CONTRACT FARMING IN THE AGRIBUSINESS SECTOR OF THE FEDERAL-REPUBLIC-OF-GERMANY - AGRICULTURAL POLICY ASSESSMENT AND RESEARCH REQUIREMENT

The contribution covers the subject ''contract farming'' in the agribusiness sector of the Federal Republic of Germany. Present situation and importance of contract farming and vertical integration, as well as knowledge gaps and research requirements are discussed in detail. The ''concept of agribusiness'' and the ''transaction cost approach'' are serving as theoretical framework. It is concluded, that contract farming and vertical integration may result in substantial advantages for the co-operating farmers, but do not lead automatically to higher competitiveness of the parties involved. In this respect general conclusions are misleading, and eventual advantages are only traceable via a detailed and careful single-case related analysis.