Focusing on sales! Katerera Area Cooperative Enterprise is a registered cooperative and is established in 2008. The cooperative started with 2.000 members and has grown to 5.239 members to date (November, 2012). The commodities are maize, cotton and beans and the ACE has started with coffee. The first harvest is expected in 2015. The ACE has a block of farm land (including land titles) of 650 acres where the farmers grow their commodities. In the late 1970’s, the Government of Uganda made available pieces of land from Queen Elizabeth national Park, to cultivate cotton in order to alleviate poverty. The land must be used for cotton production. As cotton is only harvested once a year, the other months can be used for production of maize and beans.

With the help of a loan of Kilimo Trust, an independent organization working on agriculture for development across the East Africa Community (EAC) Region, Katerera ACE has been able to build a warehouse of 90 by 30 feet. There is hydro-electricity power to the warehouse and it has gravity water at the warehouse.

Katerera Area Cooperative Enterprise is a registered cooperative and is established in 2008. The cooperative started with 2.000 members and has grown to 5.239 members to date (November, 2012). The commodities are maize, cotton and beans and the ACE has started with coffee. The first harvest is expected in 2015. The ACE has a block of farm land (including land titles) of 650 acres where the farmers grow their commodities. In the late 1970’s, the Government of Uganda made available pieces of land from Queen Elizabeth national Park, to cultivate cotton in order to alleviate poverty. The land must be used for cotton production. As cotton is only harvested once a year, the other months can be used for production of maize and beans.

With the help of a loan of Kilimo Trust, an independent organization working on agriculture for development across the East Africa Community (EAC) Region, Katerera ACE has been able to build a warehouse of 90 by 30 feet. There is hydro-electricity power to the warehouse and it has gravity water at the warehouse. 

A current problem is the fact that Katerera ACE is not able to use the warehouse effectively, as they lack the working capital to buy the produce from its members. The nearby SACCO (Rukoma SACCO) is in addition not able to provide enough funds via the warehouse Receipt System to help the ACE. The current situation is that the warehouse is rented out to middlemen for 40% in order to generate additional funds to pay the principal and interest of the loan for the warehouse. 

There are 2 development institutions (Kilimo Trust and Abi trust) which are supporting Katerera ACE at this point in time. The agreement with ABI-trust (grant of UGX 333,905,000,=) is for two years, which must be used for warehouse renovation and technical support to farmers (see attached 1).
The support from Kilimo trust was focused on setting up and finalizing the warehouse. This 0% loan of UGX 110,000,000 has been fully utilized, but still 10% of the warehouse needs to be finalized (pallets, electricity). This loan must be paid back in full end of 2014. 

aBi Trust is willing to increase their financial support to Katerera ACE, however on the basis that a realistic business plan will be provided. Also Kilimo Trust is willing to continue, provided the loan is being paid back regularly.

In November 2012, Agriterra has executed a company assessment to assess the current performance and to investigate whether Katerera ACE could become a client of the team Agribusiness. The ACE has lots of potential, like:

-	The block farm of 650 acre with a land title on it.
-	The almost finished ware house
-	Possibility to deliver to large organisations like WFP, food basket of Uganda
-	The potential of the member’s produce
-	The ABI Trust grant

There are several weak points as well:
-	The lack of a good vision statement and report on how to reach targets
-	The lack of a good financial plan/financial skills
-	The quality of the way of financial reporting
-	The way of decision making was not clear
-	A clear inventory list was missing
-	No background and contract available of the manager
-	Reluctant attitude of members of management
-	Low wages of managers


It was decided that Katerera ACE should first work on a short action plan (see annex 1). Execution could be possible within a couple of months and based on that and the sincere willingness to become a successful cooperative, Agriterra could make a decision whether they want to move on with Katerera ACE. 

The action plan has been carried out, and the main results were:
- The Board meets regularly, twice a month. The manager of the ACE is attending as well.
- The AGM will be held mid June 2013.
- The bulking and sales forecast is worked on, with some assistance of Agriterra. - Marketing Committee is in place.
- A simple overview of the financial status of the ACE is being developed and will be shared during the AGM. Tarpaulines have been bought and shared with members for the January harvest. 55 Tons of maize have been bulked and can be sold to WFP.
- 50 demo farmers have been identified, and seeds & fertilizers have been supplied. This was also a recommendation done by aBi Trust. This shows both aBi and Agriterra think alike and can work complementary. 
- The newly appointed manager (since March 2013) has been working as an extension officer with Katerera for some years, and has built a trustworthy reputation amongst the members. A requirement to strengthen the relationship with the members. 

Agriterra’s team Agribusiness has decided to start with support to Katerera ACE. Agriterra will focus on strengthening the internal organization by upgrading financial management, governance, methods to increase shareholder’s capital, own equity etc. Besides, Agriterra will support Katerera ACE by setting up a strong sales department. 
Next to that, the SACCO attached to the ACE has a new manager as well (since Nov 2012) and has been on the rise again, which can boost the area again.

Increase sales performance of Katerera ACE and organizational strengthening by means of improving financial management of the ACE and increase equity.