Focus & Project
focus
Contract Farming

Published: June 21 2021

For the past six years, OBRI Tanzania have been working with sunflower smallholder farmers in central and southern Tanzania in a contract farming agreement to produce sunflowers for the company for our OBRI sunflower cooking oil product. 

What is contract farming? Simply put, contract farming is an agreement between a buyer and farmers that the buyer will purchase an agreed-upon quantity of a crop from the farmers as long as it meets the defined quality standards.

These agreements are advantageous for farmers because they set prices, so farmers know how much income they can expect from their crop before they plant. Secondly, these agreements ensure a market for the farmers' products.

This is extraordinarily important for farmers as it means they do not have to spend time finding markets for their product, which markets are often subject to a wide range of price fluctuations, depending on the crop.

This is an exciting time for farmers as contract farming is offering an opportunity for a second season crop with a guaranteed market! OBRI Tanzania have been working with partners to enable this opportunity for farmers since 2015 and everyone is very excited for this partnership.

Stay tuned to see how the crops are coming along and watch out for a harvest update later this each season.