UN agencies stress on importance of farm co-operatives

The role of agricultural co-operatives in poverty reduction and ensuring food security for millions around the world is one of the themes of the International Year of Co-operatives 2012.

Being part of a larger group, small farmers can negotiate better terms in contract farming and lower prices for agricultural inputs such as seeds, fertilisers and equipment. Also, they can secure land rights and better marketing opportunities, which they may not be able to do individually.

The importance of agricultural co-operatives has been stressed by three United Nations agencies, namely, Food and Agriculture Organisation (FAO), International Fund for Agricultural Development (IFAD) and World Food Programme (WFP).

It has been pointed out that co-operatives in general cover small-scale to multi-million business across the globe and operate in all sectors of the economy. They have an estimated 800 million members and provide 100 million jobs worldwide, with an aggregate turnover of $ 1.1 trillion that is comparable to the GDP of many large countries.

In Brazil, co-operatives accounted for 37.2 per cent of agricultural GDP and 5.4 per cent of overall GDP in 2009, and earned $ 3.6 billion from exports. In Mauritius, co-operatives are responsible for more than 60 per cent of the national production in the food crops sector.

Agriculture, including farming, forestry, fisheries and livestock, is the main source of employment and income in rural areas, where the majority of the world's poor and hungry people live. The agricultural co-operatives can support small farm producers and marginalised groups by creating sustainable rural employment. They will also provide men and women small-holders with services such as better training in natural resource management and access to information, technologies, innovations and extension services.

The UN agencies said in a joint statement that they will promote the growth of agricultural co-operatives through a slew of initiatives. For one, the co-operatives will be supported to form networks for pooling their assets and competencies to overcome market barriers and other constraints such as lack of access to natural resources.

The agencies will assist policy-makers in the design and implementation of policies, laws, regulations and projects and create enabling environment for the successful operation of the co-operatives. They will also help strengthen the dialogue and cooperation between governments, agricultural co-operatives, the international research communities and civil society representatives.

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