The Farmer Organization Models

Transcription

1 The Farmer Organization Models

2 Veco East Africa VECO is a Belgian NGO working in 18 countries globally VECO s Mission is; To enable and support smallholder farmers take up their role in rural poverty alleviation and contribute to feeding a growing world population in a sustainable way. VECO aims at; Creating an enabling environment for smallholder farmers; Policy & Regulatory framework, Market Mechanisms, Extension services, Input supply systems, Access to credit,and actions for societial actors.

3 Support smallholder farmers to organize themselves and build the necessary capacities to create economies of scale, guarantee quality, food safety and sustainability Promoting business case for chain actors ( buyers, traders, processors, distributors, retailers, smallholders and their organizations to engage each other and establish linkages

4 Role of farmer organizations FFV Effective smallholder farmer organizations, can be an effective strategy to reducing rural poverty. They have long been considered central in upgrading smallholder farmers to commercial status. Efficient smallholder aggregation intermediaries have proven to be critical in addressing product aggregation, provision of technical assistance and more recently as a vehicle for inclusivity. They enable increase of incomes by reducing transaction costs, increasing market stability and addressing input and output market failures.

5 Objective of the study Develop deeper understanding of the best practices, experiences and guiding principles of successful Farmer Organizations in order to influence change and increase the chances of creating successful and durable farmer organization in Uganda and East Africa.

6 Interesting Issues What are the different kinds of farmer organizations? What are the dimensions for successful farmer organizations? What kinds of legal registration do the farmer organizations take on? What are the major strengths and weaknesses of farmer organizations? What context are the different farmer organization models used in? What have been the key learning's and how do those translate to impact and sustainability?

7 Key findings of the study

8 Dimensions of success The Problem definition This is an articulation of why the farmer organization was formed; it outlines the need, the problems it sought to address and motivation of the founders. A clear definition of the problem that a farmer organizations seeks to solve is important in developing an appropriate business model. Business Model This refers to how the farmer organization creates value and captures value. It is the approach to addressing technical assistance needs as well as input and output market linkages and partnerships. Design The internal institutional design which promotes effective oversight and service delivery. It also fosters ownership, manages and mitigates risks.

9 Dimensions of success Capacity This pertains to management and staff capacity, and their ability to provide efficient service. It also refers to operational capacity, value proposition and ability to enter into successful partnerships and networks. Inclusiveness Looks at the capacity to access and sustainably participate in markets. It is also about the farmer organizations having clear and effective standards, policies and leadership which enables quality membership participation (social inclusion), Gender and all age groups.

10 Implementation This refers to implementation of strategies and plans by developing effective operational, control, financing, marketing, staffing and systems.

11 Key lessons from the Study There is no one size fits all model farmer organizations are not mutually exclusive, and are not static, but evolve over time and in response to changing farmer needs, market conditions and political economy Identifying the problem is where it all begins from. A clear definition of the problem the FO seeks to solve is important in developing an appropriate business model. Efforts with FO will be more productive when focused on markets (domestic and export) that provide to different levels of quality. The strength of the FO relays on the ability to provide good markets to its members.

12 Lessons cont For export horticulture/floriculture due to the need to minimize distances from farm to cold chain and reduce complexities of grading and quality assurance- the first tier organizations are more effective. Integrating smallholder farmers into inclusive modern markets particularly exports markets for fresh flowers, vegetables and fruits can be achieved, but the technical assistance in support of this objective needs to be gradual and long-term in nature. Contract farming between farmers and exporters of fresh fruit and vegetables should be based on win- win partnership with farmers not seen as sources of farm labour, and/or for access to productive (free) land.

13 Key lessons FO models are more sustainable when they enable smallholders to capture a significant price premium ( which provide a source of revenue for the FO.) Ensure there are regular open channels of communication with their members. Governance and Leadership are the most critical challenges to effective farmer organizations, as long as the business model is sound.

14 Key lessons Good leadership needs to show entrepreneurial spirit and vision. The best leaders are those who are elected by others, are knowledgeable, allow for participation by the rest of the group in decision-making procedures (i.e. facilitate bottom-up decision-making), provide opportunities for the most marginalized members of the group. Homogeneity in purpose means the members face common problems, which reduces coordination costs and facilitates collective action to address common TCs. The success of the group relies on all members feeling that their needs are being addressed through cooperation. Engage women, youth and other marginalized groups in agricultural programs increases productivity significantly.

15 Thank You