2.4.1. Types of Horizontal Linkages

• Ad hoc groups are usually local and informal, manage relations between members, and develop social capital.

• Producer societies/buyer clubs comprise members who live near one another.

• Community-based groups are focused on local development initiatives.

• Associations of producers, processors, traders or others are usually based on a specific product and require membership fees.

• Cooperatives are local or regional member-owned business organizations that offer a range of services and are registered with the government.

• Cooperative federations are regional- or national-level organizations of local cooperatives often involved in advocacy.

• Out-grower schemes occur when large farmers contract with smallholders to produce specific crops and may provide embedded services/inputs.

• Clusters are geographic concentrations of interconnected businesses, suppliers and associated institutions in a particular sector formed to increase productivity and competitiveness. Clusters generally comprise firms forming multiple intersecting value chains.

• Trade associations are organizations founded and funded by businesses that operate in a specific industry.

• Chambers (often called Chambers of Commerce) are local or national business networks formed to promote and strengthen communities, provide networking opportunities, advocate, and undertake political action.