Beyond Cooperatives: Institutional Forms of Producer Organisations

In the first Agri-ProFocus Expert Meeting a whole range of issues has been identified to be analyzed in more detail. One of them, that raised a lot of interest of the participants, had to do with the (evolving) organizational setup and legal forms that producer organizations have in the South but also in the North. Many PO supporting agencies and organisations having PO as chain-partners are confronted with organizational setups that are ‘sub-optimal’ for the needs of the members and/or the needs of external partners. The national cooperative boards in Africa and Latin America are often presented as being outdated in the changing market conditions. Also private business, with outgrower relations with individual farmers, faces challenges when trying to formalize relationships with these farmers and delegate them certain services.

Producer organizations are an important actor for rural development, in their ability to support both economic development and social cohesion. POs are collective efforts of farmers to develop services that support them in their economic and social development. POs may have several functions, such as collecting, processing and marketing agricultural products, implementing quality assurance programs, advocacy for policy making, and giving advice and training to their members.

A wide array of different POs exists. Distinctions can be made on the basis of their legal status, such as between informal grower groups, formal farmer associations, joint private businesses, and agricultural cooperatives. Distinctions can also be made on the basis of the activities. The organizational form of a PO is partly determined by its objectives and activities, but to a great extent it is the result of the legal system and legal context in each country. Historical experiences with different legal forms shape the views of producers on the legal form a PO should chose, in its transition from an informal group or initiative to an administratively registered formal organization.

Objectives

• More awareness of the different organizational forms and legal models of POs in the South.
• A historical perspective on the evolution and/or regression of different organizational models as a result of changing economic contexts and international development cooperation influence.
• Identification of strengths and weaknesses in different approaches to institution building and organizational strengthening of POs by Agri-ProFocus partners.

• List of participants