Assessment of Cooperatives in the Poultry Industry - 2013.pdf - Seda

Research Report: Addressing the Needs, Opportunities and Challenges of Cooperatives
and Collectively Owned Enterprises in the Poultry and Related Industries
5.2.3.
Improving Cooperative Competitiveness and Market Access
One of the key concerns of cooperatives and developing poultry farmers in general is their inability
to access a substantial market for their products. This was also highlighted by the CEO of SAPA, as
well as the DPFO. The challenge of poor market access stems largely from the lack of
competitiveness of these small businesses, the inability of cooperatives to produce large enough
quantities at a specific quality level, as well as low levels of collaboration between cooperatives. A
lack of clustering also limits the chances of extending the local poultry value chain through the
development of processing activities, such as an abattoir.
The following recommendations address the key concerns raised by cooperatives around
competitiveness and market access:
Encourage cooperatives to partner with other cooperatives:
Many cooperatives do not understand the potential opportunities that arise from cooperation,
how cooperation can be beneficial to their business, or how to go about building such
relationships. One of the challenges here is a lack of leadership in forging partnerships.
Cooperatives should therefore be encouraged to work with other cooperatives through a
number of enabling measures. One such measure is to ensure that training of cooperatives
includes information on how to work with other cooperatives and what the benefits may be.
Cooperatives should be informed of specific ways in which they can cooperate with one another
in fulfilling various shared functions.
SEDA could also play a role in identifying opportunities for cooperation and in facilitating the
establishment of cooperation networks. In this regard, the hosting of networking events or
meetings in communities with a high number of cooperatives will assist in partnership creation,
by providing a forum for cooperatives to meet, to discuss common challenges and to forge
productive partnerships. Cooperatives may partner together for any number of functions,
including shared use of transportation vehicles, shared purchasing of equipment, bulk buying of
inputs, sharing of knowledge and skills, etc. These networking events could also be utilised for
awareness creation and education around the different ways cooperatives can partner together,
as discussed above. Collaborations between cooperatives will work towards improving market
access through improvements in both the quality and quantities required by the market.
Encourage clustering and the formation of secondary cooperatives:
Developing cooperatives are greatly at the mercy of the market in which they find themselves.
This is especially the case if they are far removed from primary off-set markets or do not have
access to appropriate and affordable transport. Proximity and/or access to suppliers and
customers are vital. Accordingly, it is recommended that in areas with high development
potential for poultry production, or where a number of existing poultry cooperatives are
present, the concept of clustering be promoted. Clustering offers a number of agglomeration
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