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.
