Strengthening of

Producer Societies

Mr. N. Jude Chrishanta

Agricultural Development Officer

European Union Support to District Development Programme (EU SDDP)

UN Food and Agriculture Organization of the United Nations

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A group of people / Small forum living in a particular residential area with

A good faith

Work together having a common interest

Trust each other

Identify and solve the whole local problems

Develop their living standard

Description of CBO

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Formal, legal entity or informal registered organizations

Maintaining separate books of accounts

Systems and ways of working

Group identity membership

Should not affiliated to any religious/ political/ separatist’s parties & groups

Producers’ Societies Established by the Department of Agriculture

Targeting farmers

Need to unite to address their problems

Achieve their wellbeing as a group

What is CBO

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Why Community Based Organizations ?

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Strong CBOs can

Reduce poverty, conflict and environmental degradation

Improve the living standards of disadvantaged groups

Stimulate rural economies

Contribute to participatory

Inclusive decision making

Good governance

Contribute to a self sustaining process of change

( unanticipated new initiatives/ social services/ businesses)

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Need for Strengthening CBOs

To increase the production and productivity of vulnerable farmers

Do not operation during the past decades in war affected districts

Have resumed with minimal resources

Using conventional knowledge in newly introduced / improved varieties

Limited marketing facilities

Do not have a proper place to dry / store their produce

Compelled to sell at lower price at the time of harvest

Difficulties in finding agricultural inputs on time especially quality seeds

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Facing the Challenge of Natural Disasters

Type of disaster Disaster prone Project districts

Batticaloa Ampara Moneragala Flood X X X

Drought X X X

Cyclone X X

Community based Disaster Risk Reduction (DRR) strategy

Should be a part and partial of the social behaviour of the community including their livelihood and inbuilt to any development program implemented

All phases in the disaster management cycle (preparedness, response, recovery and mitigation) are of equal importance

Should be based on local knowledge and community perception, which will be improved or modified according to the present situation

Should be community based and community driven with a plan to strengthen the community by addressing the weaknesses, utilize the outside opportunities and mitigate the external threats that the community faces

Family

Institutional Framework

Community

Community

Institutional Framework

Conceptual Model for Disaster Risk Reduction

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FAO Intervention

Provision of training on functions/ responsibilities /management of PS

Needs assessment exercise (training, revolving fund, credit, inputs, infrastructure (storage, irrigation etc.) marketing linkage development, water source, environmental protection

Support to plan their activities as a group

Facilitation of the timely input supply

Provision of implements - water pumps, power sprayers etc.

Provision of cold storage for essential seed stocks

Provision of transport means for seed collection

Training on the use and maintenance of the implements especially water pumps, power sprayers, micro irrigation techniques and field level training on plant protection, varietal selection of various crops and crop diversification

Training on seed production of OFC for selected group of farmers

Training on value addition for selected WRDS/ groups

Establishing marketing linkages for their produce

Coordination with other organizations for effective services to agriculture

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Selection criteria of Producers’ Societies (PS)

Vulnerable society /members

Registered but not functioning well

Formed but not yet registered

Community is interested to revitalize the PS, which has become defunct

Lack of knowledge on management

Lack of assets to run their activities

Absence of any other organization attempting to support

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Possible issues in need assessment

Rehabilitation of infrastructure belongs to the community as a common asset Eg. community well, common drying/ threshing floor, store for seeds, irrigation canal, community centre etc.

Construction of a new infrastructure for common use

Lack of input supply mechanism (seed, fertilizer etc.)

Absence of marketing linkages

Low status of the society fund

Lack of knowledge on organizational management

Poor knowledge on good agricultural practices

No support received for a selected crop cultivation (Eg. Groundnut)

Natural disasters such as flood, drought etc. damage the crop frequently

Lack of value chain mechanism established

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Process of Strengthening PS

Needs assessment meeting with the PS membership

Initial training programme on PS management

Participatory planning with identified members

Sharing responsibilities and contributions among DOA, PS and FAO

Development of the implementable plan for one calendar year

Preparation of the society business plan

Signing the Letter of Understanding (LoU) among parties

Formation of task oriented sub-groups

Development of the revolving fund

Implementation of the programme

Record maintenance of the PS programme

Auditing and monitoring

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Approach for strengthening the Producers’ Society

Revolving Fund

Need Assessment

LoU or Agreement

Cultivation, value addition

Further intervention of FAO

Existing PS

PS Business Plan

Task oriented Sub-groups

Programme implementation

Auditing and monitoring

Stabilized PS (Agro-Business

Group)

Initial training on PS management

Provision of Inputs

Subject based training

Marketing

Counselling

Evaluation & Registration by DOA

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Agro Business Groups (ABGs)

When a PS reaches to a certain maturity, the Department of Agriculture can register it as an Agro-Business Group (ABG)

Objectives of Agro-Business Group (ABG) Broaden the marketing opportunities by producing quality, certified, fresh and value added products avoiding technical constraints

Obtain DOA certificates for agricultural value added products

Continuous supply of produce by maintaining excess stocks

Enhancement of living standard by gaining good price and profit for the produce made to suit the local as well as foreign market

Area of authority

Membership of the society is given at Divisional Secretariat level

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The society can be registered in the Division of Agribusiness Counselling DOAgbiz P.O.Box 05 Department of Agriculture Peradeniya, Sri Lanka.

The application is submitted with recommendation of AI to the DOAgbiz for registration with following documents.

Minutes of the Society general meeting Signature list of the society members Bank account statement Local business registration certificate

Registration of the ABG

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Decision making on crops and extents based on export requirement in agreement with the Agro-business Instructor Obtaining the trade permit to start the business Collection and receipt of membership fees, donations, fine charges etc. for the benefit of the society. Opening and maintenance of saving accounts, current accounts or any other account in banks or equivalents. Entering into agreements with individuals or established institutions for the benefit of the society Investment of society funds in commercial banks or any other institute for effective management with the approval of the society Management of business activities to fulfil the social and economic needs of the members Implementing credit programmes limited to the membership Appointment of various committees to achieve society objectives Appointment, recruitment and termination of the staff according to society needs Ability to get an outsider involved in marketing activities according to the rules and regulations of the society

Authority of the Society

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Sri Lankan Above age 18 years Resident within the society area of authority Engaged in business related to agriculture

Eligibility for the Membership

Office Bearers of the Society (elected)

President Secretary Treasurer Vice President Vice Secretary Committee members Agro-business Instructor

A detailed constitution has been prepared by the Division of Agribusiness Counselling (DOAgbiz), Department of Agriculture

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The End

Thank you

Food and Agriculture Organization of the United Nations

Regional Project Office - EUSDDP

# 4/2 Ganasooriyam Square, Trincomalee Road, Batticaloa

Office: 065 2229609 Fax: 065 2055230