completed· Education

Strengthen Agricultural Cooperatives and support commercial farmers

The Small Farmer Agriculture Cooperative Federation (SFACF) in Dhading district was established in 1993. I, it is an umbrella organization affiliating 37 Small Farmer Agricultural Cooperatives Limited (SFACL), one per Villa Development Committee (VDC). The cooperative has 20748 shareholders (11.535 women). Dhading district covers 50 VDC from which until now 37 are covered by SFACF. SFACF Dhading is a member of the Nepal Agricultural Cooperatives Central Federation (NACCFL). Main aim of NACCFL is to support small farmers to improve their livelihood. Through the formation of cooperatives, initially focussing on saving and credit, small farmers get access to the small farmers agricultural development bank (SKBB). The cooperative members can take loans under fair conditions to invest in agriculture. The SFACL are shaerholder of SKB Bank. NACCFL has developed a replication strategy that aims to involve those VDC where small farmers cooperatives do not exist yet . Under this strategy, groups, intergroups and finally a VDC level cooperative will be formed. Once the cooperative is meeting the criteria to be handed over to the bank, members have access to Agricultural loans. Main objective is to increase the income of the farmers by improving the production, increasing the skills of the farmers in entrepreneurship management and getting access to the markets. SFACF Dhading aims to reach 12 VDCs in Dhading district in particular: 6 VDCs in which the replication process of group, intergroup and cooperative establishment started last year (project 5905) and 2 VDC in which the replication will start this year; and 4 VDC in which the cooperatives are already functioning but where specific support will be provided to stimulate commercial farming. Focus of this project is to improve the agricultural productivity and support small farmers producing for the market by providing additional capacity building and technical support through local social mobilisers. At the end of the project it is expected that 6 cooperatives are formally registered cooperatives and handed over to the small farmers development bank (SKKB), and thus have access to finance. The total number of new groups formed will be 100 and 250 groups continue to receive technical support from SFACF Dading with an exclusive focus on improved productivity and access to markets for four selected Agricultural commodities: dairy(milk), goat (meat), coffee and vegetables. Several training and extension programmes will be implemented related to these four commodities, such as Farmer Field schools, technical trainings, marketing trainings etc. Attention is paid to further strengthening the primary cooperatives and the groups. This involves trainings reated to leadership, financial management, cooperative management etc. The establishment of the groups will directly increase the membership of SFACF with 6 new cooperatives and at least 1750 women farmers. This project is a continuation of project 5905, the first year of cooperation between SFACF Dhading and Agriterra. Main results of the first year projects is that in 6 new VDC the process of establishing Agricultural cooperatives has been initiated and alot of capacity building took place focusing on improving the productivity and income generating capacities of the members . Focus was especially on youth and women, providing opportunities to have accesto loans and skill improvemnet related to several income generating activities. Location of the Project Activities Dhading district of Nepal Goal The overall goal of the proposed project is to "improve the economic status of farmers through improved agricultural practices, access to the market and finance." The objectives of the project are as follows: 1. Strengthen new and existing cooperatives 2. Increase the agricultural production of cooperative members 3. Youth community and cooperatives members serve SF members with technical and entrepreneurial skills and knowledge. 4. Facilitate access to the market. 5. Strengthen the capacity of SFACF Dhading. Project Outputs 1. Two new SFACL, will be formed and 6 replication VDCs further strengthened and handed over to Small farmers development bank. 2. Cooperative members will have improved managerial skills so that newly formed and existing cooperatives will be managed effectively. 3. Improved production (quality and quantity) of four selected commodities by commercial/lead farmers of groups, resulting in better income 4. Commercial farmers sell their products in the market either individualy or through the cooperatives. 5. Board and staff of SFACF Dhading have improved their management skills and SFACF is able to provide better quality services to its members. Budget Total Budget:€ 110,162 Agriterra Contribution: € 96,587 SFACF and Community contribution: €13,574 Selected value chains are : dairy /milk; goat; vegetables and coffee. Activities: see project proposal for detailed description of all activities. Goal The overall goal of the proposed project is to "improve the economic status of farmers through improved agricultural practices, access to the market and finance." The objectives of the project are as follows: 1. Strengthen new and existing cooperatives 2. Increase the agricultural production of cooperative members 3. Youth community and cooperatives members serve SF members with technical and entrepreneurial skills and knowledge. 4. Facilitate access to the market. 5. Strengthen the capacity of SFACF Dhading.