Zambia trade and Agribusiness Project is targeting Producer/Farmer Organisations, be it cooperatives or Associations to work with in the formation of Productive Alliances.
Why producer Organisations/Associations and not individuals?
The small farmer, acting alone, is unable to effectively compete in a market dominated by intermediaries with unequal bargaining power and information. Equally, participation in a “value chain” can provide stable, reliable and more remunerative market access. The project promotes small farmer participation in associations, seeking to incorporate them into productive alliances. A productive alliance is the mechanism through which producers with potential can participate in value chains that will help them improve their performance and livelihoods by giving them better and more equitable access to markets, technologies, and organizations. Producer associations can be existing, or new, with producers coming together to participate in, and benefit from, the productive alliances approach.
Benefits of Producer Organisations/Associations
Through their participation in value chains, organized rural producers will be able to benefit from:
- Collective bargaining power in negotiating with other actors in the chain;
- Greater technology uptake; and
- Reduced individual risks through risk spreading/sharing/transfer.
Eligibility of Producer Organisations/Associations
- Smallholder producers from the selected districts of Zambia, which are formally grouped, made up of local Zambians and which have some sort of legal recognition, or which intend to formalize as an organization.
- At least two years of experience in the productive activity proposed for the alliance or, alternatively, the commitment to participate in the necessary (re)training programs for the new activity.
- The beneficiaries should not be public servants or non-locals.
- In individual terms, the beneficiaries can only be small land holders, as per the limits provided for in the law.
- The Producer Organisation should have a bank account and a Tax Payer Identification Number.
- The board should be able to run the affairs of the group well, should be able to manage or resolve conflicts.