Key Points Learned 1.The relevance and importance of commodity-based associations of small farmers/producers 2.Government support is a factor for success 3.The coming together of small farmers to agree and hold regular meetings 4.The facilitating and catalyzing role of NGOs and support institutions 5.Leadership 6.Capacity-building 7.Setting of standards, capacities (skills, equipment, technology) to comply, ways to measure them and mechanisms to monitor them

Benefits of Organized Commodity Groups: To the small farmers 1.Better bargaining power 2.Better access to markets (buyers deal preferably with groups) 3.Lower cost of doing business 4.Better income (as a result of higher price, reduced losses and higher recovery, more stable markets) 5.Better relations among growers as a result of working together and helping one another 6.Good image in the business community 7.Organized way of relating to resource providers (government, non-government, business groups

Benefits of Organized Commodity Groups: To the buyers: Better compliance with volume, quality agreements and schedules of delivery Traceability Flexibility to provide product preferences Quick response to market feedback/complaints An organization can give in advance notice of impending changes in shortages of product to be delivered

Benefits of Organized Commodity Groups: To donors and implementing agencies 1. Efficient use of resources (including services) 2. Wider coverage 3. Equity of participating communities 4. Enhanced production-oriented livelihood, agriculture & NRM/CRM projects 5. Sustainability (post-project)

Basic Functions of Commodity-based Associations of Small Farmers and Producers Basic Market Requirements Bigger volume/economy of scale Product quality and food safety Continuous and regular supply Basic Functions of Commodity-based Small Farmers Associations 1.Consolidation to achieve scale 2.Ensuring product quality and food safety 3.Ensuring delivery of the right product, right quantities at the right time 4.Bargain for better terms Credit/Financing Technical Support Capability-building support

Basic RequirementsStrategies Delivery of supply at economic scale Formation of commodity-based groups or clusters Supply of quality products Agreements and implementation of product quality measures Capacity-building Internal Quality Control Systems and Mechanisms Regular/continuous supply and prompt delivery Synchronized production planning Summary

These requirements are easier achieved if small farmers are organized into single-commodity groups or associations. 1.Economy of scale is achieved by product consolidation. 2.Food safety and quality is assured through internal quality control system and agreed standards. 3.Regular and prompt delivery by a unified and synchronized production plan.