FAO: International Day of Cooperatives, 1998 FAO

Cooperatives and Food Security
FAO’s Perspective



FAO and Cooperatives The Gender Dimension Training of Trainers
Cooperative Capital Formation Cooperative Reconversion in Latin America Uganda
Niger India FAO Assistance
FAO Forest Trees and People Programme Emerging Farmers' Groups in Viet Nam Fertilizer Cooperatives

The World Food Summit Plan of Action stipulates that:

Governments, in cooperation with the private sector and non-governmental organizations, will:

· Foster the social and economic organization of the rural population with particular emphasis on the development of small-scale farmers', fishers' and foresters' cooperatives, community organizations and development associations, so that rural inhabitants may be actively involved in decision-making, monitoring and evaluation of rural development programmes;

· Promote the empowerment of small-scale family farmers, fishers and foresters, both women and men, to set up their own cooperatives and business undertakings, as well as farmers' and fishers' financial and mutual institutions.

(Commitment Three, Objective 3.5)




FAO and Cooperatives

Addressing the NGO Forum for the World Food Summit in November 1996, the Director General of FAO stressed that today “everyone recognizes that governments alone cannot solve the problem of food security and if we are to make any progress we need the energy and expertise that reside in civil society.”

In FAO’s view, as a generic term, “civil society organization” embraces a vast, heterogeneous and multifaceted “set of relational networks”, and includes trade unions, self-help associations, cooperatives, women’s groups, development and advocacy NGOs, and informal groups alike. Given, however, this great heterogeneity, priorities have to be set and FAO thus pays special attention to membership-based, representative self-help organizations of farmers, fisherfolk and foresters, in particular their genuine cooperatives. These cooperatives, in spite of many failures and shortcomings, are traditional organizations of mainly the poorer segments of society which have the potential to play an important role in developing a strong “social capital” in rural areas that is regarded as a pre-requisite for food security and sustainable development.

Converting these concepts into activities and outputs, FAO focuses its cooperative assistance programmes on three technical areas:

    · design of national policies and strategies to enhance cooperatives’ role in development, emphasizing the need for synergy and the economic efficiency gains to be derived from their involvement in decision-making and programme implementation;

    · development and refinement of concepts and techniques for coalition building and partnerships in support of rural development and food security;

    · internal capacity building to make cooperatives, along with other civil society organizations, equal and efficient partners in development.

The Gender Dimension

The world over, statistics show that women’s participation in cooperatives is low, especially in rural cooperatives. Cooperatives have tended to be synonymous with “men’s“ cooperatives. But the importance of agricultural cooperatives in village life, and their repercussions on food security through agricultural production, processing and marketing, as well as on family life and on women’s chores, is too great for the exclusion of women from the decision-making process to be accepted as inevitable.

Cooperative law often condones such discrimination by providing that the head of the family attends meetings: the fact that the wife is often de facto - or even de jure - head of the family is not always seen as enough reason for her to participate. When cooperative laws are revised, all provisions which make for gender discrimination should therefore be weeded out to avoid aggravating the problems faced by women in their attempts to be integrated into the participatory cooperative structures.

In addition, with greater freedom to decide on the types of business to conduct through a cooperative, the way is open for the development of activities of specific interest to women such as small cooperative mills, food storage and preservation, production of household necessities like soap and clothing, small animal raising and handicrafts. More stress should also be laid on cooperatives’ social function by organizing services which would relieve women from certain of their tasks: child care services or drudgery-reducing activities, or assist with organizing marriages and other ceremonies.


Training of Trainers for Cooperative Development

FAO has initiated a new programme for training of trainers in cooperative development. The programme aims at helping developing countries transform their agricultural cooperatives into genuine self-help organizations. The programme is developing a training of trainers manual geared to encouraging greater membership participation, improving management, and familiarizing political and administrative decision-makers with new cooperative development approaches. Topics covered include participatory learning and action, effective communication, setting cooperative objectives, mobilizing, financial and human resources, participatory planning, monitoring and evaluation, cooperative management and negotiating, lobbying and liaison capabilities of cooperatives.


Cooperative Capital Formation

Agricultural cooperatives in developing countries have been particularly weak in mobilizing capital for investment purposes and business growth. Many have been heavily dependent on outside sources of concessional financing. With increasing privatization and market liberalization, many of these external sources of finance are disappearing and cooperatives now are faced with the challenge of mobilizing their own capital.

In 1992, FAO, in collaboration with the Committee for the Promotion and Advancement of Cooperatives (COPAC), launched a special research programme with the objective of identifying successful local strategies for capital formation in agricultural cooperatives. Country studies were conducted in Kenya, Guatemala and India in collaboration with a number of institutions including the Finnish Cooperative Centre, the Kenya National Federation of Cooperatives, the Federation of Savings and Credit Cooperatives of Guatemala and the Institute of Rural Management at Anand, India, during the 1993-1995 period. The initial findings from this research were then discussed at an International Workshop on Capital Formation in Agricultural Cooperatives held in Rome in November 1995.

Two outcomes of this activity have been the development of an FAO guidelines booklet on “Mobilizing Capital in Agricultural Service Cooperatives” which is now ready for distribution and the initiation of a more detailed case study in Kenya comparing private sector vs. cooperative capital formation and investment behaviour in the coffee and dairy sectors. The latter research, which builds upon the earlier Kenya study, was launched in March 1997 in collaboration with researchers from Nairobi University, the Kenya National Federation of Cooperatives, Turku School of Economics and Business and the Finnish Government. It is hoped that the latter study will lead to a sub-regional workshop on this important topic in East Africa and to more concrete and useful recommendations for strengthening the self-financing and investment capacities of agricultural cooperatives in the sub-region.

Cooperative Reconversion in Latin America

The greatest challenge facing cooperatives in Latin America is their “reconversion” from a quasi-trade-unionist role to an increasingly entrepreneurial role that more effectively meets cooperative members’ needs in the period of transition to market-oriented economies. FAO has initiated a programme to promote this process through strengthening the capacities of national cooperative confederations to assist their member cooperatives in the participatory identification and design of investment projects facilitating “reconversion”.

A special organizational unit for this purpose has been established in the Cofederación Intercooperativa Agropecuaria of Argentina which is already assisting Argentinean cooperatives and is expected to extend this assistance to other MERCOSUR countries. Similar units are being established within the Instituto Nacional Agrario (INA) of Honduras for the countries of Central America and within the Confederación Nacional Campesina (CNC) of México.















UGANDA

In Uganda, an FAO/UNDP Project (involving Ministry of Agriculture, Animal Industries and Fisheries, Milk Marketing Cooperatives, Farmers' Associations, the Dairy Development Committee, WFP and DANIDA) increased milk collection by the Uganda Dairy Corporation from 1.0 million litres per day in 1986 to 26.1 million litres in 1992. Further support to strengthen producers’ groups in milk production and marketing in the south of the country continued through FAO Technical Cooperation Projects.


NIGER

Through an FAO/UNDP Project in Niger nearly 800 women, organized in 18 cooperative groups, were assisted with simple equipment for the manufacture and marketing of traditional dried cheese "Tchoukou". Profit per unit of cheese produced increased by 30% and total production expanded significantly.



INDIA

India is perhaps the best example of cooperative empowerment of milk producers. Under the direction of the National Dairy Development Board (NDDB), the Amul model of cooperative development was introduced to increasing numbers of rural milk producers. In the Amul district, for instance, the number of producers participating in 1970 was 180,000 in 700 cooperatives. In 1995 the corresponding figures were 540,000 members in 950 cooperatives. Nationally the dairy cooperative movement now caters for over 9 million producers and India is on its way to surpass the US and become the largest milk producer in the world.


FAO has assisted in:


FAO Forest Trees and People Programme

FAO's Forest Trees and People Programme in Central America supports different cooperative movements through the Comisión Indígena Campesina de Agro-Foresteria Comunitaria (CICAFOC) and their affiliated organizations in Central America. Rotating funds, farmer to farmer training and extension, and farmers’ research have been the main areas of FAO’s technical assistance. The CICAFOC is now recognized by the Consejo Centro Americano de Bosques (CCAB) as an advisory committee through which farmers can present their priorities and suggestions that can influence forestry policies.


Emerging Farmers’ Groups in Viet Nam

A survey conducted in the framework of a recent FAO technical assistance project in Viet Nam showed that many farm households form voluntary cooperative groups to provide support services to their members’. These small groups, with an average of 18 members, include:

Water users’ groups composed of farm households, which undertake joint management and maintenance of the irrigation system.

· Joint liability groups, formed in order to gain access to bank credit. The individual farm households very often have no collateral. Group members jointly guarantee repayments.
· Professional groups made up of farm households exercising the same profession: gardeners’ associations, shrimp rearing groups, sugar cane plantation groups, hybrid maize groups, etc. These self-help groups try out new technologies, share the results of their experiences, process and market the products together, strengthen their bargaining position with private traders while negotiating prices and quality standards, and assist in setting up and developing specialized production areas.
· Marketing groups bringing together input suppliers, producers and traders to ensure steady and timely delivery of produce, such as poultry, vegetables and dairy products. Groups have also been formed for off-farm activities such as tailoring.
· Production groups, voluntarily formed by members who contribute labour and capital. Examples are rice milling groups, tractor groups for land preparation, fishing groups, animal rearing groups, afforestation groups, shops for input supply, artisans and handicraft groups for repair work, marketing of agricultural products, etc. In general, these joint production groups operate as small-scale enterprises and play an important role in employment creation and income-generation for members.

Fertilizer Cooperatives

The Indian Farmers’ Fertilizer Cooperative Limited (IFFCO) was established in 1967, with the primary objective of increasing agricultural productivity and improving the rural economy by producing quality fertilizers and promoting the balanced use of these fertilizers. It is a multi-unit cooperative - a federation of approximately 30,000 societies from village to national level. IFFCO has also established 174 Farmers Service Centres where fertilizers, seed and agrochemicals are supplied under one roof and where farmers receive technical advice on the use of these agricultural inputs. The cooperative has far-reaching national linkages with farmers, researchers, extensionists, the private sector and government

Since 1992, IFFCO has launched an Integrated Plant Nutrition System (IPNS) programme in response to the identified need for more balanced nutrient application in Indian agriculture. The main objective of the programme is to improve soil fertility and productivity at farmers’ level in order to increase agricultural production and farmers’ income.

FAO has been involved with the IFFCO IPNS programme since its inception in 1992, regularly providing advice on various technical aspects of its activities. A joint workshop on IPNS was organized in September 1992 and in 1993 the cooperative launched a programme of trials and demonstrations to promote IPNS. FAO consultants have visited selected villages and established plant nutrient balance sheets for those villages. As a result of those balance sheets, FAO has been able to propose improved plant nutrient management techniques to farmers in those villages, thereby improving their productivity and fertilizer use efficiency and reducing nutrient losses to the environment.

In April 1996, FAO agreed with the Government of India to finance and provide technical backstopping to a Technical Cooperation Programme (TCP) entitled “Development of an Integrated Plant Nutrition System Methodology”. In September 1996 IFFCO organized a workshop for all its regional staff involved in balanced fertilization and the IPNS programme throughout the country, as well as university professors and experts from the Indian Council for Agricultural Research (ICAR) and the Fertilizer Association of India (FAI). In this workshop the results of the last six IPNS campaigns were discussed and plans for future activities were elaborated. The most significant of those future activities is an International IPNS workshop which is scheduled for November 1997, in which researchers involved in IPNS work from both the developed and developing world will meet to share their experiences in this area of work. Another important output of this TCP will be a publication entitled “A Guide for the Extension of IPNS in Asia and India: The Indian Experience”.


For further information, please contact:
Rural Development Division, Food and Agriculture Organization of the United Nations
Viale delle Terme di Caracalla, 00100 Rome, Italy
Web site:
http://www.fao.org/WAICENT/FAOINFO/SUSTDEV/ROdirect/ROhomepg.htm


This information has been made available on the Internet by
the Committee for the Promotion and Advancement of Cooperatives COPAC.


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Posted: 24 June 1997