Description

A simpler form of inter-farm cooperation takes place within the context of producer rings and producer organisations. Usually restricted to one single form of produce and its marketing, these rings pool all yields, negotiate the prices and quality standards and organise access for their members to financing and input sources.

Requirements

• A properly functioning country-wide administration and monitoring system with access to the relevant information and sufficient technical and human capacities for its design, implementation and monitoring
• Clear and coherent political strategy and targets for policy-makers and public authorities
• Legal frameworks (laws on cooperatives, taxation, competition and voluntary associations) that support farmers’ self-help organisations and do not discriminate against other entrepreneurial joint ventures (level playing field)
• Open-access to all farms, regardless of size and location
• Private sector initiative
• Properly functioning external audit structures (e.g. via regional or national auditing associations)
• Regulated and legally protected payment structures
• Skilled / specialised personnel to man the respective institutions / provide the respective services

Possible Negative Effects

• Poorly functioning audit structures could result in members losing trust in their organisation
• Farmers’ influence in their organisation could be diminished
• Supply chain dictates prices to agricultural producers
• Farmers could find it hard to market their own products directly