The main advantages of contract farming for both sides are:
For the producers, it is ensured the:
• Absorption of the produced products.
• Selling price of them.
• Payment time.
• And in addition, contract farming provides credits to the producers for the supply of pesticides, seeds, fertilizers, fuels etc.
The farmers, having secured these basic conditions, can therefore proceed with a relatively long-term plan. A concept that is generally unknown to those who are professionally involved in the agricultural sector.
The buyers of agricultural products:
• Ensure access to products of certified quality.
• Can early plan their production.
• Have financial advantages.