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From Poverty to Power Green, Oxfam 2008 - weman

From Poverty to Power Green, Oxfam 2008 - weman

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FROM POVERTY TO POWERplanned mill. Panela production is the main source of income forthe rural population, they argued, and an industrial mill wouldprovide jobs for only a handful of the hundreds of poor farmersand their families who might lose their livelihoods. Furthermore,the profits would accrue <strong>to</strong> owners who never showed their facesin Patía.The campaign succeeded in blocking the project – fortunatelywithout violence. The inves<strong>to</strong>rs shrugged their shoulders and<strong>to</strong>ok their money elsewhere, but the experience had changed thefarmers. They had discovered not only that many more peoplewere willing <strong>to</strong> buy their panela, but also that they could makemore money by selling directly <strong>to</strong> wholesalers. Most importantly,they had discovered the power of organisation.Flushed with vic<strong>to</strong>ry, in 2004 a group of them established theirown trading organisation, which after initial difficulties was able<strong>to</strong> raise the price paid <strong>to</strong> producers by over 40 per cent. Theassociation plans <strong>to</strong> further increase producers’ income bytapping the more lucrative organic market.The panela producers’ experience exemplifies the challenge andpromise of achieving economic development in a way thatenhances, rather than undermines, small farmers’ power inmarkets and the need for farmers <strong>to</strong> organise if they are <strong>to</strong>influence the structure and rules governing the markets in whichthey operate.Source: C. Penrose-Buckley (2007) Producer Organisations: A Guide <strong>to</strong> DevelopingCollective Rural Enterprises, Oxford: <strong>Oxfam</strong> GB.Marketing is the core activity of most POs, whether they are fullblownco-operatives or looser associations. In addition, POs helpfarmers obtain cheaper credit and negotiate better prices for inputssuch as fertilisers and seeds. Some POs arrange or acquire processingfacilities and transport <strong>to</strong> markets (especially important in remoteareas), and provide the kind of training and technical assistance needed<strong>to</strong> move in<strong>to</strong> higher-value products and <strong>to</strong> guarantee the higher-qualitystandards needed <strong>to</strong> break in<strong>to</strong> more lucrative markets.136

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