Mansur, Kasim and Tola, Mansur and Ationg, Romzi (2009): Contract Farming System: A Tool to Tranforming Rural Society in Sabah.
Download (56kB) | Preview
Recent decades have seen major change in agricultural technologies as a consequence to various programs for an agricultural development in rural areas of Sabah. Villagers in Sabah have always been receptive to new agricultural technologies that promises to improve their standard of living and as a reflection from the promotion of new agricultural technologies, many peoples in rural areas in Sabah now working with a mix of traditional and modern technologies. Along with the adoption of modern technologies, there has been a rapid transformation to cash economy among rural areas in Sabah (Marten, 1990). However, most villagers in Sabah are still produce almost entirely for home consumption, although the other economic activity of rural peoples in Sabah is small-enterprises as well as “kedai kampung” or rural shop that is registered under the local registration authority. This means, meeting basic household food needs is still the priority of most farmers in Sabah. Most also produced as much as surplus as possible to meet cash needs generated by expanding public education, rural electrification, modern communication (e.g. Radio and Television), and modern transport. It confirmed that most rural societies in Sabah still run their subsistence agricultural economy as compared to cash economy, which generally in farm activities, men do the major task and the women do the very minor task. Alongside with the fact that in this post-modern world most rural society in Sabah involved in agricultural economy, rural population especially among youth has declined. This means that human force for agricultural sector is declined as well. Rural population in Sabah was declining due to migration of younger-age groups. Outward migration among them was caused by the economic purposes such as to find non-agricultural financial resources (work in government sector either in the white or blue collar works). As according to Bryden (2000) villagers often migrated because the trend in agricultural income that is reported as lower than income from other economic activities. Some of them were migrated to the urban areas when they employed as the non-government professional executive level and further their education. Some other (female) moved to follow husband. In short, they were migrated because of work-related reason and to get social fulfillment in the form of further education, social amenities and the family reason. This phenomenon in the future, out migration of youth will leave the youngsters and old folks to maintain the village and at the end, population of rural areas in Sabah will be increasingly independent. Village-base economy especially agricultural production will suffer when the active youth have left for the town. In the other hand, rural poverty profile that is currently high will be increased. Hence, commercialization of agricultural sectors in rural areas assumed as the best resolution to improve villager’s standard of living that is bring about transformation of rural agrarian society from the traditional society to modern agrarian society through contract farming system.
|Item Type:||MPRA Paper|
|Original Title:||Contract Farming System: A Tool to Tranforming Rural Society in Sabah.|
|Keywords:||Contract Farming System, Rural Society|
|Subjects:||Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q10 - General|
|Depositing User:||Khairul Hanim Pazim|
|Date Deposited:||10. Feb 2009 06:59|
|Last Modified:||14. Feb 2013 10:26|
Aboi, A. 2002. Contract Farming: A Short Case Study of Silk Worm Production in Lundu District. M.Sc. Thesis. Faculty of Economic and Business, University Malaysia Sarawak. Arnon, I. 1981. Modernization of Agriculture in Developing Countries: Resource, Potentials and Problems. New York: John Willey.
Bauman, P. 1997. Equity and Efficiency in Contract Farming Schemes: The Experience of Agricultural Tree Crops, A Working Paper No. 130, London: Overseas Development Institute.
Beamish, P. W. 1994. Multinational Joint Ventures in Developing Countries. International Business Series, London, Routhledge.
Burch, D. 1994. Agribusiness, Peasant agriculture and the State: The Case of Contract Farming in Thailand. In D. T. Llyod and O. Morrissey. (eds.) Poverty, Inequity and Rural Developmen., London: MacMillan. P. 163.
CDC. 1989. Review of Smallholder Agricultural Program: Final Report, Vol. 1 and 2, London: Commonwealth Development Corporation.
Clapp, R. A. 1994. The Moral Economy of the Contract. In Little P. D. and Watts, M. J. (Eds.). Living Under Contract: Contract Farming and Agrarian Transformation in Sub-Saharan Africa, Wisconsin, The University of Wisconsin Press.
Eaton, C. 1998. Adaptation Performance and Production Constrains of Contract Farming in China. (Unpublished Ph. D. Thesis). Department of Geography, University of Western Australia, Perth.
Eaton, C. and Shepherd, A. W. 2001. Contract Farming: Partnership for Growths, FAO Agricultural Services Bulletin 145, Food and Agricultural Organization, Rome.
Farmer’s Association Board 2003. Laporan Hasil Projek Kelompok Padi Komersil. Kota Kinabalu: Lembaga Pertubuhan Peladang
Ghee, L. T. and Dorall, R. 1992. Contract Farming in Malaysia: With Special Reference to FELDA Land Schemes’. In Glover, D. and Lim, T. G. (Eds.), Contract Farming in Southeast Asia: The Three Country Case Studies, Institute for Advanced Studies, University of Malays, Kuala Lumpur. pp. 71-119.
Glover, D. 1990. Contract Farm and Out grower Schemes in East and Southern Africa, Journal of Agricultural Economics, 41 (3): 3030-315.
Glover, D. 1983. ‘Contract Farming and Smallholder Out grower Schemes in Less Developed Countries’, World Development 12 (111-112) pp. 1143-1157.
Glover, D. 1987. ‘Increasing the benefits to Smallholders from Contract Farming: Problems for Farmers Organizations and Policy Makers’, World Development 15 (4) pp 441-448.
Glover, D. and Kusterer, K. 1990. Small Farmers, Big Business: Contract Farming and Rural Development, London: Macmillan.
Goldsmith, A. 1985. ‘The Private Sector and Rural Development: Can Agribusiness Help the Small Farmers?’ World Development 13 (10-11) pp 1125-1138.
Little, P. and Watts, M. 1994. Living under Contract: Contract Farming and Agrarian Transformation in Sub-Saharan Africa, Wisconsin: University of Wisconsin Press.
Little, P. D. 1994. The Development Question. In P. Little. and M. Watts (eds.). Living under Contract: Contract Farming and Agrarian Transformation in Sub-Saharan Africa, Wisconsin: University of Wisconsin Press. pp. 216-257.
Panganiban, D. F. 1998. National Policies for Orienting Agricultural Production to the Market: A Case of a National Program on the Production of High Value Rehber, E. 2000. Vertical Coordination in the Agro-Food Industry and Contract Farming: A Comparative Study of Turkey and the USA. Research Report Series, Department of Agricultural and Resources Economics, University of Connecticut.
Rehber, E. 1998. Vertical Integration in Agriculture and Contract Farming. NE 165 Private Strategies, Public Policies and Food System Performance. Food Marketing Policy Center, Working Paper 46, Connecticut, USA.
Shepherd, A. W. And Farolfi, S. 1999. Export Crop Liberalization in Africa – A Review. Agricultural Services Bulletin, No. 135, FAO, Rome.
Springfellow, R. 1996. Smallholder Outgrower Schemes in Zambia. Research Report Crops Post-Harvest Program, Overseas Development Administration of the United Kingdom, No. AO 435. London: Natural Resources Institute.
Watts, M. J. 1994. Life under Contract: Contract Farming, Agrarian Restructuring and Flexible Accumulation. In Little, P. and Watts, M. (eds.). Living under Contract: Contract Farming and Agrarian Transformation in Sub-Saharan Africa, Wisconsin: University of Wisconsin Press.