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Improving Institutional Capacity:

Strengthening Farmer Organizations in the OIC Member Countries

42

the government, the National Agricultural Advisory Services, with a mandate to provide

extension services and capacity-building for FOs. In recent years, in part due to advocacy by

apex organizations (especially NUCAFE), the government has set up a Coffee Research Institute

and promulgated a nationwide comprehensive coffee policy.

With the market liberalized, 40-50 large buyers now operate in the country. This has allowed

apex bodies to negotiate and obtain a wide range of price quotes from buyers, ensuring

relatively high prices and prompt payment and driving livelihood improvements for members.

All parties interviewed expressed comfort with today’s market structure and indicated it is a

significant improvement over the CMB era. However, in the eyes of FO leaders, liberalization

has reduced the state’s capacity to provide direct services to farmers and FOs have had to

shoulder the provision of extension, training, credit, and inputs.

The government’s national policies and national-level institutions are well regarded by FOs

members interviewed but all expressed skepticism about the effectiveness of field-level

implementation. Access to government extension is a frequent complaint, as is the

politicization and unreliability of input provision. Potential improvements, as cited by the FOs,

include:

Commodity-specific extension services and a commitment to better funding and

accountability of such services at the village level. Failing this, direct budget support to

apex bodies to provide their own training and extension

More collaboration on export promotion, trade credit facilitation, and coffee research

Better access to finance and lower private-sector interest rates (now 25%+ p.a.),

potentially by requiring banks to lend a specific share of credit to the agricultural

sector or by establishing guarantee funds for agricultural lending

3.1.3.

Conclusions and lessons learned

UCFA appears to be a successful, fast-growing apex body that has maintained a commitment to

member ownership, accountability, and continuous improvement despite its growing size. It is

also a notable example of a donor-funded project that has been able to create community

ownership and independent momentum. As indicated by the profile and interviews, Kitenge

DC is a well-governed, accountable, and transparent district-level organization. While it

struggles in some aspects of service provision, it generally serves as an effective link between

farmers, the larger market, and the national apex body. The success of both the apex and local

organizations appears due to several factors, all of which provide potential lessons for other

environments:

A nested, fully participatory governance structure with transparency as a key principle

and an effective reporting, auditing, and independent disciplinary framework

A market structure that allows ample competition between buyers and places no

restrictions on trade or price discovery, allowing committed FOs to extract significant

value for their members

A diversification of services and provision of a holistic member service package that

goes beyond agronomic training and marketing to include financial literacy training,

access to credit, income diversification, and other services at the apex level

Kitenge DC is now at the scale where it will need to especially encourage continued buy-in and

participation among its members. Kitenge DC, as well as UCFA, may face challenges in the

future as they seek to expand members’ access to inputs and credit to incentivize membership

and minimize side-selling. In this regard, it appears important to ensure that the policy