This study gives an overview on agriculture and contract farming in the Dominican Republic. It explains how Contract farming works as well as who are contract growers and the dominant industry in the tomato industry.

1. Negotiating ContractNegotiating Contract
Farming in theFarming in the
Dominican RepublicDominican RepublicBy Laura T. RaynoldsBy Laura T. Raynolds

2. Contract farmingContract farming
 In Latin America and the Caribbean peasant producers areIn Latin America and the Caribbean peasant producers are
growing fruits and vegetables such as grapes, tomatoes,growing fruits and vegetables such as grapes, tomatoes,
broccoli, okra, green beans, and peas under contract forbroccoli, okra, green beans, and peas under contract for
processing and export firmsprocessing and export firms
 Contract farming is likely to expand because of the globalContract farming is likely to expand because of the global
increase in luxury and processed-food markets and theincrease in luxury and processed-food markets and the
widespread adoption of export promotion policieswidespread adoption of export promotion policies
 Contract farming is unique because it commits householdContract farming is unique because it commits household
land and labor resources to the production of a commodityland and labor resources to the production of a commodity
that is ultimately controlled by an agroindustrial firmthat is ultimately controlled by an agroindustrial firm
 The conditions and meanings of the contract relationship areThe conditions and meanings of the contract relationship are
continuously negotiated by growers and contracting firmscontinuously negotiated by growers and contracting firms

3. Points ofPoints of
ArticleArticle
 Explores the complex negotiation and renegotiation ofExplores the complex negotiation and renegotiation of
contract relations in the Dominican Republiccontract relations in the Dominican Republic
 How the country has restructured the Dominican RepublicHow the country has restructured the Dominican Republic
that has fueled the growth of contract farming ofthat has fueled the growth of contract farming of
nontraditional labor-intensive crops, especially in tomatoesnontraditional labor-intensive crops, especially in tomatoes
for processingfor processing
 Two perspectivesTwo perspectives
1. processing-firm officials1. processing-firm officials
2. contract growers2. contract growers
 Tomato contracts work to provide:Tomato contracts work to provide:
1. Processing firms with access to state irrigated land and1. Processing firms with access to state irrigated land and
peasant household laborpeasant household labor
2. Peasant growers with credit and guaranteed markets2. Peasant growers with credit and guaranteed markets

4. Contract Farming–How it works-Contract Farming–How it works-
 The recent spread of contract farming is associated withThe recent spread of contract farming is associated with
 1) global patterns of restructuring that privilege flexible accumulation1) global patterns of restructuring that privilege flexible accumulation
strategies in agriculture, as well as in industry and service sectorsstrategies in agriculture, as well as in industry and service sectors
 2) widespread adoption of neoliberal policies that foster the growth of2) widespread adoption of neoliberal policies that foster the growth of
new agroindustriesnew agroindustries
 Contract production provides a distinct alternative to either openContract production provides a distinct alternative to either open
market purchases or direct productionmarket purchases or direct production
 The purchaser enters into a formal agreement with the grower toThe purchaser enters into a formal agreement with the grower to
buy the farm output prior to productionbuy the farm output prior to production
 The grower in turn for this guaranteed market agrees to abide by aThe grower in turn for this guaranteed market agrees to abide by a
set of established production procedures under the oversight of theset of established production procedures under the oversight of the
purchaserpurchaser
 The term “contract farming” is used to describe production byThe term “contract farming” is used to describe production by
smallholders for private corporationssmallholders for private corporations

5. DebatesDebates
 Some suggest that contractSome suggest that contract
farming represents a formfarming represents a form
of “disguised wage labor”of “disguised wage labor”
where production iswhere production is
essentially controlled byessentially controlled by
the purchasing firm andthe purchasing firm and
producers are basicallyproducers are basically
proletarian workersproletarian workers
 Others argue that theOthers argue that the
control over productioncontrol over production
rests largely with therests largely with the
growers, who aregrowers, who are
essentially independentessentially independent
family farmers engaging infamily farmers engaging in
a form of advance marketa form of advance market
agreementagreement
 The author believes weThe author believes we
need to research howneed to research how
contract relations arecontract relations are
negotiated andnegotiated and
renegotiated byrenegotiated by
growers and firmsgrowers and firms
within the context ofwithin the context of
shifting productionshifting production
and market conditionsand market conditions

6. Nontraditional Agriculture andNontraditional Agriculture and
Contract Farming in theContract Farming in the
Dominican RepublicDominican Republic
 Over the past 20 years agriculture in the DominicanOver the past 20 years agriculture in the Dominican
Republic has been restructured by globalization,Republic has been restructured by globalization,
international debt, and neoliberalisminternational debt, and neoliberalism
 The rise of nontraditional agriculture in theThe rise of nontraditional agriculture in the
Dominican Republic has been associated with aDominican Republic has been associated with a
dramatic increase in contract farmingdramatic increase in contract farming
 The marginal peasant producers who dominateThe marginal peasant producers who dominate
Dominican agriculture-struggling to exist on tinyDominican agriculture-struggling to exist on tiny
parcels using household labor and limited capitalparcels using household labor and limited capital
investments have been devastated by the declininginvestments have been devastated by the declining
markets for traditional peasant cropsmarkets for traditional peasant crops
 The Dominican state has encouraged contractThe Dominican state has encouraged contract
farming in nontraditional agriculture as a way tofarming in nontraditional agriculture as a way to
organize the peasant community and reduce itsorganize the peasant community and reduce its
obligationsobligations

7. Tomato-Processing Firms’Tomato-Processing Firms’
NegotiationNegotiation
of Production Contractsof Production Contracts
 The industry is controlled by 5 Dominican-owned corporations thatThe industry is controlled by 5 Dominican-owned corporations that
are among the largest firms in the nontraditional agricultural sectorare among the largest firms in the nontraditional agricultural sector
 75% of tomato contract growers are located in the southern valley of75% of tomato contract growers are located in the southern valley of
Azua, one of the poorest regions of the countryAzua, one of the poorest regions of the country
 Why contract farming of tomatoes?Why contract farming of tomatoes?
 Tomatoes are a relatively labor-intensive crop, requiring person-Tomatoes are a relatively labor-intensive crop, requiring person-
days per acre under local conditions, under the contractdays per acre under local conditions, under the contract
responsibility for assembling labor and assuring work performanceresponsibility for assembling labor and assuring work performance
is shifted from the firm to the growersis shifted from the firm to the growers
 When asked to explain the position of contract growers, companyWhen asked to explain the position of contract growers, company
managers and field supervisors respond “the contract growers aremanagers and field supervisors respond “the contract growers are
not farmers”not farmers”
 If contract growers are not farmers,If contract growers are not farmers,
what are they?what are they?

8. Contract GrowersContract Growers
 Over 90% of contracts in the Azura region areOver 90% of contracts in the Azura region are
signed with men, since they are the ones who holdsigned with men, since they are the ones who hold
rights to the landrights to the land
 Most growers have resident female partners andMost growers have resident female partners and
typically three or four childrentypically three or four children
 Despite having multiple earners and, some sourceDespite having multiple earners and, some source
of off farm income, households are poorof off farm income, households are poor
 Why do contract farming?Why do contract farming?
 ““How else could I work this land?”How else could I work this land?”
 For growers who “eat from” their parcels,For growers who “eat from” their parcels,
contracts provide a critical source of consumption,contracts provide a critical source of consumption,
as well as production creditas well as production credit
 Household laborHousehold labor

9.  ““We all work in the tomatoes, that wayWe all work in the tomatoes, that way
the money stays here. The little onesthe money stays here. The little ones
are good at transplanting, my wifeare good at transplanting, my wife
knows the harvest, I do the rest. Weknows the harvest, I do the rest. We
are poor and cannot afford to hireare poor and cannot afford to hire
others, except in the harvest-you haveothers, except in the harvest-you have
to hire others for that”to hire others for that”

10. Contracting in the Face ofContracting in the Face of
Production LossesProduction Losses
 Distribution of risksDistribution of risks
and the role of debt inand the role of debt in
contract farmingcontract farming
 In the early 1980s,In the early 1980s,
Dominican productionDominican production
of processingof processing
tomatoes wastomatoes was
relatively stablerelatively stable
 In the mid 1980s theIn the mid 1980s the
processing firmsprocessing firms
introduced a set ofintroduced a set of
new procedures aimednew procedures aimed
at tightening theirat tightening their
control overcontrol over
productionproduction
 In addition toIn addition to
increasing costs, byincreasing costs, by
escalating the volumeescalating the volume
of variety of pesticideof variety of pesticide
use, tomato companiesuse, tomato companies
fueled a white flyfueled a white fly
outbreak which causedoutbreak which caused
huge agriculturalhuge agricultural
losses through out thelosses through out the
regionregion

11. ConclusionConclusion
 In the Dominican Republic, the rise ofIn the Dominican Republic, the rise of
contract farming is linked to the increasingcontract farming is linked to the increasing
consumption of processed foods and theconsumption of processed foods and the
declining capacity of the state to providedeclining capacity of the state to provide
credit and other inputs to peasantcredit and other inputs to peasant
producersproducers
 Contract growers’ subordination isContract growers’ subordination is
heightened by the fact that most cannotheightened by the fact that most cannot
read calculate their profits, or moreread calculate their profits, or more
commonly in recent years, their debtscommonly in recent years, their debts