Lukhanyiso Mpongoshe, Louis Van Staden
Abstract
Smallholder agriculture contributes to local economic goals of poverty alleviation, food security and job creation. However, smallholder farmers face challenges that require interventions for improved productivity. Contract farming enables smallholder farmers to achieve higher productivity and income, contributing to Sustainable Development Goal’s (SDGs) attainment. This study investigates how contract farming enhances smallholder farmers’ productivity in achieving SDGs through the New Generation Cooperative (NGC). Data was collected through semi-structured interviews with all NGC farmers and by reviewing the organisation documents. The main findings show that contract farming through the NGC achieved SDGs 1, 2 and 8; increased incomes through efficient use of land (SDG Target 10.1) and empowered women through employment opportunities (SDG Target 10.2). The study however concludes that these improvements would not have been achieved without NGC’s provision of training, mentorship, funding, irrigation, energy, and infrastructure, implying that contract farming through cooperatives represents the optimal approach. Further research should investigate the reasons for unsustainable nature of smallholder farmers’ relationship with agribusinesses. This study’s contribution provides evidence on the impact of contract farming through the NGC, highlighting its contribution to achieve SDGs, offering insights for policymakers on coordinating contract farming between large agribusinesses and smallholder farmers to promote rural transformation.