contributions of family farming and the cooperative ...€¦ · 1.3 contributions of family farming...

DISCUSSION PAPER 1.3 Contributions of Family Farming and the Cooperative

Movement in the Eradication of Hunger and Promotion of Sustainable Agriculture.

B. Aragao, B. Miranda, M. Blanco

Paseo Colón 38, 6th Floor, Office 6-10, San José, Costa Rica

+506 40203540 [email protected]

Ecuador 374, Buenos Aires, Argentina +541121132107 [email protected]

Authors: 1

"CONTRIBUTIONS OF FAMILY FARMING AND THE COOPERATIVE

MOVEMENT IN THE ERADICATION OF HUNGER AND PROMOTION

OF SUSTAINABLE EDUCATION"

Abstract: Family farming is a social category that involves individuals who live in rural areas

and that work the land with productive and reproductive objectives; they perform these

activities mainly with their relatives. The agglomeration, localization and proximity

relationships in family farming in specific territories aim at the enormous associative

potential that this category presents. One of the main challenges that family farming faces, in

order to consolidate the fundamental role it has in the struggle against hunger, is how to

perform its productive activities in an organized and collective manner. Therefore, a new

generation of public policies for the promotion of the cooperative movement is needed.

Breno Aragao Tiburcio, who is Brazilian, owns a PhD in Social Sciences in

Development, Agriculture and Society from the Federal Rural University of Rio de Janeiro,

a master's degree in Agribusiness from the University of Brasilia; he is an Agricultural

Engineer and a Specialist in Energy Planning for Sustainable Development. He has worked

professionally for over 26 years in the fields of agriculture, sustainable development and

international technical cooperation. He has been professor in a university degree program in

agronomy and veterinary medicine. He has worked in agricultural programs (in the public

and private sector) as a specialist, analyst and manager. He co-organizes 12 publications from

the series Desarrollo Rural Sostenible (Urban Sustainable Development) and he is also the

author of the book Agroenergía y Desarrollo de Comunidades Aisladas (Agroenergy and the

Development of Isolated Communities).

Byron Miranda Abaunza, Nicaraguan, main specialist in the topic "Inclusion in Agriculture

and Rural Territories." PhD in Organizational and Human Development, MC in Rural,

Agronomy and Agricultural Administration graduate. Author or co-author of recent

publications: “Programa de formación líderes: desatando energías locales", 2015; 80 tools

for participatory development (2017); Políticas públicas y Agricultures Familiares, 2015;

“Innover avec les acteurs du monde rural: la recherche-action en partenariat” (CIRAD 2009)

y “Social Capital, Institutions and Territories: The Case of Central America” (IICA 2008).

His areas of interest include: management of technical development and cooperation

programs; facilitation of participative programs of institutional and human transformation;

local systems of innovation performed by local actors; the development of collaborative

leadership, the systemic approach in the development of rural territories, the promotion of

associativity and the empowerment of social actors.

1 The views expressed in this paper are those of the author and do not necessarily reflect the view of the

Cooperatives of the Americas or the Co-operative Confederation of Argentina.”

1

mailto:[email protected]








Marvin Blanco, from Costa Rica, is a specialist in Agribusiness and Value Aggregation in

IICA. He graduated as a Food Engineer in the University of Costa Rica; he has a master's

degree in Tourism Management from the National University of Costa Rica and majors in

Agri-Food Economy (CEFAS-Italy), Management of the Small and Medium-Sized Agri-

Food Enterprise (SINNEA-Italy) and Rural Tourism (University of Buenos Aires-

Argentina). He has over 30 years of experience in Latin America in areas such as value

aggregation, agroindustrial development, business management, project creation,

agricultural tourism, touristic development planning, information management, on-line

training, short circuits of commercialization and organizations of agri-food markets. He has

experience in research, teaching and counseling for international organisms, universities,

NGOs and private enterprises.

INTRODUCTION

Family farming (FF), understood as a social category that involves individuals who live in

rural areas and who work the land with productive and reproductive objectives and with their

relatives, has become a relevant social subject in different countries.

Nowadays, there are several FF definitions; the most significant ones are the definitions from

the Specialized Meeting on Family Farming (REAF), approved by the resolution 25/07 from

the Common Market Group (GMC); in the Central American Strategy for Rural and

Territorial Development 2010-2030 (ECADERT) and by the Andean Community (CAN).

Several countries have adopted an official definition in which they recognize FF as a social

category, subject to public policies with distinguished measures.

The year 2014 was a very important year for FF at the global level since this year was

declared, by the General Assembly from the United Nations Organization (UNO) and the

Food and Agriculture Organization (FAO) from the UNO, as the International Year of Family

Farming (IYFF) with the objective of showing the real contribution and the potential of FF

regarding global feeding.

On December 20th, 2017, the United Nations General Assembly officially adopted, in its

72nd session, the Decade for Family Farming 2019-2028. The objective of this decade is the

promotion of projects and policies for family farming, acknowledging its contribution to

nutritional safety and global feeding, the eradication of poverty and hunger, biodiversity

conservation, the improvement of environmental sustainability and the capacity to face

migratory challenges. This Resolution also recognizes the significance of women and young

farmers for family farming and the need to promote their empowerment in view of a

development coherent with the Sustainable Development Goals of the United Nations and

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on the basis of a fair market, open to small farmers and family farming.

According to CEPAL et al. (2014) in Latin America and the Caribbean (ALC) around 16.5

million exploitations belong to family farmers and they concentrate a population of about 60

million people. 56% of these exploitations are in South America and 35% in Mexico and the

Central American countries.

In this context, the Inter-American Institute for Cooperation on Agriculture (IICA) considers

that FF constitutes a type of production that: performs an important role regarding food

provision in our societies, improves family work in rural areas, energizes local and territorial

economies and contributes to environment and biodiversity management. IICA also

considers that FF preserves a part of the significant cultural patrimony of each community of

our diverse continent and that it is a fundamental piece for the integral and sustainable

development of nations.

Besides, the Institute recognizes the territorial systems of family farming, which are complex

sets of production systems based on the family, interwoven though social networks and

economic chains, associated with: the natural resource base of a territory, the cultural

practices related to its use and transformation, the means and ways of living and the

historically constructed identities. FF territoriality, by means of agglomeration, localization

and proximity relationships aim at the enormous associative potential of this category.

In the last few years, FF became noticeable in public policies of the Americas and, in one

way or another, recognition started to be given to the potential of FF in societies from

different perspectives (social, economic, environmental), and also to the need of

strengthening and consolidating it.

However, in the complex and dynamic current international and national scenery, FF faces

several challenges, such as being competitive against the instability of agricultural prices;

solving the problems related to land ownership; overcoming production models difficult to

sustain, with low productivity and without productive and technological innovation;

increasing food supply; eliminating generational and gender gaps and increasing FF

participation in the dynamics of territories and in their management.

Besides, according to Dulclair Sternadt and Alberto Ramírez (In: Salcedo and Guzmán

2014.) "One of the main challenges that family farming faces, in order to consolidate the

fundamental role it has in the struggle against hunger, is how to perform its productive

activities in an organized and collective manner and with a sense of collaboration among

its members and, at the same time, to move towards an organization with a political

representation able to produce the changes that the sector needs for its development and

growth. Therefore, it is necessary to focus on the current situation of the cooperative

movement in the region."

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It is important to realize that thanks to promotion policies, important steps have been taken

in the cooperative sector in Latin America and this has positioned it as one of the

economically and socially relevant forms of organization, but this effort has not been enough

to invigorate the rural sector.

To face these challenges and in the process towards the V Cooperative Summit of the

Americas, within the topic "Cooperatives and the Defense of the Planet", it is especially

important to discuss about the "Contributions of Family Farming and the Cooperative

Movement in the Eradication of Hunger and Promotion of Sustainable Agriculture."

This document aims at presenting a brief context of the state of affairs of the agricultural

cooperative movement in Argentina, Brazil, Costa Rica, El Salvador and the Dominican

Republic; it also presents considerations regarding the potential of the cooperative

movement.

Argentina

In Argentina, agricultural cooperatives are organizations with a great significance for

agriculture, due to their contributions to the economy, labor and regional development. The

first agricultural cooperative was created in 1898 and from that moment onwards the

cooperative movement expanded quickly; this coincides with the rural colonization process

performed by multiple immigration waves (Obschatko, 2011).

The national registry of cooperatives -updated on April 30th, 2012- has registered 21,168

active first and second grade entities from different sectors: agricultural, consumer, credit,

provision, public services, insurance, work and housing (Acosta, Levin and Verbeke, 2013).

In 2008, the total amount of active agricultural cooperatives was 798, which represented

9.1% of the Argentine cooperative sector, with around 112,000 associates (MHFP, 2016,

quoted by IICA, 2017). These are important for certain crops and agroindustrial products: the

main ones are: cereals, oilseed, dairies, wine, cotton, yerba mate, tobacco and honey. The

main activities developed by agricultural cooperatives are two: the commercialization and

production of agricultural products, in proportions of 60% and 40%, respectively, from the

total of entities (Obschatko, 2011).

The greatest number of cooperatives (63%) and associates (87%) is in the Pampean region,

a fertile land with 45 million of hectares apt for the production of cereals and oilseed mainly

for exportation.

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Figure 1. Producers Associated to Cooperatives in Argentina

Source: IICA data (2017)

Brazil

The agricultural cooperative movement has an important role in the Brazilian economy; it is

responsible for almost 50% of agricultural GDP and over a million people are involved.

Among the different areas in which the cooperative movement participates in this country,

the agricultural sector plays an important role, with 1,597 institutions and 180,000

cooperative producers (MAPA, 2018). According to the IBGE (Brazilian Institute of

Geography and Statistics) census, it is estimated that 48% of the Brazilian farm production

is related, in some way or another, with a cooperative. Cooperatives produce 80% of the

wheat, 40% of the oil, (5 trillion liters a year in 300 cooperatives) and big quantities of meat,

honey, fruits and vegetables, corn, soy and its derivatives. Small owners – covering up to 50

hectares– represent 77% of all rural cooperatives. In several states, the cooperative

movement is responsible for a big part of the production; in the case of Paraná, for example,

52% of agribusiness are associated with cooperatives (Serón, 2015).

A big portion of family farming and solidarity economy cooperatives are associated with

UNICAFES (National Union of Family Farming and Solidarity Economy Cooperatives) and

the stronger sectors are credit, commercialization and industrialization. According to FAO,

2012, quoted by Serón 2015, UNICAFES has 632 officially associated cooperatives and

317,233 family farmer members.

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Cooperative members

35%

Independent workers and

members of other organizations

65%

Independent workers and members of other organizations

Cooperative members









Costa Rica

Costa Rica is a country with a great cooperative culture. The first associative activities

emerged in the 1900s, in union associations, in a process which resulted in the creation of

cooperatives with a big tradition, like CoopeVictoria, were created years after the Second

World War. (IICA, 2010).

Nowadays, a third of all the cooperatives registered in the Institute for Cooperative

Promotion (INFOCOOP) are farming cooperatives, spread all over the country in several

agricultural activities. According to the national cooperative census, 39% of the population

is associated to a cooperative (IICA, 2017). According the cooperative census from

INFOCOOP (2014), in Costa Rica, there are around 376 cooperatives, 39 of which are

dedicated to farming, cattle raising, fishing, forestry and agroindustrial activities. They

represent 4% of the national GDP, while farming cooperatives are a 10% of the agricultural

GDP (Infoccop, 2012).

On the other hand, in Costa Rica, according to the National Institute of Statistics and Census

(INEC) (2014), there are 93,017 farms involved in farming activities with an extension of

2,406,418.4 hectares, of which 15,905 properties are managed by cooperative organizations;

this means that farming cooperatives are 17% of the total of farms, and their approximate

extension is 67,000 hectares.

Among the most renowned farming cooperatives, the following cooperatives can be found:

the milk producers’ cooperative “Dos Pinos R.L”, with more than 1700 associates;

CoopeDota R.L., with more than 800 coffee producers; and Coope Victoria R.L., with over

3000 associated producers from the sugar and coffee sector.

The producers associated to farming, fishing, agroindustrial and agri-commercial

cooperatives are around 29,000 (INFOCOOP,2018), an estimate of 35% of the total of

producers in the census by CENAGRO 2014 (Inec, 2014).

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Figure 2. Producers Associated to Cooperatives in Costa Rica

Source: Data from INEC 2014

El Salvador

The cooperative movement in El Salvador has played an important part in the country's

economy and also in the redistribution of wealth and social development. The creation of

Federations and Confederations was achieved and this allowed the integration of

cooperatives from different sectors.

During the years 2009 and 2010, the cooperative sector generated an economic income for

the country of 14.35 million dollars in the Gross Domestic Product (GDP) (Cruz, Flores, and

Hernández, 2013). Nowadays, there are 1184 active cooperatives in the country; 43 of these

cooperatives belong to the agroindustrial sector and only 2 are agricultural and a total of 46

cooperatives belong the farming sector specifically. That is to say, barely a 3,8% of the total

are active farming cooperatives.

Until 2017, the total of cooperative members is 519,729, of which 991 belong to farming and

agroindustrial cooperatives; besides, 50.56% are women (INSSFOCOOP, 2017).

The Confederation of Federations of the Agrarian Reform of El Salvador (CONFRAS) is a

cooperative organization for integration that strengthens, defends and promotes the

cooperative sector of El Salvador. It has widened its activity with producers and independent

non-cooperative producers and it has incorporated their association, by grouping them

according to their productive sector. In this way, in its work strategy, CONFRAS has ordered

the cooperatives according to their productive sectors: coffee, sugar

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Cooperative members

36%

Independent workers or


64%









cane, basic grains, among others (CONFRAS from R.L., 2009).

In 2009, 47% of the total members of the cooperatives of CONFRAS are women heads of

household and, together with the job they perform to generate income, they work in their

houses taking care of their relatives. This percentage is higher than the national average,

which is 35,2% (CONFRAS from R.L., 2009).

The Dominican Republic

In the Dominican Republic, along with the reconstruction process of the economy and

society, a process in which cooperatives played an important role was initiated (IDECOOP,

2018). This boom of the cooperative movement occurred mainly in saving and credit

cooperatives and also in cooperatives from the primary sector, that is to say, of animal and

agricultural production.

At present, according to Álvarez (2017), at the end of 2016, around 867 cooperatives were

registered in the Dominican Republic; 24% of this total are farming cooperatives, which

gives a total sum of 204 cooperatives, with 49,833 members of a total 242,956 Dominicans

who work in this sector (Sena, 2014).

Thus, the cooperative farming sector in the Dominican Republic involves 20% of producers

from the Dominican Republic, distributed along the country; however, they are mostly found

in Azua, the National District and Coutí; they group together 136 farming cooperatives

(Álvarez, 2017).

However, there is not a direct relation between the number of cooperatives and the number

of members since the districts with great amounts of members are the National District,

Santiago de los Caballeros and San Cristóbal; together they have 27,321 members (Álvarez,

2017).

The main farming activities they perform according to the Central Bank of the Dominican

Republic (BCRD), 2015, quoted by Álvarez, 2017, are: sugar cane production, vegetables,

such as tomatoes, and there is also a great proportion destined to the poultry industry, for

fattening and for egg production. They also produce cocoa, avocado, corn and plantain.

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Figure 3. Producers Associated to Cooperatives in the Dominican Republic

Source: Data from Álvarez (2017) and Sena (2014)

Considerations for the Promotion of the Cooperative Movement

If we analyze the evolution of associations from family farmers, a transition from a domestic

economy to a market economy can be observed. A portion of the farmers moves to the

production of supplies for the textile and agri-food industry. In this transition, competition

conditions are almost never favorable to family farmers. Besides facing their everyday

activities (weather, resource scarcity, small size properties, absence of technical assistance

and public policies, etc.), they encounter the instabilities and inherent disputes of the market

economy (Francelino and Saquet, 2013).

Cooperatives, in theory, can place farmers in more favorable conditions, enabling them to

develop their activities and to reach scales, markets and competitive conditions that are

impossible to reach if they were to act in isolation.

The historical and current permanence of cooperatives proves their capacity to adapt to

market demands and to the changing conditions of the environment, taking on a strong

commitment on the social and economic development of both their associates and the local

community. This is achieved because a cooperative, as an organization, makes it possible to

create scale economies, improve the use of its resources, respond to high quality requirements

regarding their products and food safety, reduce expenses (purchase of supplies, freight, etc.),

improve the services they provide and receive (commercialization, supplies, credits, etc.),

improve competition, to generate capacities to lead the commercial management

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Members of Agricultural

Cooperatives 79%

Independent workers or


21%









and economic initiatives, provide services of technical and business counseling appropriate

to specific needs and competitive demands, among other possibilities.

These cooperatives can be formed, mainly, in small municipalities, as an alternative for

development, since they have the potential for growing and diversify themselves by

promoting value aggregation to local products. In this sense, the cooperative practice

contributes to the reduction of poverty, to the creation of jobs in proper conditions, to health,

to food security and to the rendering of services (electric energy, insurance, etc.), to local

price control, to the progressive redistribution of income, to the integration of people, to the

recognition of women participation and to the improvement of the living conditions of the

poorer sectors, both urban and rural.

However, according to Vitar (2013), the cooperative movement needs State generation of

linking mechanisms for participation so as to have a more significant role in the design and

implementation of public policies and normative frames. At the same time, organizing

cooperatives is not an easy task; the complexity of rural and urban production requires the

cooperative movement to comprise several areas, such as credit, production, labor,

commercialization, technical assistance and infrastructure of agriculture and solidarity

economy.

Finally, the cooperative sector, mainly by means of federations and unions, faces the

challenge of increasing its dialog and representation capacity to achieve an effective

participation in the design and implementation of public policies that enable an economic

growth and social, local, regional and national development.

To conclude, in the rural sector, without solid organizations, it will be difficult for the rural

population to fight for their rights and aspirations and to contribute in an effective way to

the national development; in order to do this, the creation of a new generation of public

policies that promote the cooperative movement is needed and this will generate the

conditions to consolidate the existing ones and mainly to support the development of a new

generation of cooperatives with more benefits.

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Acosta, M., Levin, A., and Verbeke, G. 2013. El sector cooperativo en Argentina en la última

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en-republica- dominicana/

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integran Mercosur. Retrieved in June, 2018 from

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0722f24a94

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Translated by Agostina Giannone

for Abrapalabra Linguistic Services Cooperative

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http://www.reafmercosul.org/component/k2/item/download/208_22d5d9fd0255da62d209cf

https://inta.gob.ar/documentos/cooperativa-y-agricultura-familiar

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