Twezimbe Area Co-operative Enterprise Limited (TACE) is truly a farmer owned, member used and member controlled co-operative enterprise. Members of Twezimbe ACE are the 18 Rural Producer Organisations (RPOs) formed at village level by 3268 individual members. Each RPO that joins Twezimbe ACE is eligible and mandatory to purchase at least one (1) share amounting to UGX 100,000/= (one hundred thousand shillings only), The Annual General Meeting (AGM) is held every year. It is through the AGM that members elect their leaders (Board of Directors) democratically, approve budgets and make innovative business decisions. Board of Directors present financial reports and statement of affairs of the cooperative are read to the AGM. The reports are a basis for business decision making and other important deliberations by the owners.
Board of Directors
Twezimbe ACE is governed by the Board of Directors (BOD), consisting of 11 farmer members, selected by delegates from RPOs during the farmers’ Annual General Meeting (AGM). AGM also appointed a supervisory committee to monitor and supervise the implementation of Twezimbe ACE operations. The BOD appointed Program Manager to take charge of overseeing the daily operations at TACE and he reports to the Board of Directors.
To fulfill its responsibilities, the Board will be required to provide sound governance to Twezimbe ACE. This will mean:
- Ensuring Twezimbe ACE has a clear sense of purpose by establishing its strategic objectives, documenting these objectives and monitoring progress in achieving them;
- Setting priorities and goals for improvement of business;
- Working with the business manager to ensure that the operations are being implemented;
- Collecting and evaluating information on the performance of the farmers in respect of the goals that have been set;
- Ensuring that the Twezimbe ACE’s resources are being used optimally;
- Improving and motivating the human resource base including ensuring that the staffs are competitively remunerated and their knowledge and skills are up to date.
Twezimbe area cooperative enterprise (A.C.E) has fifteen (18) Rural Producer Organisations (RPOs) as primary oganisations where as each RPO has about ten to fifteen (10-15) smaller producer organisations (POs). Each producer organisation (PO) has fifteen – twenty five (15-25) farmers who can be trained at once in a single training. The organization currently has 3268 members with 1792 male and 1476 females not 3171.
The supreme decision making organ of the A.C.E is the Annual General Meeting (AGM) comprised of representatives of the primary societies (Rural Producer Organisations, RPOs). The Annual General Meeting elects the Board of Directors which in turn appoints the management. The management, headed by the Manager, is tasked with implementation of board polices and takes care of the day to day operations of the organization in order to effectively implement its development initiatives. The last annual general meeting was held on 19th December 2012.
Areas of need for capacity building
1. Cooperative governance and management
2. Cooperative business planning and implementation of plans.
3. Resource mobilization and management.
4. Effective records and office management
5. Office soft ware applications and use for effective documentation.
Other areas of necessary support
i. Loan facility to increase stock in the Agro-inputs shop.
ii. Tractor to increase the scale of production by farmers.
How much capital do we need, to get this business in operation?
Upto one billion, seven hundred eight million seven hundred thirty two thousand five hundred shillings only (Ug. Shs. 1,708,732,500/=) needed, this will utilised in the period 2014 to 2016.
Much of the funds will be spent on procuring agro-processing equipments like Simple Compound Coffee huller, Automatic Generator, Pre-cleaner, De-stoner & Grading equipments, Buildings, store, Furniture, Computers and accessories, Internet services, Projector, Generator, Purchase Land, Motorcycles, Motor Vehicle (Distribution Service Van), Flat Weighing Scales, shellers, maize mill. Also funds will be used as Working Capital to cover operating costs, procuring improved farm inputs like seeds, capacity building, Research and product development, improved farm inputs and consultancy services.
The table below shows the total investment needed.
(as per fixed assets plan)
|Sub-Total Fixed assets||588,890,000|
|Working capital:||Amount (Ushs)|
|Storage, transport, marketing||136,692,500|
|Revolving crop finance||600,000,000|
|Staff salary, Travel,Office costs||152,675,000|
Third party costs
Sub-Total Working Capital
TOTAL INVESTMENT NEEDED (USD):
[/tab title="Financial Strategy"]Possible sources of funds:
|Name of organisation||Type of finance||UGX.|
|Twezimbe A.C.E||Internal business returns||600,787,500|
|Rural Producer Organisations||Share capital, annual subscription and membership fees||45,000,000|
|Government & Donor Agencies||Grant income||462,945,000|
|TOTAL INVESTMENT NEEDED:||1,708,732,500|
|Activity||Time Frame (Years)||ExpectedOutputs||QuantifiedTargets||WhoPerson/ Organisation||What is required to do it||Budget Cost(UShs)|
|Priority 1: Develop the capacity and skills of Twezimbe A.C.E for effective performance and improved service delivery.|
|1.1 Conduct a farmer profiling and detailed inventory & evaluate producer organizations||X||X||Status farmers organizations established||50stakeholders||Manager||-Funds||3,750,000|
|1.2 Revise and develop a Business Plan for Twezimbe A.C.E, with realistic projections||X||X||Business plan developed||Performance targets set||Manager||-Funds||1,300,000|
|1.3 Mobilize farmers into primary cooperative societies for economies of scale||X||X||X||Increased membership in coops||4000farmersmobilised||Board & Manager||-Funds||5,000,000|
|1.4 Training leaders in cooperative corporate governance, principles and values||X||X||X||Strong agric co-operatives in place||20agric coops & 50 leaders trained||Manager||-Funds||5,000,000|
|1.5 Training of farmers in commercial market oriented production and negotiation skills||X||X||Farmers trained||4000 Farmers trained||Agricultural Extension Workers||-Funds||8,250,000|
|1.6 Provide technical and entrepreneurship skills development training to farmers||X||X||farmers doing farming as a business||4000 Farmers & 50 leaders trained||Agribusiness officer & Manager||-Funds||5000,000|
|1.7 Monitoring and Evaluation training for farmer leaders||X||X||X||Projects monitored||4000 farmers monitored||M&E, Board & Manager||-Funds||5,000,000|
|1.8 Mainstreaming of Cross cutting issues like HIV & gender value chain development||X||X||X||Cross cutting issues integrated||4000 Farmers & leaders trained||Agribusiness officer & Manager||-Funds||7,500,000|
|1.9 Establishing strategic partnerships and networking with government, investors & donors||X||X||partnerships created and strengthened||At least 5 partnerships created||Manager||-Funds||1,050,000|
|Priority 2: Promotion of rural producers’ adaptation to climate change and agri-environmental mitigation measures.|
|2.1 Awareness creation on conservation agriculture /Conservation farming (CA/CF)||X||Awareness created||Farmers, public aware about CA/CF||Agric Ext workers||5,125,000|
|2.2 Training farmers in agricultural biodiversity, soil erosion control, land degradation and sustainable agro-forestry management.||X||X||Farmers & leaders trained||4,000 Farmers 50 leaders trained||Agric Ext workers & service providers||-Funds-Training materials||5,125,000|
|2.3 Training farmers in rain water harvesting irrigation and livestock||X||Farmers & leaders trained||4000 Farmers 50 leaders trained||Agric Ext workers & service providers||-Funds-Training materials||3,800,000|
|2.5 Train farmers in renewable energy saving technologies||X||Farmers & leaders trained||4000 Farmers 50 leaders trained||Agric Ext workers & service providers||-Funds-Training materials||3,800,000|
|2.6 Train sustainable land management practices||X||Farmers & leaders trained||4,000 Farmers 50 leaders trained||Agric Ext workers & service providers||-Funds-Training materials||3,800,000|
|2.7 By-products utilization and waste management training||X||By-products utilized sustainably||Waste mgt plan in place||NARO & UIRI||-Funds||5,125,000|
|2.8 Organise dialogue meetings with value chain stakeholders||X||dialogue meetings conducted||50 stakeholders participated||Value chain facilitator||-Funds||5,125,000|
|Priority 3: Increasing production and productivity of maize, Beans and coffee enterprises for improved food and income security.|
|3.1 Training of farmers in better agronomic practices||X||X||X||Farmers trained||4000 Farmers trained||Agric Ext workers||-Funds-Training materials||9,615,000|
|3.2 Strengthening Co-op Agro-Inputs Shop and procurement of genuine inputs.||X||Co-op Agro-Inputs Shop||Variety of agro-Inputs sold in shop||Agribusiness officer & Manager||-Funds||63,750,000|
|3.3 Provide seed extension and demonstration &proper inputs use||X||Farmers trained||4000 Farmers trained||Agric Ext workers||-Funds-Training materials||5,125,000|
|3.4 Procure a Tractor to promote farm mechanization||X||M/Fugerson Tractor procured||No. of acreage ploughedby farmers||Manager||-Funds||127,415,000|
|3.5 Promote contract farming with farmers.||X||contracts negotiated||Contracts signed with stakeholders||Agribusiness officer & Manager||-Funds||3,750,000|
|Priority 4: Improvement of postharvest handling technologies and agro-food processing enterprise|
|4.1 Training farmers in good post-harvest handling and processing (PHP) practices||X||X||X||Reduced post harvest loses||Increased outputs per acreage||Agric Ext workers||-Funds-Training materials||9,615,000|
|4.2 Understanding grain quality management training||X||Grain quality improved||No. of metric tons produced & marketed||Agribusiness officer & Manager||-Funds-Training materials||3,250,000|
|4.3 Construct demonstration cribs||X||Demo cribs constructed||20 cribs constructed||Agric Ext workers||-Funds-Training materials||5,500,000|
|4.4 Formation of Village Farmer Processors Associations||X||Processors Associations||10 formed||Agric Ext workers||-Funds||10,500,000|
|4.5 Establish Co-operative Processing Unit||X||Strong processing unit at TwezimbeACE||1Coopeative Processing Unit||Agribusiness officer & Manager||-Funds||5,125,000|
|4.6 Improve products packaging, handling and transportation||X||X||Improved packaging||Products packaged||Agribusiness officer||-Funds||19,000,000|
|4.7 Procurement of value adding and agro processing equipments (primary and sec processing)||X||X||X||Farmers adding value before selling their products||value adding processing equipments procured||Manager||-Funsds||623,795,000|
|Priority 5: Upgrading the capacity of TACE to improve food safety, hygiene and quality standards of Maize, Beans and Coffee enterprises.|
|5.1 Develop Quality management Plan||X||Quality mgt Plan in place||Quality Plan developed||Agribusiness officer, QAM||6,537,500|
|5.2 Quality testing & UNBS quality certification||X||X||UNBS IQ acquired||Quality||Agribusiness officerManager||-Funds-Training materials||24,037,500|
|5.3 Train farmers in food quality assurance and standardization, and enforcement of sanitary and phytosanitary measures||X||X||Farmers trained in SPS & quality||4000 Farmers trained||Agribusiness officer,Manager||-Funds-Training materials||5,125,000|
|5.4 Promote good packaging and branding of products||X||X||Improved packaging||No. metric tons packed||Service provider||3,750,000|
|5.5 Train farmers in good agricultural practices (GAP) and good manufacturing practices||X||X||X||Farmers trained in GAP||4000 Farmers trained||Service providers||-Funds-Training materials||5,125,000|
|5.6 Training farmer organizations in Hazard Analysis and Critical Control Point (HACCP) system and ISO 9001:2000 quality management principles.||X||X||Farmers trained in HACCP) system & ISO 9001:2000 quality mgt||50 leaders trained in HACCP) & ISO 9001:2000 quality mgt||Quality Manager, UNBS & QAM||-Funds-Training materials||5,125,000|
|5.7 Training farmers in integrated pest management (IPM) and integrated crop management (ICM) practices.||X||X||Farmers trained in IPM & ICM||4,000 Farmers trained in IPM & ICM||Agric Ext workers & Service provider||-Funds-Training materials||10,250,000|
|Priority 6: Establishing viable and sustainable marketing system for increased market access, quality assurance and competitiveness.|
|6.1 Conduct market research to understanding market trends.||X||X||Market research conducted||Market research report in place||Agribusiness officer||-Funds||2,500,000|
|6.2 Develop an effective marketing information system||X||Manager||-Funds||4,200,000|
|6.3 Provide information on agro products quality, standards and regulations to farmers||X||X||X||Information provided to farmers||4,000 Farmers access information||Agribusiness officer||-Funds||1,025,000|
|6.3 Construction of a Central Accredited Storage or Warehouse facility at TACE||Accredited storage facility constructed||1,000MT Store constructed||Manager||-Funds||160,725,000|
|6.4 Mobilize farmers for bulking and collective marketing||X||X||X||Farmers & leaders mobilized||4,000 Farmers & 50 leaders trained||Board, Manager, Marketing officer||-Funds||15,500,000|
|6.5 Sales and Marketing promotion;-Developing TACE website for online communication-Printing and distributing brochures on products/svs-Rebranding TACE for proper positioning-product branding & packaging materials-bags- Printing of 500 posters @ 1,500
-Placing classified adverts on FM radios for 30 days
-Attending agricultural exhibitions and shows e.g. Jinja & Lugogo Trade shows
-Designing and printing TACE/Partners plaque
-Field study visits to prospective customers
|X||X||X||Sales turnover increased||30% increase in sales @yr||Agribusiness officer||-Posters-Funds||6,375,000 5,250,000
|6.6 Establish strong linkages with institutions and organizations that support smallholder agriculture development and Linking members to viable markets with good profit margin||X||X||Sustainable market linkages created||4,000 Farmers linked to viable market||Manager||-Funds||2,500,000|
|6.7 Negotiate loans with MFIs and grants with donors||X||X||X||Loans negotiated||Board & Manager||-Funds||1,692,500|
|6.8 Revolving crop finance||X||X||X||Agric. Credit secured for farmers||Farmers access credit for production and marketing||Manager||Funds||600,000,000|
Local economic impact
1.1 Number of inclusive employments created both directly and indirectly include;
-Direct Jobs created; the business will create 4,000 direct employment opportunities to youth & women;
-Indirect jobs created (e.g. Employment spin offs of our business for suppliers and buyers, distributors, sales).
At least 500 indirect jobs will be created for the rural business community engaged in agro-inputs farm suppliers, produce buyers, postharvest handling groups, agro-processors, local confectioneries and baking groups, transporters, restaurants and hotels hosting training/workshops and outputs marketing.
All in total 4,000 direct and indirect employment opportunities will be created.
Quality Improvement: the project will enable Twezimbe A.C.E acquire the Quality Identification (QI) certification, meaning improved quality and meeting the needs of consumers.
Local social impact
Food security: The rural farmers will understand the importance of co-operative farming groups as they pool resources, learn to manage credit, market intelligence, finance & micro-finance. The net effect is improved productivity and quality translating into improved household incomes, food security, health and profitable cooperative business.
Rural agricultural cooperatives will provide smallholder famers with “a strong common voice for advocacy and representation” to defend their rights and mutual interests in civil society and market places, thus farmer empowerment.
Promotion of rural producers’ adaptation to climate change and agro-environmental mitigation measures will result into a healthier environment and ssustainable agriculture that ensures agriculture’s natural resource base remains productive, competitive and promotes future positive environmental impact.
Overall development goal: To contribute towards the country’s efforts to alleviate rural poverty, reduced hunger and improved livelihoods of small holder farmers in Kyankwanzi District, achieved through empowering the rural communities with improved access to affordable and sustainable marketing and value addition services.