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Improving Institutional Capacity: Strengthening Farmer Organizations in the OIC Member Countries

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Improving Institutional Capacity: Strengthening Farmer Organizations in the OIC Member Countries Standing Committee for Economic and Commercial Cooperation of the Organization of Islamic Cooperation (COMCEC) Improving Institutional Capacity: Strengthening Farmer Organizations In the OIC Member Countries COMCEC COORDINATION OFFICE February 2015 Standing Committee for Economic and Commercial Cooperation of the Organization of Islamic Cooperation (COMCEC) Improving Institutional Capacity: Strengthening Farmer Organizations In the OIC Member Countries COMCEC COORDINATION OFFICE February 2015 This report has been commissioned by the COMCEC Coordination Office to the project team led by Ms. Angela R. HANSEN from Dalberg - Global Development Advisors. Views and opinions expressed in the report are solely those of the authors and do not represent the official views of the COMCEC Coordination Office or the Member States of the Organization of Islamic Cooperation. Excerpts from the report can be made as long as references are provided. All intellectual and industrial property rights for the report belong to the COMCEC Coordination Office. This report is for individual use and it shall not be used for commercial purposes. Except for purposes of individual use, this report shall not be reproduced in any form or by any means, electronic or mechanical, including printing, photocopying, CD recording, or by any physical or electronic reproduction system, or translated and provided to the access of any subscriber through electronic means for commercial purposes without the permission of the COMCEC Coordination Office. For further information please contact: COMCEC Coordination Office Necatibey Caddesi No:110/A 06100 Yücetepe Ankara/TURKEY Phone : 90 312 294 57 10 Fax : 90 312 294 57 77 Web : www.comcec.org Table of Contents List of Figures ............................................................................................................................................. iii List of Tables ............................................................................................................................................. iii List of Abbreviations ............................................................................................................................................ iv Executive Summary ............................................................................................................................................... 1 Introduction ............................................................................................................................................... 5 1. Definition and Situational Overview of Farmer Organizations: Conceptual Framework ..... 7 1.1. Background and Definition of Farmer Organizations............................................................................ 7 1.2. Types of farmer organizations ......................................................................................................................... 8 1.2.1. Supply Organizations ............................................................................................................................................... 9 1.2.2. Marketing Organizations ...................................................................................................................................... 10 1.3. The role of FOs in Farm Productivity and Income Improvement ................................................. 10 1.3.1. Inputs and Production ........................................................................................................................................... 11 1.3.2. Trading .......................................................................................................................................................................... 11 1.3.3. Processing and Retail & Consumption ........................................................................................................... 12 1.4. Common Capacity Challenges Faced by Farmer Organizations ..................................................... 12 2. Farmer Organizations in OIC Member Countries .............................................................................. 15 2.1. Overview of Farmer Organization and Policy Environment in the OIC ...................................... 15 2.1.1. Introduction and Methodology ......................................................................................................................... 15 2.1.2. Enabling Environment and Farmer Organization Penetration ......................................................... 16 2.1.3. Market structure....................................................................................................................................................... 24 2.1.4. Main conclusions ...................................................................................................................................................... 27 2.2. Public Policy on farmer organizations in OIC member countries ................................................. 27 2.2.1. Examples of recent policies enacted in support of FOs in OIC member countries ................... 28 2.2.2. Actions by intra-OIC bodies in support of Farmer Organizations .................................................... 33 2.2.3. Pro-Farmer Organization finance in OIC Member Countries ............................................................. 34 3. Case Studies of Farmer Organizations Across OIC Member Countries ...................................... 37 3.1. Uganda: Kitenge Agali Awamu Coffee Company, Member of the Ugandan Coffee Farmers Alliance (UCFA) .................................................................................................................................................... 38 3.1.1. Performance of Kitenge DC ................................................................................................................................. 39 3.1.2. Policy environment ................................................................................................................................................. 41 3.1.3. Conclusions and lessons learned ...................................................................................................................... 42 3.2. Senegal: Cadre de Concertation des Producteurs d’Arachide (CCPA) ......................................... 43 3.2.1. Performance of the CCPA ..................................................................................................................................... 44 3.2.2. Policy environment ................................................................................................................................................. 45 3.2.3. Conclusion and Lessons learned ....................................................................................................................... 46 3.3. Morocco: Tighanimine Filahia Argan Oil Co-operative ...................................................................... 46 3.3.1. Performance of the Tighanimine Filahia Argan Oil Co-operative..................................................... 48 3.3.2. Policy environment ................................................................................................................................................. 49 3.3.3. Conclusion and lessons learned ........................................................................................................................ 50 3.4. Indonesia: Indonesian Peasants’ Union (SPI) and Consortium for Agrarian Reform (KPA) ........................................................................................................................................................................ 50 3.4.1. The SPI ........................................................................................................................................................................... 51 3.4.2. The KPA ........................................................................................................................................................................ 53 3.4.3. Policy environment for both organizations ................................................................................................ 56 3.4.4. Conclusion and lessons learned ........................................................................................................................ 57 4. Recent Trends in Strengthening Farmer Organizations at a Global Level ............................... 59 4.1. Basic principles for strong farmer organizations ................................................................................. 59 4.2. Examples of Development Actors Working to Strengthen FOs, and Their Strategies ......... 61 4.2.1. Overall strategies ..................................................................................................................................................... 61 4.2.2. Actors working to strengthen FOs and their activities .......................................................................... 63 4.3. Examples of successful institutional frameworks ................................................................................ 67 4.3.1. At an FO level: Respecting core legal principles for strong farmer organizations ................... 67 4.3.2. At a national level: Adopting a guiding framework for the promotion of cooperatives ........ 68 i 4.3.3. At a national level: Including FO-strengthening in national agricultural transformation plans ..............................................................................................................................................................................
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