Presentation on Farmer Based Organizations

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

Ghana Strategy Support Program INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE

Why this study?

1. Renewed interest in establishing farmer based organizations to achieve a range of outcomes

2. Substantial investments

3. Little understanding of whether they have been effective

4. Only recently, the ministry attempted to find out how many were there

5. We would like to throw some light on what they do and how successful they are in what they do


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 20111. A subset selected from six regions2. Selection based on collective activities, membership size, collective

resources3. 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.


What Collective Activities are They Engaged in?

Mutual labour support

Welfare Services

Internal credit scheme

Community Development

Production

Agroprocessing

Marketing

Inputs Procurement

0 10 20 30 40 50 60 70 80

2010 FBO Survey

% of FBOs involved in collective activities


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 pineapple


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 prices


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 cases


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 loans


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 men


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.


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-sustained


Questions?

Presentation on Farmer Based Organizations

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