final draft of producer group guideline 2013

FARMERS’ PRODUCER GROUP (FPG)

A guideline for group formation

Dhaka Ahsania MissionUSAID- Agriculture Extension support Activity project

Project Coordination Office ,Jessore.

(Final Draft)

Table of ContentsAbstract.......................................................................................................................................................3

1. Producers’ group perception in different context:..............................................................................4

2. USAID Agr. Extension project outline:................................................................................................5

3. What is the Producer Group in Ag Extension project? :.......................................................................6

3.1 Philosophy of Producers’ group.........................................................................................................7

3. 2 General objective of the producers’ groups in particular:...............................................................8

3.3 Role and benefits of producers group...............................................................................................8

4. Basic principles of Producers’ group...................................................................................................9

5. Benchmark of the producer’s group members:.....................................................................................11

5 .1 Group membership :.......................................................................................................................11

5.2.1 Leadership...............................................................................................................................11

5.2.3 Leadership posts in groups.......................................................................................................11

6.Levels of Organization............................................................................................................................12

7. Types of Policies:...................................................................................................................................12

8. General activities to be undertaken by the producers’ groups..............................................................13

8.1 Meetings::........................................................................................................................................13

8.2 Training and technical learning session...........................................................................................13

8.3 Group action plan /business plan development:.............................................................................15

8.6 Saving and credit schemes...............................................................................................................15

8.7 Revolving fund –Inputs/Training inputs/kits , volunteer honorarium etc........................................15

8.7 Field days/Music and Drama and other encouraging events..........................................................16

8.7 Marketing of the value chain based crops ( Dairy ,crops, fisheries etc).....................................16

9. Producer group formation process........................................................................................................16

9.1 Rapport building:.............................................................................................................................16

9.2 Motivation.......................................................................................................................................16

9.3 Primary selection of farmers through output from WBA :............................................................17

9.4 Inclusion meeting :..........................................................................................................................17

9.5 Final Group formation and development:.................................................................................18

10 Conclusion :...................................................................................................................................18

2 | Producer group formation guideline

Abstract

The document describes the broadened nature and types as well as development process of producer groups in USAID Agricultural Extension Support Activity project in 20 districts in 3 divisions ( Dhaka, Khulna & Barisal ) in the country. This includes, in general terms, their roles and capabilities as well as the conditions to consider in their support and development. The importance of Producer Groups in USAID funded project is that the producer groups play key roles in shaping & strengthening the future of overall agricultural activities and agriculture extension services in project focused areas (Unions- lowest administrative unit).

In each division 1 to 3 upazillas will be chosen from each district, based on potential for agriculture value chains, current crop patterns, and livestock and fisheries opportunities as well as women in agriculture. In total 400 Unions are targeted in 40 upazilla under 20 districts and the producers group member selection criteria and project priorities that imposed rigorously in the process identifying and assessing potential producers group in three regions except Faridpur in year 1 implementation plan. There are number of criteria such as interests of farmers, partnering with local government officials (Agriculture, Fisheries and Livestock) in a collaborative mode, and availability or potentiality of basic ICT infrastructure, women involvement in agriculture in existing conditions, market facilities and existing extension services, land holding capacities, migration and food insecurity were the key to define the potential producers in union level.

The project has also considered unions in a range of agro-ecological zones, representative of the entire region, so that important testing and learning about what works can be scaled up in the future.

Producer group members will be poor smallholder (0.2 to 1 hectare) farmers, with priority given to women-headed HHs and women members of smallholder families. A small percentage of landless HH with enough cultivable land for gardens and farmers with more than 1 hectare of land will also be included, for a ratio of 70-15-15, In this guideline, entails the producers group and their type, benchmark of the producers group member, basic principle of producers group, process of group formation, group’s activities as well as group’s legal authority.It is expected that this guideline will help project teams to form the producers’ group through conducive methods that explained in different sections. This guide line is a combination of experiences from different projects such as SDVC of CARE Bangladesh, SETU-CARE of SHIREE, FFS-FAO/DAE,FFS-CARE- Iinterfisih I & II, Rural Livelihood Programs (RLP) of CARE Bangladesh as well as Gonokendra concept of DAM in some points .


1. Producers’ group perception in different context:

a) Bangladesh context: SDVC perspective: Strengthening the dairy value chain is a project of CARE Bangladesh that building a hub model for pro poor inclusive a dairy development in Bangladesh .This project works with 35000 small holders farmers in northwest Bangladesh to double their dairy related income . The project aims to address the major challenges through improving small holder participations in the value chain including farmer mobilization and education, access to market and access to productivity enhancing inputs in the remote areas . Strengthening the dairy value chain is a Bill and Melinda gates foundation funded program. The SDVC dairy producers’ group consist of 25- 30 dairy farmers including 30-40 % women. In each group , there are 3 farmer leader that selected by the group. Group leader receive TOT on dairy farm management, business management, accounts and book keeping for their group. Training are facilitated by the respective departments such as DLS and this training is generally organized by CARE Bangladesh SDVC project has support on learning session on saving group in order to understand the importance of saving in dairy business, usages credit in milk production and developing linkages with MFI within the working locations, developing linkages with agro inputs shop, milk processor etc. SDVC group organizes demonstration, vaccination camp by the “Livestock health worker”. Community of the respective project areas develops Livestock health worker for ensuring services for dairy milk production where CARE, BRAC, Bangladesh Agricultural University (BAU) provide their technical assistances as per need. All these activities are governed by the group operational committee consist of 6-7 members headed by president of the group. In addition to that SDVC facilities the collection points for the producers in order to reduce transportation cost, time , fair price as well as accumulation of milk product for bulk selling to a secured market .Milk Vita ,BRAC are the major buyer of the collection point and producers are more secured to have their price constant round the year. CARE organizes training on safe handling of milk for the milk collector and training are generally facilitated by Milk vita and BRAC dairy. Very recently SDVC has been introduced digital fat testing machine for identifying fat content of the product for individual producer to maximize their prices.B. International perspectives: 1In most industrialized countries, various types of farmer & grower groups have long histories in organizing cooperative marketing & service activities and in political & policy activism. Both

1

Jim Bingen, Michigan State University, Producer Groups: Becoming Full Partners in Agricultural Markets and Agro-Enterprises


crop & livestock producers in many countries participate in marketing assessment (cess or 'check-off') programs that are used for agricultural market promotion & development as well as research. Various types of marketing and service cooperatives as well have a long history. For years, wine grape growers in France as well as cotton growers in the United States have sought ways to improve their profits by managing their crop from production through processing. Most recently, a wider range of food crop producers (e.g., soybeans) have launched new types of cooperative agro-enterprises (sometimes referred to as "new age cooperatives") that allow them to benefit from various types of value-added activities by capturing or retaining more of the profits from their product. Moreover, many types of producer groups enjoy well-known histories of political advocacy & collective bargaining at both national and local levels) throughout the developing world & in the transitional economies, producer groups reflect a diverse history of political and economic organization. Some groups, such as white farmers in Zimbabwe & South Africa, historically have been highly organized & involved in marketing. Elsewhere across the sub-Saharan African continent, as well as in other regions, major export crops such as coffee, tea and fruits have served for many years as the basis for some very powerful producer organizations.

In addition, many countries have a tradition of Chambers of Agriculture that represent the political interests of (usually) more highly capitalized producers. Moreover, even the centralized, "command economies" of Eastern & Central Europe for over 40 years devised somewhat different ways of organizing producers that reflected each country’s agrarian political traditions. With increasing political liberalization throughout the developing world and in the transitional economies, the roles and opportunities for various types of producer groups are changing rapidly. In addition to seeking involvement in the delivery of agricultural services, farmer groups, and in some cases unions for collective bargaining, are emerging in several countries. The promotion or encouragement of viable producer groups, however, especially for small-scale, less highly capitalized, producers will be a critical component to the continued development of agricultural markets and agro-enterprises in an ever-changing global economy.It is clear that organizing producer groups is one important way for rural producers to address a range of constraints on agricultural production and marketing. Such groups may provide better access to sources of production equipment, supplies, technology and markets, as well as create the opportunities for improved market and policy bargaining.

2. USAID Agr. Extension project outline:The USAID Agricultural Extension Support Activity approach starts with empowerment of women and smallholder farmers, through development of producer groups around common value chain interests (Component1), so they can demand extension services, purchase inputs in bulk and sell their aggregated produce at fair market prices. Networking, linkages and access to information will be enhanced through new information communication technology (ICT) capacity (Component2), allowing farmers to make informed decisions about adopting new agricultural technology and farming practices, purchase of quality inputs, and sale of products.


A third component addresses (Component3) transformational change within the public and private extension services, so that they not only have the capacity to provide the most relevant and up-to-date technical information, but women and smallholder farmers have equal access to all government and non-government infrastructure and services in their area. The combination of these three interventions form the foundation for improved extension services to support promoting intensification and diversification of high-value cereals, commercial crops and nutrition-rich products (Component4), which allow farmers to increase household income and improve nutritional status.

Targeting population: Project will work with producers’ group. Producer group members will be poor smallholder (0.2 to 1 hectare) farmers, with priority given to women-headed HHs and women members of smallholder families. A small percentage of landless HH with enough cultivable land for gardens and farmers with more than 1 hectare of land will also be included, for a ratio of 70-15-15, respectively. Selection criteria will include poverty; food insecurity; at risk of migration; exposure to the effects of natural disasters and climate change (such as salinization of water/soil and loss of productive farmland); women/child-headed households; disabilities and social marginalization; widows/ separated with large number of dependents; lack of household assets; and/or access to cultivable land. Selection will be made by members of the community, using participatory tools such as wealth ranking. On an average around 5000 beneficiaries per upazilla will be selected for direct involvement in the project, totaling 200,000 beneficiaries. A total of 1440 agricultural extension workers receiving capacity building will also be beneficiaries. All farmers in the upazillas/unions will ultimately benefit from capacity building and strengthening of agriculture extension services and activities/information around climate change awareness and disaster preparedness, because everyone is vulnerable.USAID Ag Extension project will also use extension and producer groups as ‘platforms’ to facilitate complementary food security messaging on feeding practices and hygiene to improve overall nutritional status of targeted population.

PROJECT will use producer group meetings and extension services sessions to lead the community as a whole, regardless of economic status, toward increased awareness of health and nutrition issues related to dietary diversity and consumption of vitamin-rich vegetables, fruits and animal foods. This will also include promotion of personal hygiene and sanitation practices, and the need to protect the fragile environment, especially water sources.

3. What is the Producer Group in Ag Extension project? :

The producer group, which is discussed in this project proposal of the USAID Ag Extension project, is a platform for the primary targeted beneficiaries (small holders farmers and women) where the producers of the targeted communities households who produce and cultivate high


Participation from existing Gonkendra, if any

Participation from existing CBOs, if any

Participation from existing ICM/ IPM CLUBs, if any

Participation from WBA and study output/ VC based crop

Producers’ group+

+

+

Use Gonokendra concept Use EKATA concept Use SDVC concept

VisionGoal

Group’s Solidarity

ICT support

Agril extension services

Market linkage support

Training & other support

Ultimate achievement of project’s objectives

Setting up

value crops ( crops, livestock and fishery component) in a common manner and production scale, are geographically near each other and have the mutual desire to participate in a group as a business and service oriented community level organization, under a structure that is appropriate for the management capacity and the desire of the participating households.

Producer group has the objective of channelize to obtain and providing technical, financial and trading support to the production and business of each producer household through USAID project intervention , to provide high value crop production services with the goal of generating income for the group and to enhance the market competitiveness of its members. The producer group, by achieving increased efficiencies, developing solid business management, and improved product quality and production practices, can become sustainable producers where agricultural extension services is strengthened because of using ICT technology as well as capacity development initiatives of the extension agents and farmers.

3.1 Philosophy of Producers’ group


Identifying farm problems/ climate change issues, risks

Improve farmers knowledge that support food security,

nutrition & income

Improving Production scale,that ensure intensity and diversity Infrastructure

Improving Access to Markets with business knowledge

Improving Access to credit/capital

Farmers need assessment & seeking training opportunities

Using ICT and other technology to reducing

Farming costs

Sharing Experiences,Access to Technology,

ICT use

Benefits ofValue chain based Producer groups

Developing group action plan & priority on women engagement

Maintain group governance Group dynamics 1

Improve better linkages with inputs/ Extension agents etc.

3. 2 General objective of the producers’ groups in particular: Producer group is formulated under the accountability of the community, with

management in order to develop a functional system that access to agricultural extension services through using ICT, value chain approaches & project support.

Producer group also reduce production costs, increase product quality, strengthen members’ competitiveness, and promote improved market access.

As a voluntary agreement within members , that is self-managed and self-controlled, the group’s activities are flexible. For example, procedures for formulating and dissolving the group are simplified. Systems that are not complex but can ensure efficiency, equity and transparency. Group members can work together for production, storage, drying and processing

Producers rely on each other to create a strong solidarity . They return final profits to the group’s members, create favorable conditions to improve production & business practices, facilitate transfer of technologies & enhance access to capital for the group.

Beside collaboration for crop production and trade, producer groups can provide other agricultural services such as credit, inputs, training, access to market to members and other farmers

3.3 Role and benefits of producers group.Roles and advantages when participating in producer groups:

Note: The above structure will not always necessarily be working sequentially but will be working as a step based on group formation timing, availabilities of farmers and their need and requirement with type of farming practices, even there might be some new addition or alternation of step in their role to achieve their goal depending on mission and vision of the producers’ group.


4. Basic principles of Producers’ group.There are some basic principles or conditions that must be considered when establishing the development the role of producer groups in agricultural extension, markets & agro-enterprises

4.1 Constitutional and Regulatory

This producers’ group is an informal group of smallholders men and women farmer to be established for the period of five years with project support and initially it doesn’t requires a constitutional and regulatory process. Group will require a process of constitutional and regulatory conditions at the time of phasing out of the project support for the sustainability of the groups. This condition will allow the groups to protect themselves and facilitate freedom of organization at all level.

After the constitutional and regulatory system established, producers must have the right to create and associate through their own independently established interest groups; this includes the right to contradict and to make demands upon government policymakers.

More specifically, government regulations concerning the legal status or juridical standing, and matters such as registration from local authorizes or central, significantly influence the development and role of producer groups.

4.2 Group /Farm Type

After the WBA session of the communities which was identified in social mapping exercise at the beginning of the project, a preliminary farmer ‘s group was indentified with a combination of small, land less and big farmers in each union. Based on the WBA it is determined that the farmers groups are ready for the inclusion as producer’s group. These groups are from livestock, fisheries and crop farming activities in respective unions which needs establishing and assessing the role of producer groups, it is useful to consider the above three types of groups, based on farm type or the dominant economic base of the member farm enterprises.

USAID Ag extension project has an opportunity to work mainly with value chain based group to be identified by the value chain study. In some cases, there might be separate mode of delivery with single crop e,g only fish or shrimp culture group ( Mogla area of Khulna ) or only dairy value chain group in Barisal. The following options are outlined and this will fit into different locations as per need.

4.2.1 Option -1 Value chain based GroupsThis type of group tends to be built around the protection of members' interests in one cash crop. But, in contrast to the largely commercial groups, the members tend to operate small-scale, diversified production enterprises that are less highly capitalized. In addition, members of this type of group depend less heavily upon marketing a single commodity as the principal


source of farm income. A wide range of groups engaged in various types of contractual production and marketing programs are commonly found in this category.

This type of group means to understand the involvement of maximum one or two crop based of producer groups in agricultural marketing, agro-enterprises and in technology development. Producer groups whose members' enterprises are highly capitalized and who produce for a highly competitive market are usually interested in seeking ways to be involved in marketing and/or controlling important phases of agricultural technology development. Since the profitability of the members' enterprises depends largely on assured access to markets and on assuring the use of the most highly productive, and cost-effective technology, members should be expected to act as market entrepreneurs and to push their group to stay in front of the

4.2.2 Option-2 : Largely Commercial GroupsThe members of this type of group tend to operate largely commercial farm enterprises, and rely on the production and marketing of a single, cash crop or export commodity such dairy, shrimp, maize, vegetable, potato, pulses, as the predominant source of farm income. The members' farm enterprises are highly capitalized, and they depend upon high levels of fixed and liquid assets to assure their productive capacity. In addition, they depend upon marketing the principal products produced on the farm as a primary source of farm income. When groups are composed largely of producers who represent this kind of farm type, the member relationships can be seen as 'contractual' in nature as the group represents a collective opportunity for each member to protect shared, and largely commercial, interests. Similarly, these largely commercial-based groups will not only be more aware of how policy changes affect their role in marketing and technology development, but they will tend to have the capacity to take action to protect their interests. In addition, groups with highly commercialized interests tend to attract greater attention by government decision makers .

4.2.3 Option -3 : Subsistence-Oriented, low profile Farming Groups:A wide variety of sharecropper and landless farmers illustrate this type of group. These groups are usually poor resources community-based (e,g, fisherman community group in Barisal and Khulna) and they are built commonly around customary principles or ideas of promoting and protecting individual and collective well-being. Members operate farm enterprises that are characterized by very low levels of capitalization and they do not rely on the market as a principal source of farm income. Non-tradable commodities tend to dominate their production systems and labor may be the primary and often only asset. NGOs & government agencies tend to be involved in establishing these kinds of groups. There might need be included in Khulna and Barisal where some farmers are really don’t match with option -1 and option -2 characteristics and they might include as a member with value chain based group.


5. Benchmark of the producer’s group members:5 .1 Group membership : Group membership would generally be guided by the following a) proximity - farmers within a radius of 1-2 km from a para or one hemlet/community .b) common interest - commercial ....small scale producers have a common value chain interest such as same crop cultivator. c) group consist of men and women from community /para/hemlets where WBA is done.d) meet beneficiary criteria –at two essential and then supplementary ,in case of one essential criteria then meet 2-3 supplementary criteria e) membership per group ranges will be from 20-30 farmers from HH/farm families. There will be no male female ratio (?) in forming group members ( small holder farmers and women) as much as possible, maximize woman in a group members .d) More than one member can be selected from the same family if both ( man and women) are involved in agricultural activities where woman are actively engaged in managing livestock such as cow or poultry rearing / fattening/dairy value chain, etc. 5.2 Group leadership5.2.1 Leadership Positions are both for women and men. Since the project is aimed at enhancing women empowerment status, women are to be selected through selective method to leadership position in order to put them in better decision making positions, and to make them gain experience in leadership. Gender coordinator and field facilitators are responsible to ensure to facilitate the process of leadership for the producers group.5.2.3 Leadership posts in groups. This group will consist of 30 member general committee where 9 members executive positions and 21 general members positions.

Position Role The Group leader/Chairperson (1)

Presides over meeting and coordinates the group activities and responsible to accelerate the process and be a catalyst to self motivate other group members.

Responsibilities to be defined as per need or any project priorities.Deputy team leader /Vice Chair person(1)

Assists or represents the chairperson if he is away, assist members in coordination and maintain communication with service providers and extension agents.

General Secretary Cum Treasurer (1)

Keeps and writes minutes and other documents of the group

Collects, keeps and disburse group information ( such as market, inputs, services, extension agents visit schedule etc) to each and every members, disburse credit/profit/dividend etc as per group decision from and to members for group activities/initiatives.

Maintain logistics, resources and group record and maintain


communication with project people. Market payer and ICT organizer( 4)

Passes information to members regarding market initiatives, price inflation , middle man, inputs suppliers, extension agents training schedule, ICT related information ,mobile device and other group activities e, g. meeting, training seminars etc.

Farmer leader as group mobilize (2)

Regular communication with general members, identify problems, opportunities on business.

Training need assessment and convey with market player and ICT organizer, Organize campaign, vaccination, AI ,training and other events .

General members Responsible for own production, joint inputs purchasing, learning sharing and communication with ICT, mobilize and other members.

6.Levels of Organization

The coverage of a group's membership unit can also influence the role that a group plays in marketing and agro-enterprises within the value chain based products in respective community under UP .This group is community based organization with multiple choice of services from different extension services either from government or non government agenesis.Organizational decision-making is usually will take place at the group level with maximum participation of the members. It could be 1/3 of the total members. Groups are totally free to take any decision with consultation with extension agents and project people. Groups operate in a locality where members may share socio-economic relations or where people have face-to-face relationships and are likely to have multi-stranded connections through religion, community government and organizations, kinship, trade and other economic and social institutions. As 'informal organizations,' the types of groups are autonomous decision-making units.

7. Types of Policies:

The policies will not directly affect the activities of the group unless the group is registered in government authority. Generally when looking at farmer groups in agricultural marketing and agro-enterprises, it is useful to distinguish among types of policies in which different types of groups might become involved. Economic, fiscal and financial policies include the national and international dimensions of commodity and input prices as well as taxes and tariffs on goods and supplies. Technology policies deal primarily with the priorities for the development and use of biological, chemical and mechanical technology. Finally, institutional policies include both rules, norms and procedures such as those addressing land use and tenure laws, as well as the


agencies that deal with activities, including extension, research, marketing and the delivery of rural services.Some types of policy are more susceptible to influence by farmer groups than others. Most farmer groups find it difficult to influence all types, and few are skilled in influencing economic, fiscal and financial policies. The more highly capitalized, or commercially-based groups tend to have a comparative advantage over less highly capitalized groups in lobbying. But all groups usually find the need to create coalitions with other groups, NGOs, etc. in order to influence policy. In addition, different policies compel farmer groups to confront the countervailing pressures of other, and perhaps better organized groups in society. At the initial phase, policies are to observed on how these will work and affect positively to the group initiatives.

8. General activities to be undertaken by the producers’ groups

8.1 Meetings::Meeting is a common way to discuss issues of common interest and resolve problems and decision making process. The frequency and timing of meetings is decided by members while meeting venues are arranged to give each member a chance to host the meeting in order to benefit from advice from other farmers or a place could be used for meeting such as meeting room of “Gonokendra” of DAM where available.

General Secretary of the group is responsible for meeting organizing as well as keeping documents. Decisions would be recorded through group’s members decision making process in either one or more meeting. Group will decide the meeting schedule. 8.2 Training and technical learning session.

Groups help in identifying priority areas for training of group members and the Local Community. The group also mobilises people and makes arrangements for training. Training would be organized through the group is conducted in the locality, making it possible for interested members of the group and community people if any, to participate. Training environment should be a pleasant that would create space to arrange and gives farmers a chance to learn from each other. Technical session will be based on farmers TNA as well as ICT need assessment/ dummy testing tools and activities as defined as per project design.

Learning session would be associated with the principle of experiential cycle (ELC) through Farmer’s Field School (FFS).


The experiential learning cycle is as follows

Experiential Learning Cycle ( ELC)

1. Concrete experience: This is not always first step but for the new one can start from this stage with a solid experiences and knowledge through he/she can at least start with experiences that add extra efforts to doing smoothly work for the time being.[[

2. Reflection Observation: This is a ongoing process through which a close monitoring with understanding the changes takes place even any new outputs that led the whole process to reach expectation.

3. Abstract Conceptualization: This stage is very important for whom who really wants to get understanding with a concise manner of the subject matter. In this stage, forming a abstract knowledge and experiences that rely on further engagement.

4. Active Experimentation: In this Stage learner will test out and make experiments as learned and conceptualized in particular work in a new situation or as assigned.


8.3 Participatory Need Assessment (PNA) & Group action plan : The following major components are required to prepare group action plan:

Assessing farming problem/TNA /PNA/FINA and other need assessment: Identifying exact area for support for particular producers’ group as per study ( e, g

dairy value chain, Artificial insemination(AI), joint inputs & selling, shopping etc. Feasibility study (a study already done by value chain group) Developing Business plan for the group (At least two crop year ). Members’ assignment for ensuring group dynamics & liaison with agents. Learning contract with Extension Agents for Services , Access to market, Inputs and other companies as per business plan.

It is advisable to develop the plan, after a through PNA exercise with all the groups, as soon as it is formed in each union.

8.4 New trail setting and experiments

New innovation and introducing trail on new variety, breeding, inputs and technology transfer as climate resilient adoption techniques for the effected community due to climate change effects and other environmental degradations such as river erosion, drought, water logging and declining of top soil etc. This trail is associated with the collaboration of research institutions, extension departments, private companies on demand driven issues. Field Facilitator will facilitate the opportunity linking with the extension agents and the collaborative institutions as per agreement. 8.5 Reporting centers for ICT implementation

The group appoints one of its members, strategically located in easy reach by DAE extension, veterinary and fishery staff and project field extension staff/ officers, to receive record and pass on information on ICT regarding service requirement e,g market information, radio messages ,Artificial Insemination and treatment of animals, in the community. Non project beneficiaries are also free to utilize these reporting centers. The ICT assigned personnel as well as the Project people (FFs& FMs) routinely call at such reporting centers to check for any calls or support in the group.

8.6 Saving and credit schemes Income from production is not always stable but continuous hence farmers could be encouraged to start as join saving and credit groups. Credit for good and innovative /new business initiatives , credit for seed money could be a starter for the group members initiatives within the community to scale up proven and successful experiments on market, production and training events.


8.7 Revolving fund –Inputs/Training inputs/kits , volunteer honorarium etc There might be an initiatives that group members can start bulk input selling, arranging joint purchasing scheme and other fishery and livestock related inputs and drug for their community as well as group members. (2In Uganda, animal drugs and artificial insemination services are relatively expensive for small scale milk producers this necessitated setting up of drug revolving fund operated by the groups in conjunction with the project. The animal manager receives acaricide from the project and sales small amount to the farmers, returns the money to the project before getting more supplies. Farmers with sick animals not yet in milking are given credit for treatment and drugs. Money is paid back slowly after calving. Cash boxes have been introduced to enable village farmers pay their debts without coming to the Project office, which is far from them. )

8.7 Field days/Music and Drama and other encouraging events The project would organise music and drama activities culminating in annual competitions where project and non-project farmer's groups in the UP and Upazilla participate in performances at community, UP and Upazila and district levels. In such performances specific and educational messages on several topics, including nutrition, on dramatising events that promote dairy milk consumption/business, hygiene, which addresses milk handling, go a long way in sensitising the entire community to creation of a greater marketed for the their production from crop, livestock and fisheries farm

8.7 Marketing of the value chain based crops ( Dairy ,crops, fisheries etc) This activity to be guided by the group assigned person and this will be determined the volume of the product produced from the group members. There might be collection center in which all the products are to be accumulated for marketing purposes. This center will be operated by a functional committee consist of 5-6 groups’ representative. The role of the committee member is to accelerate the process of product marketing, inputs joint purchase/bulk buying selling/linkage developing etc as Market player and then report to each group president or vice president . The functional committee will be headed by market leader. There will be common systems of record keeping for products stock, selling, prices, buyer information and all sorts of information regarding collection point.

9. Producer group formation process 9.1 Rapport building: Rapport building is a part of the group formation process. Rapport building process will be started while team will be in process of PRA facilitation (well being analysis, social and resource mapping etc) in the community. This is the first step that field facilitator will follow at the begging of the group formation. Visit to predetermine target areas/villages and do a solid transect walk in the community and try to understand the people and their livelihood, common interest, common agricultural practice, demand and other project related issues. Introduce yourselves with project objectives and make gradual relationship with community few interested farmers/people which will become a strong rapport for your group formation

2

Jim Bingen, Michigan State University, Producer Groups: Becoming Full Partners in Agricultural Markets and Agro-Enterprises


9.2 Motivation. FARMERS, the desire for closer and frequent interaction among farmers involved in a common activity with new demands were the first and most important motivation for group formation. PROJECT: On the side of the project, the need to have producers’ groups ( may be value chain based group) to be realized for the purpose of Integrating interested smallholder’s women and men farmers from the community in

USAID Ag. Ext project. Reduce dependence on project but develop local, sustainable collective strategy in solving

problems through strengthening Agricultural extension service. Developing a sustainable market based production systems using extension service and

technologies such as ICT implications. Promoting collective actions in terms of bulk purchase of inputs & selling value chain

products. Learning contract with extension agents (DAE,DLS, and DoF) during the project period

9.3 Primary selection of farmers through output from WBA : Based on PRA exercise-WBA and findings and motivation result, indentify the target

beneficiaries as per project criteria and check with farmers interest and inform them informally that project is interested to work with them for the period of five years duration.

Consideration of well being class, ( small to medium class, maintaining 15:70:15 ). The ratio (15% 70% 15%) is important to maintain in each group level but this ratio is not

mandatory to maintain in UP level ,it could be discuss further with district or regional team to maintain either district wise or regional wise.

Match the value chain study finding with the farmers indentified by WBA and pre select the exact farmers who have the opportunities as per indentified value chain crop in the particular community

9.4 Inclusion meeting : Invite the farmers ( men and women) as per prepared final list for inclusion meeting to be

held in the respective community where Field Facilitator will share: Objective of the project and duration with mode of support, intervention and

implementation strategy . Share the result of value chain study and the consideration through which farmers have

become group member of this producers’ group Share the Field Facilitator’s role and project role in producer group Share the farmers role & responsibilities in the group (make an exercise participatory way) Make a FGD on Skills and knowledge sharing vise versa on respective value chain crop. Develop commitment of each group member ( verbal) Plan for formation of group profile, members role, activities etc Give an idea about the group’ executive committee and market functional committee.

Encourage them to prepare committee in either in this time or next meeting Ensure that other committee might evolve as per group’s need


WBA output / identified farmers’ category 1Identified individual crop /high value 2 Match individual crop status with study finding 3

Prepare primary list for group members 4Inclusion meeting & 5 share project strategy Make agreement with 6 farmers to form group

Initial discussion of leadership position/ 7 committee

Ensure support from Community people + UP and DAE+DLS and DoF

Way forward

If possible, share the GONOKENDRA,EKATA & SDVC concept ( in very brief) & possibilities of seed money/credit as revolving fund.

9.5 Final Group formation and development: Make a final list of farmers and then Make a informal agreement with the group members

for continuing group’s activities Share visiting schedule and time of extension agents/other support agencies Document and make schedule for committee formation and preparation for developing

group action plan. Make a learning contract with them for one year

10 Conclusion :

This producer group members and committees have equal freedom and rights to emend the terms and condition of the group formation and authority after two years of operation. There is no hard and fast or any rigid rule to make function of the producers group but there must have a common understanding and respect on groups vision and goal and project efforts, ICT based activities that influenced farmers production, increase of extension services as well as market facilities in order to sustain a functional extension system built for the producers group.


This guideline is prepared by Apurba Deb Roy, Community Development Specialist, USAID Ag Extension project, CARE Bangladesh –Dhaka/ Jessore.


final draft of producer group guideline 2013

Documents