October 12, 2012

Contract Farming Ever Growing Presence in Laos

In Laos, you often read about large companies, especially Chinese ones, buying up land or obtaining very long term leases of land.  There's also a trend that's not quite as reported on - contract farming.

Contract farming is when a company enters into a contractual agreement with a farmer or a group of farmers whereby the farmer is paid to grow and cultivate a specific plant that will be sold exclusively to the company who has contracted the work.

There's good things and bad things about contract farming.  You decide. Here's a couple of links to get you started on, if you're interested in this topic.

http://www.adbi.org/discussion-paper/2008/02/25/2492.rice.contract.farming.in.lao.pdr/contract.farming.in.the.lao.pdr/

http://www.fao.org/uploads/media/ADBI%20rice%20contract%20farming%20in%20lao%20pdr.pdf

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