Economic Coordination Contracts and their Role in Integration of Farmers Markets

Abstract

The basic goal is to provide a theoretical background not only for analysis of specific contracts in agriculture that should operate between producers (agents) and processors (Principal). This theory deals with situations in which an economic entity, in case the total processing industry, but not limited to, (the principal) of" delegate" responsibilities (tasks) an agricultural producer of raw materials (the agent).Delegation of tasks that the agent makes decisions that affect not only their activity but also nit's own principal. Normally, in a principal-agent relationship, the latter is threatened by for formal contracts that represent the interests of the principal in exchange for a fee. The purpose of this paper is to examine the relationship between actors in the system agro-business. Thus, we have under study for years olive Phil ere for the coming years 2012, 2013 2014. One of the key elements that we studied is agricultural contracts. 1. What is the role of agricultural contracts in agro-business system? 2. Do agricultural contracts affect in sustainability between all stakeholders in the system? 3. Are these contracts practiced in our country? 4. What is the role of government in promoting linkages and mutual impacts in the system? To get an answer on questions above and others we have used a questionnaire and we interviewed 60 farmers who grow and produce olives, and 60 agro-processers that produce olive oil.

DOI: 10.5901/mjss.2015.v4n1p435