Strengthening Agribusinesses through Inclusive Contract Farming

Photo credit: ABF-GIZ

Ghana, Tamale: Smallholder farmers and agribusinesses often struggle with unstable market access, inconsistent supply chains, and weak contractual relationships, leading to financial losses and inefficiencies. Many farmers hesitate to engage in formal contracts due to mistrust and past negative experiences, while off-takers face challenges in securing reliable suppliers who meet quality and quantity requirements. To address these gaps, the Agri-Business Facility for Africa (ABF) and its partner, Kukobila Nasia Farms Limited organised a comprehensive training on Inclusive Contract Farming (iCF), equipping value chain actors with the skills and strategies to build mutually beneficial partnerships.

Held in Tamale from February 17-21, the training brought together 24 participants from producer and off-taker organisations, along with expert trainers and facilitators. As part of ABF’s “Skills for Agribusiness” initiative, this programme introduced a newly revised iCF training package aimed at fostering formal relationships and creating win-win scenarios for all stakeholders. Participants explored business opportunities through iCF, learned from real-world experiences, and gained insights into contract management for sustainable partnerships.

Insights from participants: Transformative learning and real-world applications

Strengthening market linkages through iCF
One of the key objectives of the training was to introduce participants to GIZ’s methodology for inclusive contract farming, as well as contract management, roles, and responsibilities that drive successful collaboration in agricultural value chains.

For Charles Atia of B-Diet Limited, a major takeaway was the timing of contract farming agreements. “It is important to begin contract farming before the farming season begins. I also discovered that active engagement amongst all relevant stakeholders, including local communities, is crucial. Without community buy-in, projects could face resistance. Contract farming ensures a consistent supply of raw materials in the right quality and quantity,” he noted.

Creating opportunities for women and youth
Inclusive contract farming offers significant opportunities for women and young farmers, often marginalized in traditional agribusiness structures. Huzeima Abdulai of Ndi Suglo Farms highlighted how contract farming can bridge this gap. “Women and smallholder farmers often lag behind, but contract farming provides the collaboration and input support they need to thrive. With this approach, even farmers with 2 or 3 acres can benefit. As a field officer, this workshop has opened my eyes to better ways of training the community on Farmer Business School, and other important topics.”

Overcoming challenges through effective communication
Despite its advantages, contract farming presents challenges, dishonesty and poor communication being among the most pressing. Hisham Seidu of Kukobila Nasia Farms Limited reflected on how the training shed light on these issues. “Most contract farming schemes fail because of miscommunication. Farmers and buyers blame each other for dishonesty, but after this training, I realised it often comes down to clear communication. It’s not just about setting terms at the beginning; continuous engagement throughout the entire process eliminates conflicts and builds trust”

Looking ahead: Strengthening partnerships for sustainable agribusiness
The Inclusive Contract Farming (iCF) training provided valuable insights and practical strategies for participants to implement in their agribusiness ventures. By fostering structured agreements, ensuring transparency, and encouraging active stakeholder engagement, iCF serves as a powerful tool for enhancing agricultural productivity and sustainability.

With initiatives like this, ABF continues to support inclusive and sustainable agricultural practices that empower farmers, strengthen value chains, and drive economic resilience in agribusiness across Africa