Farmer cooperatives and development of a provincial farmers’ federation

Dec 1, 2009-Dec 31, 2010

The project will implement a People’s Participation Programme (PPP solution under WA 5), with a total timespan of three years. The programme has the following components:
1. Creating commitment for PPP approach among farmers' leaders.
2. Select pilot sites. AEMS together with Agriterra (and in consultation with respective farmers’ leaders) will select some 5 farmer organisations to be the pilot case for this project.
3. Allocate and train group promoters. Group Promoters (with AEMS and farmers’ organisations) assist in strengthening the farmers' leadership, organisational and planning capacity, participatory training, and in linking farmer organisations to support services. Building confidence and promoting self-reliance is key to their work. Special attention to allocation of female group promoters.
4. Development of economic value chain. Farmer cooperatives will develop their commodities on the basis of market demands. Business plans will be drafted. Attention will be given to adding value to products and the negotiation position of the cooperative, in order to increase their income. Development of linkages with private sector, market and service providers.
5. Establish savings & credit scheme and guarantee fund. Farmers’ organisations are encouraged to initiate group-based savings schemes prior to applying for bank loans. Group savings serve as additional credit, cover loan defaults and build up the FO’s capital base. To encourage an interested institution (such as the Rural Credit Cooperative) to lend to farmers’ organisations, this project will contribute to the establishment of a special Credit Guarantee Fund (CGF) to cover losses resulting from loan defaults. Support will be provided to farmers’ cooperative in negotiating with the Bank.
6. Participatory training and capacity building. Implementation of various training and capacity building activities to farmer organisations, including business planning, entrepreneurship, gender training and arrangements to enhance women’s participation in cooperative management, financial management, small farmers participation as group-shareholders in enterprises, ICT, etc.
7. Inter-cooperative linkages and federation establishment. Exchanges between cooperatives will be facilitated. Through exchange, training and further capacity building, the endogenous development of a provincial federation will be facilitated.
8. Monitoring and evaluation. M&E takes place at all levels: at farmer organisation level through log-books and meetings, at Group Promoter level through periodic reporting and meetings, and at AEMS through project reporting.

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