Coastal aquaculture’s growth may also hinge on contract farming models which can aid in poverty reduction, improvement of food security and promotion of economic growth. However, concerns persist regarding inequitable conditions, sustainability shortcomings, and the absence of inclusive models designed to enhance productivity and market access. The absence of a robust governance framework to regulate these models at the community level is apparent, necessitating improved institutional mechanisms to protect vulnerable farmers. As such, the specific contractual arrangements established must be carefully structured to safeguard farmers from exploitative dependencies and systemic inequities.
A comparative case study approach was conducted where purposive sampling was adopted targeting contracted and non-contracted farmers in mariculture in coastal counties (Kwale and Kilifi) of Kenya. Mixed Methods with both quantitative and qualitative data collection was applied. Literature review was conducted of existing regulations supporting or hindering contract models in aquaculture development. Semi-structured questionnaires, focus groups, key informant interviews were conducted to gather information from the farmers and various stakeholders. Some of the indicators used for evaluation included: income, access to inputs, soft loans, production, market linkages, conflicts and dispute resolution mechanisms, land tenure security and benefit sharing.
Preliminary results indicate that both production and marketing contracts were in existence where farmers sited advantages for instance, exposure to targeted skill development, credit and inputs access, guaranteed markets and prices among others. However, while vertical integration was offering quality control and market access it was at the same time reducing the farmers autonomy; whereas the informal agreements were providing flexibility and low barriers but were at the same time exposing the farmers to scaling challenges. Additionally, the investors reported that frequency of contract breaches was high, lack of dispute resolution mechanisms, and insurance access among the farmers.
At a preliminary stage, the study proposes for adoption of the middle path for Hybrid models where the strengths of vertical integration and the flexibility of the informal agreements put into consideration as an emerging pathway for sustainability. Additionally, there is need for a clear framework of contract enforcement and empowerment of the local farmers in collective bargaining. Policymakers also need to promote fair, sustainable, and inclusive contract models to maximize benefits while minimizing risks.
Keywords: Contract models, hybrid models, vulnerable farmers, exploitative dependencies, systemic inequities, safeguard, sustainability.