Contract Farming and Technology Transfer in Ghana

Increasingly, agricultural firms rely upon smallholder farmers in developing countries, under contract, to meet consumer demands for greater quantities and improved qualities of agricultural products. Introducing technology transfer mechanisms that ensure the success of contract farming systems is thus essential. While the level of technology required for oil palm production is simple, this research proves that traditional farmers can cope with increasing levels of technology. The research found that oil palm outgrowers in Ghana received tangible benefits from contract farming, such as increased farming incomes, useful skill development and increased business acumen. The skills developed in oil palm cultivation were frequently utilised cultivating other tree crops, thus assisting farmers in their overall farming enterprises. The acquired knowledge and experience of living under contract led to economic benefits including farmers' conversion from subsistence to commercial farming and their investing in or owning other non-farming businesses in their local villages. There is a need, however, for outgrowers and their sponsors to improve their respective understanding of each other's needs, in order to resolve potential differences of opinion. The research found that the adaptability of technology transfer is an important consideration when designing and implementing outgrower schemes.