View
263
Download
3
Category
Tags:
Preview:
Citation preview
Agricultural Cooperatives Sector
Development Strategy 2012-2016
The stat of affairs
Focus of the presentation
Enhanced Capacity Building (Ardaita as Center of Excellency
Improve Marketing infrastructure
Improve the structure, capacity and accountability of public
regulators
Design a comprehensive cooperative development policy and
Guidelines
Experiences from the study to the Netherlands
Role of cooperatives
Increase market price (7-8%)
Collective voice to advocate for their needs (In Thailand,
Korea, Netherlands)
World Development Report 2008 reviewed the evidence
and concluded that “Producer organizations are essential to
achieve competitiveness for small-scale producers”.
Cooperatives in Ethiopia (FCA 2010)
40,000 Coops (now more than 45,000) 4
Agricultural Coops 10,000
Single purpose 3,000
Multi purpose 7,000
6.7 million members
70% members of Agricultural Cooperatives
1.5. SWOT analysis of the Agric Coop Sector in Ethiopia
Strength
Input Delivery (90-95%)
Output marketing (coffee, sesame and others)
7-9% price increase
Number of members are increased
Reduce interference
Good rules and regulation
Weakness
Do not sufficiently help members improve their yields and incomes
(World Food Program in 2010)
Financially unsustainable (do not work at cost)
Do not attract substantial membership
Quality of coops’ service provision at all cooperative tiers is not keeping
pace
Leaders have low capacity
Low role clarity and capacity stakeholders to implement and enforce
policies/regulations
Opportunities
Strong government commitment to support and promote
Existence of government oversight/regulation structures
from federal down to woreda level
Several Ethiopian universities offer robust curricula for
students training to be cooperative auditors or managers
Good working relationships between the Government and
development partners
Demand agricultural products from agricultural cooperatives
Treats
the absence of a comprehensive cooperative development
policy
limited access to high-quality services
capacity building modules are often out-of-date, impractical,
redundant, and not sufficiently comprehensive or available
Prohibitive bank policies
Mission new Cooperative strategy
Mission:
A well-functioning agricultural cooperative sector that helps many
smallholder farmers increase their yields and incomes through a)
autonomous and efficient cooperatives at all tiers that provide
effective and sustainable services to members, and b) a robust
enabling environment of policy and regulatory oversight as well as
capable and reliable service providers that ensure that
cooperatives have the necessary support to succeed.
Good international practice (1)
Focus on single product (at earlier stage)
Extend to focus on multiple product
Able to link input – marketing – credit (finance)
provide four core services to members
focus on increasing farmers productivity and income
provide services systematically
generate surpluses in serving members, so that their service
provision is self-sustaining
Good international practice (2)
provide services systematically
Benefit members more than non-members
marketing service
better price
non economic services
members decide the modalities and beneficiaries of services
offered by the cooperative, through a General Assembly
provide services that benefit both men and women farmers
1. Current state input procurement and distribution
AC distribute fertilizer and seed /obtain
Plan by DA and BOA
Allocated to Coops By BOA
Credit by CBE
The margin is Determined by BOA (not this year)
Lower the 2% of the total price
Other countries greater than 5%
credit sometimes sits on the cooperatives’ books, and
undermines their economic viability
Long-term strategic direction
strengthen the financial viability of cooperatives
margin should be incentive for the coops
farmers need additional tools and strategies in order to
afford inputs, especially seeds and fertilizer
Farmer savings groups
Credit guarantee schemes
Output markets linked input financing:
Weather insurance: Coop should not be asked to take on
additional risk, particularly credit provision for serving non-
members
2. Output marketing
Collection of farmers product (known price)
Quality Control
Storage (to get better price)
Value addition
Prepayment
Current state in Ethiopia: Cooperative Marketing
20% of smallholder grain output that is marketed each year
Limitation of the current cooperative output market
Limited value addition
Not increase farmers income
Long-term strategic direction
Implementation of two marketing activities
Marketing information
Sells farmers produce on the behalf of the farmers
Improve linkages of primary and secondary Cooperatives
Ownership of the product
Commission
Larger buyers
Quality production service
Value addition
Central service
3. Roles and responsibilities of federal and regional government
Kebele (CDA) to Federal Government Structure
Promotion support
Oversight and regulation roles
Current state in Ethiopia
FCA
RCPA
Types of Cooperatives
Problems on oversight and promotion support
Organizational Accountability (FCA and RCPA)
Long-term strategic direction
Develop inspection and cooperative legal support framework
Correct accountability of FCA and RCPA
Give attention to non-agricultural cooperative
Consider National development strategy
Formulate cooperative law
Accountability of FCA and RCPA
III. Enabling Environments
1) policy and regulation
2) cooperative Finance
3) cooperative capacity Building
4) Cooperative audit and legal service
5) Cooperative Promotion
Policy framework
Agricultural and Rural Development Policies, Strategies and Systems
Proclamation 147/1998, 204/2004, Regulation 106/2004, Organization rules
and Regional Coop Proclamations
These Policies and Regulations are not sufficient because the following
points are not included comprehensively
Roles of women and youth
Relation with stakeholders
Cooperative training
Implement and enforcement of the laws
Inconsistent interpretations of the law (regions and federal)
Long term strategic Directions
Develop Comprehensive policy (with the participation)
Translate any policy change to related laws, regulation and
bylaws as relevant
Aware and build members and leaders on the policy
Build oversight officials’ capacity to enforce the policy, rules and
regulations at all levels
Institute performance reviews of government cooperative
offices
Capacity Building for Cooperatives
Consists two element capacity building content (what) the institutions and process by which the content is
delivered (who and how)
Cooperative capacity Building Providers Government University Ardaita college Private NGO Cooperative Movement
Persistent problems of Existing Coop Capacity Building
Programs
Not based on the current situations
Not practical
Redundant
Not need based
Due to these Cooperative Boards are Bottleneck
Knowledge
Lack skill
Long term strategic Direction
Contents should have four primary features
Tailored
Result oriented
Quality Controlled
Demand Driven
Content should be three type
Strengthen Ardaita institute’s mandate to begin developing into world
class college
Prerequisite content
College – Ardaita
Branches of Ardaita Training institutions
AAC
Geographic focus – AGP (High potential Woreda)
Commodity Based
Previous and expected performance
Individual and Cooperative Training (as incentive)
Thank You For All
Recommended