COOPERATIVES (5) Why cooperatives fail

Transcription

1 COOPERATIVES (5) Why cooperatives fail As Board members are ultimately responsible for the success or failure of their cooperative, it is necessary to look at the most common reasons why businesses fail. 1. The most common reason is an over-dominant or overambitious chief executive officer, as this may the lead to decisions which have not been considered and approved by the Board. Thus it recommended that the chairman of the Board and the function of chief executive officer should always be separated. 2. Boards that are not well informed about the duties of Directors and what is expected of them. Boards should thus always be given the opportunity of improving their skills and knowledge, whenever training opportunities arise. Boards may also be uninformed as a result of insufficient information from their management team. Board members should have the necessary skills to oversee the activities of their management teams and to evaluate the information passed on to them. 3. Insufficient internal financial controls. Financial controls should always be able to prevent a manager or other members of the managing team to take far-reaching decisions on his/her own, or to spend large amounts of money without prior permission and approval. 4. Absence of an adequate business plan which is strictly adhered to and which can be the yardstick for any expansions of expenditures. It is of vital importance that Boards should draw up a business plan covering in broad terms the aims of the next five years and in detail the plans the cooperative will follow over the next year in order to realise those broad aims. 1

2 Without such a business plan there can be no adequate budgeting and no financial controls. In order to effectively control expenditure and compare it with the aims of the business plan, a cooperative should prepare a monthly management account and monitor actual expenditures against budgeted figures. It is very important that such figures reflect the business conducted over the past month and are accurate. Board members must monitor the cash flow of their cooperative continuously. Without efficient cash management, no business can survive. Effective cash management involves: Knowing how much cash the cooperative will need. Adapting the business plan to the realities of cash flow. Constantly monitoring the cash flow to prevent wastage. Maintaining a realistic balance between cash in hand and money invested. 5. Inadequate control over stock levels. Any item kept in stock unnecessarily will cause an outflow of money due to interest on invested capital and the cost of keeping an item in stock. It an often amount to more than 50% of the original cost of the stock. Insufficient stock, on the other hand, can lead to poor customer service and customer dissatisfaction. The aim should always be to maintain a healthy balance between stock in hand and available capital. This requires constant monitoring. The Board members must check the information that is passed on to them by management. 6. Bad credit control leads to write-off and losses and may even sink a cooperative. Good credit control, on the other hand, improves the cash flow and releases capital for the purchasing of more stock or for investment in some other aspect of the cooperative s activities. 7. A too heavy reliance on borrowed money can also place a crippling burden on a cooperative. Therefore it is the duty of 2

3 the Board of Directors to monitor the capital requirements regularly and to keep a healthy balance between the borrowed capital and equity (the cooperative s own resources, made up of reserves and the share capital paid by members of the cooperative). 8. A too rapid expansion of activities can also land a cooperative in trouble. When business is going well, management often tries to expand and to offer more services to members. As member satisfaction is vital to any cooperative, this is often laudable, but trying to offer too many services too quickly can just as easily over-extend a cooperative s resources. It is always better if a cooperative concentrates on its core business (that is what it does best) and increasing its profitability, before new activities are exploited. The most important steps to be taken to improve profitability are to: Increase sales and profit margins Decrease cost of sales Decrease overheads Improve the co-ordination between various activities and departments. Source: South Africa. National Department of Agriculture Pretoria. Next issue: The relationship between the Board and Management. 3

4 POST-HARVEST AGRICULTURE FOR FOOD SECURITY (2) Grains: Maize Maize (Zea mais) is the third most important grain worldwide after wheat and rice. Traditionally, maize was stored at home on the cob and in most places due to rainfall patterns, drying of cobs occurred in the field. In some areas farmers mature maize plants are cut and entire plants are heaped into stooks (heaps) or bundles to dry. This is done as soon as the rain ceases, and allows for the soil to be turned for the next season, before it becomes too dry and hard. (Golob et al. 2004:26-31) Photo (Golob 2002:30) fig 2.2 Another method is to cut the plants and dry the cobs on raised platforms. The photos depict a drying platform (chanja) as used in Malawi and a vertical drying frame (nkuli) used in western Tanzania) Photos (Golob 2002:30) fig 2.3 & 4 4

5 Maize cobs can be stored on the farm with the sheating leaves removed (dehusked) or undekusked. Photos (Golob 2002:30) Photo Plate 2. The principal structure in farm storage used in East and Central Africa is a cylindrical basket, called a kihenge in Tanzania). Some baskets are plastered and/or raised at least 30 cm above the ground, and are covered by a thatched roof. Photo (Golob 2002:30) fig 2.6 Dual purpose storing and drying structures are also used. These rectangular structures have open weave walls to allow for good ventilation. Photo: Golob Fig 2.8 p 32. Drying and storage crib (nchete) with legs fitted with rat-guards (Malawi) 5

6 Increasingly, as farmers sell grain to markets and traders, they turn to jute, Hessian and woven plastic sacks to store maize. Storage in sacks requires the harvest to be shelled as soon as possible and that the grain be sufficiently dry. Sun drying on a flat surface is also effective before storing in sacks. Grain stored in sacks is more susceptible to rodent damage, but is more convenient to handle. When stacking bags of grain, it is important to prevent stack burn. Building chimneys and channels provide passive ventilation. The normal building pattern for bag stacks is shown in the pictures below. Alternative layers of sacks are placed lengthways then widthways with a row of keys at the edges. The fist layer is built without channels, and on top of that follows a lauer with channels running in one direction (a). the next layer is built with the channels running at tight angles to the one below (b). The next 2 channels have both directions.(c and d). Further layers are added in the four-row pattern. 6

7 Traditional storage provides adequate protection to grain against the destructive effects of rain, ground moisture and pest attack. However, as new maize varieties are developed and larger quantities cultivated, traditional methods prove to be less adequate and farmers adapt storage design or change to cement or galvanised iron storage bins. (Golob 2001: 33). References Crop post-harvest: Science and technology. Vol. 1: Principles and practice. Golob P [et al.] (Eds.) Oxford Blackwell Science and Natural Resources Institute. Crop post-harvest: Science and technology. Vol. 2: Durables. Hodges, R & Farrell, G. (eds.) Oxford Blackwell Science and Natural Resources Institute. Goletti, F & Samman, E Post-harvest systems in agriculture. In Crop post-harvest: Science and technology. Vol. 1: Principles and practice. Golob P [et al.] (Eds.) Oxford Blackwell Science and Natural Resources Institute. Golob, P [et al.] Maize. In Crop post-harvest: Science and technology. Vol. 2: Durables. Hodges, R & Farrell, G. (eds.) Oxford Blackwell Science and Natural Resources Institute. Prevention of post-harvest food losses: fruits, vegetables, and root crops: a training manual Rome: Food and Agricultural Organisation of the United Nations. Wills, RBH [et al.] Postharvest: an introduction to the physiology and handling of fruit and vegetables. Oxford: BSP Professional Books. 7

8 GUIDELINES DURING DROUGHTS (1) This article is used with the permission of the author, Prof Dr HO de Waal of the Faculty of Natural and Agricultural Sciences at the University of the Free State as well as the Red Meat Producer s Organisation (South Africa). Large parts of South Africa are characterised of low levels of grazing material. Current climatic conditions will not improve much and, coupled with damage caused by fire, prospects until and during winter do not look good. In addition, low soil water levels in spring and early summer conditions may also negatively affect veld and animal production. The proverb animals get thin in September and die in October may become a reality, unless good strategies are developed and implemented soon. It remains to be seen what livestock farmers can or want to do regarding this situation. Remember that prospects for crop production have also been negatively affected this year by low and inconsistent rain, as well as high temperatures. Crop residues often serve as feed sources during the drought, but there is now little space for this option. A scenario of little available grazing material is known as drought, and in some areas it may be regarded as disaster conditions. However, there is no need for livestock to die as a result of drought conditions, and the following guidelines will assist in reducing financial losses: Safeguard the nucleus breeding animals because these animals must generate income after the drought. Reduce the number of animals that are dependent on the feed sources of the farm by removing surplus animals temporarily off the farm. Apply strategic supplementation on veld. Restrict the movement of animals by confining them to small camps with shade trees or other shelter. There is better control over the quantities of feed provided daily to the animals. Provide clean drinking water. Separate the stronger and weaker animals to reduce competition at the feed troughs. Prevent cattle from getting too thin. 8

9 Do not feed animals ad lib for long periods. Feed in accordance with required production levels. Provide restricted quantities of feed every second or third day. Most animals will then receive enough feed and competition will then also be reduced at the feed troughs. Continue feeding the animals until sufficient growth has taken place on veld. These issues will be dealt with in future articles. Source: De Waal, HO. Guidelines during droughts. In Farmer s Weekly, 27 April p 60. Recognition is also given to : The Red Meat Producer s Organisation (South Africa) Cartoon from: Salmon, Jill The goatkeeper's guide. Newton Abbot, p 62 KNOW THE COMMON GOAT AND SHEEP DISEASES (2) Zvavanyange Raymond E, Agricultural Consultancy for Africa, (ACA), Africa University P.O. Box 1320, Mutare, Zimbabwe Tel: ; Mobile: zvavanyange@yahoo.co.uk 9

10 Urinary Calculi, urinary stones, is sometimes called Calculosis/ Bladder stones/ Kidney stones/ Urolithuasis/ Water Belly. It is a disease that warrants IMMEDATE attention by the farmer. Call a veterinarian when the condition is suspected. Causes It is a condition that occurs when undissolved minerals (especially Calcium) form sandlike crystals or stones that can block the urinary tract of a goat, especially bucks, due to (calculi) in the urinary tract due to dietary imbalance, too much protein or drinking too little water. Most cases faulty nutrition plays a dominant role. When animals are fed on cereal grains, there is an excess of phosphorous compared with calcium, and although it varies somewhat with the soil on which crops are grown but animals fed on cereal grains show a tendency to calculus formation. Deficiency of Vitamin A also plays a role. Due to size differences between a buck/ram and a doe/ewe s urinary tract, female animals are not likely to be afflicted with this disease. Merino sheep are more affected than other breeds. Symptoms Difficulty in urinating, (frequent and non-productive urination) Blood in urine Rapid tail switching Kicking at abdomen Loss of appetite Crystals on the hairs around the prepuce (sheath) Appearance of being constipated Bloated abdomen Death Prevention Keep a wether s diet low in concentrates 10

11 Provide salt and clean water ad lib to the animals Ensure ample water, especially in to young animals after shifting, as weaners soon after arrival have been found particularly susceptible. Feed diet that includes roughage: Feed grass hay and never legume hay Feed oats or concentrate in a trough and not from the ground Feed a concentrate with ammonia chloride added ( %) Delay castration till the urethra matures Treatment The owner s ability to recognise clinical cases before the bladder is hopelessly damaged is critical. Treatment of urinary calculi depends on the location of the obstruction and cold be as simple as snipping off the urethral process to allow calculi at the end of the penis to dislodge. Tranquilisers and antispasmodics may help to naturally dissolve some calculi. In more advanced cases, surgical intervention may be necessary. Always seek veterinary advice. References Damerow, Gail (ed.) Barnyard in your backyard : a beginner's guide to raising chickens, ducks, geese, rabbits, goats, sheep, and cattle North Adams, Mass. : Storey Pub. urinarycalculirw.shtml Hungerford, T.G Diseases of livestock. 9th ed. Sydney : McGraw-Hill. p Titterton M, Dairy Production. Module CASD301. Zimbabwe Open University, Mount Pleasant, Harare. 11

12 PROGRAM TRACKS MIGRATORY PESTS A collaborative research effort centered in South Africa serves as the information heartbeat for staying a step ahead of cropravaging migrant pests such as Spodoptera exempta Walker (African armyworm), four locust species, and Quelea quelea (Red-billed quelea birds). The Information Core for Southern African Migrant Pests (ICOSAMP) network was established as a linkage amongst South African Development Community (SADC) nations, to provide early warning of cross border pest invasions and uncontrolled spread of migratory pests. A network of regional collaborators supplies timely information from their individual work sites on the current status of migrant pests. ICOSAMP marshals the data and then utilizes electronic communication for alerting SADC stakeholders and interested parties, as well as publishing a monthly bulletin and other material on the website. The South African Agricultural Research Council - Plant Protection Research Institute (ARC-PPRI) collaborated with the UK-based Natural Resources Institute (NRI) to develop the ICOSAMP program with funding from the UK Department for International Development (DFID). Contact person: M. Kieser, ICOSAMP, ARC-PPRI, Private Bag X134, Pretoria Fax: ; KieserM@arc.agric.za; Phone: 27 0(12)

13 MANGO MANAGEMENT IN BRIEF In winter, special attention should be paid to tree conditions and flower development. Actions taken or planned must always be scrutinised against climatic conditions and spreading risk. Key activities are to ensure strong and healthy flower bud development and the following flowering and fruit set phases. Good planning and disciplined management during the pre-harvest phases give good results at harvest time. Flower bud development It is very important to keep the presence of disease to the absolute minimum. The positioning of copper sprays should primarily to protect new growth. All dead branches and old flower panicles must be cleaned from trees and old growth can be removed. Post-harvest growth that was severely damaged by gallfly and twig miner and has died back because of that should also be removed. Fertilising Apply calcium and potassium in the pre-flower, flower and fruit-set phases, as these elements are important for good internal quality. Potassium nitrate foliar applications aid good flower and fruit set, while boron and zinc is essential for good fertilisation of the flowers. 13

14 Irrigation Water use by the mango tree is at its lowest in winter. Excessive irrigation can stimulate untimely growth and flower development. Flowering and fruit set Disease control Start the flower-complex spray with a copper application. It is advisable to continue with the copper spray through the extended flower and fruit phase. Post-harvest diseases can be curbed by the even distribution of systemic fungicides. Sulphur applications between the systemic treatments help prevent resistance build-up and have positive effect on thrips. Irrigation Flower growth and fruit set use a lot of built-up energy in a tree. Water use increases and full irrigation schedules must be followed from this phase through the fruit growth phases. Pest control Not all thrips that are present on the mango flowers damage fruit. Only from a fruit set stage can citrus and red-banded thrips affect fruit. Careful scouting and monitoring of thrips presence must determine chemical actions. Source: SA Mango grower s Association Newsletter, in SA Groente en Vrugte, Jun/Jul p 42 14

15 INSECTS ON CROPS: UNDERSTANDING TRI- TROPHIC INTERACTION The functioning of an ecosystem essentially depends on the interaction of its different elements. When considering only the biotic elements of a system, it is green plants that fix the sun s energy and, as producers, set a sequence of intricate events in motion that involve a number of trophic (pertaining to levels in a food chain) components. Based on this and in the context of insects on crops, the following trophic scenario unfolds: Plants provide nutrition for insect herbivores who utilize the available food source as chewers and sap suckers, occupying a multitude of feeding niches on the plant. These herbivores in turn provide nutrition for predators (the different life stages of which physically kill and eat the host) and parasitoids (the immatures of which eventually consume the host). Add hyperparasitoids to the scenario and the number of available feeding guilds on a plant and their interactions becomes a complexly intertwined food web. Acceptable crop yield is, amongst others, dependant upon the influence of insects. In this regard, understanding insect trophic interactions on crops and manipulating them through a sustainable IPM approach, therefore provides exciting research avenues worthy of in depth investigation. Source: SANCRA news Vol. 1(1) p. Sept p. 3 15

16 Mabuti Eric Malapela from Kgobokwane in Mpumalanga, northern South Africa, sent this photo of his cotton crop. Note the water tanks in the background. We want to invite our readers to tell us about their success stories as a result of information received from PRAIS 16