Agricultural Production Contract Proclamation No.1289/2023.

This Proclamation applies on any contractor, producers, third party and appropriate authority. The formation of agricultural production contract can be initiated through contract offer by either the Contractor or the Producer. Both parties may be assisted by a third party in the process of agricultural production contract negotiations. The Proclamation provides for the form and registration of the contract; content and objectives of the contract; rights and obligations of the Producer and the Contractor; type, quality and quantity of agriculture produce, and descriptions of unit of measurement; pricing mechanism of agriculture produce; input supply and payment; transportation, among others. Under Part 3 the Proclamation identifies four types of Agricultural Production Contracts: 1) Out-grower Contract; 2) Centralized Contract; 3) Multipartite Contract; and 4) Intermediary Contract. The Proclamation then provides for obligations and rights of contractor and producer.