A producers’ group is an independent legal entity, which is set up by producers (farmers or stockbreeders). This collectivity co-decides and follows joint action to achieve its goals and interests. Through the cooperation and efforts of its members, their earnings and interests are usually more significant than those of their individual efforts. Moreover, producers’ groups are eligible for aid and funding.
The formation of a Producer Group can be achieved with fewer producers while the formation of a Producer Organization requires more producers and an increased business capacity which is expressed by the value of the production.
The benefits for the members are many and can be summarized as follows:
- Better organization of the production and trading
- Improvement of the product quality and competitiveness
- Achievement of better prices and therefore better profit margin