Aquaculture farmer organizations and cluster management: concepts and experiences

3.3
CLUSTER MANAGEMENT
Farm cluster management has recently been suggested by NACA as a successful 
mechanism to empower small-scale rural farmers and to improve aquaculture practices, 
including those related to health management for the safe movement of live aquatic 
animals. Farm clusters consist of farmers located in the same local area and often sharing 
the same water source. In some cases, the term “cluster” is synonymous with FO
(i.e. a cluster or group of farmers); however, in other cases (such as in Andhra Pradesh, 
India), a cluster refers to a cluster or grouping of FOs in the same locality. In the latter 
case, a cluster is an example of an informal multilevel organizational structure.
Whichever way it is used, the term “cluster management” refers to a group of farmers 
or FOs that collectively implement certain production standards. Cluster management 
has been used as a tool by NACA to facilitate the implementation of BMPs (see 
Box 6) for small-scale aquaculture development in a number of countries in Asia
(i.e. India, Indonesia, Sri Lanka and Viet Nam). Cluster management is thus used to 
enable self-regulation for the implementation of standards at the farm and processing 
level to ensure responsible and high-quality aquaculture farming in a specific locality. 
State agencies often do not have the capacity to regulate the numerous small farms 
that exist in aquaculture-producing areas. This inevitably means that monitoring and 
control of farming practices are effectively outside of the government’s capacity. This 
means that the avoidance of banned or controlled chemicals and the production of 
BOx 5
Attributes required by small-farmer groups wishing to form associations with 
other groups
• Good leadership, and active participation of members in group meetings and activities.
• A high degree of solidarity among members.
• Well-defined group income-generating activities and a high level of self-reliance
(e.g. they no longer need continuous support from their group promoter).
• The capacity to deliver valued benefits or services to their members.
• The ability to manage their financial affairs efficiently and to repay debts promptly.
• Sufficient group savings to cover their own needs and any risks or costs associated with 
forming and developing their network or federation.
• A demonstrated interest in intergroup cooperation to solve common problems that affect 
neighbouring groups.
• Confidence that intergroup cooperation will bring them concrete economic and social 
benefits.
Source
: FAO (2001). 

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Aquaculture farmer organizations and cluster management – Concepts and experiences
26
healthy and safe aquaculture products rely heavily on the behaviour of farmers and 
their willingness to modify their practices. Cluster management can thus provide 
mechanisms to introduce standardized, shared and improved methods for aquatic 
animal health management, including diagnostics, disease control and reporting.
Two examples, related to Case Studies 1 and 3, include the approximately 
24 000 shrimp farms in Thailand and the shrimp farming area of approximately 
70 000 hectares in Andhra Pradesh, India. It is clear that when such large numbers of 
farmers and areas under cultivation are involved, some form of farmer organization is 
required in order to deliver services, transfer information and ensure a degree of self 
and/or mutual monitoring for responsible practice. In India, NaCSA is facilitating 
the development of farmer societies made up of between 20 and 75 shrimp farmers to 
implement BMPs in order to reduce disease risk and increase productivity of shrimp 
ponds. The FOs or farmer societies within a certain locality are grouped together in 
BOx 6