OPERATIONAL CHALLENGES AND FIRM COMPLIANCE IN CASSAVA OUTGROWER CONTRACT: INSIGHTS FROM AGBEYEWA AGRO-FIRM AND FARMERS IN EKITI STATE, NIGERIA

Abstract

Compliance with contractual obligations is a critical concern in the success of outgrower schemes. However, existing data tends to focus on participating farmers (outgrowers) compliance while the commitment of the firm managing the scheme is paid less attention. This study is an attempt to bridge this gap by focusing on operational challenges and firm (Agbeyewa agro-firm) compliance with its contractual obligations, focusing on a private sector-led cassava scheme in Ekiti State, Nigeria. Data was sourced from 250 outgrowers and representatives of the firm using a combination of questionnaire and interview guide. Data analysis was accomplished with frequency distribution, mean as well as Friedman tests. Findings showed close to 50% of the respondents had 6-10 years’ experience of cassava farming, operated on small-scale (average farm = 1.1ha), and most have participated in the scheme for about 3 years (82.4%). Significant (ꭓ2=68.67; p ≤ 0.05) differences was reported by outgrowers in Agbeyewa firm’s compliance with its contractual obligations in the scheme with “training of famers on improved farm practices” (mean rank=6.15) being the most significant while the least was “supply of the agreed quantity of farm inputs to farmers by the firm” (5.79). The farmers acknowledged some challenges in the operations of the scheme including delayed input supply, irregular visits by outgrowers’ managers, inadequate tractors for land preparation, and delayed harvesting of mature tubers. It was concluded that the firm demonstrated high compliance with the contract agreements. However, there is room for improvements based on the afore-mentioned challenges. The study recommended that the agro-firm step up its monitoring of famers, improve upon its communication strategies, and ensure timely input supply and prompt harvesting of farmers produce.