Presentation on Farmer Based Organizations


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Presentation on Farmer Based Organizations

  1. 1. INTERNATIONAL FOODPOLICY RESEARCH INSTITUTEsustainable solutions for ending hunger and poverty Ghana Strategy Support Program Collective Action in Farmer Based Organizations Rebecca Lee Funk April 18, 2011
  2. 2. Why this study?1. Renewed interest in establishing farmer based organizations to achieve a range of outcomes2. Substantial investments3. Little understanding of whether they have been effective4. Only recently, the ministry attempted to find out how many were there5. We would like to throw some light on what they do and how successful they are in what they doGhana Strategy Support Program Page 2INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  3. 3. Information Sources• A master list on the basis of information collected by MoFA and other sources.• A survey of 501 FBOs in 2010. • Randomly selected in six regions • Selection based on collective activities, membership size, and gender distribution • Three instruments: group discussion, questionnaire, game• Case studies of 24 FBOs in 2011 1. A subset selected from six regions 2. Selection based on collective activities, membership size, collective resources 3. Group interview focused on the nature of collective activities, cost and benefits, management, and needs• The findings presented here are largely based on the case studies.Ghana Strategy Support Program Page 3INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  4. 4. What Collective Activities are They Engaged in? 2010 FBO Survey Inputs Procurement Marketing Agroprocessing ProductionCommunity Development Internal credit scheme Welfare Services Mutual labour support 0 10 20 30 40 50 60 70 80 % of FBOs involved in collective activitiesGhana Strategy Support Program Page 4INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  5. 5. Collective activities Contd.• Production (19): • Group farming on a plot of land ranging from 1-15 acres • Produce cassava, maize, rice, and pepper• Processing (8) • Working together to access machinery or serve bulk orders • Produce gari, palm oil, rice and shea butter• Marketing (4) • Working together to find markets – or pulled together by a buyer • Sell maize, milk, grass cutter and pineappleGhana Strategy Support Program Page 5INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  6. 6. Why are they engaged in the activities?• Production • As a group they feel they have better chances of receiving training, subsidies and grants • Guided to work together to receive services• Processing • To capture freebies or meet large orders • To obtain larger orders that give higher prices but more demanding of quality• Marketing • Collectively marketing individual production to access new markets or obtain higher pricesGhana Strategy Support Program Page 6INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  7. 7. How do they benefit from collective activities?• Production • All but one have received training, and a few have received subsidized inputs and grants • None of them have been able to borrow from commercial sources • Plots are cultivated intensively, but on the whole they may not be any better than individual plots; in fact, they pay greater attention to individual plots • Most sell it to generate group revenue • Four of them distribute the harvest: less than a bag in most casesGhana Strategy Support Program Page 7INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  8. 8. Benefits Contd…• Processing • All but one have received a loan or a grant but not from commercial sources • They were engaged in viable activities • They seem to be able to process more and also in most cases obtain higher prices than they would have otherwise• Marketing • They were engaged in viable activities • Three of four groups received loansGhana Strategy Support Program Page 8INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  9. 9. How strong was internal regulation?• Rules depended on the nature of activity: if group farming to demonstrate that they are a group, individuals have no options but to participate; but in profitable activities, participation was not required but the benefits were in proportion.• Groups were led by individuals with higher social standing in the communities • Secretaries were often the most educated • Treasurers were women • Women groups were sometimes chaired by menGhana Strategy Support Program Page 9INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  10. 10. Internal regulation contd…• They were pretty effective in enforcing rules • They claim being able to sack, but it seems like some of it was voluntary • Those that missed work were often fined the daily wage • Organized work in such a way that peer pressure could be exercised.Ghana Strategy Support Program Page 10INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  11. 11. What are the key messages?• Farmers have learned that in groups they have greater chances of receiving services and freebies.• Apart from those that are engaged in marketing or processing, they are not receiving significant benefits from collective activities; nor are they engaged in viable economic activities.• Producer groups are groups waiting for things to happen to them – they all want a tractor• Few have become bankable and self-sustainedGhana Strategy Support Program Page 11INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
  12. 12. Questions?Ghana Strategy Support Program Page 12INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE