Ensuring Success of Producers Companies

Problems faced by Producers Companies Success factors

1. Difficulty of collective action Design Conditions

Member system
2. Free rider or agency problem
11. Optimum size, scope, technology
3. Non-balancing individual good and the 12. Internal locus of control
collective good 13. Core purpose central to members
4. Dilemma of democratic choice versus expert 14. Patronage-linked voting
choice 15. Right Transaction rule
Governance system
5. Shortage of appropriate human resources
16. Patronage cohesive governance
6. Small farmer (inefficiency) vs large farmers 17. Right to recall
(inequity) issue 18. Process of forming-storming-norming-performing
7. Elite capture Operating System
8. Social exclusion 19. Performance-linked rewards
20. CEO accountable to the board
9. Capitalisation problem
10. Governance and management deficit Social capital
21. Social capital formation
22. Nurturing community leadership
23. Capacity building
24. Shared Vision
Economic and market condition
25. Wealth creation through value addition
26. Sustainable production (Climate-smart agriculture)
27. Net economic gains from collectivization
28. Market landscape
Financing and financial management
29. Adequate capitalisation
30. Financial capital formation (financial performance)
Knowledge and infrastructure
31. Basic physical infrastructure
32. Knowledge and resource convergence
 Ensuring Success of Producers Companies
C4: Dilemma of C8: Social exclusion
C11: Optimum size, C17: Right to recall
democratic choice
scope, technology Direct relationships
versus expert choice
Inverse relationships
C7: Elite capture

C2: Free rider or C12: Internal

agency problem locus of control C10: Governance and
management deficit C20: CEO
C19: Performance-
accountable to the
linked rewards
C1: Difficulty of board
C13: Core purpose C14: Patronage-
collective action
central to members linked voting C16: Patronage
cohesive governance
C26: Sustainable
C3: Non-balancing
production (Climate-
individual good and the
C18: Process of smart agriculture)
collective good C24: Shared Vision
forming-storming-
norming-performing Legend
C21: Social CC: Success of FPCs
capital formation C15: Right
Problems faced by
Transaction rule C28: Market landscape Producers Companies

C25: Wealth creation Design Conditions

C22: Nurturing
C30: Financial capital through value addition
community leadership
formation (financial C27: Net economic Social capital
performance) gains from C29: C31: Basic
C23: Capacity building collectivisation Adequate Economic and
physical
capitalisation infrastructure market condition
C6: Small farmer C9:
C32: Knowledge and Financing and
C5: Shortage of appropriate (inefficiency) vs large Capitalisation
resource convergence financial management
human resources farmers (inequity) issue problem
Knowledge and
Infrastructure