Transcript Document 7327499

Farmers Associations in
Macedonia
The WB-CEI-FAO Workshop
Sarajevo, May 24-27 2004
The need of macedonian farmers to be organized in
associations/cooperatives is due to:
• Transition to a market economy;
• Collapse of the former agro-combinats and big
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traders;
Limited absorption capacity of Macedonian market
(former Yugoslavian market 22 millions);
Problems regarding sale and payments;
Support in overcoming different problems of technical
and informative nature;
Realization of common inters through FAs;
History of FAs in Macedonia
• First FA in Macedonia is established 90 years ago, by
Bee- Keepers as the pioneers in this field, Association
established in 1910 at Veles.
• Noticeable support activities for the establishment of
FA’s started in 1995.
• The process was initiated by groups of farmers under
the direct support from the WB “Private Farmer
Support Project ”.
• The support obtained by the Regional Branches of the
National Extension Agency (NEA) through preparation
and distribution of Statute proposals and organization
of General Assemblies.
Farmers Associations in Macedonia
• More intensive establishment of FAs after
1999, facilitated by the Law on Association of
Citizens and Foundations of 1998;
• Established with initial optimism expecting
foreign funds and support by various donors;
Variable number of established FAs
• More than 300 farmer associations, according World
Bank Agriculture Sector Review, 2003;
• 200 local FAs function in 2003, according Agriculture
Report 2003, MAWFE;
• 178 local FA’s according FMF. The most of the FA’s are
organized into 38 regional and 9 national branch
unions under the Federation of the Macedonian
Farmers (FMF);
• New National Union of Organic Food Producers
(NUOFP) is establishing;
Status of FAs
• Most associations tend to be commodity based
for example as milk, grape, livestock, bee
keepers, goats, pigs, rabbits, poultry,
vegetables and arable crops production
associations;
• Some associations tend to privatize extension,
but most are commodity based;
• More than half of them only registered, but not
functioning;
The Law on Citizen Associations and Foundations, 1998
• It is not permitted to be engaged in business/economic
activities (FA can found limited liability companies and
shareholding companies);
• FA’s have a status of non-profit organisations though:
- The law comments on the possibility to have profits;
- Definition of term “profit” unclear, how profit is
determined, how far profits are allowed, utilisation of
profits (A weakness of the law to be clarified);
• Foreigners are not allowed to be founders of FA/CA,
according The Law on Citizen Associations and
Foundations Art.16, only as members Art.21
Structure of Association
• All members equal at the Assembly and select the
President and Steering Committee of the FA.
• An association is managed by a president, assisted by
a secretary.
• The number of members per FA depends on the type
of agricultural activity, but also on the reputation of
the President of the association (from 15-950
members).
• The members of FA’s pays an annual membership fee
from €5 to € 10.
The main activities of existing FAs
• FAs are engaged in distribution (sometimes sales) of
inputs obtained through the assistance of foreign
foundations;
• Providing of production inputs like seeds, fertilizer,
plant protection materials, live animal, animal feed,
building material etc;
• FAs provide education through vocational training,
workshops/seminars, study tours, etc. on agriculture
practices/marketing within the specific subject matter
of the association;
• Application of modern technologies in the production
process, sometimes implementation demonstration
trials;
FAs activities
• Staff training on management and business plan
development;
• Presentation at various local/ regional/international
fairs;
• Contacts with various donors and MAFWE;
• Co-operation with other FAs from the region and the
country;
• The more progressive associations developed activities
in the field of collection, processing and trade, but
only in relation to the function of the activity;
FA’s activities vary from place to place:
FAs and farmers relations
• Farmers have high expectations of the FAs;
• Farmers have demand much higher levels of openness
and transparency, especially regarding financial
contributions from donor agencies;
• Farmers show low levels of pro-active behaviour in
getting their FAs functioning;
• Difficulties collecting membership fees from registered
members;
Negative trends
• A lack of clearly defined functional objectives among new-
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established associations;
Dependence on donor funding;
Insufficient institutional/managing capacity and low level of
activities;
Inadequate services to members and lack of transparency and
information flow inside FAs;
Lack of assets, offices and office equipment;
Lack of agricultural products marketing and communication;
Lack of democracy, activity planning. recording;
Bad financial management, difficult collection of membership;
Negative trends
• The state doesn’t lease the state-owned land to
the FAs, because the FAs don’t have legal rights
and obligation like registered companies.
• The majority of members of the associations
sell their products individually to the buyers,
without mediation of the association, therefore
weak negotiation power and poor marketing
procedures;
• not organized approach to banks, saving
houses, local branches of MAWFE, donors.
Current trends
• Too much emphasis on building regional and national
associations in order to boost political influence;
• Not enough emphasis on using associations to
strengthen access to markets;
• Little direct return to association membership, the
impact and credibility of group-based activity is being
undermined;
• Macedonian Economic Chamber of Commerce also
claims to represent the interests of small farmers, but
has registered only one private farmers’ association;
FMF - Federation of Macedonian farmers
•Established 2002
•Under their umbrella:
- 9 National Associations;
- 38 Regional Associations;
- 178 Associations;
- Over 27,000 farmers;
The activities supported by GTZ and SIDA
through international NGOs
Activities of FMF
• Representation of the FAs in relations with the
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Ministry of Agriculture and other players;
Adopt Codex of the farmers and their
organizations;
Issuing informative bulletin;
Web page of the FMF;
SWOT analysis for 5 national associations;
Study tour and co-operation with Federation of
Swedish farmers;
FMF constraints
• The national bodies have been formed prematurely
without the important farmer support;
• Communication difficulties between FMF management
and the member associations (co-ordination,
participation, membership, etc);
• Activities on voluntary base (not engaged
professionals on salary) without proper skill, because
lack of finance;
• Waiting support from donors, the leadership has low
competency, administration ability is poor;
FAO experience with FAs
• Previous projects supported already established
FA’s, where the presidents of FAs limit the
proper functioning;
• With the new project, new FAS built on more
transparent, democratic and economic base.
• FAs need support at least 2 years for institution
strengthening and capacity building, democracy
in decision making and functioning;
FAO supports 3 new Associations in Horticulture
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- AGROS Kocani – 190 farmers/10 villages ;
- AGRO-MERIS v. Studenicani, Skopje 80 farmers/ 2 villages;
- AGRO-RECICA v. Recica, Kumanovo 24 farmers/1 village;
FAO support by Technical Advisor, responsible for planning,
development, co-ordination and capacity building;
President and Steering Committee are paid from the
membership for the activities;
The President and the Advisor (in future employed Professional)
activities:
- Group input supply, implementation of good agriculture
practices, institutional strengthening, negotiation with the
buyers for organized selling, implementation of Contract
Farming;
The provision for buy-out and quality control services in
Association fund;
Next steps for stronger FAs
• Institutional strengthening and capacity building,
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engagement of professionals;
Permanent education and awareness of FAs role;
Involvement of the associations into market chains;
Contract farming between farmers and
traders/processors, where is possible through FAs;
Introducing quality and food safety standards,
EUROGAP, traceability;
Organized input supply and sale of the commodities;
Support in new investments, equipment, finance etc.
Agriculture Cooperatives
In 1997 survey from 240 agricultural cooperatives re-registered:
• 100 cooperatives had ceased business;
• 45 were under bankruptcy procedures;
• 60 were more or less moribund but retained 1-30 employees
• 35 retained some land assets and active in agricultural
production.
In 2002 brought new Law on Cooperatives.
• Unfortunately the re-registration is still not performed, because
administrative and legal constraints of the status of founders
and employed, cooperatives property etc.
Status of Agro-cooperatives
• The former co-operatives are in unenviable
position at the moment;
• The legal framework for the structure of
cooperatives also needs to be thoroughly
updated to provide membership on a onemember-one-vote basis, with fees-proportional
to throughput, and management and
membership separated.