Evaluating the performance of farmer companies in Sri Lanka: a case study of Ridi Bendi Ela farmer company

Abstract

Farmer companies in Sri Lanka were established with the view to accelerating commercialization in non-plantation agriculture. However, due to various constraints they have failed to achieve expected objectives. Hence, in this study, we review the potential of a successful farmer company from the aspects of farmer perception, farmer company management and performance. A field survey and secondary published data were used for the study. The study revealed that farmer perception of the farmer company as a service provider and awareness gap between shareholders and the farmer company coupled with restriction on share capital ownership limited the ability of the farmer company to expand the share capital and its commercial activities. Therefore, there is a need to strengthen the capital base of the farmer companies to enable the expansion of commercial activities and attract more farmer participation. In this regard, the active participation of the agribusiness industry should be sought considering the need to preserve the independence of the farmer company.