Part A

Forming an SFGA

Section 1
What is an SFGA?

A small farmer group association (SFGA) is a local-level, informal, voluntary and self-governing association of small farmer groups (SFGs). It is created and financed by the individual members of its affiliated groups to provide them with services and benefits that help improve their economic and social conditions.

This means that an SFGA is a "secondary level" organization of small farmer groups. It is made up of, and represents, two distinct levels of membership:

• its group membership, i.e. the groups affiliated to the SFGA
• its base membership, i.e. the individual members of all the groups affiliated to the SFGA.

There are important differences between a small farmer group and an SFGA. First, an SFGA serves a much larger membership than a single group. A typical SFGA is made up of from five to ten groups. Total membership ranges from 25 to 150 individuals, normally located in a single village or a cluster of neighboring villages or hamlets.

Second, the main decision-makers in a small farmer group are the individual members. In an SFGA, each of the affiliated groups elects a representative to act on behalf of its members. These representatives make most of the SFGA decisions.

SFGAs engage in any service or activity that its member groups decide upon. Usually, these services fall into four main categories: inter-group coordination and training; bulk purchasing of inputs and goods; bulk marketing of member group output; and pooled savings and credit services.