Usefulness of chain organisation

Emile CHONÉ

Directeur AGROPOL

Roles of organisations in an agri-food chain

• Represent members and respond to them

• Identify the area(s) of common interest for the whole chain

• Reach compromises among the involved parties

Why organisations ?

• Inside knowledge of the sector

• Balanced management of diverging interests

One important condition (among others)

• Time is necessary for mutual understanding and confidence between stakeholders

Who else can fulfill such functions ?

• Individual contracts– imbalance between partners– Some subjects cannot be managed at

individual level

• Public authorities– As actor or regulator– Regulating role is essential

Financing

• How to finance activities of collective interest

• Making fair balance between contributors and beneficiaries

Financing : the French law on interprofessions

• Those who pay are the beneficiaries, not the tax-payers

• Based on an agreement between the professional families in the chain

• Made mandatory for all the beneficiaries by the public authorities

The French oilseed chain

Elevators 780 in total50 for 50% of collected seed

80% volume = cooperatives

Producers

100 000

(oilcrops)

Crushers

2 companies for 99% of

capacity

FOPFrench Federation of

Oil- and Protein- Crop Producers

• Specialised Association of the main French Farmers Union (FNSEA)

• Represents and defends producers’ interests(150000 oil- and protein- crop producers)

• Driving force in the whole chain

• FOP only resource : voluntary fee, 0.31 €/t, collected through the storage enterprises

FOPmeans of action

• communication

• monitoring of the market

• lobbying of the public authorities

• EOA

• COPA-COGECA

ONIDOLpresent structure

Production Marketing

Processing

8 delegates 4 delegates

8 delegates

• Oilseed producers (FOP)• Planting seed producers

(ANAMSO)

• Co-operatives (FFCAT)• Private trade (FNA)• Seed companies (AMSOL)• Exporters (SYNACOMEX)

• Oilseed processors (GTOM)• Feed manufacturers (SNIA/SYNCOPAC)

ONIDOLmain results

Date crisis actions results

74-78 Erucic acidrapeseed

R&Dpromotion

Rapeseed oilimage recovery

83 CNTAcollapse

SOFIPROTEOLestablishment

SAIPOL crushs2 Mt/year

93 Set aside Biodieseldevelopment

New marketfor 800 000 t

94 Removinginterventionprice

Future marketstudies

MATIF contract

Collects the following “CVOs” :

• from growers for ONIDOL : 0.58 €/t for CETIOM : 1.52 €/t or 1.76 €/t for SOFIPROTEOL : 0.95 €/t

• from users for ONIDOL : 0.15 €/t

ONIDOLFunds collection 2003

• USDA administers a fund, provided for in the 1990 Farm Bill, named the Soybean Check-off.

• The soybean check-off is a programme aiming to promote US soybeans at home and abroad, supported by the farmers themselves. It is funded through a 0,5 % mandatory assessment on the net market price of each bushel of soybean.

• Destination of the fund: 50 % to work with state-level organisations

(Qualified State Soybean Board). 50 % to the United Soybean Board (USB)

United States soybean production support system

• USB : 62 farmer-directors representing soybean producing states appointed by Secretary of Agriculture.

• Financing : The check-off fund.

• Rules : To put the check-off to work, focusing attention on

Production Research, Communication, Domestic and International Marketing.

It finances organisations like American Soybean Association (ASA), mainly for external promotion

United Soybean Board (USB)

• The Canola Council of Canada is a non-profit industry association representing all sectors of the Canadian Canola industry (crushers, refiners, processors, exporters and shippers, canola grower organisations, and governments).

Canola Council - CANADA

• The Canola Council’s Board of Directors represents the portion of the chain interested in canola research, production and marketing.

• Board: Each industry group selects representatives from its membership:

3 Processors 3 Exporters 3 Growers 3 Directors + 5 additional as directors-at-large (any industry segment or government).

Canola Council - CANADA Organisation

To explore potential markets and to promote canola products all over the world.

To improve canola production through research studies, education and promotional programmes.

To collect information, make studies & disseminate information on production, marketing, processing, utilising and promoting canola products.

To maintain good public relations and to assist and cooperate with other organisations in the furtherance of the objectives of the council.

Canola Council - CANADA Rules of the council

• Activities are funded through 4 main sources:

A levy paid by exporters and crushers on each tonne of canola at the time of exporting or crushing in Canada (collected on an entirely voluntary basis)

Programme grants received from corporate and grower organisation members (mainly canola grower check-off commissions in each provinces)

Government programmes (federal and provincial)

Funds raised by Council programmes (e.g. annual convention, sale of publications…)

• 2003 budget was Canadian $ 2,771 M.

Canola Council - CANADA Financing

Which assistance to emerging professional associations?

• Promote relationship and twinning with similar organisations, in particular in Western Europe

• Promote participation in common bodies at international level, in particular those linked to EU (COPA-COGECA)

• Training on:– CAP and agricultural policies in general– Agri-food chain functioning– Market functioning