Comparative Study of Fresh Produce Supply Chain Models Under Contract Farming and Cooperative Markets

Smallholders play a vital role in global agriculture but face challenges such as resource limitations and market uncertainties. Contract farming (CF) and cooperative markets provide opportunities to smallholders to address these challenges. In this context, this study develops mathematical planning models for fresh produce supply chains (FPSCs) in two scenarios involving CF and cooperative markets with the objective of maximizing profits of smallholders. Results of computational experiments and sensitivity analysis reveal that CF has greater potential than cooperative markets to mitigate price volatility, thereby offering a stable income source to smallholders. This study provides valuable insights into CF and cooperative market practices, contributing to the sustainability of FPSCs and improving smallholders’ livelihoods.