Aquaculture farmer organizations and cluster management: concepts and experiences

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Supporting farmers’ organizations
5.5
SOME CONSIDERATIONS FOR FACILITATING FARMERS’ ORGANIZATIONS
As noted above, different interventions will be needed to support different FOs 
depending on conditions such as the market context and FO objectives and capacities. 
Before development agencies such as NGOs, donors and others launch programmes 
of support for FOs, it is important for them to consider whether certain minimum 
conditions exist, as these may have important implications for the approach and 
resources required to facilitate FOs effectively.
BOx 13
Guiding principles for supporting the successful establishment and operation of 
farmers’ organizations (FOs)
• 
Develop independent capacity 
– Support activities should focus on developing the 
capacity of FOs to manage and implement their activities independently. Support 
organizations should therefore avoid implementing or managing any activities for 
FOs unless there are strong reasons for doing so that are supported by and are in the 
long-term interests of producers; the support organization builds the capacity of the 
FO to take over those activities at the same time; and both the support organization 
and the FO have agreed a clear process and timetable for handing over management 
and implementation to the FO.
• 
Promote independence 
– The support organization should respect and encourage the 
FO’s organizational independence and internal accountability between FO leaders and 
members before external accountability to the support organization.
• 
Prioritize business objectives 
– Support organizations should prioritize the development 
of a sustainable business above social objectives that may undermine the FO’s financial 
sustainability.
• 
Promote long-term sustainability 
– All support activities should contribute directly 
or indirectly to the financial and/or organizational sustainability of the FO. From 
the start, support organizations should approach all support activities with a clear 
exit strategy and a joint plan with the FO that sets out how it will become financially 
sustainable in the long term.
• 
Adopt a coordinated approach 
– Few non-governmental organizations or donor 
projects have the necessary resources and expertise to support FOs effectively on 
their own and, even if they do, an FO’s independence can suffer if it only relates to a 
single support organization. A coordinated approach involving a wide range of actors, 
therefore, lies at the heart of an effective FO support strategy.
• 
Take a long-term approach 
– Support organizations should accept that supporting 
independent FOs is a long-term activity that requires patience and a recognition of the 
fact that FOs’ development paths will not always be optimal from the point of view of 
the support organization.
• 
Set realistic expectations 
– Support organizations should be realistic about the expected 
results of their support activities, particularly in regions with limited competitive 
advantages. They also need to ensure that FOs have realistic expectations about the 
level and type of support that will be offered.
• 
Understand the market system 
– Support should be based on a sound understanding 
of the market system in order for FOs to be able to invest their limited resources in 
viable business and marketing strategies.
• 
Allow failure 
– Support organizations should resist the temptation to support FOs 
that would otherwise have no chance of succeeding as a business in the long term.
Source
: Penrose-Buckley (2007).

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Aquaculture farmer organizations and cluster management – Concepts and experiences
56
When certain conditions in the market environment and with FOs themselves are not 
present, it will require more support and time for FOs to become strong, independent 
organizations. This has implications for the type of support they require and should be 
kept in mind by development organizations when planning and prioritizing their FO 
support activities. Some of the main minimum conditions in the market environment 
include a minimum level of security, a minimum level of economic stability, political 
independence and limited government interference in FOs, a suitable legal framework, 
a minimal level of market development and a competitive market structure that is not 
biased against small-scale producers. FO characteristics should also be assessed. FOs 
must have some level of production capacity and the potential to produce a reliable 
surplus (without this, FO support programmes are unlikely to be successful). They 
must also have a minimum level of social capital and trust and understanding between 
members and elected leaders. FO members should also have some minimum level 
of business and other key capacity, without which the support process will be very 
challenging (Penrose-Buckley, 2007). 
There are a number of other key considerations that support organizations should 
bear in mind when planning FO support programmes. Support organizations may 
find it easier and more effective to support existing FOs rather than form new ones. 
Establishing new FOs from scratch is very difficult and is less likely than supporting 
existing ones to lead to successful, sustainable, member-driven FOs. As noted in 
Chapter 2, FOs will not provide benefits for many poor and marginalized groups 
and, as such, development NGOs and donors may want to provide complementary 
support to achieve more direct and targeted benefits to these poor and marginalized 
producers. Support organizations also need to plan their exit strategies with FOs from 
the beginning in order to maximize the chances of the FOs becoming autonomous, 
sustainable and successful organizations.
Box 13 (on previous page) gives a summary of guiding principles for NGOs, donors 
and others for supporting the successful establishment and operation of FOs.

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