Twezimbe Area Co-operative Enterprise (A.C.E) Limited

Ownership

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.

ORGANISATIONAL ORGANOGRAM

cap-twezimbe

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.

Finance Needed

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.

Capital expenditure

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.

Fixed assets:

(as per fixed assets plan)

Amount (Ushs.)

Office hardware

30,250,000

Production hardware

462,390,000

Other hardware

96,250,000

Sub-Total Fixed assets 588,890,000
   
Working capital: Amount (Ushs)
Working Capital-Cash 250,000,000
Storage, transport, marketing 136,692,500
Revolving crop finance 600,000,000
Staff salary, Travel,Office costs 152,675,000
Travel costs 22,725,000
Office costs 23,310,000

Equipments maintenance

8,820,000

Third party costs

25,620,000

Sub-Total Working Capital

1,119,842,500

TOTAL INVESTMENT NEEDED (USD):

1,708,732,500

[/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
Financial Institutions-Banks Loans 600,000,000
Government & Donor Agencies Grant income 462,945,000
TOTAL INVESTMENT NEEDED: 1,708,732,500

ACTION PLAN FOR THE IMPLEMENTATION OF THE BUSINESS PLAN  2014, 2015 & 2016

Activity Time Frame (Years) ExpectedOutputs QuantifiedTargets WhoPerson/ Organisation What is required to do it Budget Cost(UShs)
2014 2015 2016
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 

3,500,000

 

1,750,000

 

2,750,000

 

 

875,000

 

4,500,000

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
Total Funds 1,708,732,500

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.

Environmental impact

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.