Usefulness of chain organisation Emile CHONÉ Directeur AGROPOL
Roles of organisations in an agri-food chain Represent members and respond to them Identify the area(s) of common interest for the whole chain Reach compromises among the involved parties
Why organisations ? Inside knowledge of the sector Balanced management of diverging interests
One important condition (among others) Time is necessary for mutual understanding and confidence between stakeholders
Who else can fulfill such functions ? Individual contracts –imbalance between partners –Some subjects cannot be managed at individual level Public authorities –As actor or regulator –Regulating role is essential
Financing How to finance activities of collective interest Making fair balance between contributors and beneficiaries
Financing : the French law on interprofessions Those who pay are the beneficiaries, not the tax-payers Based on an agreement between the professional families in the chain Made mandatory for all the beneficiaries by the public authorities
The French oilseed chain Elevators 780 in total 50 for 50% of collected seed 80% volume = cooperatives Producers (oilcrops) Crushers 2 companies for 99% of capacity
FOP French Federation of Oil- and Protein- Crop Producers Specialised Association of the main French Farmers Union (FNSEA) Represents and defends producers’ interests ( oil- and protein- crop producers) Driving force in the whole chain FOP only resource : voluntary fee, 0.31 €/t, collected through the storage enterprises
FOP Organisation Producers 500 departmental (local) Delegates (FDSEA) 65 Administrators (National Board) Steering committee
FOP Functioning
FOP means of action communication monitoring of the market lobbying of the public authorities EOA COPA-COGECA
ONIDOL present structure Production Marketing Processing 8 delegates4 delegates 8 delegates Oilseed producers (FOP) Planting seed producers (ANAMSO) Co-operatives (FFCAT) Private trade (FNA) Seed companies (AMSOL) Exporters (SYNACOMEX) Oilseed processors (GTOM) Feed manufacturers (SNIA/SYNCOPAC)
ONIDOL main results
Collects the following “CVOs” : from growers for ONIDOL : 0.58 €/t for CETIOM : 1.52 €/t or 1.76 €/t for SOFIPROTEOL : 0.95 €/t from users for ONIDOL : 0.15 €/t ONIDOL Funds collection 2003
USDA administers a fund, provided for in the 1990 Farm Bill, named the Soybean Check-off. The soybean check-off is a programme aiming to promote US soybeans at home and abroad, supported by the farmers themselves. It is funded through a 0,5 % mandatory assessment on the net market price of each bushel of soybean. Destination of the fund: 50 % to work with state-level organisations (Qualified State Soybean Board). 50 % to the United Soybean Board (USB) United States soybean production support system
USB : 62 farmer-directors representing soybean producing states appointed by Secretary of Agriculture. Financing : The check-off fund. Rules : To put the check-off to work, focusing attention on Production Research, Communication, Domestic and International Marketing. It finances organisations like American Soybean Association (ASA), mainly for external promotion United Soybean Board (USB)
The Canola Council of Canada is a non-profit industry association representing all sectors of the Canadian Canola industry (crushers, refiners, processors, exporters and shippers, canola grower organisations, and governments). Canola Council - CANADA
The Canola Council’s Board of Directors represents the portion of the chain interested in canola research, production and marketing. Board: Each industry group selects representatives from its membership: 3 Processors 3 Exporters 3 Growers 3 Directors + 5 additional as directors-at- large (any industry segment or government). Canola Council - CANADA Organisation
To explore potential markets and to promote canola products all over the world. To improve canola production through research studies, education and promotional programmes. To collect information, make studies & disseminate information on production, marketing, processing, utilising and promoting canola products. To maintain good public relations and to assist and cooperate with other organisations in the furtherance of the objectives of the council. Canola Council - CANADA Rules of the council
Activities are funded through 4 main sources: A levy paid by exporters and crushers on each tonne of canola at the time of exporting or crushing in Canada (collected on an entirely voluntary basis) Programme grants received from corporate and grower organisation members (mainly canola grower check-off commissions in each provinces) Government programmes (federal and provincial) Funds raised by Council programmes (e.g. annual convention, sale of publications…) 2003 budget was Canadian $ 2,771 M. Canola Council - CANADA Financing
INTERPROFESSION final comments needs organisation of each family dialogue is a long term process threats to the whole chain are opportunities interprofession does not necessarily interfere with market rules useful interface with the government for policy making
Which assistance to emerging professional associations? Promote relationship and twinning with similar organisations, in particular in Western Europe Promote participation in common bodies at international level, in particular those linked to EU (COPA-COGECA) Training on: –CAP and agricultural policies in general –Agri-food chain functioning –Market functioning