Combining a partner company’s own production with contract cultivation by smallholders often gives them more secure market access, increased competence and inputs such as seeds and fertilizer. In recent years, Norfund has increased investments in companies that create markets for small-scale farmers.
Investing in seed and fertilizer companies can benefit farmers by:
Increasing yields
Farmers can access quality seed varieties that produce higher yields, even in adverse conditions.
Improving crop quality
Farmers can get seed that’s more resistant to pests and disease, and that’s more marketable.
Increasing profitability
Farmers can see the benefits of improved seed varieties, which can lead to higher crop prices and increased profitability.
Reducing labor hours
Some seed varieties and chemical inputs can reduce the amount of labor needed in the field.
Creating new employment opportunities
With less labor needed in the field, farmers can find more time for off-farm work, such as in food processing and preservation.
Improving education
Children in households with less labor-intensive tasks can spend more time in school, which can lead to higher incomes and better human capital.
Reducing costs
Fertilizer subsidy programs can reduce the cost of agricultural production, which can lead to lower food prices.
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