Farmer producer organization for aquaculture development

1. Role of Farmer Producer
Organizations (FPOs) in Promotion
of Inland Fishery
Presented By….
Mr. Mangesh M. Bhosale
(M.F.Sc., Fisheries)

2. Overview of Inland Fishery

3. World annual average per capita consumption of
fish and fishery products
(kg/capita)
11.5 12.5
16.7
1970s 1980s 2006
14.5
1990s
16.7?
2030

4. Annual average per capita consumption of fish and
fishery products of India
(kg/capita)
11.2 12.5
14.5
1995s 1999s 2002s
13.7
2000s
14.5?
2030

5.  110.5 million tonnes of fish destined for human consumption,
making an average annual global per capita consumption of 16.7
kg.
 In 2030, world population is expected to reach 8.32 billion. Whereas
India’s population will be 1.25 billion.
 If per capita consumption to be maintained, we will require 40%
more fish food.
 Production from capture fisheries have been levelled off since late
80s.
 Therefore, additional 40% fish food will have to come from
aquaculture!

6. Million tonnes
World Fish Production
(1951-2006)
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
1951 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006
Milliontonnes
Capture (marine waters) Capture (inland waters) Total aquaculture

7. Fish Production in India(1950-2006)

8. Global Aquaculture Production
Rest of World
Asia
0
10
20
30
40
50
60
70
1950 1960 1970 1980 1990 2000
Year
Productionquantity(tonnex106
)
China vs Rest of Asia
Rest of
Asia
China
0
20
40
60
1950 1970 1990
Year
Productionquantity
(tonnex106
)

9. Contribution to food-fish supply
0
20
40
60
80
100
120
1970 1975 1980 1985 1990 1995 2000 2005
milliontonnes
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Aquaculture
Capture
AQ share

10. Aquaculture Production
Aquaculture Production
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
Year
Tons
Crustacea
Herbivores
Plankton Feeders
Carnivores
Molluscs
Omnivores

11. Aquaculture Production India

12. Declining Growth Rate of Fish Production

13. Contribution of fish to human diet (2003)
22.0
18.7
10.0
9.8
7.7
6.7
19.4
15.5
0 5 10 15 20 25
Asia
Africa
Europe
Oceania
North and Central America
South America
LIFDC's
WORLD
Fish as percentage of total animal protein intake

14. Increasing Role of Aquaculture in Fish Consumption

15. Inland Fishery Resources in India
States/
UTs
Rivers &
canals
(km)
Reservoirs
(million
ha)
Ponds &
Tanks
(million
ha)
Flood Plain
lakes/
derelict
water bodies
(million ha)
Brackish
water
(million
ha)
Total
35
state
and UT
73.59 195210 2.916 2.407 0.797 1.24

16. Fish Production in Last 7 Years
Year Inland Fish Production Marine Fish Production
Inland
(lakh
tonnes)
Growth rate
(%)
Marine
(lakh
tonnes)
Growth rate
(%)
2006-07 38.45 2.37 30.24 7.39
2007-08 42.07 9.41 29.20 -3.44
2008-09 46.38 10.24 29.78 1.99
2009-10 48.94 5.52 31.04 4.23
2010-11 49.81 1.77 32.50 4.70
2011-12 52.95 6.30 33.75 3.85
2012-13
Provisional
56.32 6.36 34.30 1.63
India contributed 5.43% share in global fish production for year 2009

17. Role of Farmer Producer
Organization

18. Problems Faced by Farmers in India
 The per acre income from the majority of crops and
enterprises are continuously decreasing due to steep increase
in cost of production.
 The problems faced by the farmers….
 Delay in dissemination of technology and obtaining feedback
 Non availability of technology and untimely supply of inputs
 Non availability of labour and costly wages
 Market issues e.g. price variation
 Exploitation by middlemen
 Climate change

19. There are many
opportunities, but
challenges, for the small-
scale aquaculture farmer!

20. – Small-scale aquaculture farmers
characterized by:
• Small land areas
• Often use family labor
• Family scale operations/businesses
• Often based on family land (of declining area…)
• Vulnerability
– They are:
• >80% aquaculture farmers
• Major contributors to food production
• Major contributors to global farmed fish supply
• Highly innovative sector
• Important for rural development, communities,
employment, poverty reduction and environmental
sustainability

21. Why to organize famers into groups in
India
 Agriculture is the largest unorganized sector in India
 60% of people depends upon agriculture
 Hardly 5-10% farmers are progressive, educated, self
moving and innovative
 >40% rural youth is out of Farming
 Farmers don’t have any vibrant model to organize
themselves and link with market.

22. Farmer Producer Organization
 2014 is being observed as the “Year of Farmer Producer Organizations
(FPO)” by Government of India.
 The initiative taken by the Department of Agriculture and Cooperation of the
Ministry of Agriculture to mainstream the idea of “promoting” and
“strengthening” member-based institutions of farmers.
 As per the concept, “Farmers, who are the producers of agricultural
products, can form groups and register themselves under the Indian
Companies Act.”
 As per the statistics of Small Farmers’ Agribusiness Consortium (SFAC), out
of 302 registered FPO’s in India, 34 firms are functioning in Madhya Pradesh,
followed by Maharashtra with 32 and 22 in Rajasthan.
 The FOs provide an effective channel for dissemination of technology and
feedback to research and extension.

23. Types of Farmer Producer Organizations (FPOs)
 According to Chamala and Mortis (1990), FPOs can be grouped into two
types…
A. Community based and resource oriented organizations
B. Commodity based and market oriented organizations

24. Cluster level management
 Management of crowded farming areas by collaboration
among farmers and farmer groups:
 Formation of local farmer clubs
 Participatory approach to planning and decision making
 Collaboration water and disease problems
Cluster in Tanjavur, TN Cluster in Kundapur, KACluster in Valsad, Gujarat

25. Formation of farmer clubs - “Aquaclubs”
led to a number of benefits
Weekly meetings
Stocking at same time
Co-operation In creating
common facilities
o Promotion of BMPs
o Improved bargaining power and lower
prices buying farm inputs
o Cooperation in selecting and buying
seeds at reduced cost and of improved
quality
o Increased co-operation led to
improvements in shared common facilities
o Provided a stronger basis for partnerships
with government and business sector
(suppliers, buyers)
Farmer Producer Organization

26. Elements of success:
Participatory development and promotion of simple
on farm “better management practices” - “BMPs”
1. Pond preparation
2. Seed quality
3. Water quality
4. Feed management
5. Health monitoring/Biosecurity
6. Disease management
7. Better Harvest and post-harvest Practices
8. Record maintenance/Traceability
9. Environmental awareness

27. Win-win outcomes from improved
management:
 Increased yield
 Reduced crop risks
 Reduced cost of production
 Increased proportion of profit making
farms
 Reduced environmental impact
 Improved cooperation
0
100
200
300
400
500
600
2006 2005 2004
Demo
Non-Demo
Increased profitability
(Profit made on every
1000 Rs investment)
(Source: MPEDA/NACA)

28. Services provided by FPOs
 Marketing services (input supply, output marketing and
market information)
 Financial services (savings, loans and other forms of
credit)
 Technology services (education and extension)
 Educational services (business skill, health)
 Welfare services etc…

29. Current attempts to organize farmers in
India
 ATMA organize farmers into groups
 Innovation in Technology Dissemination (ITD) and NATP
evaluating success stories and replicating the models
 NGO’s organizing farmers groups
 NABARDS organizing farmers into SHG’s and FPO
 SAU,s through KVKs

30.  An example from India
 MPEDA/NACA/FAO collaboration, started in 2000
 Shrimp Farming
• Reduce production risks and improve
shrimp farm production
• Build farmer and farmer oriented
institutions
• Improve quality and market access for
responsibly produced shrimp
Attempts to Organize Farmers

31. • Farming system - extensive
farming system
– Avg. Production: 250
kg/ha/crop
• Alternate cropping – shrimp,
rice, other crops
• Farm areas < 2ha, and one-
two ponds

32. 2003
Village level
extension
1 Village
1 Aquaclub
58 farmers
108 ponds
58 Ha
22 tonnes
2004
Creek level
extension
6 Villages
7 Aquaclubs
130 farmers
254 ponds
173 Ha
40 tonnes
2002
Farm level
demonstr
ation
5 farmers
10 ponds
7 Ha
4 tonnes
2002
2001
Survey
365
ponds
Nellore
n
West
God.
Risk
factors
BMPs
Contract hatchery
Seed Production
Pilot trace-
ability
Progress in last 8 years
AP
KA
GU
2005
State level
expansion
3 States
19 Aquaclubs
736 farmers
1187 ponds
663 Ha
672 tonnes
Expansion to
other states
AP
KA
OR
GU
TN
Expansion to 5
states
2006
5 States
28 Aquaclubs
730 farmers
1370 ponds
813 Ha
870 t
2007-2008
National Centre
for Sustainable
Aquaculture
100 societies
2008-3000t?
NaCSA

33. • During 1970s, India has introduced “Dairy Cooperative” and it is
successful.
• 60% of milk produced in the country sold through organized milk
produced cooperatives.
• Provides supplementary income to over 70% of rural and urban
house holds.
Dairy Cooperatives

34. • Next steps
– Building partnerships within country and with “ethical”
markets in Europe.
– Develop practical models for small-scale farmer group
certification and share experiences widely
– Partnerships between business connections
– Build business case for investing in certification and market
access for small-farmers

35. • Preliminary lessons
– Facilitating organization of farming sector can
achieve positive change
– Change takes time.
– Considerations for market access
• Costs and cost recovery
• Standards, practicality and small-scale farmers
• Technical, financial and market services
• Supply chains for farmer
• Farmer oriented institutions
• Investment is required
– Government and private investment needs to be
oriented towards assisting the aquaculture
farming sector.

36.  International market and trade for small-scale
aquaculture sector:
 Production costs
 Business structures of export-oriented aquaculture
 Risk management strategies of larger traders and
buyers driving against small-scale farmers
Easier for big buyers to deal with big farms with
large product volumes!
Small quantities of product – inconvenient to
larger buyers
 Market access requirements and standards for
certification, traceability and quality assurance

37.  Andhra Pradesh - 49
 Bihar - 03
 Chattisgarh - 04
 Delhi - 04
 Goa - 02
 Gujarat - 25
 Haryana - 10
 Jammu-Kashmir - 01
 Jharkhand - 04
 Karnataka - 13
 Madhya Pradesh - 34
State wise FPOs - as on 10th Mar. 2014
 Maharashtra - 33
 Meghalaya - 02
 Orissa - 04
 Punjab - 07
 Rajasthan - 22
 Tamil Nadu - 1
 Uttar Pradesh - 33
 Uttarakhand - 44
 West Bengal - 07
 Total - 302

38. References
 C. Jaisaukar (2014). Farmer Producer Organization Yet to be Catch Up in India. The
Hindu, July 8, 2014. PP. 2
 Chamala, S. (1990). Establishing a group. A participative action model: Australian
Academic Press. PP. 13-38.
 GOI, 1999. 9th five year plan 1997-2002 vol. 1.
 NSSO: 2010
 OECD-FAO Agricultural Outlook 2011-2020.
 Population scenario 2030.
 Sharad Pawar (2010). Maharshtra lags in fish production. National Fish Festival,
Mumbai, ET Bureau, Dec. 28, 2010.
 TNAU Agriportal. Economic Survey, 2007 and ICAR, 2006 and www.vuatkerala.org

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