He organized production credit and ensured that the growers carried out the correct production practices. The agribusiness established the steam distillation units. Result Field results demonstrated that high yields and excellent quality mint oil were possible. Farmer Incomes are well above those for traditional crops. Production is expanding and new buyers are coming on to the market as the country develops new uses for the essential oil.
Contract farming is a feature of more developed agriculture.
It has the advantage of reducing price fluctuations and therefore risk, both for the grower and for the buyer. Contracts generally operate between farmers and agribusinesses who need to be assured of supplies. Problems generally arise when there is a great difference between the contract price and the price in the open market. Agribusiness, when oversupplied, will sometimes unfairly reject produce, normally on the basis of quality. He should encourage both sides to stand by their contractual agreements and he can act as an arbitrator in the case of dispute.