Alternative to Corporate Agriculture

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  • Workshop on

    ALTERNATIVES TO CORPORATE AGRICULTURE

    Case Studies from Bangladesh, Cambodia, India,

    Pakistan and Vietnam

    Shahidul IslamShahidul Islam

    Coordinator, KHANI Bangladesh

  • Who is the owner of the Agriculture & Food Production

    system? Farmer or Corporation?

    Fostered by so called green revolution technology based

    production System and associated Global policies like AoA,

    TRIPS of WTO the ownership of the Agriculture going into the

    grip of corporation.

    Background & Rationale

    The small, marginal and landless farmers worldwide are

    struggling much for their survival in this corporate controlled

    agriculture.

    Moreover, food system into the hands of corporation is a

    great threat for the food security of the millions of hungry

    people.

    Therefore, it is essential to find alternatives that will secure

    the livelihoods of millions of smallholders.

  • Case-1: Kendrio Krishok Moitree, KKM(A Farmers Alliance of Bangladesh)

    Introduction of KKM

    KKM was initiated in 2005 with formation of village based farmer organization which were associated in bigger association in the name of Kendrio Krishok Moitree (Central Farmer Alliance) in 2009.

    Key Features of the cases

    Farmer Alliance) in 2009.

    Since 2009 the organization is running independently with minimal strategic support from external agencies. KKM is a member of Asian Farmer Association for Sustainable Rural Development (AFA).

    A total 813 village based farmer organization that represents 21,556 households were formed in 31 unions (around 25 organizations in each Union Moitree) under 10 upazilas from 7 districts of Bangladesh.

    The concept of KKM is to develop farmers collective initiative for creating social enterprise/solidarity economy as alternative to corporate agriculture.

  • In the context of corporate control over seeds and geneticresources-

    KKM started seed business to regain farmers' control overseeds.

    Using quality seeds and producing crops through organicmanagement practices,

    Adopting Climate Resilient Sustainable Agricultural practices

    Major Activities of KKM

    Adopting Climate Resilient Sustainable Agricultural practices

    Have taken collective and mobile marketing initiative of theirhomestead production.

    Taken initiative for Collective grain banks from fistful of rice.

    Involved diversified income opportunities like small trade, handicrafts, nursery etc.

    Practicing for individual and group level savings

    Building solidarity with other national & international farmerorganizations and taking part in policy advocacy.

  • The learning and challenges of KKM

    External facilitation & capacity building support for organizing the smallholders.

    The farmers as disadvantaged people have potential to mobilize social capital and lack other forms of financial and human capital.

    If such comparative disadvantages are overcome by external support, the poor farmers can run the large institutions and business. business.

    The abrupt withdrawn from strategic partnership by the support institutions hinders the growth.

    It is evident that if the collective is large in number and function as a large market, they can provide quality goods and services with lower price, and be sustainable.

    The Krishok Moitree is able to provide better quality seeds and a viable alternative to corporate agriculture.

  • Case-2: Case Study on Collective Production &

    Marketing of Kampot Pepper in Cambodia

    Introduction of GI Kampot Pepper Kampot Pepper has been growing in Kampot province of

    Cambodia since long time ago which was destroyed by the Khmer Rouge in 1975, which land and people were monopolized in order to grow rice almost exclusively. in order to grow rice almost exclusively.

    Kampot Pepper Promotion Association (KPPA) is an inter-professional association which established on October 08, 2008 by Kampot Pepper producers and companies who involved in Kampot pepper value chain.

    KPPA comprises of 232 members by which 215 pepper producers, 01 farmer cooperative and 16 companies/traders.

    KPPA does not make any profits but its members do but take service fee @1,000 riel/kg of Kampot Pepper for using this name for meeting the operational cost.

  • Establishment of Cooperative

    Kampot Pepper Agricultural Cooperative (Kampaco) a farmer cooperative was established by Kampot Pepper producers on February 20, 2009.

    It plays very important roles in price negotiation with It plays very important roles in price negotiation with partner companies/traders, collecting and selling products of all members as well as sharing information and experiences related to production techniques and market situation.

    This cooperative is also a member of KPPA, so all Kampacos members are the members of KPPA.

  • Produce & Sell Raw Products

    Producers

    packaging

    Companies /traders

    Price set by

    Kampaco

    Production, Marketing & Pricing System

    Producers

    30% Sell at Local Market

    70% Sell at International

    Market

    Price is set by Kampaco, based on the calculation production cost then negotiating this price with the companies/traders

  • Facilitated by the state in collaboration with external donor agency & local NGO in implementation.

    KPPA is an organization jointly owned by the Producers & Companies + a farmer cooperative

    Learning

    Producers & Companies + a farmer cooperative in-between for managing the supply.

    Export oriented mono-crop based but the crop has demand both at domestic & foreign market.

    The producers have more bargaining capacity for getting higher price.

  • Sahaja Aharam is a Farmer Producer Organisationspromoted by Centre for Sustainable Agriculture (CSA) anNGO started building Farmers Cooperatives which arefederated into a 'Sahaja Aharam Producer Company'.

    The total beneficiary population approximately includes3000 small and marginal farmers and broadly covers 12

    Case-3: Case Study on Sahaja Aharam Farmer

    Producer Organisation in India

    The total beneficiary population approximately includes3000 small and marginal farmers and broadly covers 12districts with active coverage of 112 villages in Telangana,Andhra Pradesh and Maharastra.

    Major Activities

    Procurement, Storage, Processing & Marketing of Organic Farm Produce by cooperatives and other producers Enterprises. Production of Organic Inputs like seed, Compost, Biopesticides etc.

  • Learning

    Five years is a short time to make the institution viable financially and administratively.

    Now CSA is planning to establish Farmer Service Centres for every 4-5 Service Centres for every 4-5 cooperatives/FPOs which can provide integrated services on knowledge, inputs, market, administration and financials.

    In the end in order to better sustain FPOs in the long run all these components are needed as a package to strengthen the FPOs.

  • About 200 women in 28 villages of Fateh Jang tehsilof Attock district of Punjab province of Pakistan are predominantly associated with kitchen gardening through organic farming activities since 2012.

    Self help group was formed for promotion of

    Case-4: Case study on Ghaji Women

    Self Help Group in Pakistan

    Self help group was formed for promotion of kitchen gardening activities by adapting organic practices and collective marketing.

    It could be due to presence of Lok Sanjh Foundation (LSF), a national organization and member of Sustainable Agriculture Action Group (SAAG).

  • The Marketing System & Benefits

    Collective marketing/selling of the produce that ensure better price of the products and reduce the marketing cost.

    Collective marketing also help them to negotiate at their own prices. own prices.

    The self-help groups also sell their vegetable produce to the LSF through their organic shop which serves as a central trading point in Islamabad.

    LSF has their permanent customers of the organic vegetables produced by the women farmers of the Ghajigroup and other women farmers engaged in the production of organic farming in the project area.

  • Case-5: Safe vegetable production cooperative

    in Vietnam

    Introduction of Agrarian Reform in Vietnam

    Period 1955-1957: Land reform carried out.

    Period 1958 1960: Cooperatives were basically established including some credit cooperatives, buying and selling cooperatives, supply and sale cooperatives and so on.

    Thus, since late 1960, Vietnams agriculture mainly consisted of two economic forms which were small scale cooperatives and

    Thus, since late 1960, Vietnams agriculture mainly consisted of two economic forms which were small scale cooperatives and state-owned farms.

    Not many individual small scale economic forces left, mostly middle peasants, there were some rich farmers but also strongly called to involve in cooperatives.

    Period 1961 1975: two key economic forms existed in the Northern rural areas: cooperative economy with full and comprehensive collective model and state owned economy with farms,

  • Period 1976 1986: A campaign for re-organizing of agricultural production was promoted, changing the management system from basis to socialist-based big production by setting up agro-forestry stations and large-scale cooperatives. This campaign provided unexpected results, specifically:

    Period: 1987 to now: During this period the Communist Party of Vietnam regulated consistent and long-term policies on multi-elemental economic, market-based policies on multi-elemental economic, market-based economic development put under States management in favour of socialist orientation.

    a. Farmer households were self-controlled economic units, therefore, it required to assign lands, issue certificates of land use right as well as determine 05 long-term land use rights for them.

    b. Gradually renewing the old cooperative model.

  • Current cooperative forms

    Models of vertical association: In recent years, a closed model of production, trading, processing and distribution is popular. With this model, enterprise acts as an investor, production organizer to apply new technologies and guarantee output markets.

    Models of horizontal association: It means association between producers, business units with each other. between producers, business units with each other. Cooperatives, new-type cooperation groups are the typical ones.

    Model of cooperation groups:

    Cooperation group develops very fast in recent years because it meets demands of employees, especially the poor. This model meets and can solve some limitations, weakness of the household economy, such as lack of capital, tools, technologies and experiences; helps reduce risks and improve competitiveness as well as overcome some disadvantages of the market economy.

  • Safe vegetable production cooperative

    Some key features of the cooperative & recommendations

    Countries should own a legal framework for establishment of cooperatives or cooperation groups. Regarding this point as Vietnam has developed.

    Model of organizing and managing Cooperatives or Model of organizing and managing Cooperatives or cooperation groups should come from practical resources of the community as well as should not be inflexible.

    When producing, selling products and forming value chains for products, it requires relying on experiences, internal resources, self-control, and creativeness of farmers.

  • Safe vegetable production cooperative (contd.)

    It is not necessary to have a large scaled centralized production planning; it is also not necessary to apply a rigid management mechanism towards product assumption and value chain control.

    It is such mechanism that shortened the product value chain directly from producer to consumer.

    Only when producer is responsible for his/her product, trademark of the cooperatives will he/she gain the big profit.

    Governmental, nongovernmental support in certifying meeting production conditions, product quality, developing infrastructure, branding, creating sustainable value chain, introducing new breeds, seeds, technologies, etc, are prerequisite conditions for cooperatives development, for each of cooperative member to gain further interest.

  • General Recommendations

    External facilitation is a basic requirement for the development of farmers organization and solidarity economy/social enterprise that need to be ensured by govt.& NGOs.

    Reform the Existing Land Tenure and Market System are two essential issues for the govt. need to be addressed.

    The support package should be conceptual as well as The support package should be conceptual as well as material so that they could practice and get experiential knowledge.

    The support institution must continue the support unless and until it is proven that the farmers organization and their social enterprises are self-sustaining.

    The social impact of farmers organization and solidarity economy project must be documented.

  • Conclusion

    There are emerging evidences of alternatives in the countries.

    In agriculture it is globally recognized that the smallholder farmers including landless farmers are smallholder farmers including landless farmers are in fact, feeding the world.

    Therefore, voice has been raised globally to establish safeguard mechanism for the smallholders through the policy instruments international year of family farming, VGGT & rai.

  • Conclusion (contd.)

    The cases presented in the study are somehow mono-crop based, geographical pocket specific and very small scale except the case of Vietnam where state intervention is very active.

    State sponsored Cooperative was the key to rapid State sponsored Cooperative was the key to rapid agricultural development of vietnam.

    An alternative supply chain in favour of the organized farmers in the form of collective/cooperative or in the form of solidarity economy could be the key to survival of the smallholders under the regime of neoliberal market economy.