ABSTRACT
In my talk at the World Conference on Edible Fats and Oils Processing in October 1989 (1), I outlined the PVO strategy:
“Although PVO had a near monopoly on safflower planting seed and would sell its best seed only to those growers who contracted their production with the company, PVO worked hard to create a paternalistic project for the development of safflower worldwide, tying growers and consumers together through its good auspices. They used several methods to accomplish this:
1. PVO offered growers contracts guaranteeing to buy whatever they produced from a given acreage at a guaranteed floor price, and provided planting seed for cash and credit and field service free of charge. In addition to the floor price, the grower was paid an additional bonus after harvest, reflecting the results of PVO’s market efforts. This was probably the first example of contract farming for a nonperishable crop.
