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"The role of producer organizations in market chains has received increasing attention in recent years, both from governments and donors. In order to lower transaction costs, markets demand that smallholder farmers operate in an organized manner. However, though the policy openings for support seem promising, smallholder market access through farmer-led economic organisations is not easy. This book presents various approaches to support producer organisations in terms of providing economic services to their members, with a focus on developing countries. Markets are increasingly fragmented in value chains that link farmers with specific processors, retailers and consumer segments. Several contributions in this book analyse these dynamics in specific value chains, such as the fair trade and organic agriculture and their potential to provide market outlets for smallholder farmers. This book is the result of a Dutch partnership between policy makers, researchers and practitioners designed to confront ideas with realities. Organized in a platform called Agri-ProFocus, members aim to provide more and better support to producer organisations in the South. Through so-called expert meetings, staff from donor organisations and knowledge centres, government officials, and business representatives, share their experiences and lessons learned. The experiences presented in this book are not recipes for instant success, but instead, highlight that support processes are often more fragile and slower moving than policy makers realise. This book is essential reading for scholars, practitioners and researchers interested in supporting and facilitating trajectories of change led by producer organisations in developing countries."
The book provides step-by-step guidance for development practitioners, managers, and all those interested in how development organisations can help small-scale producers build effective collective businesses.
Agricultural producers may use collective action to achieve common interests related to their agricultural activities. Such cooperation might range from the planning of production to placing products on the market. Producer organisations (POs) often also sell products of their members and perform activities such as e.g. joint purchase of inputs, storage, transport and logistics, quality control but also many other activities. The Common Agricultural Policy (CAP) actively promotes organisations among agricultural producers and considers collective action an important self-help tool for strengthening the positions of farmers in the food supply chain. Regulation (EU) No 1308/2013 (Common Market Organisation - CMO Regulation) expressly recognises the added value of horizontal cooperation at primary production level when it states that "producer organisations and their associations can play useful roles in concentrating supply, in improving the marketing, planning and adjusting of production to demand, optimising production costs and stabilising producer prices, carrying out research, promoting best practices and providing technical assistance, managing by-products and risk management tools available to their members, thereby contributing to strengthening the position of producers in the food supply chain". Therefore, the CMO Regulation establishes rules for the recognition of producer organisations (recognised POs) and associations of producer organisations (recognised APOs). Recognised POs/APOs can obtain certain start-up funding under the rural development rules or financing via operational funds in the fruit and vegetable (FV) sector, and they can profit from certain derogations from EU competition rules. Previous EU-wide studies that have been conducted in this area fall short of providing a general overview of the number, legal forms and type of activities carried out under horizontal cooperation arrangements, which European farmers resort to today. In addition, the functioning of POs/APOs as well as the incentives and disincentives of producers to create POs and the impact that POs have on their members and on the food supply chain has not been described in detail in the majority of EU Member States. Against this background and based on a European Parliament initiative, the Directorate-General for Agriculture and Rural Development (DG AGRI) of the European Commission commissioned an "analysis of the best ways for producer organisations to be formed, carry out their activities and be supported" that started in December 2017 for a duration of 15 months.
This book studies the management challenges and possibilities in sustaining farmer producer organisations (FPOs). It goes beyond the conventional metrics of cost-benefit analysis by drawing on 15 case studies of diverse FPOs spread across India to fill a significant knowledge-practice gap in the domain of producer collectives. The book explores issues of ownership and governance, studies the empirical basis for policy decisions on FPOs, and provides actionable insights and knowledge, keeping in mind the complexity of the institutional design of an FPO. It also discusses the envisioned role of civil society organisations in supporting FPOs and looks at the kind of institutional innovations that are needed to create a cohesive ecosystem for FPOs. A unique collaborative project jointly authored by academics and development practitioners, the book will be of use to students and researchers of agricultural economics, environment and business, agricultural development, environmental economics, rural studies, entrepreneurship, and South Asian studies. It will also be of interest to development professionals, civil society organisations, and policymakers.
"This book brings together a rich collection of material on management and organization in agri-food chains and networks. Producers, processors, traders and retailers of agricultural and food products operate in an economic and institutional environment that is increasingly dominated by global developments. Therefore, organizing efficient and effective supply chains as well as managing collaboration among participating firms requires an international perspective. This book presents theoretical and practical insights from many different parts of the world. Topics covered include classical supply chain management issues like logistics, information exchange (e.g. tracking and tracing), quality control, safety assurance, and chain performance. Other timely issues covered are joint innovation, and shared responsibility for sustainability in agri-food supply chains. Special attention is given to issues of governance and organization of chains and networks, for example, by focussing on the role of producer organisations (such as farmer cooperatives) in their effort to combine horizontal and vertical collaboration in the international upply chain. This book is relevant for both academics and managers interested in the latest advances in research on management and organization of international agri-food chains and networks."
This book examines the performance of organized retail chains supplying the agri-input and output services in terms of achieving their objective of utilising collective bargaining power in the marketing of their agricultural produce, integrating empirical experience from India and other selected developing countries. The scenario of marketing for agricultural products has been undergoing rapid changes with the rise of organised retailing (the Indian term for ‘supermarkets’), a process that is likely to accelerate in years to come, with India being on the threshold of a supermarket revolution. In fact, India is referred to as the ‘final frontier’ in the development of supermarkets. The growth of supermarkets in India is faster than that in China, which is also witnessing an exponential growth as part of the “third wave” of supermarket diffusion. The book investigates the links between organised retailing and farmers and farming in India. Apart from raising issues of equity, inclusion and problems in policy framework, it also discusses policy interventions that are essential in order to make the development of organised retailing more inclusive and beneficial to the farming community and agricultural sector. The book further serves as a guide for policy makers, helping them to select the right kind of interventions to balance growth with equity as market forces penetrate deeper into the agricultural marketing space.
Agricultural producers may use collective action to achieve common interests related to their agricultural activities. Such cooperation might range from the planning of production to placing products on the market. Producer organisations (POs) often also sell products of their members and perform activities such as e.g. joint purchase of inputs, storage, transport and logistics, quality control but also many other activities. The Common Agricultural Policy (CAP) actively promotes organisations among agricultural producers and considers collective action an important self-help tool for strengthening the positions of farmers in the food supply chain. Regulation (EU) No 1308/2013 (Common Market Organisation - CMO Regulation) expressly recognises the added value of horizontal cooperation at primary production level when it states that "producer organisations and their associations can play useful roles in concentrating supply, in improving the marketing, planning and adjusting of production to demand, optimising production costs and stabilising producer prices, carrying out research, promoting best practices and providing technical assistance, managing by-products and risk management tools available to their members, thereby contributing to strengthening the position of producers in the food supply chain". Therefore, the CMO Regulation establishes rules for the recognition of producer organisations (recognised POs) and associations of producer organisations (recognised APOs). Recognised POs/APOs can obtain certain start-up funding under the rural development rules or financing via operational funds in the fruit and vegetable (FV) sector, and they can profit from certain derogations from EU competition rules. Previous EU-wide studies that have been conducted in this area fall short of providing a general overview of the number, legal forms and type of activities carried out under horizontal cooperation arrangements, which European farmers resort to today. In addition, the functioning of POs/APOs as well as the incentives and disincentives of producers to create POs and the impact that POs have on their members and on the food supply chain has not been described in detail in the majority of EU Member States. Against this background and based on a European Parliament initiative, the Directorate-General for Agriculture and Rural Development (DG AGRI) of the European Commission commissioned an "analysis of the best ways for producer organisations to be formed, carry out their activities and be supported" that started in December 2017 for a duration of 15 months.
The internationalisation of food retailing and manufacturing that has swept through the agri-food system in industrialised countries is now moving into middle- and low-income countries with large rural populations, causing significant institutional changes that affect small producer agriculture and the livelihoods of rural communities the world over. Farmers and policy-makers are struggling to keep up with the wave of new demands being made on their supply chains by food manufacturers and retailers. In the process, new questions and challenges are arising: Can small-scale farmers organise to meet the demands of corporate giants? Should governments liberalise Foreign Direct Investment in the retail sector and expose numerous small shops to competition from multinationals? Can distribution systems be adapted to make markets work better for the poor? This book offers a contemporary look at what happens when the modernisation of food supply chains comes face to face with the livelihoods of rural and poor people. The authors are drawn from eighteen countries participating in the 'Regoverning Markets' programme, which aims to not only improve our understanding of the way modernisation and re-structuring of food supply chains is affecting food production and distribution systems, but also identify best-practice in involving small-scale producers in supermarket supply chains, and ascertain the barriers to inclusion which need to be removed. The book is aimed primarily at academics but will also appeal to practitioners in developing countries, civil servants, policy-makers and NGOs.
Business organizations can take various forms, each with its own legal and operational implications. Here are some common forms: Sole Proprietorship: A business owned and operated by a single individual. It's the simplest form of business organization, where the owner has complete control and receives all profits but also bears all liabilities. Partnership: A business owned and operated by two or more individuals or entities. There are several types of partnerships: General Partnership: All partners share in profits, losses, and management responsibilities. Limited Partnership: Partners have limited liability but also limited involvement in management. Limited Liability Partnership (LLP): Partners have limited liability for the debts and obligations of the business. Corporation: A legal entity separate from its owners, known as shareholders. Corporations can: Issue stock to raise capital. Have limited liability, where shareholders are only liable for their investment. Be taxed separately from its owners (double taxation), though certain types of corporations (S corporations) can avoid double taxation by passing income and losses through to shareholders. Limited Liability Company (LLC): Combines elements of partnerships and corporations. LLC owners are called members and have limited liability while enjoying the flexibility of partnership-style management. Cooperative: Owned and operated by a group of individuals or businesses for their mutual benefit. Profits and control are shared among the members based on their participation. Nonprofit Organization: Operated for purposes other than profit-making, such as charitable, educational, or religious purposes. They can take various legal forms, such as trusts, associations, or corporations. Joint Venture: A temporary partnership between two or more parties for a specific project or business activity. Choosing the right form of business organization depends on various factors including liability considerations, tax implications, management preferences, and the nature of the business itself. Consulting with legal and financial advisors is often recommended to make an informed decision.