The economics of contracts has undergone major developments in the recent decades. At the
same time, the issue of co-ordination among actors in the same product chain through contractual
instruments has attracted significant attention. In addition, the recent volatility of agricultural prices has
made the role of contracts in risk allocation more important across different stages of the production
chain. The paper explores the role of production contracts in the co-ordination of agri-food chain,
considering evidence from the particular case of the durum wheat chain in Italy. After a review of the
literature and brief examination of the sector and institutional context of Italian wheat production, the
paper considers the present and potential role of production contracts, through a Delphi exercise. Based
on this, proposals for action priorities (policy) are discussed along with an agenda for future research.
The outcome of the Delphi exercise confirms the perceived need of improving the use of contracts in
the Italian wheat sector. It also confirms the difficulties in addressing this issue. Solutions and needs for
further research are identified at two main levels: a) detailed contract design; and b) wider chain
governance.
Keywords: Durum wheat, production contracts, Italy.
