The progress of a new barley outgrower scheme on the Jos Plateau, Nigeria, is examined in the context of recently expressed concerns about the expansion of contract farming in Africa. The scheme was established by Jos International Breweries (JIB) to produce barley for brewing after importation of the cereal was banned in 1988. Having confirmed the technical feasibility of producing barley locally with irrigation, JIB began the scheme with 207 contract farmers in 1989. Of these 146 produced a crop. The average yield was low (0.85 t/ha) owing to various problems including religious objections, diversion of fertilizer and inappropriate crop management. In 1990 these problems were tackled and 168 farmers participated. Other problems, including early rains, high temperatures and insect infestations resulted in an even lower average yield (0.72 t/ha). During the 1991/2 and 1992/3 seasons, because of shortage of funds, the scheme was reduced to 19 farmers who grew barley merely to maintain seed stocks. The average yield rose with better growing conditions and improved crop management. Despite the numerous and complex problems affecting the scheme, benefits were evident on both sides. Time will show whether these outweigh the respective costs. In the early stage examined here, the interests of JIB and the farmers were apparently well balanced.