COPRA pushes contract farming to protect farmers

DODOMA: FARMERS and produce traders have been urged to embrace formal contract farming through registered buyers as the government moves to protect producers from exploitation, strengthen market access and eliminate losses arising from informal agreements.

The Tanzania Cereals and Other Produce Regulatory Authority (COPRA) said all contract farming agreements must now be registered under the newly operational regulations to ensure legal protection for both farmers and buyers while improving transparency in agricultural trade.

Speaking in Dodoma while educating stakeholders on the Contract Farming Regulations published in the Government Gazette on June 30 this year, COPRA Agriculture Officer and Contract Farming Coordinator, Ms Rehema Msauge, said the new framework covers all crops that are not regulated by commodity boards.

She said the regulations seek to safeguard farmers’ interests by ensuring that all agreements are legally recognised, properly documented and supervised by the authority.

“Farmers and traders should avoid verbal agreements. Every contract must be in writing and legally recognised so that the authority can enforce it and protect both parties from unnecessary losses and disputes,” she said.

Ms Msauge explained that before any contract is signed, the production area must be identified, the relevant information registered in COPRA’s digital system and a draft agreement prepared, verified and formally registered.

She said the arrangement gives farmers guaranteed markets because they know their buyers before harvesting while also providing certainty on prices.

According to her, COPRA determines the minimum buying price after assessing production costs and prevailing market conditions to ensure farmers receive between 75 and 80 per cent of the final market price of their produce.

She added that registered contracts also improve farmers’ access to credit from financial institutions and development partners while promoting higher-quality production to meet domestic and export market standards.

Ms Msauge said small-scale farmers will pay a registration fee of 10,000/-, medium-scale farmers 20,000/- and large-scale farmers 40,000/-.

Agricultural Marketing Cooperative Societies (AMCOS) with between 20 and 50 members will pay 100,000/-, those with 51 to 200 members will pay 250,000/-, while cooperatives with more than 200 members will pay 500,000/-.

She warned that violations of contract farming agreements would attract stiff penalties under the new regulations.

Individuals found breaching contract terms face fines ranging from one million shillings to five million shillings, imprisonment for one to two years, or both.

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Corporate entities that violate the regulations will be liable to fines ranging between five million shillings and ten million shillings.

Ms Msauge said wider adoption of formal contract farming would improve transparency in agricultural trade, strengthen trust between farmers and buyers and accelerate the commercialisation of agriculture through legally binding and mutually beneficial business arrangements.

She said the regulations form part of the government’s broader efforts to build a more competitive agricultural sector by ensuring farmers have secure markets, fair prices and stronger legal protection.