Farmer collectivization & agribusiness

Organizing farmers into self-help groups and cooperatives for enhanced income and sustainability.

5 Producer companies promoted
1,103 Farmers enrolled, 2023–24
100 Joint Liability Groups formed
500 Women in the Tharagampatti dairy FPC

Understanding

What farmer collectivization means

What is farmer collectivization?

Farmer collectivization refers to organizing individual farmers into formal groups, cooperatives, or producer organizations to collectively undertake agricultural activities and achieve economies of scale.

Our approach focuses on establishing Farmer Producer Companies (FPCs), Joint Liability Groups and agricultural cooperatives that empower farmers through collective bargaining, shared resources and integrated value chain development. Coodu Trust is empanelled as a Cluster-Based Business Organization (CBBO) by the Tamil Nadu Small Farmers Agri-Business Consortium (TNSFAC), and has promoted five producer companies — four in Dindigul and Thiruvarur districts with 1,103 farmers enrolled, plus the women-led Tharagampatti Dairy Farmers Producer Company in Karur.

We emphasize building sustainable business models that connect farmers directly to markets while providing access to credit, technology and quality inputs at competitive prices for enhanced income and sustainability.

  • FPO development
  • Collective bargaining
  • Value chain development
  • Market linkages
Farmers seated on orange plastic chairs in a produce godown with empty steel shelving, listening to a speaker standing beside a Tamil-language meeting banner, two office bearers at a table to his right
Members of a farmer producer company at a general body meeting in their own produce godown.
A printed project summary sheet headed “TNSFAC-Project”, carrying the Coodu Trust and SFAC logos and an illustration of a farmer in a straw hat, with panels for Supported By, Duration, Objectives and Activities
Coodu Trust’s own project summary sheet for its Cluster-Based Business Organisation work, supported by TNSFAC through SFAC — the sheet gives the project period as 2020–2025.

Why this work matters

The challenge on the ground — and our answer

The challenge

Alone at the farm gate

An individual farmer has little negotiation power and depends on intermediaries who take a cut of every sale.

Our response

Bargain as a collective

Enrolling 1,103 farmers into four producer companies, and 500 women dairy farmers into a fifth, gives them negotiation power, collective marketing and better price realization with less dependence on intermediaries.

The challenge

Costly inputs, bought one farmer at a time

Buying seed, feed and equipment individually leaves smallholders paying more for lower-quality inputs.

Our response

Buy in bulk together

Group purchasing and negotiation with suppliers give members access to quality inputs at competitive prices — plus shared machinery through collective ownership models.

The challenge

Locked out of formal credit

On their own, small farmers struggle to access formal credit systems and financial services.

Our response

Group lending opens the bank door

Collective guarantee and group lending models improve access to formal credit and financial services for every member.

The challenge

Raw produce, minimal returns

Selling unprocessed produce means the value addition — and the profit — happens somewhere else.

Our response

Farmer-owned processing

Farmer-owned processing units and integrated value chains keep value addition, product development and market positioning in farmers' hands.

At a glance

The essentials

Experience
Since 2015FPO awareness work began in Dindigul district in 2015–16
Farmers enrolled
1,103Across the four FPOs in Dindigul and Thiruvarur, 2023–24 and 2024–25; 1,082 with 257 women members (24%) in 2022–23
Empanelment
CBBO for TNSFACCluster-Based Business Organization under the Government of India’s 10,000 FPO scheme
CSR partner
Karur Vysya BankDairy Development Programme in Tharagampatti, Karur district, 2021–2025
Most recent delivery
Promotion of FPOs as a CBBOStill running in the 2024–25 annual report
Delivery model
FPCs, SHGs & cooperativesCollective bargaining, shared resources, value chains

Track record

Project portfolio, 2015–2025

3 agribusiness projects 2015–2025 · FPO promotion as a CBBO and a CSR dairy partnership
Programme Period Type Highlights Status
Promotion of FPOs (10,000 FPO scheme) 2021–2025 National scheme Four FPOs promoted as a CBBO empanelled by TNSFAC; 1,103 farmers enrolled Ongoing
Dairy Development Programme (CSR — Karur Vysya Bank) 2021–2025 CSR partnership Tharagampatti Dairy FPC — 500 women members, 10 collection centres Ongoing
Farmer Producer Organisation (FPO) promotion 2015–2016 Key activity Awareness in 10 villages of 3 blocks, Dindigul; about 600 farmers benefited Completed

Impact

What farmer collectivization changes

Collective strength

Organized 1,103 farmers into four producer companies and 500 women into a fifth, enabling better negotiation power and access to resources through group action.

Business development

Promoted five farmer producer companies, all of which have secured equity grants and begun trading in garlic, maize, paddy, groundnut, copra, onion, cotton and milk.

Value chain integration

Developed integrated value chains combining livestock development with farmer producer company models for comprehensive growth.

Market access

Created direct market linkages and improved price realization through collective marketing and reduced intermediary dependency.

Get involved

Support farmer empowerment

Join us in building strong farmer collectives and sustainable agribusiness enterprises that empower rural communities and create lasting economic opportunities. Your support helps farmers organize, access markets, and build prosperous agricultural businesses.