Contract Farming Market Size is valued at USD 56.95 Bn in 2022 and is predicted to reach USD 76.07 Bn by the year 2031 at a 3.3% CAGR during the forecast period for 2023-2031.
Contract farming is a cooperative agricultural production arrangement in which farmers enter into legal agreements or contracts to produce certain agricultural products with agribusinesses, food processors, exporters, or other buyers. The growing global population and urbanization are boosting demand for food items, opening up prospects for contract farming to meet these demands. The regulatory environment and government laws governing agriculture and contracts can strongly influence contract farming dynamics. Favourable regulations that safeguard farmers' rights and enforce contract agreements can help this sector expand.
Moreover, contract farming dynamics are being influenced by growing concerns about ecological sustainability and climate change. Buyers may prioritize contracts with farmers who adopt sustainable farming practices. However, the pandemic caused market price volatility, impacting contract farmers' revenue and profitability. Contract farming arrangements with changeable pricing methods were made more unpredictable by price volatility.
Competitive Landscape
Some Major Key Players In The Contract Farming Market:
- Cargill Inc.
- Archer Daniels Midland Company (ADM)
- Olam International Limited
- Nestlé SA
- Tyson Foods Inc.
- JBS SA
- Bunge Limited
- Wilmar International Limited
- Louis Dreyfus Company (LDC)
- COFCO Corporation
Market Segmentation:
The Contract Farming Market is segmented on the basis of crop type, livestock type, and contracting parties.As per the crop type, the market is segmented as Cereals (e.g., wheat, rice, maize), Fruits, Vegetables, Oilseeds, Pulses, and Others. The livestock type segment includes Poultry, Dairy, Swine, Cattle, Aquaculture, and Others. By contracting parties, the market is segmented into Agribusiness firms, Processors, Cooperatives, Exporters, Retailers, and Others.
Based On Contracting Parties, The Agribusiness Firms Segment Is Accounted As A Major Contributor In The Contract Farming Market
The Agribusiness firms category is expected to hold a major share of the global Contract Farming Market in 2022. Agribusiness, in the context of the contract farming industry, is the pursuit of improved supply chain efficiency and risk minimization. Agribusiness enterprises, which include all phases of the agricultural value chain from production to distribution, are motivated by the need to maintain a regular and reliable flow of raw materials to meet market demand.
The Aquaculture Segment Witnessed Growth At A Rapid Rate
The Aquaculture segment is estimated to grow at a rapid rate in the global Contract Farming Market. The agribusiness firms are focusing more on sustainable fish production and rising seafood demand. With wild fish populations depleting and environmental concerns mounting, aquaculture is gaining traction as a feasible approach to meeting global seafood demand while minimizing impacts on natural ecosystems. Contract farming facilitates collaboration between aquaculture firms and farmers, acting as a driver for sustainable aquaculture. These agreements encourage responsible farming practices, resource efficiency, and respect for environmental norms.
In The Region, The North America Contract Farming Market Holds A Significant Revenue Share
The North American contract farming market is projected to exhibit a dominant market share in terms of revenue in the foreseeable future. This phenomenon is propelled by the implementation of inventive technological solutions and consumers' evolving preferences. Agribusinesses and farmers are currently adopting precision agricultural techniques, which involve the utilisation of advanced technologies including drones, satellite imagery, and data analytics, with the aim of optimising crop management practises. These advancements boost productivity, resource efficiency, and sustainability while meeting the growing need for traceable, high-quality products.
Europe is expected to grow rapidly during the projection period. The European contract farming sector is considerable; a dedication to sustainable farming and food security guides the European market. Agribusiness and farmer collaboration focuses on ecologically friendly practices, decreasing chemical use, and supporting responsible land and resource management.
Recent Developments:
- In March 2023, Cargill and TechnoServe formed a collaborative partnership with the objective of implementing a regenerative agriculture initiative encompassing a total land area of 25,000 acres dedicated to maize cultivation. The collaboration facilitated the provision of training to farmers, focusing on the implementation of regenerative agriculture practises. The primary objectives of this training were to enhance soil health, sequester carbon, and optimise water quality and utilisation.
- In September 2022, PepsiCo and ADM unveiled a significant agreement with the objective of mitigating carbon intensity through the promotion of regenerative agricultural practices across a potential expanse of 2 Bn acres of farmland.
Contract Farming Market Report Scope:
|
Report Attribute |
Specifications |
|
Market Size Value In 2022 |
USD 56.95 Bn |
|
Revenue Forecast In 2031 |
USD 76.07 Bn |
|
Growth Rate CAGR |
CAGR of 3.3% from 2023 to 2031 |
|
Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2023 to 2031 |
|
Historic Year |
2019 to 2022 |
|
Forecast Year |
2023-2031 |
|
Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
|
Segments Covered |
By Crop Type, By Livestock Type, By Contracting Parties |
|
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico ;The UK; France; Italy; Spain; China; Japan; India; South Korea; South East Asia; South Korea; South East Asia |
|
Competitive Landscape |
Cargill Inc., Archer Daniels Midland Company (ADM), Olam International Limited, Nestlé SA, Tyson Foods Inc., JBS SA, Bunge Limited, Wilmar International Limited, Louis Dreyfus Company (LDC), and COFCO Corporation. |
|
Customization Scope |
Free customization report with the procurement of the report, Modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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