Intermediary Actors

The second phase was characterized by the enrolment of local conventional actors within the organic network, such as unions and extension services. Once local pioneers had demonstrated the technical and economic competitiveness of organic production, the local agricultural advisors entered the debate and provided support for conversion. As a result of the pioneer phase, and with growing market demand, by 1995 the perceived technical and economic risks of conversion had been reduced considerably. What remained was the social risk and this was ameliorated through new intermediaries, i.e. the mechanization cooperative and a processing and marketing cooperative. 

These PO structure a specific business model within a supply chain, and they have roles and interests that are qualitatively different than the sum of individual interests of their members. It has other interests than individual smallholders. Not the farm gate price is the prime concern, but the margin on commercialization of production. Profit is not their prime objective instead they look foremost to ways to maximize the turnover of products from their members. Generating profit (or surplus) on economic activities is however a necessity as they struggle to meet ends as a intermediary enterprise pay staff pay organizational expenses of member consultations pay taxes etc. Their commercial activities are mostly realized in straight competition with private actors in the chain (middlemen). 

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