The Impact of Alternative Vertical Coordination Mechanisms for the Development of Small Scale Farmers. A Case Study of Bindura District.


Victoria Mudavanhu , Benjamin Musindo , Lazarus Muchabaiwa , Samuel Bindu , Lloyd Chigusiwa ,

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Volume 5 - October 2016 (10)


The study sought to assess the impact of the alternative vertical coordination mechanisms for the development of small scale farmers. Zimbabwean government has put small scale farmers as an important key to fight against poverty, create more wealth through increasing productivity in the agricultural sector. The study used descriptive design, questionnaires were distributed to a sample of 50 small scale farmers. Data was analyzed using the multiple linear regression. The research found that the production of tomatoes under contract was associated with significantly higher incomes compared to those who sold on the spot markets or open marketing. Spot markets, while providing occasional high returns to farmers have in turn high price risks and risk of non-sale of products or loss of quality. Contract price were significantly higher than open market prices, but trading on the later involved extra transaction costs such as transport and accommodation. The main conclusion was that contract production and marketing was more profitable and effective than open marketing. The research recommended that government should facilitate the development of small scale horticulture sector through improving the road networks that link rural and urban areas. Access to capital should be improved, government should provide relevant information so that farmers can use timely information to make production and marketing decisions. Government to rehabilitate the national research institutions and link them with extension service, provide efficient markets and intellectual property rights protection through regulation and enforcement of contracts in the horticultural market to ensure sustainable development of small scale farmers.


 Vertical coordination, Small scale farmers, Open marketing, Contract markets, Zimbabwe. 


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