1. INTERNATIONAL FOOD
POLICY RESEARCH INSTITUTE
sustainable solutions for ending hunger and poverty Ghana Strategy Support Program
Collective Action in Farmer
Based Organizations
Rebecca Lee Funk
April 18, 2011

2. Why this study?
1. Renewed interest in establishing farmer based
organizations to achieve a range of outcomes
2. Substantial investments
3. Little understanding of whether they have been
effective
4. Only recently, the ministry attempted to find out
how many were there
5. We would like to throw some light on what they
do and how successful they are in what they do
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3. Information Sources
• A master list on the basis of information collected by MoFA and other
sources.
• A survey of 501 FBOs in 2010.
• Randomly selected in six regions
• Selection based on collective activities, membership size, and gender distribution
• Three instruments: group discussion, questionnaire, game
• Case studies of 24 FBOs in 2011
1. A subset selected from six regions
2. Selection based on collective activities, membership size, collective resources
3. Group interview focused on the nature of collective activities, cost and benefits,
management, and needs
• The findings presented here are largely based on the case studies.
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4. What Collective Activities are They
Engaged in?
2010 FBO Survey
Inputs Procurement
Marketing
Agroprocessing
Production
Community Development
Internal credit scheme
Welfare Services
Mutual labour support
0 10 20 30 40 50 60 70 80
% of FBOs involved in collective activities
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5. Collective activities Contd.
• Production (19):
• Group farming on a plot of land ranging from 1-15 acres
• Produce cassava, maize, rice, and pepper
• Processing (8)
• Working together to access machinery or serve bulk
orders
• Produce gari, palm oil, rice and shea butter
• Marketing (4)
• Working together to find markets – or pulled together by a
buyer
• Sell maize, milk, grass cutter and pineapple
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6. Why are they engaged in the activities?
• Production
• As a group they feel they have better chances of
receiving training, subsidies and grants
• Guided to work together to receive services
• Processing
• To capture freebies or meet large orders
• To obtain larger orders that give higher prices but
more demanding of quality
• Marketing
• Collectively marketing individual production to access
new markets or obtain higher prices
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7. How do they benefit from collective
activities?
• Production
• All but one have received training, and a few have
received subsidized inputs and grants
• None of them have been able to borrow from
commercial sources
• Plots are cultivated intensively, but on the whole they
may not be any better than individual plots; in fact,
they pay greater attention to individual plots
• Most sell it to generate group revenue
• Four of them distribute the harvest: less than a bag in
most cases
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8. Benefits Contd…
• Processing
• All but one have received a loan or a grant but not
from commercial sources
• They were engaged in viable activities
• They seem to be able to process more and also in
most cases obtain higher prices than they would have
otherwise
• Marketing
• They were engaged in viable activities
• Three of four groups received loans
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9. How strong was internal regulation?
• Rules depended on the nature of activity: if group
farming to demonstrate that they are a group,
individuals have no options but to participate; but
in profitable activities, participation was not
required but the benefits were in proportion.
• Groups were led by individuals with higher social
standing in the communities
• Secretaries were often the most educated
• Treasurers were women
• Women groups were sometimes chaired by men
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10. Internal regulation contd…
• They were pretty effective in enforcing rules
• They claim being able to sack, but it seems like some
of it was voluntary
• Those that missed work were often fined the daily
wage
• Organized work in such a way that peer pressure
could be exercised.
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11. What are the key messages?
• Farmers have learned that in groups they have
greater chances of receiving services and
freebies.
• Apart from those that are engaged in marketing
or processing, they are not receiving significant
benefits from collective activities; nor are they
engaged in viable economic activities.
• Producer groups are groups waiting for things to
happen to them – they all want a tractor
• Few have become bankable and self-sustained
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12. Questions?
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