This document provides information on strengthening producer societies (PS) in eastern Sri Lanka through the support of the Food and Agriculture Organization (FAO). It discusses how PS can be established to help farmers unite, address problems, and improve their wellbeing. The FAO intervention includes training PS members on management and agriculture best practices, providing inputs and infrastructure support, and establishing marketing linkages. Mature PS that meet criteria can register as Agro-Business Groups with authority over defined areas to broaden marketing and business opportunities for members. The approach involves needs assessment, training, developing business plans, implementation, and monitoring to stabilize strengthened PS.

1. Strengthening of
Producer Societies
European Union Support to District
Development Programme (EU SDDP)
Eastern Region – Batticaloa, Ampara &
Monaragala Districts
1
Mr. Jude Chrishanta
Agricultural Development Officer
Food And Agriculture Organization

2. A group of people / Small forum living in a particular residential area with
A good faith
Work together having a common interest
Trust each other
Identify and solve the whole local problems
Develop their living standard
Description of CBO
2

3. Formal, legal entity or informal registered organizations
maintaining separate books of accounts,
systems and ways of working
Group identity membership
Should not affiliated to any religious/ political/ separatist’s parties/ groups
Producers’ Societies Established by the Department of Agriculture
Targeting farmers
Need to unite to address their problems
Achieve their wellbeing as a group
What is CBO
3

4. Why Community Based Organizations ?
4
Strong CBOs can
Reduce poverty, conflict, and environmental degradation
Improve the living standards of disadvantaged groups
Stimulate rural economies
Contribute to participatory
Inclusive decision making
Good governance
Contribute to a self sustaining process of change
( unanticipated new initiatives/ social services/ businesses)

5. 5
Need for Strengthening CBOs
To increase the production and productivity of vulnerable farmers
Do not operation during the past decades in war affected districts
Have resumed with minimal resources
Using traditional knowledge for newly introduced / improved varieties
Limited marketing facilities
Do not have a proper place to dry / store their produce
Compelled to sell at a lower price at the time of harvest
Difficulties in finding agricultural inputs on time especially quality seeds

6. 6
Facing the Challenge of Natural Disasters
Type of disaster
Disaster prone Project districts
Batticaloa Ampara Moneragala
Flood X X X
Drought X X X
Cyclone X X
Community based Disaster Risk Reduction (DRR) strategy
Should be a part and parcel of the social behaviour of the community
including their livelihood and inbuilt to any development program
implemented
All phases in the disaster management cycle (preparedness, response,
recovery and mitigation) are of equal importance
Should be based on local knowledge and community perception, which will
be improved or modified according to the present situation
Should be community based and community driven with a plan to
strengthen the community by addressing the weaknesses, utilize the outside
opportunities and mitigate the external threats that the community faces

7. Family
Institutional Framework
Community
Community
Institutional Framework

8. 8
FAO Intervention
Provision of training on functions/ responsibilities of PS and its management
Needs assessment exercise (training, revolving fund, credit, inputs,
infrastructure (storage, irrigation etc.), marketing linkage development, water
source, environmental protection
Support to plan their activities as a group
Facilitation of the timely input supply
Provision of implements such as water pumps, power sprayers etc.
Provision of cold storage for essential seed stocks
Provision of transport means for seed collection
Training on the use and maintenance of the implements especially water
pumps, power sprayers, micro irrigation techniques and field level training on
plant protection, varietal selection of various crops and crop diversification
Training on seed production of OFC for selected group of farmers
Training on value addition for selected WRDS or groups
Establishing marketing linkages for their produce
Coordination with other organizations for effective services to agriculture

9. 9
Selection criteria of Producers’ Societies (PS)
PS has been registered but not functioning well
PS has been formed but not yet registered
Community is interested to revitalize the PS, which has become defunct
Lack of knowledge on management of the PS
Lack of assets to run the PS activities
Absence of any other organization attempting to support the PS

10. 10
Possible issues in need assessment
Rehabilitation of infrastructure belongs to the community as a common
asset Eg. community well, common drying/ threshing floor, Store for
seeds, irrigation canal, community centre etc.
Construction of a new infrastructure for common use
Lack of input supply mechanism (seed, fertilizer etc.)
Absence of marketing linkages
Low status of the society fund
Lack of knowledge on organizational management
Poor knowledge on good agricultural practices
No support received for a selected crop cultivation (Ex. Groundnut)
Natural disasters such as flood, drought etc. damage the crop frequently
Lack of value chain mechanism established

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Process of Strengthening PS
Needs assessment meeting with the PS membership
Initial training programme on PS management
Participatory planning with identified members
Sharing responsibilities and contributions among DOA, PS and FAO
Development of the implementable plan for one calendar year
Preparation of the society business plan
Signing the Letter of Understanding (LoU) among parties
Formation of task oriented sub-groups
Development of the revolving fund
Implementation of the programme
Record maintenance of the PS programme
Auditing and monitoring

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Approach for strengthening the Producers’ Society
Revolving Fund
Need Assessment
LoU or Agreement
Cultivation, value
addition
Further intervention
of FAO
Existing PS
PS Business Plan
Task oriented Sub-
groups
Programme
implementation
Auditing and
monitoring
Stabilized PS
(Agro-Business
Group)
Initial training on PS
management
Provision of Inputs
Subject based
training
Marketing
Counselling
Evaluation &
Registration by DOA

13. 13
Agro Business Groups (ABGs)
When a PS reaches to a certain maturity, the Department of Agriculture can
register it as an Agro-Business Group (ABG)
Objectives of Agro-Business Group (ABG)
Broaden the marketing opportunities by producing quality, certified,
fresh and value added products avoiding technical constraints
Obtain DOA certificates for agricultural value added products
Continuous supply of produce by maintaining excess stocks
Enhancement of living standard by gaining good price and profit for the
produce made to suit the local as well as foreign market
Area of authority
Membership of the society is given at Divisional Secretariat level

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The society can be registered in the Division of Agribusiness Counselling
DOAgbiz
P.O.Box 05
Department of Agriculture
Peradeniya, Sri Lanka.
The application is submitted with recommendation of AI to the DOAgbiz. for
registration with following documents.
Minutes of the Society general meeting
Signature list of the society members
Bank account statement
Local business registration certificate
Registration of the ABG

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Decision making on crops and extents based on export requirement in
agreement with the Agro-business Instructor
Obtaining the trade permit to start the business
Collection and receipt of membership fees, donations, fine charges etc. for
the benefit of the society. Opening and maintenance of saving accounts,
current accounts or any other account in banks or equivalents.
Entering into agreements with individuals or established institutions for the
benefit of the society
Investment of society funds in commercial banks or any other institute for
effective management with the approval of the society
Management of business activities to fulfil the social and economic needs of
the members
Implementing credit programmes limited to the membership
Appointment of various committees to achieve society objectives
Appointment, recruitment and termination of the staff according to society
needs
Ability to get an outsider involved in marketing activities according to the
rules and regulations of the society
Authority of the Society

16. 16
Sri Lankan
Above the age of 18 years
Resident within the society area of authority
Engaged in business related to agriculture
Eligibility for the Membership
Office Bearers of the Society (elected)
President
Secretary
Treasurer
Vice President
Vice Secretary
Committee members
Agro-business Instructor
A detailed constitution has been prepared by the Division of Agribusiness
Counselling (DOAgbiz), Department of Agriculture

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The End
Thank you