The production relations of contract farming in Honduras

Contract farmers in central Honduras have been producers of Asian vegetables for American markets since 1989. Contract farming holds the potential to provide benefits to small farmers who would otherwise be unable to access export markets but production relations between firms and farmers are often asymmetric and can be exploitative. Poor communication and legacies of mistrust between commodity agriculture and small farmers lead to ambiguities in the contracting system that are misinterpreted by both firms and farmers, creating social tensions between contracting parties. This article will consider how farmers’ navigation of the contracting system and competition between export firms has led to changes in the system. Through competition for a limited pool of outgrowers, firms adjust their policies in favor of farmers without explicit attempts of labor organization on the part of the farmers.

Valerie ImbruceEmail: