Smallholder farmers’ perceptions of cattle contract farming in the Northern communal areas of Namibia

Contract farming has emerged as a rapidly expanding and sustainable agricultural practice, offering significant potential benefits for agribusinesses, smallholder farmers, and the broader economy. It is widely recognised as a mechanism for integrating smallholders into formal and global value chains, thereby addressing issues of market failure and enhancing rural livelihoods. Despite its growing prominence across developing economies, limited scholarly attention has been devoted to the study of contract farming in Namibia, particularly within the Northern Communal Areas (NCAs). In this context, contract farming remains a relatively novel concept within the communal livestock sector, where traditional production and marketing systems still dominate. To bridge this gap in the literature, this study investigated smallholder farmers’ perceptions of cattle contract farming in the NCAs of Namibia to provide empirical insights into its perceived benefits. This study employed a mixed-methods research design, combining quantitative and qualitative approaches. Survey data revealed an information asymmetry problem, as 73.6% of respondents had a limited understanding of the contract farming concept, although many expressed willingness to participate (84.0%). Three key aspects of smallholder farmers’ perceptions were identified: willingness to participate, experience and cost awareness, and level of understanding. These components provide insights into farmers’ attitudes, experiences, and knowledge, and offer valuable information to stakeholders to improve the efficacy and adoption of contract farming practices. This study recommends that future initiatives should prioritise comprehensive outreach and educational programs to inform farmers about the principles, advantages, and practical aspects of contract farming challenges and implications for rural economic development.