Aquaculture farmer organizations and cluster management: concepts and experiences

6.3.4 Increasing market access 
This review has pointed to the increasing challenges faced by small-scale aquaculture 
farmers in accessing lucrative output markets, both in terms of meeting market 
requirements and with accessing markets directly. FOs provide a way of increasing the 
ability of individual small-scale farmers to meet market requirements through measures 
such as group certification and group implementation of BMPs and internal standards 
(see above), along with meeting other requirements such as facilitating traceability 
mechanisms. In terms of accessing markets directly, many small-scale producers have 
to settle for the prices offered by local traders, as they are unable to access output 
markets directly. However, by acting as a group, small-scale farmers are more likely 
to be able to access processors, wholesale and other markets further down the market 
chain by bulking their produce together to reach the scale necessary to deal with buyers 
directly, bypassing local traders and other intermediaries. Both the Samroiyod Shrimp 
Farmers Cooperative and the NaCSA’s farmer societies have been able to link up with 
processors and buyers and build partnerships, shortening the market chain and gaining 
higher prices. The increased ability and likelihood of FOs to achieve such partnerships 
with buyers presents small-scale aquaculture producers with an important opportunity 
to secure direct and sustainable access to output markets which is vital to their financial 
sustainability.
6.3.5 Increasing access to inputs and services 
Due to liberalization of agricultural markets over the past three decades, governments in 
developing countries have withdrawn from input and service provision. Consequently, 
limited access to high-quality inputs and services continues to be challenging for small- 
scale aquaculture farmers. FOs provide a significant opportunity for small farmers to 

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Aquaculture farmer organizations and cluster management – Concepts and experiences
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access inputs and services due to economies of scale and lower transaction costs, which 
make it cheaper and easier for businesses, input suppliers and service providers to work 
with groups rather than individual producers. Increased credibility associated with 
legally registered FOs also makes it easier for members to access services, especially 
financial services. The case studies presented in this review have shown a range of 
different ways in which FOs can facilitate access to input markets and services. The 
CBOs in Bangladesh procured bulk inputs on behalf of members on commission. 
Farmer societies in India have developed a contract hatchery system where they are 
able to access high-quality seed (and test the seed themselves), which is well worth the 
premium price they pay. The Samroiyod Cooperative purchases seed and feed in bulk 
on credit from its suppliers for members. In all these cases, access to high- quality inputs 
has translated to increased production and quality of product, leading to increased 
income and access to output markets by being able to meet higher quality standards. 
FOs can also provide services such as transport, credit and marketing to members, 
especially when private-sector service provision is lacking. FOs can also make it 
much easier for government and other organizations to deliver extension services and 
disseminate research outputs, ensuring they reach large numbers of producers. Farmers 
thus have increased opportunities to access extension, training and information services 
through involvement in a group. This has been the case with the dissemination of 
BMPs to aquaculture FOs and farmer clusters in India, Indonesia and Viet Nam.