Improving Institutional Capacity:
Strengthening Farmer Organizations in the OIC Member Countries
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The Tighanimine co-operative is powered by its strong governance structure. Its 68 members
participate in regular general assemblies and have the decision-making power for the
organization. A board of directors is democratically elected and changes annually. The co-
operative also has a treasurer who annually audits the operations and prepares a statement of
account, which is then sent to an external accountant who consolidates and certifies them with
a certified public accountant. However, given its small size, the external accountant is used on
once a year and is not a full-time employee, which may hinder continuous monitoring of
financial condition.
Challenges of Tighanimine
One area of weakness for the co-operative is in strategic planning. The group has no annual
plan or specific budget but rather, works in response to client orders. These orders are limited
to a fixed number of clients, which may restrict the co-operative’s ability to grow. The co-
operative also struggles with competition from another argan oil co-operative that sells its
product at lower prices and distributes any profit to its members.74 Due to its small size and
the competition on prices (which results in reduced revenue), Tighanimine also struggles with
providing value-added services for its members, especially in the area of inputs and financial
services. As a result, Technical Assistance and Other Services is its lowest-scoring category.
3.3.2. Policy environment
Morocco, under its Plan Maroc Vert (PMV) launched in 2008, aims to double the agriculture
sector’s value and create 1.5 million jobs by 2020. It has two focusses: Pillar I of the PMV
supports commercial farmers’ integration into domestic and international markets, while
Pillar II focuses on co-operative agriculture for small farmers. Under Pillar II, 550 projects
directed to 855,000 smallholders are expected to be implemented throughout Morocco by
2020.
While the government has no FO-specific oversight agency, the Office of Cooperation
Development (ODCO) is central to the PMV, as it is mandated to implement government co-
operative policy and is responsible for defining the incentive structure of co-operative
mechanisms. ODCO services include: awareness training with a co-operative’s target audience
and legal support during formation. Once incorporated, a co-operative can access other ODCO
services including management, financial, and legal training.
Pillar II projects facilitate the vertical integration from production to commercialization of
each agri-food chain. Farmer organizations are at the heart of these initiatives: Vertical
integration is planned through FOs and co-operatives, which the PMV looks to leverage in
overcoming land constraints; promoting farmers’ participation; disseminating finance,
knowledge, and technologies; risk-sharing; and improving marketing and commercialization.75
Under the PMV, the Tighanimine co-operative does indeed receive some support from the
government. On the organizational side, it receives technical assistance and knowledge
transfer to ensure that farmers are adequately represented in decision-making, and it also
receives funding from the Ministry of Agriculture to have its products certified as single-origin,
traceable Argan Oil, which gives the co-operative advantages in marketing. The Ministry also
74 With HACCP norms, Tighanimine take charge of the whole process of the argan oil fabrication from the extraction of the
kernels to the final product, rather than buying the kernels from the market.
75 The World Bank, Project Information Document for Morocco Social and Integrated Agriculture (P129774), 2013.