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Abstract
The purpose of this research was identifying socio-economic
characteristics affected on respondents’ participation in
contract farming. The survey was conducted using structured
questionnaire in populous states namely Kedah, Kelantan,
Terengganu, Pahang, Perak, Selangor and Johor in Peninsular
Malaysia. A total of one-hundred and sixty seven FFV farmers
were randomly selected and personally interviewed. Logit
analysis was carried out to identify determinants that influenced
fresh fruits and vegetables (FFV) farmers participating in
contract farming. The findings in the paper show that, based
on the output from logistic regression, ownership, land size,
education background, perceived benefit, complicated process,
lacking in opportunities and price risk are dominant variables
influencing FFV farmers’ willingness to participate in contract
farming. Land ownership, land size, education and perceived
benefit are dominant variables that positively influenced FFV
farmers to participate in contract farming. Complicated process,
lack of opportunities and price risk negatively influenced FFV
farmers’ participation in contract farming.