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D-side-selling Dictionary

Side-selling

Selling contracted or cooperative produce to another buyer outside the agreement

All termsIntroduced in Module 4Open the Toolkit
An open dictionary on a farm office desk
Plain meaning
Selling contracted or cooperative produce to another buyer outside the agreement
How to use it
Avoid side-selling: it breaks contracts and destroys the trust that lets buyers finance small farmers. If a contract price is unfair, renegotiate it openly.
South African benchmark
Side-selling is a known problem in South African smallholder contract schemes.
Country notes
Side-selling is a recurring problem in contract cotton and tobacco in Zimbabwe and Zambia.
Go and read
M15-U5
Calculate it
No calculator; the term is applied in the venture plan narrative.
Library sources
LIB-A047, LIB-A055
See also
Contract farming, Off-taker
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.