Identifying the Factors Influencing the Performance of the Farmer Producer Organizations Dealing with Value Addition

Aims: Identifying the factors influencing the performance of the Farmer Producer Organizations dealing with value addition.

Study Design: Exploratory research design.

Place and Duration of Study: The research was carried out in the state of Tamil Nadu. Primary data was collected from a random sample of respondents.

Methodology: The study was conducted in the state of Tamil Nadu which examines the factors that influencing the performance of the FPOs dealing with the value-added products. The data was collected from 60 FPOs through random selection process, the sample respondents were CEOs and Board of Directors of the FPOs. Personal interview was taken to gather primary data. Exploratory factor analysis was conducted to find the factors that influence the performance of the FPOs dealing with value added products in Tamil Nadu.

Results: This study identifies that the cumulative variance accounted for by the study amounted to 56.606 percent, the factors exerting substantial influence encompass Innovative Product Development, Integration of E-Commerce, Strategic Product Pricing, Establishment of Collaborative Partnerships, Emphasis on Distinctive Branding & Packaging, Advancements in Processing Facilities, and Assurance of Product Quality. Furthermore, factors like Augmented Market Access, Effective Management of Demand-Supply Dynamics, Optimization of Inventory Holding, Accomplishments in Certification, Efficient Handling of Working Capital, and Access to Credit and Financial Support were determined to have a moderate level of influence. Lastly, factors contributing to the enhancement of Turnover Rates, Incorporation of Valuable Customer Feedback, and Pioneering Product Development were identified as having a lower degree of influence

Conclusion: From the study it can be concluded that operational factors are the most influencing factors for the performance of the FPO that contributes to the 36 percent of the contribution of the performance.