Presented by Michael Phillips, Malcolm Beveridge, and Wayne Rogers at the Producer Organization workshop, held in Cairo, Egypt on the 25th of September 2012.
Producer Organizations - some WorldFish Experiences
1. Producer Organizations
- some WorldFish experiences
Michael Phillips, Malcolm Beveridge and Wayne Rogers
Producer Organization workshop
25th September 2012, Cairo, Egypt
3. 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
4. .. 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
5. .. 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
6. .. 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)
9. 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
10. 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
11. .. 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
13. 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
14. Outcomes – improved pond yields
• Kg/farmer increased by 376%
• Total production increased from 37 tons p.a. to 870 tons p.a.
1,400
1,192
1,200
1,000 913
800
800 870
672 Total production p.a kg/farmer
736 730
600 Total production p.a. tons
Total number of farmers
379
400 308
250
200 147
130
58
5
- 37 4
22 40
Baseline (2001 survey) 2002 2003 2004 2005 2006
15. 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%
7,000 6,621
6,000
5,072
5,000
4,000 3,556
Revenue per farmer p.a.
3,000 2,648 Profit per farmer p.a.
2,107 2,029 Production kg/farmer
2,000
1,368
1,113
889 843
1,000
342 1,192
278 913
800
-
250 379 308
Baseline (2001 2002 2003 2004 2005 2006
survey)
17. 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.
19. Recent history
– Internal conflict – mid 90s till
2004
– Earthquake and tsunami in
December 2004
– Responses
Humanitarian
Infrastructure
rehabilitation
Improved management
and rebuilding farmer
organizations
20. 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
21. 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
22. Outcomes - participation
• Core farmer group increased from 47 in 2007, to 2,639 in 2010
• Additional 19,500 farmers received indirect benefits
Post-
47
Tsunami
Rehabilit
ation
2005-06 2007 2008 2009 2010
Village level Cluster level Districts Districts
Rehabilitation
of Damaged 11 villages 4 Clusters 84 Villages 100 Villages
farms and
47 farmers 34 Village 1150 farmers 2656 farmers
restart of
farming 22 Ha 260 farmers 1027 Ha 2250 Ha
3 tonnes 184 Ha 105 ton shrimp 250 tonnes
Shrimp
22 tonnes 35 ton fish
100 ton fish
24. 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
25. .. 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
26. 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
27. 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
28. 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
29. 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?
30. 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
31. 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!
33. M.Phillips@cgiar.org
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
34. WorldFish resources
Videos
Farming Waters, Changing Lives: https://vimeo.com/40206928
Investing in hope: Rusli's story:
http://www.worldfishcenter.org/feature/fish-farms-help-post-tsunami-
acehnese-communities
Publications
Kasam et al (2010) - http://www.fao.org/docrep/014/i2275e/i2275e00.htm