Aquaculture farmer organizations and cluster management: concepts and experiences

Individuals
Ability
Motivation to work
Role
Effectiveness of 
the organization
Organization
Leadership
Group relations
Systems and 
Structures
Environment
Economic
Physical
Technological
Cultural
Social
FIGURE 1
Factors affecting organizational effectiveness
Source: 
From Stockbridge, Dorward and Kydd (2003).
Individuals
Ability
Motivation to work
Role
Organization
Leadership
Group relations 
Systems and 
Structures
Environment
Economic 
Physical 
Technological 
Cultural
Social
Effectiveness of 
the organization

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13
The case for farmers’ organizations
2.7
BENEFITS OF FARMERS’ ORGANIZATIONS
While collective action and FOs are not a universal solution to all the challenges faced 
by small-scale producers, especially those related to structural issues such as gaps in the 
market for services that are not being filled by the private sector, they can be used to 
overcome some of the scale and market challenges discussed above and provide important 
benefits to producers in a number of ways. FOs can increase the scale of individual 
farmers’ business activities, act as intermediaries or links between individual farmers and 
buyers and/or service providers, enable specialization of labour, and empower small-
scale farmers through cooperation and increasing their influence and voice.
These lead to the main economic and sustainability benefits of FOs – lower costs 
through economies of scale, increased access to input and output markets and services, 
increased bargaining power, and increased confidence and influence.