producer organizations - some worldfish experiences
TRANSCRIPT
Producer Organizations- some WorldFish experiences
Michael Phillips, Malcolm Beveridge and Wayne Rogers
Producer Organization workshop25th September 2012, Cairo, Egypt
Overview
• Background• Case studies• Lessons
• The presentation is based largely on Asian experiences
Definitions and characteristics
• Several definitions of producer organizations, but key characteristics
– Membership based organizations
– Provide services to members– Access to these services is a
key reason to become a member
• These characteristics distinguish producer organizations from NGOs and “traditional’ organizations
.. organizations may operate at different levels
• Local level– farmers clubs, self-help groups
• “Mid” level– farmers associations, federations
of farmer clubs• “Higher” level
– National or regional federations, unions, associations
.. the case for producer organizations
• collective/scale efficiencies for farmers an industry
• increased bargaining power• lower production costs• improved access to input and
services– e.g technical, credit, bulk
purchase/discounts; • empowerment of farmers,
particularly smaller producers
• increased voice and influence
.. but they also have costs and challenges
• takes time • needs trust• needs investment• transaction costs can be high• participation and benefit
sharing• free riders• sustainability (beyond projects)
Some experiences
Partnership • Excellence • Growth
India – crowded coastal aquaculture
Background
• India is a significant producer of aquaculture products– produces $10b of shrimp and fish– 70-80 % small-scale farms < 2 hectares
• Underforming in early 2000• Response from 2000 – onwards
• project investment in better farm management and society development
• govt invested “umbrella” society -NaCSA in 2007
Investments in small-scale farmers
• Better Management Practices (BMP):– pilot of 10 farms in 2002– extensive roll out post 2002
• Organizational improvements– societies and clusters in
common waterways
.. more activities
• improving field extension services– village based, with close
contact with farmers– communication and
education campaign
• improving connections to value chain players– hatchery operators, feed
manufacturers, lastly markets
Success relied on local farmer societies
• 20-30 people– common water supply
management– access to technical
services– credit (Bank)– bulk purchase of seed
and feed– synchronized shrimp
stocking
Outcomes – improved pond yields
• Kg/farmer increased by 376%• Total production increased from 37 tons p.a. to 870 tons p.a.
250
800
379 308
913
1,192
37 4 22 40
672870
147
558
130
736 730
-
200
400
600
800
1,000
1,200
1,400
Baseline (2001 survey) 2002 2003 2004 2005 2006
Total production p.a kg/farmer
Total production p.a. tons
Total number of farmers
Outcomes – improved farmer incomes
• Increase in net profit per farmer from $278 p.a. to $2,648 p.a.• Profit margins increased from 25% to 40%
1,113
3,556
2,107
1,368
5,072
6,621
278
889 843
342
2,029
2,648
250
800 379 308
913 1,192
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Baseline (2001 survey)
2002 2003 2004 2005 2006
Revenue per farmer p.a.
Profit per farmer p.a.
Production kg/farmer
Outcomes – excellent project returns• Strong returns - $272k investment generated net
profits of $3.52m
163,542 17,778
122,222 177,778
3,733,333
4,833,333
40,886
4,444 48,889 44,444
1,493,333
1,933,333
8100028,000 43,000 39,000
50,000 31,000 -
300,000
600,000
900,000
1,200,000
1,500,000
1,800,000
2,100,000
2,400,000
2,700,000
3,000,000
3,300,000
3,600,000
3,900,000
4,200,000
4,500,000
4,800,000
5,100,000
Baseline (2001 survey)
2002 2003 2004 2005 2006
Revenue generated - total $8,884,444
Net profit generated - total $3,524,444
Investments - total $272,000
Indian societies - lessons learned
• There can be significant impacts for small-scale farmers, but:– it takes time for solid results
slow change in knowledge, attitude and practice among farmers
– good and reliable services at grass-root brings the real change
– “lead farmers” important– engage with stakeholders along value
chain– direct financial/in-kind support to
farmers brought negative results.
Farmer cooperative in Aceh, Indonesia
03
14
11
74
72
71
02
01
73
06
04
05
07
08
09 10
12
13
15
1617
Recent history
– Internal conflict – mid 90s till 2004
– Earthquake and tsunami in December 2004
– Responses Humanitarian Infrastructure
rehabilitation Improved management
and rebuilding farmer organizations
Investments in management and farmer organizations
• “Better management practices”
• Organization re-building Farmer groups Clusters Local services Moving towards a formal
membership-based cooperative
• Communications
Groups and cluster approach
• Village level groups • Watershed clusters Cluster: Petuah Neuheun
(5-10 Kelompok) -
Village: Kontak Petambak
Kelompok (10-20 Farmer/Group)
~2500 Farmers
Outcomes - participation
2008Cluster level
4 Clusters
34 Village
260 farmers
184 Ha
22 tonnes
2009Districts
84 Villages
1150 farmers
1027 Ha
105 ton shrimp
35 ton fish
2007Village level
11 villages
47 farmers
22 Ha
3 tonnes
47Post-Tsunami Rehabilit
ation
2010Districts
100 Villages
2656 farmers
2250 Ha
250 tonnes Shrimp
100 ton fish
2005-06Rehabilitation of Damaged farms and restart of farming
• Core farmer group increased from 47 in 2007, to 2,639 in 2010• Additional 19,500 farmers received indirect benefits
Economics provides a strong incentive for better management
Informal groups to a formal cooperative
• Farmer groups as members • “Technical team” merged into
and paid for by cooperative.• Cooperative services:
– Enterprise credit– Technical and market
services– Secures quality seed and
quality/cheaper feed inputs for members through bulk purchase and contracts
– Market access
.. the Aceh cooperative business model
• Financed through:– Membership fee– Microfinance
commission– Seed commission
(small)– Feed commission– Marketing and trade
– Trading provides the biggest return but is most demanding
Major lessons from Aceh• Simple technical improvements
deliver benefits. These are best delivered through local groups
• Investments in organizational development and local services pay off
• Takes time – “patient capital”• Partners of different skills• Market access can make a difference
long-term, but needs skills an time • Cooperative business model but best
income through vertical integration
FEAP - an example of an “apex” federation
• “FEAP is the united voice of the European aquaculture production industry, being the federation of national aquaculture associations that represent professional fish farming in Europe.”
http://www.feap.info/intro.asp
FEAP - activities
• Advisory role– to the European Commission and the
European Parliament as well as other aquaculture stakeholder organization
• Research and innovation investments• Annual award
– individuals who have made an outstanding contribution to excellence in European aquaculture
• Participation and promotion– actions and discussions on aquaculture
Lessons
• There are many examples globally where producer organizations have made importance contributions to the development of aquaculture
• What is success?• What are success factors?
What is a successful producer organization?
– achieves the objectives agreed upon by members
– retains or expands membership
– makes progress towards financial and managerial self-reliance and sustainability, inspiring members to maintain their participation in the organization
– improves self-esteem, and the economic and social well-being of members
Internal factors that influence success..
– Common and clearly agree objectives
– Technical and managerial capacity– Demand-driven and beneficial
service delivery– Sound governance and
management– Strong leadership– Group cohesion– Business model– This all takes time!
External factors that influence success
– External partnerships (govt, NGO’s, donors)
– Private sector relations
– Enabling institutional environment
WorldFish and CGIAR Research Program on Livestock and Fish
www.worldfishcenter.org
Acknowledgements – Swiss Agency for Development and Cooperation (SDC),
Resource Legacy Fund, GIZ and FAO/Allfish
WorldFish resources
VideosFarming Waters, Changing Lives: https://vimeo.com/40206928Investing in hope: Rusli's story:http://www.worldfishcenter.org/feature/fish-farms-help-post-tsunami-
acehnese-communities
PublicationsKasam et al (2010) - http://www.fao.org/docrep/014/i2275e/i2275e00.htm