Productivity and Producer Groups

Abstract

Productivity, meaning the efficiency of converting inputs into outputs, can be approached in a variety of different ways and at any point in the value chain. For a facilitation organization working at increasing the value created throughout the value chain, however, the focus often turns to one of the weakest links in the chain—the producers. After analyzing the Bangladeshi dairy value chain, CARE decided to dedicate significant efforts to improve the productivity of smallholder farmers not only because of its mandate to improve the livelihoods of the poorest producers, but because strengthening the first link in the chain would be a strategic investment to enhance the dairy sector as a whole. This is not to say that farmers and farmer groups became the sole focus of the project. It is imperative that value chain development keeps a holistic overview of the entire chain. However, the focus on farmers was undertaken with the knowledge that strengthening value chains for the benefit of farmers requires working with other market actors who also benefit. In Bangladesh, dairy farmers are often disconnected from information, services, and access to markets. This isolation affects farmers at all levels: economic, social, and political. CARE began, then, by setting out to help farmers organize into groups (or, in some cases, strengthen groups that the farmers may have already organized).