Science and Technology Mailing List Archive

["Dick Tinsley" <<address removed>>]

I have been asked to make my contributions to the discussion through these 2 
themes.  It also took a couple days for me to get manually registered for these 
groups so I may of missed some of the discussion.

I have been one of the people voicing some major concerns about funneling most 
of our effort to assist smallholder through farmer organizations.  My biggest 
concerns have been with their long term sustainability extending 2 years beyond 
the end of donor funding.  Two years being sufficient time have reasonable 
assurance that an organization can continue on its own.

I suggested DFID undertake this study, as a means of assuring we were providing 
the famers with the most cost effective support system.  Someone commented that 
this was like riding a willing horse to death. I would disagree.  DFID's 
requesting this forum is an indication their concern abut the overall 
effectiveness of their investment in agriculture development. That is the type 
of commitment that is needed for a good objective study.  DFID are you 
interested?

In my concern about cooperatives I have questioned if the reoccuring overhead 
cost of cooperatives exceeds the profit margins of competing village 
enterprises.  Has studies every been done making this comparison?  My actual 
reference case study is from Malawi comparing ADMARC - a parastatal to a 
private trader.  I mention reoccuring overhead as opposed to the initial 
startup costs which are a reasonable donor contribution. 

However, I do note that if cooperatives are operating on pre-commitment for 
inputs and accepting produce on consignment the accounting requirements are 
extensive compared to a simple notebook for revolving funds of a private 
trader. This then introduces problems of trust which is difficult to establish, 
and convenience which I think is often under appreciated.  Trust also implies 
accounting transparency with takes a reasonable amount of education to follow 
and is also an area in which my professionals other then CPAs tend to shy away 
from.

I noticed and appreciated the list of advantages someone posted. While I agree 
that these are potential advantages, are they really the smallholder desire or 
our desire for the smallholders or were they leveraged as the only means for 
projects to advance.  Also, are they essential for smallholder to do business, 
or are they simply desirable or even luxurary concerns. 

Finally, I did note the contribution concerning the cooperative in Zimbabwe 
that has existed for some 40 years. This should merit some indepth studies as 
to how it has managed to do so, what market share does it command and how has 
it evolved over the 40 years.

I think the bottom line remains providing the smallholder with the most cost 
effective and convenient support systems and cooperative offer one possible 
means if they can be sustainable competitive with the alternatives.

Dick Tinsley