second specialized meeting on contract farming was held on Sep, 24the , in
meeting Dr. H. Shirzad, Agriculture-Jahad deputy minister, Dr.Kesharvarz,
Agriculture-Jahad deputy minister in cropping affairs, Dr.Khaledi,
director-general of office for economic affairs, Dr. kiayanirad, head of APERDI
( Institute of Agricultural research planning, economic and rural development),
the CEO of rural, agricultural and rural producers union attended.
to PAT, Shirzad emphasized on approving of regulations, standards and
supervisory criteria as well as briefing the target group of farmers as the
pre-requisites of development of contract farming.
that the agricultural value chain should be covered by subsidy systems as well,
the CEO of CORC assured that through contract farming the subsidy system and
financial securing of the agricultural sector would evolve too.
to the absence of industrial thought in the agriculture sector, the official
affirmed that adopting a mere production-oriented had undermined the
agriculture knowledge literature which has trapped us in the product chains.
affirmed on the significance of the legal aspects of for target groups, adding
that contract farming demands to develop mutual legal criteria by two parties.
the subsidy system of agriculture sector in the developed countries stated that
in Iran, the supportive funds should be allocated to the components of the value
chain rather than the final producers or consumers.
implied that we need to shift from tradition production to industrial
production. Applying the scientific methodology of contract farming including,
simplification and standardizing are the prerequisites of contract farming.
official added that are many challenges in contract farming that should be
resolved by the unity of both the public and private sectors.
on the importance of the legal rights of both parties in the agricultural value-chain,
he asserted that having a win-win game in the contract farming requires
recognizing and safeguarding the rights of both parties.
"In the developed countries, the
supportive funds are allocated for agricultural value chain components, however
in Iran, these funds are dedicated for the final consumers or producer,"
"We need a national roadmap for
contract farming in which the government, the research institutes, and stock
exchange market would be the governing sector. The research institutes should
equip the contract farming with invents innovations and modern technologies in
order to boost the competitiveness and decreasing the final price of service
and products. The agriculture society should acknowledge contract farming as a national
system, hence ordered cropping or contract farming is arranged based on the
", he reminded.
Explaining the government role in contract farming,
the deputy minister went on that development of contract farming requires to
the national agricultural value chain as well as different farming systems
including core farming model, multi-section, individual and intersection
As the governing sectors, the
research institutes and insurance agencies from one side and the agricultural
civil right activists as the other side
should join the contract farming national roadmap in order to coordinate the
sustainable provision of qualifies crops and appropriate pricing system."
to the supplying of Saffron in the agricultural mercantile stock exchange as a
very successful case, Shirzad mentioned controlling price fluctuation, boosting
standardizing and trade commitment as the advantages of contract farming. He
also reminded that inefficient insurance system as one the main obstacle of the
contract farming that should be removed by expertise working.
the final section of the supply chain, the market should be recognized a
determining factor in the execution of contract farming, furthermore market
modernization could satisfy the final customer", the official said. He
also confirmed on the relevancy of empowerment of components of the production
value chain by holding training courses accompanied with re-structuralize the
the CEO and top managers of the national unions, Shirzed affirmed that is it
necessary to transform unions to the civil trade societies which seek the
interest of the members and capacity building. Meanwhile, he recommended applying
Islamic financial tools and Sukuk including Mozarea and Mosaghat (contract for
agricultural purpose), Percentage, Purchasing of the Liabilities, renting and ordered
mentioned the good management of process and expertise transactions as the
guarantee for attaining profitability in the contract farming.
Development of a legal and
supportive framework would facilitate the contract and ordered production in
the agriculture sector such as Automobile industries that finally lead to
sustainable and integrated production", Shirzad added.