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D-contract-grower Dictionary

Contract Grower

A farmer who raises stock or crops for an integrator using the integrator's inputs

All termsIntroduced in Module 4Open the Toolkit
An open dictionary on a farm office desk
Plain meaning
A farmer who raises stock or crops for an integrator using the integrator's inputs
How to use it
Compare the growing fee with the costs the grower still carries: housing, labour, power and mortality risk. The integrator carries the market risk; the grower carries the production risk.
South African benchmark
South African broiler integrators use contract growers alongside their own farms (Article 80).
Country notes
Applies the same way in all five markets.
Go and read
C4 Lesson 4.4, M1-U6, M19-U4
Calculate it
T-M12-02 Broiler Batch Calculator
Library sources
LIB-A080
See also
Vertical integration, Contract farming, Outgrower
Route from farm gate to consumer with each party’s share of the priceFrom farm gate to buyer: who takes a share of the priceYour farmfarm-gate priceTransportR per tonne-kmMarket agentcommission %Retaileror processorConsumershelf priceFarmTransportAgentRetailShare of the shelf price (illustrative split)Selling closer to the consumer keeps more of the price on the farm, but adds cost and work.
From Module 4, Getting to the Buyer, where this term is introduced.

Introduced in C4 Getting to the Buyer.