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Producer Organisations: A Guide to Developing Collective Rural Enterprises
Chris Penrose-Buckley (2007)

What is the role of development NGOs in supporting producer organisations? What can producer organisations achieve?

This guide, produced for Oxfam GB, reviews Oxfam’s wide experience of working with many different kinds of producer organisations (POs), and summarises background information on producer organisations in general. Small-scale producers face many opportunities but also huge challenges in today’s markets. While it is important not to expect too much of producer organisations working in weak rural markets, there are several examples of successful facilitation by funding agencies. The guide uses case studies from El Salvador, Viet Nam, Malawi, Mozambique, Palestine, Albania, India, Colombia, and Georgia.

The guide highlights several factors necessary for success, including:
  • Social capital, which is the glue that keeps POs together. This can be built over time and depends on a shared identity or background, frequent interaction, good communication, and effective leadership.
  • Strong leadership for effective governance of POs, which agencies can help facilitate by developing management skills and business understanding.


  • Amongst a number of operating principles, the guide recommends that funding agencies should:
  • Try to support existing POs rather than forming new ones, as this is a challenging process and may not lead to sustainable organisations.
  • Focus on support activities that focus on developing the capacity of POs to manage and implement their activities independently.
  • Realize that promoting organisational independence involves promoting internal accountability between PO leaders and grassroots members before external accountability to the donor agency.


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    • DFID Programme Sector: Farmers’ Organisations; NGOs; Rural Development
    • DFID Programme Process: Capacity Building; Communication
    • DFID Programme Region: all; Albania, Colombia, El Salvador, Georgia, India, Malawi, Mozambique, Palestine, Viet Nam

    Publication Details

    • Publisher: Oxfam
    • Language(s): English
    • ISBN: ISBN 978-085598-575-2
    • Year: 2007

    Comments on gaps in or recommendations for the Key Documents database are welcome at: livelihoods-connect@ids.ac.uk


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