Walking tightropes: supporting farmer organisations for market access

Farmer organisations (FOs) are playing an increasing role in supporting smallholder agriculture in Africa. However, previous experiences have been mixed: what support do they need to contribute effectively to poverty reduction?

Recentyears have seen growing interest in FOs as mechanisms for supportingagricultural development. FOs are increasingly seen as an important bridgebetween the private sector and farmers. Research from Imperial College, UK, andthe University of Malawi assesses what policies and practices can support FOsin this role.

InMalawi, as in many other countries, FOs have a mixed record and face several challenges.There are striking examples of successful FOs which have improved members’incomes through better access to market and other services. However, many FOshave failed.

FO’sface several challenges, including:

• Conflicting interestsand expectations among farmers, employees, governments, donors and non-governmentalorganisations. These groups may look to FOs to provide low cost commercialservices to members, increased incomes or wider social services to ruralcommmunities.
• The need for strongleadership, but dangers of resource misuse by strong leaders in weakorganisations where members lack basic literacy and business skills.
• A weak and oftenunhelpful business and institutional environment with high risks, poorsecurity, traditional attitudes to business, political interference andunhelpful regulations governing FOs.
• Physicaldifficulties in agricultural production (for example, poor soils anduncertain rainfall).
• Poor infrastructureand rural services.
• Poor health status inrural areas, particularly the effects of HIV/AIDS.
• A difficult wider economywith high interest rates and inflation.
• Low literacy levelsamongst farmers limiting their ability to contribute to the FO.

Thesechallenges make FOs difficult to manage. They reduce the benefits of FOmembership, increase uncertainty, encourage short-term planning strategies andlimit members’ willingness and ability to invest in FOs. They also have implicationsfor external support: the greater the challenges facing FOs, the more they needexternal support. Unfortunately, this often undermines FOs’ focus on theirmembers’ long-term interests.

Establishingand governing FOs is difficult. Local adaptability, diversity andaccountability to members must be balanced against the need for clear, stableand standard procedures. FOs must be effective and professional, but with low-costmanagement. They should focus on linking their members to other organisations providingtechnical, financial and market services, but limit the services they provide themselvesto their members.

Theresearch recommends that:

• FOestablishment and governance, activities and external support must ‘fit’ eachother and the challenges FOs face.
• FOs and their leadershipmust be independent of political influence.
• Some long-term support isjustified for most FOs; this should build FO governance and encourage FOs to bemore accountable to their members.
• Governmentsshould provide a supportive legislative environment, including independent and transparent FO auditing.
• Externalsupport to FOs should be long-term to allow them to learn how to be effectiveand efficient before they expand.