Towards establishing a Niger seed semi-oil refinery factory and optimizing the Niger seed value chain Haragu is located at Kombolcha town, Horo-Guduru Wollega zone of the Oromia National regional State, 275 km away from Addis Ababa towards Ambo. The cooperative Union was established in June 2001 as a multipurpose cooperative Union with 10 legally registered primary agricultural cooperatives from four Woredas. Presently, the union is comprised of 57 primary cooperatives. In the union working area Maize, Wheat, Niger Seed, Sesame, Rape Seed, Linseed and Pulses are produced. Currently, the union has given a priority focus for Niger seed crop production due to its favorable growth conditions in the area. Hence, the union has the ambition to invest in a Niger seed edible oil semi refinery factory in order to add value to the produce and provide affordable quality cooking oil to the members. With this objective in mind, a detailed a feasibility study on Niger seed edible oil semi processing factory investment has been conducted in 2015 with the technical support of Agriterra. The study showed that investing in Niger seed oil processing activity is a very attractive business for the union. Therefore, union has already decided to go for an investment. The investment requires 25,636,000 ETB (almost 1 million euro). However, the union does not have sufficient own capital to make the total investment. Therefore, the union would like to borrow 15 million ETB from banks and also planned to capitalize internally 8 million ETB from member farmers to finance the identified investment. In order to get the bank loan the union has also developed a bankable business plan with the support of Agriterra.

In response to 2015 AP the following accomplishments has been achieved: feasibility study and a bankable business plan prepared for Niger seed investment, 213 farmers and experts has been trained on GAP of Niger seed production, awareness created about internal capitalization, training provided for 24 PC chairman’s, purchasers, accounts, store keepers on four training topics (grain marketing, cooperative governance, accounting and quality controlling), 5 storage facilities for PCs has been constructed and there by the union output marketing performances has been increased by 50%. However, the union still has some challenges that need improvements; shortage of own equity capital to finance its investment, low understanding of the PC board members and the union’s key stakeholder about how to mobilize IC/realize the IC plan. In addition, limited knowledge and skill on cooperative governance and leadership, manual accounting system, most of the union’s PC are not managed by professional manager, unions Niger seed collection capacity is still low (this year 806 quintal) and the union’s Niger seed value chain is not optimized. Thus the 2016 C4C action plan will specifically focus on: • Mobilizing 8 million birr equity capital from members • Supporting the union to establishing Niger seed edible oil semi refinery factory• Professionalizing the union and the PCs management practice• Optimizing the Niger seed value chain by enhancing the farmers agronomic practice and create market linkage • Enabling the union to purchase 35,000 quintal maize, 5000 Niger seed, 3000 quintal and 1500 quintal wheat and 1200 quintal

• Mobilizing 8 million birr equity capital from members • Supporting the union to establishing Niger seed edible oil semi refinery factory• Professionalizing the union and the PCs management practice• Optimizing the Niger seed value chain by enhancing the farmers agronomic practice and create market linkage • Enabling the union to purchase 35,000 quintal maize, 5000 Niger seed, 3000 quintal and 1500 quintal wheat and 1200 quintal