MODULE 3a

1. Identification of needs for setting co-operation/partnership

Do you need to consider joining the co-operation/partnership? Ask yourself at least the following 9 questions. Not only will they help you to know whom to choose as a partner (if you have selected one /or been seleted), but also to help you clarify whether you need a partner at all.

  1. Do I need a partner?
  2. What is the optimal number of partners?
  3. What will our ownership structure of co-operation/partnership will look like?
  4. Do we have a common vision/goal at all?
  5. Am I willing to give up some control?
  6. Does our co-operation/partnership have a chance to be stable?
  7. How will we deal with a possible conflict?
  8. How will colleagues, family members and other business partners perceive a partner?
  9. What will be our strategy for ending co-operation/partnership?

After answering these questions, you should already have a clear opinion if you need and want a partner.

Some of the reasons why farmers form co-operative/partnership businesses include:

  • To improve bargaining power – Co-operatives/partnerships can provide groups of producers with marketing power more comparable to that held by processors and other market players. This also leads to cost savings when buying more inputs (fertilizers, seeds, spare parts, etc.).
  • To reduce costs - Pooling capital and resources through co-op enterprises can enable producers to access services, such as marketing expertise, that they could otherwise not afford alone.
  • To achieve economies of scale - By handling large volumes of product, co-operatives/partnerships can reduce the per-unit cost of marketing and processing for producers.
  • To increase returns – Because the surpluses generated by co-operative businesses are returned to producers on the basis of patronage, co-operatives/partnerships allow producers to capture additional profits beyond the farm gate.
  • To improve product and service quality – Co-operatives/partnerships can allow producers to coordinate the timing of the delivery of commodities to markets.
  • To reduce risk – Co-operatives/partnerships allow farmers to pool their production with that of other farmers to minimize price and market risk.
  • To obtain needen products and services – Often producers require certain services or products which privately owned companies are reluctant to provide due to the small potential sales volume or uncertain profits. Such producers may join together to form a co-operative/partnership to assure the availability of vital products and services.

Why do a needs assessment?

Farmers often ignore recommendations because the recommendations are not suitable, not profitable or too risky for the farmers. A good needs assessment starts with diagnosis of the farmers’ actual needs and circumstances and results in developing and recommending more appropriate solutions.

What is a needs assessment?

A good needs assessment combines discussion and farm operation/field observation to identify the actual problems facing farmers, the “true cause” of those problems and possible solutions based on discussion with coworkers and family members working on the farm. Recommendations are discussed and developed with coworkers based on the farmers’ resources and circumstances.

How do I do a needs assessment?

  1. Identify representative areas: Identify an area (or areas) to survey that are representative of the zone of work.
  2. Collect secondary data: Compare crop or animal requirements with factors such as topography, rainfall and soils.
  3. Plan the assessment: Identify who will help with the survey (include coworkers, family members working on the farm and other cooperating farmers).Visit the farm operation/field and discuss.
  4. Ask the coworkers or family members working on the farm what they perceive as problem(s). Visit farm operation/field. Discuss production, harvesting, marketing and pricing, etc.
  5. Analyze opportunities: Take advantage of field observations and input from discussions in order to assess opportunities. Engage as many people as you can. Each person could bring something different, valuable.
  6. Analyze and prioritize problems, identify the true cause of problems: Use input from discussions and field observations to assess and prioritize opportunities/problems (how many people are affected? etc.). Allow the different groups to prioritize differently. Viable solutions depend on correctly identifying the true cause of the problem.
  7. Develop solutions with farmers: Farmers need to accept solutions. Farmers are often conservative, although it is in their interest to discuss other possible solutions.

Example of an evaluation sheet – needs assessment - customize the sheet as needed for different crops or commodities:

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SELF-ASSESMENT

This questionnaire will allow you to evaluate the competences acquired by studying the module.

This project has been funded with support from the European Commission.This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
CO-FARM: Enhancing COoperation amongst FARMing entrepreneurs
Project Number: 2016-1-IE01-KA202-016870

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