Cooperatives For Staple Crop Marketing

Rural producer organizations (RPOs), such as farmers' organizations or rural cooperatives, offer a means for smallholder farmers in developing countries to sell their crops commercially. RPOs hold particular promise for Sub-Saharan Africa, where small-scale farming is the primary livelihood but commercialization of food crops is very limited. Using the experience of smallholders in Ethiopia as a case study, this research monograph identifies the benefits of RPOs for small farmers, as well as the conditions under which such organizations most successfully promote smallholder commercialization. The evidence from Ethiopia indicates that RPOs do increase farmers' profits from crop sales, but that the beneficiaries do not tend to be the poorest smallholders. Moreover, an RPO's marketing effectiveness is precarious: it can easily diminish if the number or diversity of its members increases or if it provides more non-marketing services. The authors conclude that RPOs have a role to play in the agricultural development of Sub-Saharan Africa, but that role should be complemented by other programs that directly target the poorest farmers. Further, the effectiveness of RPOs should be preserved by allowing them to follow their own agendas rather than being encouraged to take on non-marketing activities. The assessment of RPOs presented in this monograph should be a valuable resource for policymakers and researchers concerned with economic development and poverty reduction in Sub-Saharan Africa.

This book explores the evolution of agricultural marketing cooperatives within the framework of competitive strategy analysis. It also explores issues of horizontal and vertical integration and product differentiation by discussing new strategic directions that cooperatives might pursue.

The genesis of this book dates back a number of years to an annual meeting of the American Institute of Cooperation. Cooperative leaders at that meeting openly expressed their feelings that they would like a much stronger commitment on the part of our land grant universities in particular and other educational institutions in general to creating a greater understanding of cooperatives and their role in our economy. Since I was in agreement with this position, the course in general group action which I was teaching was changed to emphasize the role of agricultural cooperatives. The need for a textbook designed to help in this emphasis became apparent. This book is the culmination of an effort to meet that need. This book has been prepared with the student and instructor in mind. It is based upon experience gained from many years of interaction with students in a classroom setting, in discussions with them after class hours, and after they had finished their degree requirements and had taken positions in jndustry, government, or elsewhere. While objectives of the book have remained relatively unchanged over time, the sub stance and format as means of meeting those objectives have changed from time to time as a result of these contacts and discussions. The input xiv Preface xv of students over the years as reflected in this product is gratefully acknowledged.