Founder of K-Farm, Kit Chan thinks that there are more to contract farming that are often overlooked by eager farming agropreneurs. From his observation of the contract farming model, Kit Chan believes many wrongly assume that growing produce automatically leads to proﬁt. “The truth is, many farmers do not understand that proﬁt comes from income, and income comes from not only the price, but also the quantity of produce that they can supply. Thus, proﬁt is not necessarily derived from price alone. When farmers fail to understand this, many would hop from one buyer or another in the search of an extra 10 cent of revenue. This then leads to an unsteady relationship with buyers whereby trust cannot be developed in the longer term,” says Kit Chan.
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