduction AT yashodha groupcontractsandsustainabilityexperimentalevidencefromsmallholderseedproduction AT juditjohny groupcontractsandsustainabilityexperimentalevidencefromsmallholderseedproduction
_version_	1718374630411993088

Group contracts and sustainability: Experimental evidence from smallholder seed production.

Ejemplares similares