completed· Livelihoods· Education

Generating income through improved agribusiness services to members

SFACFL Makwanpur provides services to its members with the main aim to improve the income of the farmers. Last years efforts focused on promotion of commercial farming. At the same time, service provision and lobby/ advocacy by the federation should generate part of the income of the federation as well, so cost sharing of activities is now the norm. The federation looks for earning models for itself. Cooperative marketing of agri products by the primary cooperatives is the next challenge. This pilot programme will focus on supporting nine active primary cooperatives in starting marketing practises. Profitable business model of marketing through the federation, with an increased net profit of 25% in 2017 .The second objective is that the federation continues to improve its financial sustainability by generating internal funds and differentiate it outside funding from other sources. For internal resource generation input supply to its memebrs coudl be an interesting strategy, to be actively explored as there are many opportunities. Like seed supply and compost supply. Expected outcome is at least one agreement or MoU singed. one Lobby and advocacy skills of the federation wil be further developed through NACCFL and will results in access to government and donor grant of estimated 100.000 Euro. Short project description for 2017 SFACL Makwanpur provides nonfinancial services to its members with the main aim to improve the income of the farmers that are member of the Agricultural Cooperatives. Main objective is to work towards the financial sustainability of the federation by providing quality services to its members focussing on improved farm profitability and positioning the cooperatives actively in the agricultural value chain . This is done in various ways:1. Marketing support services to six member organisations, in which the federation will support for marketing of high quality agri-products: Turmeric powder; maize flour and honey. It fits very well with the government programme: one village one product OVOP. The federation will receive a margin on the sales and if this concept works it can be rolled-out in the future to other cooperatives. 2. Support member cooperatives for cooperative output marketing of potatoes in three member cooperatives. These three cooperatives have identified potato as the main commercial crop and are willing to improve the cooperative business by cooperative output marketing and value addition in the future. This year continues to lay a firm foundation at farmers level for commercial farming (record keeping and bench marking), resulting in higher production, productivity and profitability and cooperative marketing concepts. 3. ENZA Seeds: The second year of cooperation between ENZA Zaden and DAF Makwanpur will be continued in this year too. This comprises technical assistance by ENZA to 45 seed producing farmers of three selected agriculture cooperatives (Gogane, Bajrabarahi and Namtar) . Crops selected for the Seeds are chilli (akabare kursani), beans and broad leaved mustard. 4. Organisation development: - improve income through quality services focussing on agri business; - develop earning models; - improve governance and financial management; - linking and networking with input suppliers (potential business deals with input suppliers) and;- access to training and research funds (NUFFIC, ESFIM).Ad 1. The federation has proven experience with marketing of agri-products through their own shop for the last two years (no external support) . This year, a profit of about 15.000 Euro was realised. This positive development and an increasing market demand for farmer and coop products is promising. Six primary cooperatives with 90 active supplying farmers and roll out of Farmer field School to 120 farmers will join and benefit directly from this pilot programme. Added value of the federation is taking lead in marketing, providing quality services related to production, packaging, processing, etc. at the cooperative level and marketing and sales at federation level. A business and Marketing Development Officer will be recruited at DAF level to support DAF and primary coops in this project. Expected outcome is: profitable business model of marketing through the federation, with an increased net profit of 25% in 2017. Primary coops successfully source quality products and fair margins are defined among various value chain actors.Ad 2. The potato focused cooperatives will improve the production and productivity and one pilot project (see 17bjra-6544) on output marketing will serve as a pilot. If successful, this model can multiplied in other cooperatives as well. For both components recordkeeping training and farmer field schools or benchmarking trainings will be conducted at the field level. This will results in an expected 10% increase in productivity or profitability. Ad 3: further development of high quality seed lines : the high quality knowledge on seed multiplication on improved local seeds to a group of farmers. This will contribute to good quality local seeds available in the local market, contributing to better production, less dependency on other seeds and helps a source of income for the farmers.Ad 4: Main themes of Agriterra are addressed. Progress must be visible at the end of 2017 in terms of increased income from membership fees/contributions, improved governance and financial management. Approved support from several other (funding) organisations likes ESFIM and expected one other agreement. Attribution to Agriterra 2020 goals:30% coverage of operation costs FOs: Aim is to increase this to 20% (base line 2016 = 44%)30% increase in paying member (increasing membership fee)755 unique farmers reached through business and extension services. In case deals are made with for example the compost enterprise this number can increaseYouth: DAF Makwanpur is interested to establish a youth council. This council will address the issues of the youth unemployment and act as a pressure group in the cooperative to provide support for the youth who really like to engage on agriculture aspects. Main objective is to work towards the financial sustainability of the federation by providing quality services to its members focussing on improved farm profitability and positioning the cooperatives actively in the agricultural value chain . This is done in various ways:1. Marketing support services to six member organisations, in which the federation will support for marketing of high quality agri-products: Turmeric powder; maize flour and honey. It fits very well with the government programme: one village one product OVOP. The federation will receive a margin on the sales and if this concept works it can be rolled-out in the future to other cooperatives. 2. Support member cooperatives for cooperative output marketing of potatoes in three member cooperatives. These three cooperatives have identified potato as the main commercial crop and are willing to improve the cooperative business by cooperative output marketing and value addition in the future. This year continues to lay a firm foundation at farmers level for commercial farming (record keeping and bench marking), resulting in higher production, productivity and profitability and cooperative marketing concepts. 3. ENZA Seeds: The second year of cooperation between ENZA Zaden and DAF Makwanpur will be continued in this year too. This comprises technical assistance by ENZA to 45 seed producing farmers of three selected agriculture cooperatives (Gogane, Bajrabarahi and Namtar) . Crops selected for the Seeds are chilli (akabare kursani), beans and broad leaved mustard. 4. Organisation development: - improve income through quality services focussing on agri business; - develop earning models; - improve governance and financial management; - linking and networking with input suppliers (potential business deals with input suppl