Contract farming and service delivery models
Sourcing through contract farming is a commercial transaction between farmers and buyers. Buyers can provide services as part of the business deal, helping smallholders to gain access to inputs, technology, training, finance and market access. Strong service delivery on behalf of a buyer can be a valuable tool to gain trust and avoid side selling. There are five common models of sourcing from smallholders that involve differing degrees of service delivery. Sometimes a company can simultaneously make use of multiple models for different groups of suppliers.