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APPROACHES TO AGRICULTURAL COOPERATIVE DEVELOPMENT
FINANCING, GOVERNANCE AND MARKET ACCESS

MARCELA VILLARREAL, DIRECTOR
FAO OFFICE OF PARTNERSHIPS, ADVOCACY AND CAPACITY
DEVELOPMENT (OPC)

CAPE TOWN, 4TH NOVEMBER , 2013
1
AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS

OUTLINE :
 Renewed international interest on agricultural
cooperatives

 New FAO Strategic Framework
 Agricultural Cooperatives: a key for food
security and hunger eradication
GDC -FAO partnership
2
AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS

RENEWED INTERNATIONAL INTEREST ON
AGRICULTURAL COOPERATIVES
 2012 International Year of Cooperatives
 UN GA declared the Cooperative Decade
 2014 International Year of Family Farming
3
AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS

RENEWED FAO INTEREST ON COOPERATIVES
 DG strongly supports and recognizes the importance of Coops
and POs as key partners
• Opening of office space (ICA and WFO)
• WFD on the theme of “Agricultural cooperatives: key to feeding the world”
observed in 150 countries
• COPAC secretariat located in FAO headquarters

Office of Partnerships, Advocacy and Capacity development with
a unit focusing on Coops and Producers organizations
 MoU with ICA, GDC and other key partners

4
AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS

NEW FAO STRATEGIC FRAMEWORK

5
AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS

AGRICULTURAL COOPERATIVES CONTRIBUTE TO
DELIVERING FAO’S STRATEGIC OBJECTIVES
Organized collective action facilitates small
producers’ access to a number of services:
 Natural resource management
 Information, knowledge and extension services
Inputs and outputs markets
 Policy and decision making
6
STRENGTHENING CAPACITIES

Rural women, men and youth empowered
Agricultural producers (women, men and youth) are able
to actively participate in decision-making processes

Accountable, equitable and efficient Coops and
POs
Agricultural coops and POs are
inclusive, equitable, economically viable and linked to
markets

Enabling environment for Agriculture Coops
development
Policies and norms are gender equitable and inclusive
for agricultural coop development

Agricultural Cooperatives & POs
Governmental Organizations
All sorts of organizations (private companies, NGOs, research, UN, bilateral, etc.)
7
AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS

FAO – GDC PARTNERSHIP
Support to the development of the Global Fund for
Cooperative Development in Africa
 innovative financial instrument with 2 major
components
Loans
Grants

Technical
Assistance

8
AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS

KEY MESSAGES
Agricultural Cooperatives are now on the
international agenda for food security and hunger
eradication
 FAO is fully committed to this agenda to strengthen
and partner with COOPs and POS

GDC fund : innovative financial instrument
FAO-GDC partnership will provide opportunities for
sustainable food security and poverty reduction
9
AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS

Thank you
• Marcela VILLARREAL
• Director of the Office of Partnerships, Advocacy and Capacity
Development

10

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Agricultural Cooperative Development Financing Governance Market Access

  • 1. APPROACHES TO AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS MARCELA VILLARREAL, DIRECTOR FAO OFFICE OF PARTNERSHIPS, ADVOCACY AND CAPACITY DEVELOPMENT (OPC) CAPE TOWN, 4TH NOVEMBER , 2013 1
  • 2. AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS OUTLINE :  Renewed international interest on agricultural cooperatives  New FAO Strategic Framework  Agricultural Cooperatives: a key for food security and hunger eradication GDC -FAO partnership 2
  • 3. AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS RENEWED INTERNATIONAL INTEREST ON AGRICULTURAL COOPERATIVES  2012 International Year of Cooperatives  UN GA declared the Cooperative Decade  2014 International Year of Family Farming 3
  • 4. AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS RENEWED FAO INTEREST ON COOPERATIVES  DG strongly supports and recognizes the importance of Coops and POs as key partners • Opening of office space (ICA and WFO) • WFD on the theme of “Agricultural cooperatives: key to feeding the world” observed in 150 countries • COPAC secretariat located in FAO headquarters Office of Partnerships, Advocacy and Capacity development with a unit focusing on Coops and Producers organizations  MoU with ICA, GDC and other key partners 4
  • 5. AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS NEW FAO STRATEGIC FRAMEWORK 5
  • 6. AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS AGRICULTURAL COOPERATIVES CONTRIBUTE TO DELIVERING FAO’S STRATEGIC OBJECTIVES Organized collective action facilitates small producers’ access to a number of services:  Natural resource management  Information, knowledge and extension services Inputs and outputs markets  Policy and decision making 6
  • 7. STRENGTHENING CAPACITIES Rural women, men and youth empowered Agricultural producers (women, men and youth) are able to actively participate in decision-making processes Accountable, equitable and efficient Coops and POs Agricultural coops and POs are inclusive, equitable, economically viable and linked to markets Enabling environment for Agriculture Coops development Policies and norms are gender equitable and inclusive for agricultural coop development Agricultural Cooperatives & POs Governmental Organizations All sorts of organizations (private companies, NGOs, research, UN, bilateral, etc.) 7
  • 8. AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS FAO – GDC PARTNERSHIP Support to the development of the Global Fund for Cooperative Development in Africa  innovative financial instrument with 2 major components Loans Grants Technical Assistance 8
  • 9. AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS KEY MESSAGES Agricultural Cooperatives are now on the international agenda for food security and hunger eradication  FAO is fully committed to this agenda to strengthen and partner with COOPs and POS GDC fund : innovative financial instrument FAO-GDC partnership will provide opportunities for sustainable food security and poverty reduction 9
  • 10. AGRICULTURAL COOPERATIVE DEVELOPMENT FINANCING, GOVERNANCE AND MARKET ACCESS Thank you • Marcela VILLARREAL • Director of the Office of Partnerships, Advocacy and Capacity Development 10

Editor's Notes

  1. The 64th Session of the United Nations General Assembly on December 2009 adopted Resolution 64/ 136 on “Cooperatives in social development “ and proclaimed the Year 2012 as the International Year of Cooperatives. United Nations declared 2012 a year of cooperatives in recognition of cooperatives as important vehicles for social development-eliminating hunger, food insecurity , malnutrition and eradicate rural poverty.
  2. SO1Our challenge: there is sufficient capacity in the world to produce enough food to feed everyone adequately; nevertheless, in spite of progress made over the last two decades, 842 million people still suffer from chronic hunger. FAO, working with governments, civil society, the private sector and other development partners is focusing on fostering political commitment and accountability, improving capacities and mobilizing resources at all levels to eradicate hunger and all forms of malnutrition.FAO support countries to develop dialogue mechanisms so that COOPs and Pos can consult with governments, express their concerns and impact in policy- making. SO2 The world’s population is predicted to increase to 9 billion people by 2050. Some of the world’s highest rates of population growth are predicted to occur in areas that are highly dependent on the agriculture sector. Growth in the agriculture sector is one of the most effective means of reducing poverty and achieving food security. Innovative approaches are needed across the agriculture sector to increase productivity, conserve natural resources, and use inputs sustainably and efficiently. Such approaches will require the participation of smallholders, women, indigenous peoples and marginalized groups. FAO’s vision for sustainable agriculture sector production systems requires integration across the sector and of social, economic and environmental considerations. SO3Most of the world’s poor live in rural areas. Hunger and food insecurity above all are expressions of rural poverty. Reducing rural poverty, therefore, is central to FAO’s mission. Many of the rural poor are subsistence producers, family farmers or landless agricultural workers. They include fisherfolk, pastoralists, and forest-dependent peoples with limited access to productive means. Just focusing on improving crop or livestock production will not suffice either for food security or for rural poverty reduction. Instead, a broader policy approach is needed that seeks to dynamize and diversify the rural economy at large. SO4With increasing globalization, agriculture as an independent sector will cease to exist, becoming instead, just one part of an integrated value chain. This poses a huge challenge for smallholder farmers and agricultural producers in many developing countries where even the most economically valid smallholders can easily be excluded from important parts of the value chain. Against this background, FAO seeks to intervene to help address the many challenges, across the value chain that small producers, and even small economies face. Food and agricultural systems need to improve their inclusiveness by linking smallholder producers with agribusiness enterprises and supply chains for their effective and sustainable participation in rapidly changing global, regional and national markets. SO4 seeks to put in place financial instruments and services to ensure access to capital for efficient and inclusive agri-food systemsSO5Each year, millions of people who depend on the production, marketing and consumption of crops, livestock, fish, forests and other natural resources are confronted by disasters and crises. The poor in rural and urban areas are disproportionately affected. FAO’s work focuses on developing, protecting and restoring sustainable livelihoods so that the integrity of societies that depend on farming, livestock, fish, forests and other natural resources is not threatened by crises. It uses a “twin-track” approach, on the one hand taking immediate steps to protect and support agriculture, food and nutrition, and on the other addressing in the longer term the underlying factors driving risks, disasters and crises.
  3. Agricultural cooperatives play an important role in supporting small agricultural producers and marginalized groups such as young people and women. They empower their members economically and socially and create sustainable rural employment through business models that are more resilient to economic and environmental shocks. Cooperatives offer small agricultural producers opportunities to access markets, and provide them with a range of services such as better access to natural resources, information, communication, technologies, credit, training and warehouses. They also facilitate small producers’ participation in decision making at all levels, support them to secure land use rights and to negotiate better terms for engagement in contract farming and better prices for agricultural inputs such as seeds, fertilizer and equipment. Through this support, small producers can secure their livelihoods and play a greater role in meeting the growing demand for food on local, national and international markets, thus contributing to poverty alleviation, food security and the eradication of hunger.
  4. In 2010 FAO approved a Corporate Strategy on Capacity Development which emphasizes the importance of adopting a strategic approach to capacity strengthening particularly : 1. through encouraging member governments to create the conditions that enable POs and Coops to form, develop and thrive, 2. through organizational strengthening , 3 through effective technical and managerial skills.
  5. GDC was launched as a result of the International Year of Cooperatives (IYC) in recognition of the role of the co-operative business model in improving social and economic development in communities across the world. In developing the GDC concept, the Cooperative Bank (United Kingdom) has closely worked with the International Co-operative Alliance (ICA) which represents the movement at global level. GDC is an illustration of one of the founding principles of the cooperative movement. The GDC aims to support co-operative businesses in developing countries. Apart from providing access to fair and competitively priced loans for capital and infrastructure projects, the GDC aims also to include a technical assistance grant program in order to strengthen the capacities of agricultural cooperatives. FAO aims at collaborating with the GDC in providing its knowledge and technical support for the development of equitable and efficient producer organizations and cooperatives through the sharing of methodologies and tools, engaging in strategicpartnerships, supporting knowledge management and encouraging exchanges.The implementation strategy will include the following components: 1. Providing technical advice to the design and development of the GDC Technical Assistance Grant Programme.2. Providing technical support to strengthen the capacities of agricultural cooperatives through methodologies, tools, partnerships, knowledge management and exchanges. 3. Developing joint resource mobilization initiatives.
  6. TO BE MENTIONED AT THE END OF THE SESSION ! I wish also to invite all interested participants to the GDC working session scheduled for November 5th from 13:00 to 16:00 which will help to identify Pos and Coops technical assistance needs for their business growth and possible solutions that might be offered.
  7. TO BE MENTIONED AT THE END OF THE SESSION ! I wish also to invite all interested participants to the GDC working session scheduled for November 5th from 13:00 to 16:00 which will help to identify Pos and Coops technical assistance needs for their business growth and possible solutions that might be offered.