Producer organisations are the perfect tool for farmers to collaborate in distributing and marketing their products. POs have the potential to perform many different roles, benefit the members, and offer various services to their members.
As an individual farmer, one remains in charge of one’s farm.
But the PO can:
- help in the planning and increasing the profitability of the farm.
- bring structure to the marketing of the products of its members and increase collaboration between growers and other supply chain members
- concentrate the supply to counterbalance the bargaining power of buying centres of supermarkets and result in a stronger negotiating position.
- offer better or easier access to the high value-added market and provide the critical size for supplying larger markets.
- reduce market risk, result in lower transaction costs, and ensure innovation, quality, food safety and environmentally friendly production methods thanks to economies of scale.
- ensure better customer loyalty due to the range of products and services it can provide and its flexibility in responding to changes in demand.
- provide a generic quality policy with monitoring quality, traceability, food safety, etc
Producer organisation members will control the organisation’s activities to maximise member benefits.
A more detailed list of advantages can be found in the following table below:
