Question

What do companies do with the produce they buy from farmers?

• A. They distribute it among the poor.
• B. They use it to make their own products.
• C. They auction it for charity.
• D. They export it to other countries.

Answer 1

Answer: (B), (D)

The correct options are
B They use it to make their own products.
D They export it to other countries.

In contract farming, companies advise farmers to follow specific farming practices and also provide financial support. The companies then use the produce as a raw material for making their own products (like chips, or tomato sauce, or medicine); or export them directly to other countries.