Innovations in financing mechanisms for demand-driven agricultural advisory services
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FAO ;
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At the request of FAO, the Latin American Center for Rural Development (RIMISP) conducted a
case study on the financing mechanisms for the technical advisory services that the Nariño Dairy
Products Cooperative (COLACTEAOS) makes available to its members.
The purpose is to illustrate the experiences of COLACTEOS’s way of financing advisory
services, some of its major effects, and to identify lessons learned that could motivate and guide
other countries engaged in reforming their innovation systems and agricultural advisory services
in particular.
In order to carry out this analysis, information from available secondary sources was used as
well as primary sources gathered during a visit to the COLACTEOS headquarters. Interviews were
conducted with administrators, technicians responsible for providing technical assistance, staff
that oversee and link producers to financial entities and key informants, and individuals familiar
with the system and the Bogotá dairy production sub-sector.
The study reviews the policies for the agriculture and livestock sector in Colombia and the
evolution and current state of rural extension services. In this context, it describes the services
offered by COLACTEOS to its members, with an emphasis on technical advisory services and
the main financial services, along with the influence of some free trade agreements on the milk
sub-sector. The study provides a brief summary of the portfolio of services provided by COLACTEOS
and discuss the details of technical advisory services and financial services provided to producers,
and describe the relationships between technical advisory services and financial services. The
study describes the mechanisms for financing the technical advisory services, how the producers
participate in influencing the services and some of the effects on dairy production. Finally, the
study present a section containing conclusions and lessons learned.