The Procurement for Governance Home Grown School Feeding (PG-HGSF) project recently published the next document in its learning series. This study, 'Producer organisations: Going into business with formal markets' by Woody Maijers, Vijayender Nalla and Dick Commandeur, discusses linking smallholder farmers to markets through producer organisations.
Structured demand markets have the potential to provide smallholder farmers with consistent demand for certain types and quantities of food but are often inaccessible to the smallholder farmer. Producer organizations can serve as intermediaries between smallholder farmers and the constraints they face to reach structured demand markets.
PG-HGSF investigated the ability of producer organizations to serve as business entities against six indicators through case studies from both inside and outside project activity area. This learning document describes the role of producer organisations within the value chain, provides development partners with an approach to determining the competitiveness of producer organisations and suggests five key intervention areas to improve the competitiveness of producer organisations.