Agribusiness Challenges and the Impact of Contract Farming on Market Access among Small-scale Bean Farmers in Pabna District, Bangladesh

Vol 9 No 5 (2026): Volume 09 Issue 05 May 2026

Article Date Published : 25 May 2026 | Page No.: 2727-2735 | Google Scholar | Crossref doi for this article

Abstract :

This study explores agribusiness challenges and examines the impact of contract farming on market access among small-scale bean farmers in Pabna District, Bangladesh. The study aimed to understand farmers’ experiences regarding production constraints, institutional relationships, market participation, and livelihood conditions within contract farming arrangements. A qualitative case study approach was employed to obtain in-depth insights from farmers and relevant stakeholders. Data were collected through in-depth interviews, focus group discussions, key informant interviews, observation, and documentation involving contract farmers, non-contract farmers, agricultural extension officers, and agribusiness representatives. The collected data were analyzed using thematic analysis supported by NVivo software. The findings reveal that small-scale bean farmers face several agribusiness challenges, including price instability, high input costs, weak bargaining power, limited access to formal markets, and dependence on intermediaries. Participation in contract farming was found to improve market access through stable buyer linkages, technical assistance, input support, and greater price certainty. However, farmers also experienced challenges such as delayed payments, unequal bargaining relationships, limited transparency in contractual agreements, and dependence on contracting firms. The study concludes that contract farming has the potential to strengthen market integration and improve farmers’ livelihoods when supported by transparent agreements, institutional coordination, and fair governance mechanisms. The findings provide practical implications for policymakers, agribusiness firms, and rural development practitioners in promoting inclusive and sustainable agribusiness systems in Bangladesh.

Keywords :

Agribusiness challenges, Contract farming, Market access, small-scale farmers

References :

  1. Azad, A. K. (2021). Determinants of crop diversification in Bangladesh: An econometric analysis. Asia-Pacific Journal of Rural Development, 31(2), 195–217. https://doi.org/10.1177/24551333211069752
  2. Adnan, K. M. M., Sarker, S. A., Hafeez, M., & Razzaq, A. (2018). Adoption of contract farming and precautionary savings to manage catastrophic risk of maize farming: Evidence from Bangladesh. Sustainability, 11(1), 29. https://www.mdpi.com/2071-1050/11/1/29/pdf
  3. Alam, M. S., Hossain, M. A., & Akter, S. (2023). Socioeconomic determinants of smallholder vegetable production in northern Bangladesh. Bangladesh Journal of Agricultural Research, 48(2), 134–148. https://doi.org/10.3329/bjar.v48i2.67890
  4. Bangladesh Bureau of Statistics. (2023). Statistical Yearbook of Bangladesh 2023. Ministry of Planning, Government of Bangladesh. http://www.bbs.gov.bd
  5. Barik, P., Bedamatta, R., & Vikraman, S. (2024). Smallholders in contract farming value chain: Challenges and opportunities, empirical evidence from West Bengal, India. Journal of International Food & Agribusiness Marketing. https://doi.org/10.1080/08974438.2024.2398741
  6. Barrett, C. B., Bachke, M. E., Bellemare, M. F., Michelson, H. C., Narayanan, S., & Walker, T. F. (2012). Smallholder participation in contract farming: Comparative evidence from five countries. World Development, 40(4), 715–730. https://doi.org/10.1016/j.worlddev.2011.09.00
  7. Braun, V., & Clarke, V. (2021). Thematic Analysis: A Practical Guide. Thousand Oaks, CA: Sage Publications.
  8. Creswell, J. W., & Cheryl, N. P. (2024). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (6th Edition). Thousand Oaks, CA: Sage Publications.
  9. Department of Agricultural Extension. (2023). Annual report 2022–2023. Ministry of Agriculture, Government of Bangladesh.
  10. Food and Agriculture Organization. (2022). Contract farming and inclusive market systems: Improving linkages between farmers and buyers. FAO. https://www.fao.org/3/cb7348en/cb7348en.pdf
  11. Hailu, H. G., & Mezgebo, G. K. (2024). Contract farming and sesame productivity of smallholder farmers in Western Tigray, Ethiopia. Cogent Food & Agriculture, 10(1),2325093. https://doi.org/10.1080/23311932.2024.2325093
  12. Ikeda, S., & Natawidjaja, R. S. (2022). Determinants of participation in contract farming and its impact on smallholder farmers: Evidence from Indonesia. Japanese Journal of Agricultural Economics, 24, 1–10.
  13. Mwaura, V. W. (2023). Tomato Market Efficiency Analysis: A Study of Nyeri and Karatina Markets, Kenya. Kenyatta University Repository. https://ir-library.ku.ac.ke/items/8c2de112-09ef-4f0e-be1a-e971573ea898
  14. Kabir, M. H., Rahman, M. M., & Karim, A. (2020). Constraints Faced by the Vegetable Farmers in the Northern Part of Bangladesh. Asian Journal of Agriculture and Rural Development, 10(1), 46–53. https://doi.org/10.18488/journal.1005/2020.10.1/1005.1.46.53
  15. Meister, S., & Gwaindepi, A. (2024). Contract farming and multidimensional poverty in low-income countries. Africa Development, 49(4). https://doi.org/10.57054/ad.v49i4.5423
  16. Meemken, E. M., & Bellemare, M. F. (2020). Smallholder farmers and contract farming in developing countries. Proceedings of the National Academy of Sciences, 117(1), 259–264. https://doi.org/10.1073/pnas.1909501116
  17. Ministry of Agriculture Bangladesh. (2020). National Agricultural Mechanization Policy 2020. Government of the People’s Republic of Bangladesh. https://lpr.adb.org/resource/national-agricultural-mechanization-policy-2020-bangladesh
  18. Mwaura, V. W. (2023). Tomato market efficiency analysis: A study of Nyeri and Karatina markets, Kenya. Kenyatta University Repository.
  19. Neme, A. A., Tefera, T. L., Abdi, B. B., & Aweke, C. S. (2024). The impact of contract farming on income of smallholder vegetables farmers in the central rift valley of Ethiopia. Discover Agriculture, 2(1), 11. https://doi.org/10.1007/s44279-024-00024-3
  20. Ncube, B. (2020). Challenges and opportunities of contract farming in Africa: A review. African Journal of Agricultural and Resource Economics, 15(2), 102–115.
  21. Ndiritu, S. W. (2024). Smallholder farmers’ dissatisfaction with contract farming: A gendered perspective. Development in Practice, 34(6), 708–719. https://doi.org/10.1080/09614524.2024.2344526
  22. Piot-Lepetit, I. (2025). Editorial: Strategies of digitalization and sustainability in agrifood value chains. Frontiers in Sustainable Food Systems, 9, 1565662. https://doi.org/10.3389/fsufs.2025.1565662
  23. Hasan, M. R., Mahmud, K., & Akter, S. (2021). Contract Farming and Market Access of Smallholders in Bangladesh: A Case Study of Selected Districts. Bangladesh Journal of Agricultural Economics, 44(2), 23–35. https://doi.org/10.22004/ag.econ.321159
  24. Islam, A. H. M. S., Roy, D., Kumar, A., Tripathi, G., & Joshi, P. K. (2019). Dairy contract farming in Bangladesh: Implications for welfare and food safety.
  25. Islam, M. R., Rahman, M. M., & Ahmed, S. (2021). Determinants of smallholder farmers’ participation in vegetable markets in Bangladesh. Asian Journal of Agriculture and Rural Development, 11(2), 98–110.
  26. Karim, M., Rahman, A., & Sultana, N. (2024). Contract farming for sustainable vegetable production: A case study from Rajshahi Division, Bangladesh. Agricultural Economics Review, 45(1), 77–91. https://doi.org/10.1108/AER-2024-0009
  27. Rayhan, S. J., Hossain, M. M., & Arefin, M. T. (2024). Agricultural Credit and Its Impact on Smallholders in Rural Bangladesh. Agricultural Finance Review.
  28. Roy, R., Rahman, M., & Sultana, F. (2021). Contract farming, profitability, and adoption of food safety measures in broiler production in Bangladesh. Journal of Agribusiness in Developing and Emerging Economies, 11(2), 275–292. https://doi.org/10.1108/JADEE-07-2020-0153
  29. Ravitch, S. M., & Carl, N. M. (2021). Qualitative Research: Bridging the Conceptual, Theoretical, and Methodological. Sage Publications.
  30. Rahaman, S., & Amin, R. (2025). From agricultural roots to retail outlets: A critical analysis of price jumps and distributional dynamics in Bangladesh’s vegetable markets. Pancasila International Journal of Applied Social Science, 3(03), 436–448.
  31. Rahman, S., & Hossain, M. I. (2019). Challenges and Prospects of Agribusiness in Bangladesh: A Study on Vegetable Farming. Journal of Development and Agricultural Economics, 11(7), 154–160. https://doi.org/10.5897/JDAE2019.1075
  32. Rahman, M. M., & Parvin, L. (2020). Constraints to agribusiness development in Bangladesh: Evidence from smallholder farmers. Asian Journal of Agriculture and Development, 17(2), 45–62.
  33. Rahman, T., Hossain, S., & Kabir, M. (2022). Extension services and technology adoption among small-scale vegetable farmers in Bangladesh. International Journal of Agricultural Extension, 10(3), 45–58. https://doi.org/10.33687/ijae.010.03.4568
  34. Rondhi, M., Aji, J. M. M., Hasan, A. F., & Yanuarti, R. (2020). Factors affecting farmers’ participation in contract farming: The case of broiler sector in Indonesia. Tropical Animal Science Journal, 43(2), 183–190. https://doi.org/10.5398/tasj.2020.43.2.183
  35. Said, J., & Goldsmith, P. (2024). Technology Adoption at Scale: The Success of USAID’s Agriculture Diversification Project in Malawi. International Food and Agribusiness Management Review.
  36. Sumartini, N. P., & Nasrudin, R. (2024). Does contract farming participation promote household food security? Jurnal Ekonomi & Studi Pembangunan, 25(1), 110–129. https://doi.org/10.18196/jesp.v25i1.21783
  37. Sharma, S. (2022). Contract farming and market development in India: A review. International Journal of Science and Research, 11(3), 1–5. https://www.ijsr.net/archive/v13i6/SR24623134049.pdf
  38. Solberg, S. Ø., & Van Zonneveld, M. (2024). Advances in conservation and utilization of plant genetic resources. Frontiers in Plant Science. https://www.frontiersin.org/articles/10.3389/fpls.2024.1468904/pdf
  39. Taslim, A., Karim, M. R., & Rahman, M. S. (2021). Factors influencing participation of farmers in contract farming in Narsingdi District of Bangladesh. Asian Journal of Agricultural Extension, Economics & Sociology, 39(11), 569–576. https://doi.org/10.9734/ajaees/2021/v39i1130785
  40. Tsvakirai, C., Matjane, L. M., & Tshehla, M. (2024). An evaluation of factors affecting small, medium, and microenterprises for commercial farming: A case for smallholding farmers in Wintervedlt. ResearchGate. https://www.researchgate.net/publication/369959648
  41. Tuyen, M. C., Sirisupluxana, P., & Hung, P. X. (2022). Perceptions and Prospects of Contract Farming: Insights from Rice Production in Vietnam. Sustainability, 14(19), 12472.
  42. Uddin, F., & Karim, M. A. (2023). Perceptions of the role of social media in agricultural information among Bangladeshi farmers. International Journal of Media, Journalism and Mass Communication, 9(1), 28–36. https://doi.org/10.20431/2454-9479.0901005
  43. World Bank. (2020). Bangladesh agriculture sector review: Towards sustainable food security. World Bank Group.

How to Cite :

Agribusiness Challenges and the Impact of Contract Farming on Market Access among Small-scale Bean Farmers in Pabna District, Bangladesh. MD Aminul Islam Khan, Dr. Ir. Taufik Setyadi, MP, Dr. Noor Rizkiah, SP., MP, 9(5), 2727-2735. Retrieved from https://ijcsrr.org/single-view/?id=26314&pid=26091

Most read articles by the same author(s)

MD Aminul Islam Khan, Dr. Ir. Taufik Setyadi, MP, Dr. Noor Rizkiah, SP., MP,

View

61

Citation

Downloads

Article Details