Under the Alliance Africa MCTC Conference theme of Cooperatives for Zero Hunger in Africa, the presentation addressed the question of "How can private sector, CSOs, UN Agencies and National Authorities co-operate to achieve SDG2-Zero Hunger. It specifically focused on leveraging the role of cooperatives in small-scale agriculture for achieving zero hunger and reducing poverty, outlining the pathway for change and key messages gleaned from an ongoing FAO study on producer organizations in service provision and market access. The presentation was made at the ICA-Africa "Cooperative Leaders/Managers and Ministerial Conference Technical Committee (MCTC) meeting", held in Maputo, Mozambique, from 29-30 May 2019.
Working together to achieve Zero Hunger: the central role of cooperatives in concert with other actors
1. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
Working together to achieve Zero
Hunger: the central role of
cooperatives in concert with other
actors
May Hani
Policy Officer – Rural Institutions and Services
FAO Social Policies and Rural Institutions Division
2. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
Outline
• Zero Hunger in FAO Strategic Vision
• Zero Hunger in Agenda 2030
• Who are the food producers?
• Global Trends 1990+
• Cooperatives roles and potentials
• FAO perspective
• What we have learned
• Policy implications
• FAO support to cooperatives and POs
• The way forward
3. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
Zero Hunger in FAO Strategic Vision
“A world free from hunger and malnutrition
where food and agriculture contribute to
improving the living standards of all, especially
the poorest, in an economically, socially and
environmentally sustainable manner.”
FAO Strategic Vision
4. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
Zero Hunger in Agenda 2030
4 out of 5 poor
people live in
rural areas
1 out of 9
people are
hungry
1/3 of food we
produce is lost
Women = 50%
of food
producers, but
less access to
resources and
services
Agricultural
growth can
reduce poverty
by half in low-
income
economies
Food and agriculture can contribute massively to achieving the SDGs
5. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
Who are the food and agricultural producers?
The Decade of Family Farming 2019-2028: key actors in pursuing the SDGS
Family
farms
90%
Non FF
10%
family farming Non FF
Family farms
< 1 ha
72%
1-2 ha
12%
2-5 ha
10%
> 5 ha
6%
Farm size
< 1 ha 1-2 ha 2-5 ha > 5 ha
Rural
areas
75%
Urban
areas
25%
World poor
Rural areas Urban areas
6. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
Who are the food and agricultural producers?
Constraints Consequences
Land fragmentation and dispersal High transaction costs (inputs, mechanization,
transport)
Small farm size and marginal areas Often overlooked by service providers and
infrastructure investment
Low production volume and low quality Low prices and limited bargaining power
Inability to keep with technology and postharvest
advancement
Low yield, high crop losses and inability to meet
market standards
Low income and limited savings Limited growth and farm investment
Limited assets Hard to access credit and finance for farm/business
development
Social norms and gender inequality, and
disproportionate work burden
Women are at a greater disadvantage
Vulnerability and precarious livelihoods Higher risks that are increased by the impact of
climate change and various crisis
7. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
Global trends 1990s+
Policies to reduce the role of the state in the national economy
Structural adjustments and reductions in public spending
Decentralization and/or privatization of public services others
Changing institutional landscape with multiple actors
Emergence of pluralistic service systems
Trade liberalization and international investments
New challenges for smallholders – exclusion, competitiveness, partiality of services,
accountability and coordination
8. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
Implications for agricultural development
1. Shift in roles – from the state as a single provider to a
pluralistic service environment
2. Shift in focus – from increasing productivity to
improving profitability
1. Shift in perspective – from linear solutions to a systems
perspective
1. Shift in approach – from emphasis on individual farmers
to strengthening of cooperatives and producer
organizations as key actors in service provision and
collective economic operation
9. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
Cooperatives roles and potential
“Connecting small-scale farmers to sources of knowledge,
inputs and finance, and to profitable value chains requires
action to strengthen producer organizations. Stronger
producer organizations will be better equipped to cope with
the increasingly rapid transformation of the developing
world’s rural areas.”
FAO. 2017. SOFA: Leveraging Food Systems for Inclusive Rural Transformation. pp. 71
10. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
Cooperatives roles and potentials
2nd ODA Forum for Sustainable Agricultural Development, 11th May 2018, Seoul, Republic of Korea
1. Provision of services
2. Viable clients & partners for service providers and market actors
3. Reducing transaction cost
4. Creating economies of scale and better market opportunities
5. Meeting market demands and standards
6. Collective accumulation of assets and feasible infrastructure investment
7. Negotiation of terms and contracts with service providers and market
actors
8. Voice and representation – Leadership and empowerment of women and
vulnerable groups
11. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
FAO perspective on cooperatives and POs
Access to Services
Direct services to members
Contracts with different
providers
Coordination and outreach
Access to markets
Reducing transaction cost
Creating economies of scale
Meeting market demands
and standards
Responsive Policies &
Institutions
Lobby and advocacy
Articulation of demands
Negotiation of terms
Results
Functions
Roles
Service Provision Collective economic operation Voice and representation
Thus cooperatives and producer organizations play a critical role in service
provision, market access and overall transformation of small-scale agriculture
12.
13. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
Critical factors to consider and role of actors
Enabling conditions for cooperatives to function – external environment
Risks of organizational failure – internal conditions
Organizational design & capacities – vision, identity, governance,
management
Horizontal & vertical linkages – networking and collaboration
Stakeholder capacities and coordination – mechanisms for coordination,
capacity of state institution to engage with other actors
14. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
FAO Perspective: What we have learned
Consider the enabling conditions – both internal and external factors
Respect the context and local realities - no blue print
Engage different actors – public, private, cooperatives and civil society
Plan and allow time for maturity – institution building is a long-term
process that takes commitment, resources and comprehensive capacity
development for all actors
15. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
FAO Perspective: What we have learned
Enabling conditions:
Internal factors – Organizational design, governance, capacities,
membership
External factors – policy and institutional environment
Services and infrastructure – technical, financial, business, markets
16. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
FAO Perspective: What we have learned
What is the role of the state and other stakeholders in creating the
right environment for cooperatives to function and achieve potential?
Long-term vision and policy and legislative coherence
Policy and institutional setting
Support institutions and infrastructure
Diverse services (market-oriented services)
Linkages and coordination mechanisms
17. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
Policy implications
Policy coherence and consistency - long-term vision for cooperative
development
Multi-stakeholder platforms for policy dialogue and participation
Coordinated efforts and multidisciplinary collaboration
Comprehensive and long-term capacity development for cooperatives
and support institutions
Recognition of the plurality of actors and service providers – creating
functional linkages and coordination mechanisms with a central role for
cooperatives
19. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
FAO support to cooperatives and producer organizations
Capacity Development
36%
Knowledge generation
and sharing 19%
Enabling environment
16%
Market linkages 16%
Voice and participation
13%
TYPE OF ACTION
20. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
The way forward
Supporting policy and regulatory processes - coherence and consistency
Strengthening the institutional setting - roles and capacities of actors
Appraisal of support service systems - service needs and gaps
Capacity development for cooperatives and support institutions
Generating evidence and facilitating global and regional exchange and
cooperation
21. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
FAO action and cooperation with development partners (examples)
1. SUPPORTING POLICY AND REGULATORY PROCESSES
Reform of law and regulatory framework on cooperatives and producer organizations:
- Equatorial Guinea (2015-2016);
- Egypt (2015-2017);
- Malawi (2015-2018)
2. DEVELOPMENT OF NORMATIVE TOOLS AND METHODOLOGIES
ANALYSIS OF INSTITUTIONAL SETTING
• Territorial/area-based social network analysis
• Value chain and food system analysis
• Competency-based assessment of cooperatives and POs
APPRAISAL OF SUPPORT SERVICE SYSTEMS
• Pluralistic service systems: market-oriented services framework
• Field guide and assessment tools for appraisal of market-oriented services (jointly with IFAD)
22. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
FAO action and cooperation with development partners
3. Capacity development and market-orientation
Strengthening forest and farm producer organizations through
Forest and Farm Facility
• Global multi-donor partnership (2013 – 2018+)
Strengthening capacities and market integration of cooperatives
and POs in member countries
• Lebanon (2018 – 2021);
• Bangladesh (2018-2020);
• West Bank and Gaza Strip (2017-2021)
23. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
5. GENERATING EVIDENCE AND GLOBAL EXCHANGE
Assessment of agricultural cooperatives and producer organizations – West Bank
and Gaza Strip (2017)
Prospective studies on the future of cooperatives – Morocco & Tunisia (2017)
Producer organizations and innovative institutional arrangements for service
provision and market access – Global study (forthcoming)
South-South and Triangular Cooperation and exchange – e.g. study visits for
cooperatives board members from Egypt, Morocco and Tunisia to France (2017)
Partnerships and cooperation with development partners and civil society – e.g.
COPAC, ICA, Agricord, SEWA, Urgenci
FAO action and cooperation with development partners
24. Alliance-Africa, Cooperative Leaders/Managers & Ministerial Conference Technical Committee Meeting, 28 – 31 May 2018, Maputo, Mozambique
Closing remarks
We can achieve Zero Hunger if we work together
“The SDGs are beyond any of us, but not all of us. They demand
action by everyone and call for new ways of working together.
Partnership, solidarity and a willingness to come together across
regions, countries, sectors, professions etc are the key enablers. This
is what works.”
Contacts: May.Hani@fao.org
FAO Social Policies and Rural Institutions Division