Understanding the Contractual Arrangements in the Mango Value Chain

Abstract
This paper identifies factors affecting design and management of contract arrangements in mango value
chain using data from survey of 83 contractors involved in mango production and marketing in Uttar
Pradesh, India. Contract partners’ responses on various aspects of contractual arrangements such as
contract structure and negotiation process were recorded with the help of a structured questionnaire
administered personally. Descriptive statistics and factor and correlation analysis has been used to
identify and understand the important aspects of mango contract. Various aspects of contractual
arrangement can broadly be categorized into three parts - orchard owners’ characteristics, orchard
characteristics and contract management attributes, which can further be sub-divided into 9 factors.
Correlations between contractors’ demographic profiles and various contract factors provide practical
insights about critical aspects of contract design and management in agricultural production.

Keywords: contract arrangement, mango value chain, factor analysis, India

Target Audience: Management scholars and management practitioners

2
 Understanding the Contractual Arrangements in the Mango Value Chain

Executive Summary

Contractual arrangement in agricultural supply chain has increasingly becoming important

phenomena across the world. Despite rapid adoption of contractual arrangements, there exist
limited empirical studies to understand the factors affecting contract design and enforcement.
This paper aims at analysing the process and performance of contractual arrangements in mango
value chain based on primary survey of 83 contractors in one of the major Mango growing areas
in India. The study finds that mango contracting in the study area is primarily done based on a
relational model. The study identifies nine aspects of mango contracting which broadly cover
orchard owner, orchard and contract management characteristics. Results of the study indicate
that three aspects of contract management i.e. payment terms and documentation, contract
enforcement mechanism, and contract pricing and duration are influenced by a number of socio-
demographic factors of contractors, orchard owners and orchard related factors. Orchard owners’
entrepreneurial ability, goodwill and reputation play an important role in contract design and
management and show significantly positive relationship with numbers of other factors.
Specifically, the results have implications for contract terms, contract efficiency and
effectiveness, and overall performance. Finally, we provide suggestions for a future research
agenda to analyze mango production contracts. Finally, we provide suggestions for a future
research agenda to analyze mango production contracts.

3
Understanding the Contractual Arrangements in the Mango Value Chain

Introduction
Contractual arrangements are becoming increasingly important for improving the effectiveness
and efficiencies of agricultural supply-chains (Tsoulouhas and Vukina, 1999; Sykuta and Parcell,
2003; Vavra, 2009). Forward contracts in agriculture are very common, wherein one party
reallocates the risks of farming and other is involved to earn profits (Knoeber, 1999). A contract
is simply an institutional construct that outlines the mutually agreed upon rules (and
expectations) of how the fundamental elements, such as the allocation of value (or the
distribution of gains from trade), the allocation of risk (when value is subject to uncertainty), and
the allocation of decision rights, will be addressed in the transaction relationships among the
contractors and contractees (Sykuta and Parcell, 2003; Sykuta and Cook, 2001; Paulson et al.,
2010).

Cheung (1970) defines a contract as partial transfer of rights, such as leasing or hiring and
embodies a structure comprising stipulated terms and conditions. A contract refers to any type of
agreement between two or more people, explicit with little or no role for implicit understandings,
or entirely implicit (Hueth et al., 1999). Forward contracts are important in the developing world,
including India, because they minimize the risks of the smallholder farmers regarding what to
grow and to whom to sell it. At the same time, they help minimize risks for the buyer too who
wants a guaranteed supply of an agriculture product for a specific demand in a known market.

Agricultural contractual arrangements have been widely researched from conceptual and
theoretical perspectives (Allen and Lueck, 1992; Knoeber, 1999). Contract theory indentifies
various contracting issues of potential importance and provides solutions for handling the
complexity of real-world contracting in a systematic manner (Bogetoft and Olesen, 2002).
Contracting is a complex process and therefore design, acceptance and adherence to a contractual
arrangement is a multi-criterion decision problem (Bogetoft and Olesen, 2002; Guo and Jolly,
2008). Economists have primarily used two approaches for analysis of the contracting process -
transaction cost theory and agency theory (Vavra, 2009). Transaction cost theory is concerned
with the relative costs and benefits of entering into and fulfilling a contract; while agency theory
is concerned with the design of incentive schemes when one person (the agent) acts on behalf of
another person (the principal).

Previous studies have categorized the contract in various ways. Mighell and Jones (1963)
classified contracts based on the activities being performed by the contractors: (1) market-
specification contracts, (2) production-management contracts, and (3) resource providing
contracts. In market-specification contracts, producers transfer only market related risk and
management functions to the contractor and they continue to make production related decisions,
and thereby assume the uncertainties of the production process (Drescher, 2000). In case of
production-management contracts all activities starting from production planning to marketing of
the produce are performed by the contractors. Drescher (2000) is of the view that the highest
intensity of influence is found in the resource-providing contract, where besides a risk and

4
management takeover, the contractor provides the producer with important inputs. McNeil
(1978) differentiates between or among contracts based on economic rationality and legality
issues. He categorizes various contracts as (1) classical contracts, (2) neoclassical contracts, and
(3) relational contracts. Classical contracts, according to McNeil, are legally and formally rigid
and are not open to further negotiations. Neoclassical contracts are characterized as flexible and
the contract’s structure enables the contract partners to make a swift adaptation at any time if
major economic conditions change, such as a dramatic rise in the farm-gate or market price or a
dramatic fall in market prices. Relation contracting includes an adjustment process of a more
thoroughly transaction-specific and ongoing-administrative kind.

In practice, agricultural contracts vary significantly in terms of written or oral (Guo and
Jolly, 2008), type of contractual arrangement such as fixed wage, fixed rental, or sharecropping
(Eswaran and Kotwal, 1985; Douglas and Dean, 1992), duration of contract, time of entry into
contract, and so on. The economic literature on contract enforcement identifies two mechanisms
to redress the contract disputes: public or legal enforcement and private enforcement or self-
enforcement (Beckmann and Boger, 2004; Guo and Jolly, 2008). Due to ineffective and
inefficient legal system in most developing countries, particularly for agricultural contracts,
economic agents often have to rely on informal mechanisms to resolve contract disputes.

Based on the theoretical literature and classifications explained above, mango contracting
in Uttar Pradesh may be categorized as relational, production and management based. Most
contracts are oral and, therefore, informal in nature with no legal framework of support. These
contracts are performed under mutually convenient terms and conditions by orchard owners and
mango contractors.

Objectives
Despite rapid adoption of contractual arrangements in agricultural production and considerable
theoretical efforts to understand agricultural contracts, there exist limited empirical studies to
understand the factors affecting contract design and enforcement. As contracting in mango
production process is very common in India (significant amount of production takes place
under contractual arrangements), a study which analyses the process and performance of
contractual arrangements becomes imperative. The purpose of this paper is to identify and
analyze the basic features of contract structure in terms of level, type, stage, period,
documentation and pricing. Further, we also examine various factors affecting contract design
and performance for mango production. The study is based on a survey of 83 mango contractors
in Uttar Pradesh and the results provide a systematic framework for different stakeholders
involved in mango contracting. Specifically, the results have implications for contract terms,
contract efficiency and effectiveness, and overall performance. Finally, we provide suggestions
for a future research agenda to analyze mango production contracts.

Data and Methods

Survey data
This study is based on primary data collected from 83 mango contractors in Uttar Pradesh
through a structured questionnaire, administered personally during the 2010 mango production
season. It covers three major producing blocks in Lucknow district of Uttar Pradesh namely
Kakori, Mall and Malihabad. A simple sampling approach was adopted to select representative

5
respondents for the study. A plan was made to survey at least 25 mango contractors from each
selected block. Trained interviewers visited the mango contractors at random and requested them
to participate in the survey.

Data collection instrument

To meet various objectives of the research project, comprehensive structured questionnaires for
surveying various stakeholders of Mango Value Chain were designed. However, present study
uses data collected with the help of Mango Contractor’s Questionnaire. Personal interview
method has been followed to collect the data from the mango contractors and questionnaires
were completed by the interviewers in front of the respondents. The survey questionnaire for
mango contractor was structured in following five parts:
a) Socio-demographic profile of the respondents
b) Contract negotiation and management
c) Mango value chain and commodity flow
d) Decision making processes
e) Constraints across mango value chain

The data collected on first two parts of the mango contractor’s questionnaire i.e. socio-
demographic profile of consumers and various aspects of contract negotiation & management
have been used in this study. Mango contract attributes have been recorded on a 5-point Likert-
type scale where 1=not at all important, 2=some what important, 3=important, 4=very important
and 5=extremely important.

Data Analysis
The data on structure and attributes of mango contracting has been analysed with the help of
SPSS 15.0. Factor analysis was used to categorise the contractors’ responses on various
attributes of the mango contract and to understand the underlying important factors affecting
contract negotiations. Further, the relationship among socio-demographics, mango production
and mango contract attributes, was analysed using Spearman’s rank correlation to understand the
important determinants of mango contracting. The Spearman rank correlation coefficient is
defined as:

ρ = 1 − ∑2
6 d2
n(n − 1)
where d is the difference in statistical rank of corresponding variables.

Results and Discussion

Profile of the surveyed mango contractors
Table 1 provides summary profile of mango contractors surveyed in this study with respect to
gender, age, social category, education, primary occupation, landholding size, household income
and experience in mango business. Of the 83 mango contractors, only 2 contractors were female
i.e. 2.4% of total surveyed sample, which implies that mango contracting is basically undertaken
by the male group. The majority of the respondents were in the age between 30 years to 60 years
with average age of 43 years. As for as social groups are concerned, majority of the mango

6
contractors belong to socially backward and disadvantaged groups of the society. Most
respondents are either illiterate or having up to primary level of education. Though most of the
mango contractors have agriculture as primary occupation, however, fairly good numbers of
contractors are from non-agricultural occupation too.

Average landholding of mango contractors is 0.7 hectare. Further, landholding

distribution analysis indicates that more than 80 percent of the mango contractors belong to
landless and marginal landholding category, followed by small landholders (12%). This clearly
indicate that mango contracting is basically done by landless and smallholders. Income level of
mango contractors shows an interesting trend. On one hand majority of the contractors (54%)
have an annual income less than Rs. 75000, on the other hand about 29 percent report more than
Rs. 250000 of annual household income from all sources. These contractors are also earning
more than 50 percent of their family income from mango business. In terms of experience in
mango business, majority of the contractors have more than 10 years experience.

Table 1: Profile of mango contractors (N=83)

Characteristics N % Characteristics N %
Gender Agricultural Landholdings
Male 81 97.6 Landless (0 Ha) 38 45.8
Female 2 2.4 Marginal (0.01 - 1.00 Ha) 31 37.3
Age Small (1.01 - 2.00 Ha) 10 12.0
> 30 years 20 24.1 Medium (2.01 - 4.00 Ha) 3 3.6
31 - 40 years 27 32.5 Large (< 4.00 Ha) 1 1.2
41 - 60 years 25 30.1 Average landholdings (ha) 0.7
< 60 years 11 13.3 Annual Household Income (Rs.)
Average age (years) 43 > Rs. 30000 14 16.9
Social Category Rs. 31000 - 75000 31 37.3
General 18 21.7 Rs. 76000 - 150000 8 9.6
OBC 34 41.0 Rs. 151000 - 250000 6 7.2
SC/ST 31 37.3 < Rs. 250000 24 28.9
Level of Education Average family income (Rs.) 82322
Illiterate 24 28.9 Proportion of income from mango 52
business (%)
Up to primary 19 22.9 Experience in Mango Business
Upper primary and middle 10 12.0 1 - 5 years 24 28.9
school
Secondary and higher 23 27.7 6 - 10 years 18 21.7
secondary
Above higher secondary 7 8.4 11 - 20 years 24 28.9
Primary Occupation < 20 years 17 20.5
Agriculture and allied 53 63.9 Average experience in mango 15
activities business (Years)
Business 11 13.3
Service 2 2.4
Labourers, seasonal migrants 17 20.5
and others
N= Number of contractors

7
Basic characteristics of mango contracting

Of the 83 mango contractors surveyed, most (77) have contracted for only one mango orchard
while only 6 contractors have agreements with more than one orchard ( one contractor works
with 4 orchards, three contractors work with 3 orchards and two contractors work with 2
orchards). The average orchard area is 2 hectares and the average number of mango trees per
contractor is 271. The density of mango trees at contracted orchards is 131 mango trees per
hectare, on an average. The average contract price per hectare of mango orchard is Rs. 46,365,
while per tree it is Rs. 355 for a production season, which is primarily decided on the basis of
area of orchard, number of trees, age of trees and variety of mango trees.

Table 2: Basic characteristics of mango contracting (N=83)

Characteristics N % Characteristics N %
Stage of contracting Distribution of Mango
Varieties
Pre Flowering Agreement 21 25.3 One variety 19 22.9
Post Flowering Agreement 62 74.7 2 varieties 27 32.5
Nature of contract 3 varieties 17 20.5
Informal - Verbal 76 91.6 Above 3 varieties 20 24.1
Informal - Kutcha/ plain paper 4 4.8 Mode of payment
Formal - Legal document 3 3.6 Cash payment 82 98.8
Duration of the contract Product sharing 1 1.2
≤ 4 months 74 89.2 Terms of payment
> 4 months 9 10.8 Lump sum 22 26.5
Contract by orchard area Instalments with interest 5 6.0
Marginal (0.01 - 1.00 Ha) 37 44.6 Instalments without interest 56 67.5
Small (1.01 - 2.00 Ha) 18 21.7 Contract Pricing
Medium (2.01 - 4.00 Ha) 17 20.5 Per hectare of mango 46365.27
orchard (Rs.)
Large (< 4.00 Ha) 11 13.3 Per mango tree (Rs.) 355.28
Total contracting area (hectares) 172.64
Average contracting area per 2.08
contractor (hectares)
Total number of contracting 22530
mango trees
Average number of contracting 271
trees per contractor
Density of mango trees 131
(Number/ hectare)

The pre-harvest contractors are dominant players in the mango market chain across the
country (Sudha and Kruijssen, 2008). Mango farmers usually avoid taking risk in mango
production and marketing and contract-out their orchards either at pre-flowering or post-
flowering stages. As the risk of mango production at the pre-flowering stage is comparatively
higher than at the post-flowering stage, the majority of contractors take orchards on contract after
the mango flowering. Most contracts are relational in nature and are being executed based on a
relationship of trust between the contractors and farmers. Therefore, more than 90 percent of the
contracts were reported to be verbal in nature.

8
 The duration of pre-harvest contracts is mostly decided on the basis of mutual
understanding between a tree owner (producer) and a contractor. Generally, the contracts are
done for short duration, usually for only one production season. In general, the pre-harvest
contractor contacts the growers three to four months before the harvest season and sets up a
contract, based on the flowering of the orchard. Most orchards in the survey area have more than
one variety of mangoes, which enables the contractors to realize the benefit of extended
harvesting period. A minimum lump-sum amount of the total pre-decided contract value is paid
at the time of contracting, in cash. The remaining amount is paid in cash normally without
interest as per mutual agreement, either after the harvest is complete or during harvesting period
in instalments.

Major mango contract attributes

Contractors’ responses on 22 mango contract attributes, which are likely to affect contract
decisions, were recorded on 5-points likert scale. The results of mean scores of various contract
attributes are given in Table 3. Higher the mean score on a particular attribute, higher is its
importance in mango contracting. These attributes have further been categorized into three broad
categories (i) orchard owners’ characteristics (ii) orchard characteristics and (iii) contract
management attributes. To identify the important characteristics of mango contracts across all
three broad categories, factor analysis was conducted to identify the underlying dimensions
among a set of contract attributes. Principal Component Analysis was done using varimax
rotation criterion. The Kaiser criterion was used to retain only those factors with eigenvalues
greater than 1.

Based on factor analysis, six aspects of orchard owners’ characteristics have two sets of
underlying factors with an Eigen value greater than 1, which explains about 62% of variance
(Table 3). The total variance explained by factor 1 is 33.148%, primarily comprising the
attributes of orchard owners’ entrepreneurial ability, goodwill and reputation as indicated by
factor loading values. Factor 2 explains 28.718% variation and loads high on factors related to
the orchard owners’ technical knowledge on mango cultivation. Similarly, nine aspects of
orchard characteristics have 4 underlying factors, explaining about 74% variance. Under orchard
characteristics, first factor relates to the status of mango trees in the orchard, which explains
21.067% variation followed by orchard area and condition (19.753%), availability of minimum
infrastructure like road connectivity and irrigation facility (17.955%) and variety of mango trees
and yield history (15.340%). Further, after factor analysis of seven aspects of contract
management, three factors have emerged, which explain about 64% variance. The total variance
explained by factor 1 of contract management is 21.920%, primarily comprising the attributes
related to terms of contract payment & documentation as indicated by factor loading values.
Factor 2 explains 21.269% variation and loads high on contract attributes related to the
settlement of contract disputes. Factor 3 loads high on contract attributes related to terms of
contract pricing & duration which explains 20.533% variance.

This analysis clearly categorizes the mango contract attributes based on contractors’
perspective, which can be used as important criteria for designing agricultural contracts. Based
on the results of factor analysis, extracted factors can broadly be categorized as (i) orchard
owners’ entrepreneurial ability, goodwill and reputation, (ii) orchard owners’ technical
knowledge on mango cultivation, (iii) status of mango trees in the orchard, (iv) orchard area and

9
condition, (v) availability of minimum infrastructure, (vi) variety of mango trees and yield
history, (vii) payment terms and documentation, (viii) contract enforcement mechanism, and (ix)
contracting pricing and duration. The results indicate that mango contractors seem to evaluate
both productions as well as contract related factors. However, mean scores of their responses
indicate that they consider number of trees, age of trees and area of mango orchard as very
important factors, while entering into mango contracting, whereas contract related factors are not
rated high by the contractors.
Table 3: Contractors’ response on contract attributes
Contract attributes N Mean* Std. Factor % of Cumulative
Deviation Loading Variance %
Orchard Owners' Characteristics
Entrepreneurial characteristics of the 83 3.28 0.816 0.816 33.148 33.148
owner
Past experience with the orchard 83 3.23 1.262 0.672
owner
Resource endowment 83 3.12 0.916 0.630
Reputation of the owner 83 3.47 0.888 0.614
Experience of the owner in plantation 83 3.35 0.723 0.867 28.718 61.866
and cultivation
Technical knowledge in mango 83 3.14 0.718 0.796
cultivation
Orchard Characteristics
Density of the orchard 83 3.72 0.915 0.868 21.067 21.067
Age of the trees in the orchard 83 4.07 0.808 0.766
Number of trees 83 4.23 0.687 0.654
Total area of the orchard 83 4.02 0.987 0.854 19.753 40.820
Condition of the orchard 83 4.05 0.882 0.808
Distance of the orchard from the 83 3.46 0.967 0.826 17.955 58.775
nearby road
Adequate irrigation facility in the 83 3.80 0.852 0.759
orchard
Variety of mango trees 83 4.18 0.872 0.902 15.340 74.115
Yield history 83 3.57 0.829 0.626
Contract management
Payment made in terms of lump sum 83 2.73 1.159 0.757 21.920 21.920
or instalments
Contract made in terms of cash 83 2.53 1.119 0.744
payment or share-cropping
Written or verbal documentation of 83 1.83 1.135 0.517
contract
Settlement procedures being followed 83 2.11 1.012 0.889 21.269 43.189
Violation of terms and conditions of 83 2.25 0.895 0.758
the contract
Price quotation 83 3.41 1.036 0.862 20.533 63.722
Duration of the contract 83 2.29 0.863 0.697
*1=not at all important, 2=some what important, 3=important, 4=very important and 5=extremely important
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization .

Factors affecting mango contracts

To identify the factors affecting the contractors’ decision, correlations between the factors
affecting contract design and management were computed (Table 4). Empirical evidences

10
indicate that agricultural production contracts depend on number of factors related to producer
and contractor characteristics, production characteristics and contract arrangement attributes
(Ackerberg and Botticini, 2002; Guo and Jolly, 2008; Paulson et al., 2010). In correlation
analysis, two sets of variables were used: first-eight variables were related to the socio-
demographics of the contractors and level of contracting in terms of area and payment amount
and remaining variables were related to the responses of the contractors on factors affecting
negotiations while entering into mango contract. As stated earlier, factor Analysis was applied to
reduce the number of 22 variables into 9 factors, which could then be used for further analysis.

With regard to contract management related variables – payment terms and

documentation, contract enforcement mechanism and contract pricing and duration – correlation
analysis provides interesting insights as to which factors are most likely to affect the mango
contracting business. Payment terms and documentation of contract show significantly positive
relationships with a number of other factors, such as the income level of contractors (p<0.05),
orchard owners’ entrepreneurial ability, goodwill and reputation (p<0.05) and orchard area and
condition (p<0.01). This implies that the payment terms – such as cash versus sharecropping, or
advance payment versus instalment payments, and the documentation of contract, written or
unwritten - are likely to be influenced by these three aspects of contracting. The contract
enforcement mechanism also has a significantly positive relationship with education level of
contractors (p<0.05), income level (p<0.10), technical knowledge of orchard owners (p<0.10)
and payment terms and documentation (p<0.01). Similarly, contract pricing and duration show
significant positive correlation with orchard owners’ entrepreneurial ability, goodwill and
reputation (p<0.10), technical knowledge of orchard owners (p<0.05), payment terms &
documentation (p<0.05) and contract enforcement mechanism (p<0.05).

11
 Table 4: Spearman's rho Correlation Coefficient
Variables F1 F2 F3 F4 F5 F6 F7 F8 F9 F10 F11 F12 F13 F14 F15

Age in years (F1) 1.000

Social category (F2) -0.028 1.000
Education level (F3) -0.154 -0.076 1.000
Annual Income (F4) 0.017 -0.180 0.056 1.000
Income from mango 0.139 -0.206* -0.060 0.324*** 1.000
(F5)
Landholding size in ha 0.111 0.093 0.184* 0.196* 0.069 1.000
(F6)
Number of years in 0.279** -0.126 0.136 0.220** 0.111 0.184* 1.000
business (F7)
Orchard owners’ 0.058 -0.494*** 0.042 0.246** 0.173 0.135 0.177 1.000
entrepreneurial ability,
goodwill and reputation
(F8)
Orchard owners’ 0.017 -0.196* 0.204* 0.183* 0.237** 0.269** 0.053 0.384*** 1.000
technical knowledge
(F9)
Status of mango trees -0.023 0.127 0.011 -0.026 -0.175 0.111 0.010 -0.036 0.131 1.000
(F10)
Orchard area & 0.106 -0.162 -0.098 -0.024 0.294*** 0.100 0.111 0.403*** 0.286*** 0.071 1.000
condition (F11)
Minimum infrastructure 0.049 -0.219** 0.030 0.011 0.008 -0.055 0.058 0.339*** 0.065 0.328*** 0.108 1.000
(F12)
Variety & yield history 0.026 -0.157 -0.047 0.108 0.019 0.265** 0.062 0.317*** 0.133 0.355*** 0.057 0.333*** 1.000
(F13)
Payment terms & 0.031 -0.028 -0.001 0.238** 0.157 -0.003 0.101 0.221** 0.023 -0.163 0.379*** -0.044 0.019 1.000
documentation (F14)
Contract enforcement -0.085 0.033 0.227** 0.191* -0.054 -0.020 0.178 0.046 0.192* 0.000 0.164 -0.141 -0.096 0.321*** 1.000
mechanism (F15)
Contract pricing & -0.095 -0.032 0.048 -0.012 -0.028 -0.034 0.163 0.184* 0.218** 0.027 0.006 0.116 0.132 0.275** 0.229**
duration (F16)
***Correlation is significant at the 0.01 level.
** Correlation is significant at the 0.05 level.
* Correlation is significant at the 0.10 level.

12
Conclusion and Policy Implications

This paper analyses the contract attributes which significantly influence the performance
of mango contracts and identifies the critical attributes of an optimal contract. The study
finds that mango contracting in the study area is primarily done based on a relational
model. We identify nine aspects of mango contracting which broadly cover orchard
owner, orchard and contract management characteristics. Results of the study indicate
that three aspects of contract management i.e. payment terms and documentation,
contract enforcement mechanism, and contract pricing and duration are influenced by a
number of socio-demographic factors of contractors, orchard owners and orchard related
factors. Orchard owners’ entrepreneurial ability, goodwill and reputation play an
important role in contract design and management and show significantly positive
relationship with numbers of other factors. The results of this study have important
implication for the contract theory, contract design and enforcement in the era of
agricultural transformation and integration. The study also has critical implications for
policy makers in designing effective value chain models based on successful contract
system.

References
Allen, D. and Lueck, D. (1992) Contract Choice in Modern Agriculture: Cash Rent
versus Cropshare. Journal of Law and Economics, 35(2): 397-426.
Beckmann, V. and Bogerb, S. (2004) Courts and contract enforcement in transition
agriculture: theory and evidence from Poland. Agricultural Economics, 31: 251-
263.
Bogetoft, P. and Olesen, H.B. (2002) Ten rules of thumb in contract design: lessons from
Danish agriculture. European Review of Agricultural Economics, 29(2): 185- 204.
Drescher, K. (2000) Assessing Aspects of Agricultural Contracts: An Application to
German Agriculture. Agribusiness, 16(4): 385–398.
Eswaran, M. and Kotwal, A. (1985) A Theory of Contractual Structure in Agriculture.
The American Economic Review, 75(3): 352-367.
Goodhue, R.E. (2000) Broiler Production Contracts as a Multi-Agent Problem: Common
Risk, Incentives and Heterogeneity. American Journal of Agricultural Economics,
82:606-22.
Guo, Hongdong and Jolly, R. W. (2008) Contractual arrangements and enforcement in
transition agriculture: Theory and evidence from China. Food Policy, 33: 570–
575.
Hueth, B. and Melkonyan, T. (2004) Identity Preservation, Multitasking, and Agricultural
Contract Design. American Journal of Agricultural Economics, 86(3): 842-847.
Hueth, B., Ligon, E., Wolf, S. and Wu, S. (1999) Incentive Instruments in Fruit and
Vegetable Contracts: Input Control, Monitoring, Measuring, and Price Risk.
Review of Agricultural Economics, 21(2): 374- 389.

13
 Paulson, N. D., Katchova, A.L. and Lence, S.H. (2010) An Empirical Analysis of the
Determinants of Marketing Contract Structures for Corn and Soybeans. Journal of
Agricultural & Food Industrial Organization, 8: 1-23.
Sykuta, M. and Parcell, J. (2003) Contract Structure and Design in Identity-Preserved
Soybean Production. Review of Agricultural Economics, 25(2): 332- 350.
Tsoulouhas, T., and Vukina, T. (1999) Integrator Contracts with Many Agents and
Bankruptcy. American Journal of Agricultural Economics, 81:61-74.
Vavra, P. (2009) Role, Usage and Motivation for Contracting in Agriculture. OECD
Food, Agriculture and Fisheries Working Papers, No. 16, OECD Publishing. doi:
10.1787/225036745705.
Zuniga-Arias, G., Ruben, R., Verkerk, R. and van Boekel, M. (2008) Economic
incentives for improving mango quality in Costa Rica. International Journal of
Quality & Reliability Management, 25(4): 400-422.
Sudha, M. and Kruijssen, F. (2008) Varietal differences in the supply chain of two mango
varieties in South India. Acta Horticulture, Vol. 2008: 379-386.

14

View publication stats