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A RESEARCH QUESTIONNARE ASSESSING THE FACTORS CAUSING BREACH

OF OUTGROWER CONTRACTS BETWEEN FARMERS AND SONY SUGAR


COMPANY
Hi, my name is Angela Otiende. I am a 4 th year student at Egerton University, Njoro Campus
pursuing a Bachelor’s Degree in Agribusiness Management. I am on a field research of the above
mentioned topic and I humbly request that you help me answer the questions below as honest as
possible to enable me finish my studies and graduate. I assure you that your response shall be
concealed with utmost confidentiality.
Section 1: General information
1. What is your age?
15-20 years ( )
21-30 years ( )
31-40 years ( )
41-50 years ( )
Above 50 Years ( )
2. What is your main economic activity status?
Sugarcane farming ( )
Business ( )
Employed ( )
Unemployed ( )
Self-employed ( )
3. What is your level of education?
Never been to school ( )
Primary school ( )
Secondary school ( )
Tertiary education ( )
Section 2: Formal contractual arrangements
2a Could you please talk about your contractual arrangements, who the contractor is and
how it came into being?
Who is your current contractor (buyer/processor)?
............................................................................................................................................................
How did it come into being, who was the initiator?
............................................................................................................................................................
Did you have support in drawing the contract, negotiating?
............................................................................................................................................................
How much time did you have to discuss the contract with other sugarcane farmers?
............................................................................................................................................................
For how many years have you been farming sugarcane under a contract?
• With the current contractor? ............................................................
• With others?.............................................................................
Who was negotiating the current contract and how?
............................................................................................................................................................
2b Could you please talk about the specific elements of your current contract such as the
product, quantity, embedded services etc.
What is the duration of the current contract?
1 year ( )
6 months ( )
Others ( )
Who does the grading?
Farmers ( )
Special graders ( )
Trained ( )
Not trained ( )
Input supply: Who is in charge of what? What does the buyer supply and what the
farmers?
Seeds farmer ( ) buyer ( )
Fertilizer farmer ( ) buyer ( )
Chemicals, pesticides, herbicides farmer ( ) buyer ( )
Mode of payment and inputs on credit: Could you please tell us more about the
arrangements in this respect! How does it work?
Who is paid? Group ( ) Individual farmers ( )
How are you paid? Cheque ( ) money transfer ( ) cash ( )
Frequency of payment
weekly ( ) every 2 weeks( ) monthly others ( ) Specify....................................................
Transport of sugarcane: Could you please tell us more about the way the transport of your
produce is organized
Where is the sugarcane picked up?
............................................................................................................................................................
Distance from pick up point to next main road or factory.
...........................................................................................................................................................
How often is the produce picked up?
............................................................................................................................................................
Who pays the transport costs?
............................................................................................................................................................
Are there documents, which have to accompany the produce (traceability)?
............................................................................................................................................................
Rejection of sugarcane:
What is your experience with rejections of your produce?
............................................................................................................................................................
Is there anything mentioned in the contract how to deal with rejections? (price reduction)
............................................................................................................................................................
Where does the rejection take place?
............................................................................................................................................................
How is it justified?
............................................................................................................................................................
What are the reasons for the rejection?
............................................................................................................................................................
Do you have a possibility to intervene?
............................................................................................................................................................
What happens with the sugarcane when it has been rejected?
............................................................................................................................................................
Section 3: Legal issues in the contract and its enforcement
Please tell us whether the contract has an exit/termination clause for both parties?
............................................................................................................................................................
Are there clear sanctions to mitigate breach?
...........................................................................................................................................................
Are there any things you would like to be added to/regulated by your contract? How should the
ideal contract look like?
............................................................................................................................................................
What kind of support do you wish for your future engagement in Contract farming?
............................................................................................................................................................
Section 4: Problems/challenges faced by the Farmer:
Please tell us the problems you were faced with since you entered into contract farming?
............................................................................................................................................................
Was there contract breach?
Yes ( ) No ( )
If Yes, who breached the contract and why?
............................................................................................................................................................
Which advantages do you see for you as a farmer group being engaged into contract farming?
............................................................................................................................................................
Which disadvantages do you see for you as a farmer group being engaged into contract farming?
............................................................................................................................................................
Which advantages do you think does the buyer have when engaged in contract farming?
............................................................................................................................................................
Which problems do you think does the buyer face when engaged in contract farming?
............................................................................................................................................................

Thank you for your participation.

The study had a questionnaire response rate of 86% whereby, majority of the respondents are
aged between 31 and 40 years (17). Further, 47% of the respondent asserted that they engaged in
sugarcane farming while 2% of the sampled population contended to engage in business as their
main economic activity. Concerning the education levels, 50% admitted to having at least a
secondary education while a very small percentage admitted to have acquired a tertiary education
(3%).