2012: the year of getting operational! UCCCU has requested Agriterra for support to establish their own milk processing and selling structure. Support of Agriterra should be directed to the supply chain of cold milk, the so called “cold chain”. A draft of the business plan for this cold chain was shared with Agriterra and the contents and potential of the plan provided Agriterra with sufficient reasons to organise a company assessment to UCCCU in March 2011. 

Analysis of the business plans, the company assessment of UCCCU, the commitment of the farmer members to invest in UCCCU and the positive attitude of financial institutions working with UCCCU, have convinced Agriterra that the idea is definitely viable, but that the business plans still lack coherence, vital information and has certain gaps that need to be taken care of. Overcoming these gaps which are outlined in this chapter, requires technical expertise and finance and therefore an action plan has been developed for 2011 which will serve as a roadmap for UCCCU to develop a bankable and realistic business plan for the dairy processing plant, including the cold chain. 

The most important targets of this action plan are:
- Bankable business plan developed with detailed cash flows and easily understood by farmers
- Set-up of the plant and equipment design in place
- Collect reliable and consolidated production data from member unions and organise the existing data at the secretariat
- Mapping of the supply chain
- Studies on pasteurized unpacked milk dispensed by vending machines.
- Defined product market combinations and marketing strategy developed (entry and distribution)
- Farmer organisations using standardized accounting software for financial reporting efficiency.
- Trained UCCCU staff and member unions accountants on identified financial and Management information
- Data on funds collected updated and proper accountability done by member unions and UCCCU for continued financing from farmers
- MOU with unions and societies developed and signed, and code of conduct between UCCCU and farmers to be agreed upon for purposes of quality and effectiveness

Proposed activity plan:

1. Organisation	

-Implement recommendations financial management health check 
- Investigate different financial management and information management software (e.g. CoopWorks and Tally)
- Identify institutions using coopworks/tally for comparison
- Dedicate separate PC for accounting software
- Identify an organization that has advanced financial/information management systems
- Harmonize the flow of funds for investment and operations from farmers to UCCCU
- Develop coherent and consolidated business plan 
- Review the business plan to cater for changes that have taken place overtime
- Harmonize the autonomy of district unions and primary societies and develop a working relationship with UCCCU 
- Enter into MOU's with partners (e.g  NARO, Heifer International) to strengthen the dairy sector
 	 
2. Production and supply	

- Data and Information centre to be established to dairy information on production, organisation development, processing and marketing and general sector data. 
- Supply chain mapping and establishment of equipment ownership in the milk shed
- Contract a supply chain coordinator
- Exploration of the cost of farmers delivering warm milk to the plant Vs chilling milk at the MCCs within farmers locality bearing quality in mind
	
3. Processing	

- Factory Plan for machinery and equipments 
- Phased planning (step by step) of activities and investments
- Cost price calculations for various dairy products targeted by UCCCU
- Secure supply of utilities (power, water etc.) for plant
- Coordinate actions with development partners (DANIDA, Agriterra)
- Learning visit and training to the Netherlands 

4. Marketing and sales	

- Market study and development of branding
- Make a general market plan for UCCCU products.
- Contract marketing team
- Testing of new milk testing and milk handling equipments
- Identify modern milk testing and weighing
- Testing new payment systems

Develop an integrated, phased and bankable business plan for UCCCU