Working together to achieve Zero Hunger: the central role of cooperatives in concert with other actors

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

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

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

Zero Hunger in Agenda 2030
4 out of 5 poor
people live in
rural areas
1 out of 9
people are
hungry
Yet 1/3 of food
we produce is
lost
Women = 50% of
food producers,
yet have less
access to
resources and
services
Yet, agricultural
growth can
reduce poverty
by half in low-
income
economies
Food and agriculture can contribute massively to achieving the SDGs
Paradoxes we deal with

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

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

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 (public, private and civil society)
Trade liberalization and international investments
New challenges for smallholders – E/In-clusion, competitiveness, impartiality of
services, accountability and coordination

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

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

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

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

PATHWAY FOR CHANGE: PRODUCER ORGANIZATIONS IN SERVICE PROVISION AND MARKET ACCESS
E N A B L I N G C O N D I T I O N S
COOPERATIVES & POs
SUSTAINABLE PRODUCTION & IINTENSIFICATION and IMPROVED LIVELIHOODS
(Productivity, Profitability)
Long-term vision
and policy coherence
Financial and non-
financial services

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

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

Enabling conditions:
 Internal factors – Organizational design, governance, capacities,
membership
 External factors – policy and institutional environment
 Services and infrastructure – technical, financial, business, markets

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

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

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

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

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

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