The Farmer Ownership Model

The importance of the Farmer Ownership Model is about unlocking the tremendous economic potential of agricultural commodities to give farmers a chance to move out of poverty. By unlocking opportunities for farmers to engage at higher levels of an agricultural commodity value chain, the Farmer Ownership Model not only increases incomes but brings fairness and equitable power relations along the value chain leading to creation of shared value for all involved actors to be winners to ensure sustainability.

This new approach redefines the role of farmer organizations and transforms them from being merely organizational buyers of produce to facilitators, which serve farmers and increase the value that farmers receive from product sales.

Commodity processors are involved through a new, win-win relationship with farmers whereby, instead of buying raw produce from farmers at low prices and selling it on to the next player in the chain, they offer their value addition expertise and facilities to farmers at a fee. In doing so, processors enjoy higher operational capacity of their processing equipment and increased revenue. Simultaneously, this value addition allows farmers to retain ownership to sell a more valuable form of product that earns a higher return in the market.

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