Submitted to: U-landshjelp fra Folk til Folk, Norge. FARMERS CLUB COOPERATIVES PROJECT REPORT January December 2016

Transcription

1 Submitted to: U-landshjelp fra Folk til Folk, Norge FARMERS CLUB COOPERATIVES PROJECT REPORT January December 2016

2 The project at Glance 1 Name of the project Farmers Clubs Cooperative Dowa 2 Operation area Dowa 3 Project Leader Duncan Jamali 4 Address P.O. Box 2732 Blantyre, Malawi 5 jamaliduncan@yahoo.com 6 The project idea and who the project reaches The overall objective of the project is to build capacity of farmers organizations/cooperatives to produce high quality crops and access competitive markets with the aim of increasing profitability through farming. In 2016, the project was working with 4000 farmers as direct beneficiaries in their 4 cooperatives in TA Chakhaza, Msakambewa and Dzoole. Due to beneficiary spill over, there were about 2000 (50%) indirect beneficiaries surrounding the cooperatives who were benefiting from markets created as result of this project. This year of 2016, Word Food Program gave a minimum target of 20 metric tons to each cooperative as a minimum bar of production so that they sell through African Commodity Exchange (ACE) who has warehouse storage and Auction Holding Commodity Exchange (AHCL). People at the project 1Project manager, 4 Farming Instructors, 1 cashier and 2 security guards 7 A brief history The first year om implementation of this projects was ending in November 2015 and this first year period has been extended to February 2016 so that some of the project goals can be consolidated. The second year was to run from March 2016 to February 2017 but implementation was shortened. The project ended in end September The main funding partner for this project has been WFP. 2

3 PROJECT ACTIVITIES The following are the key activities which have been carried out: Training of the cooperative in budgeting, planning and executing of business plans The project trained 4000 farmers from their respective cooperatives in Gross Margin Analysis, budgeting, business planning and execution. The training enabled farmers to calculate all the inputs that could be spent on a particular crop grown, by summing up all expenditures. A production estimate was made based on area grown and yield potential of the crop. A probable selling price was then determined to be a guiding selling price. The cooperatives developed their business plans. Each cooperative though has different execution rate of activities on their business plans. Train 4000 farmers in financial and credit management including repayment This was another type of capacity building with the aim of increasing farmers ability to manage their finances from various sources such as sales or borrowing. A total of 400 cooperative leaders were trained and these organized follow up trainings in their respective FOs to train all the remaining members. So far, financial institutions like Vision Fund and Micro Loan Foundation were approached and they came for presentation to farmers about their services and products. Farmers are analyzing both service providers in order to select the better institution to transact with. However, the farmers are convinced that they will have potential to repay if they obtain the loan. The Village Saving and Loans groups have been doing their savings and loans and that has increased the financial base to the members. The data revealed that the increase in income as a result of running small business from the VSL capital income is 20% among the 50% of the targeted farmers. 3

4 PROJECT ACTIVITIES Train and support 4000 farmers in the 4 farmer organizations to use improved farming skills on their farms (crop diversification, conservation farming, agroforestry, vetiver planting) For sustainable farming, issues of agroforestry and vetiver planting were being promoted. Farmers inter-planted their agroforestry trees such as tephrosia and grilicidia sepium. The survival rate is at 85%. The trees help to fix nitrogen in the soils hence improved productivity. The project also encouraged farmers to plant vetiver along their garden as one way of dealing with soil erosion where a total area of 325 km was covered. There was good collaboration with forest department and TLC during tree planting period since we are all partners in development. Conservation farming has been promoted where 65% of farmers adopted the technology and put into practice. There are 2000 (50%) farmers who are practicing agroforestry either as household woodlots or as individual planting. As one way of ensuring food security the project facilitated crop diversification, which all 4000 farmers are practicing - growing more than 5 crops Train the 4000 farmers to grade their produce to meet WFP quality standard focusing on drying, cleaning, sorting, post- harvest handling and storage In a competitive market systems, quality becomes a major component. The project ensured that farmers are well trained across the value chain. Farmers were trained that proper drying i.e to the right grain moisture content reduces post-harvest losses. They were also trained that the well dried grain should be graded thus cleaning and sorting and be kept in dry places with adequate ventilation. The result of the training increased farmers capacity to production of quality maize which met standards for WFP market. Training of farmers in Produce Quality and Quantity Management (value adding, warehouse receipt systems The project promoted issues of value addition in the project. The idea was to have products that would be more competitive on the market. As the result of the training in value addition, farmers were able to clean their maize and put in good package. WFP however since also provided their packaging bags which were labelled with WFP logo. WFP is purchasing the maize from these farmers and using it for food distribution to those families who have been targeted for food aid due to the poor harvest I previsous agriculture season. 4

5 PROJECT ACTIVITIES Training farmers in warehouse receipt system Agriculture Commodity Exchange (ACE) has established a facility called Warehouse Receipt System. Upon agreeing with ACE to sell their commodity the farmers can get an up front payment of up to 60% of the value of their crop - and the rest when they have agreed with a buyer. It is a such a type of micro financing which is promoting that farmers sell via the structured markets and not to local vendors. The project has trained the farmers in how to utilize the facility and its requirement. Linking farmers to reliable market During the reporting period the project has also linked the farmers to other buyers such as Export Trading Group in the selling of soy. The majority of the farmers were engaged in soy production and managed to produce quality products following the extension service got from instructors. In total the 4 farmers organizations sold 35 metric tons of soy to the company. Following the crop quality farmers have realized reliable profits from the sales. The cooperatives have also been linked to a newly started oil company, Moni Oil which has bought 10 metric tons of ground nuts. Refresher trainings in conservation agriculture and mitigation of climate change The project has also conducted various refresher trainings of all the 4,000 farmers in the basics of conservation agriculture e.g, crop diversification, conservation farming and agroforestry as one way of mitigation to the effects of climate change. Soil improvement through the use of nitrogen fixing trees and the use of organic manure is also a component of conservation agriculture. Around 3,500 of the farmers improved the soil status by applying 9,400 kgs of compost to 3,500 hectares. The application of compost has further boosted the crop production by 20% and at the same time increase wealth among farmers households. The application of compost has lessen the amount of fertilizer used per acre per each production. The refresher trainings also included actions to mitigate climate change. The topics covered selection of site for a woodlot, care for tree seedlings as well as the overall importance of planting trees. During the reporting period the project, farmers and project staff have planted 35,000 trees. PROJECT ACTIVITIES 5

6 PROJECT IN NUMBERS Farmers Clubs Cooperative Dowa farmers trained in finamcial and credit management including Planed 2016 Planned Jan-Dec Achieved Jan-Dec variance repayments 4,000 4,000 4, farmers trained in grading focusing on drying, cleaning, sorting, bagging to meet WFP standards. 4,000 4,000 4,000 0 Minimum of 20 metric tons of maize produced by each cooperative for sale Registration of the 4 cooperatives % cooperative members are women and active VSLs are running small scale businesses Number of farmers using firewood serving stoves 4,000 4, Number of trees planted 40,000 40,000 35, farmers are linked to the reliable market with agreement

7 EFFECTS OF THE PROJECT Increased capacity of 4 Farmer Organizations (cooperatives) to manage business operations and produce quality crops that meet WFP quality. The project trained 4 cooperatives to ensured that farmers are well trained across the value chain. Farmers were trained that proper drying i.e. to the right grain moisture content reduces post-harvest losses. They were also trained that the well dried grain should be graded thus cleaning and sorting and be kept in dry places with adequate ventilation. The result of the training increased farmers capacity to production of quality maize which met standards for WFP market. Increased access to competitive markets for the 4 Farmers Organizations (cooperatives) The project worked with Agriculture Commodity Exchange (ACE) which had established a facility called Warehouse receipt System. Upon agreeing with ACE to sell their commodity the farmers got an up front payment of up to 60% of the value of their crop - and the rest when they agreed with a buyer. It was a such a type of micro financing which was promoting that farmers sell via the structured markets and not to local vendors. Increased capacity of farmer organizations in savings and financial management, as well as increase access to credit The project established village saving and loan groups which were trained on financial management and how to start small income generating activities. This trainings increased capacity of farmer organization and saving and financial management as well as increased access to credit. PROJECT ACTIVITIES 7

8 PROJECT IN PICTURES The trainings on how to increase quantity and quantity and resulted in very good yield of soya All the farmers were linked to reliable market where they sold their produce at a better price 8

9 PROJECT IN PICTURES 50% of farmers practice crop diversification and they plant more than 5 types of crops Monthly meetings are being conducted where all farmers meet in their clubs and look at the challenges faced for the previous month and plan for the coming month. 9

10 RECOMENDATION 10

11 RECOMENDATION 11

12 ATTACHMENT 12