Written by Mekong Institute

This study examines the nature of transboundary production of maize, the key benefits to farmers from contract farming (CF) and the factors influencing a farmers decision to participate in CF. Farmers who are suppliers in CF were surveyed to answer the study objectives and statistical analysis was employed. The findings reveal that the market for maize in Cambodia is too small which makes farmers extremely vulnerable to price fluctuation. Contract farmers are usually poor and have low education. While CF is predominantly dependent on verbal contracts, contractors who are middlemen are likely to gain high profit margins in the market chain for maize. But the income of farmers is not helped by CF and CF does not improve their livelihood. Access to credits and seeds is what attract farmers to CF. The findings suggest that a legal framework is needed for CF and better market access is important for agricultural and economic development in Cambodia.
Keywords: Transboundary Production, Maize, Contract Farming