Sourcing linseed for business development - action plan 2011 Dida Farmers Cooperative Union is a multipurpose union established in 2004 by 13 primary cooperatives. Membership has increased to 25 primary cooperatives with a total of 21109 members, of which 1336 are women.  The unions' main activities include distribution of inputs (mainly fertilizer and pesticides), purchase of grains and oil seeds from member primary cooperatives, securing working capital loan from partner banks, distribution of consumable products such as sugar and edible oil. 

The cash crops for Dida are mainly linseed followed by wheat and teff. The primary cooperatives have managed to increase the level of production on oil seeds after training program on oil seed multiplication organized by SNV.  

The findings of the company assessment for the Union are mostly positive. However, minor shortcomings exist in the absence of a computerized accounting system, the involvement of the manager at operational level and the lack of working capital which weakens the Union’s ability to influence market prices.

During the company assessment both the management capacity and the potential business plan were discussed with the manager and Board of Directors. Some gaps were also identified and some solutions were put on the table for consideration and possible adjustments.

As a result the underlying action plan aims to:
•	Develop technical expertise of the Board of Directors to better understand financial statements,
•	Install accountancy software and provide short-term training to the accountant and manager on accounting software and computer accessibility ,
•	Increase the production level of oil seeds and grains,
•	Assess supply chain of oilseeds and development of bankable business plan on bulking of oilseeds and to access finance for working capital.

Oil processing of linseed seems to be a realistic business case most of all because domestic demand is high and potential for export is huge. At present 85% of edible oil in Ethiopia is imported (reference study WUR). Nevertheless, for the case of DFCU increase in bulking services of quality grains needs has the highest priority in order to guarantee sufficient supply for oil processing. 

The action plan for the remaining 6 months of 2011 covers activities related to improvement of financial management through computerizing bookkeeping as well as purchase and installation of accounting software  and training of involved staff in use of it. Furthermore ToT courses will be organized to train farmers on good agricultural practices aiming at increase of productivity. A feasibility study will be carried out, assessing the current value chain in terms of supply and demand. This study will be main input for development of the business plan.


d)	Targets, expected output and impact: how does the business case contribute to the targets of team 1?

•	1000 farmers trained in good agricultural practices
•	Bankable business plan
•	Accounting software installed and operational
•	Board of Directors trained in understanding financial statements

The underlying proposal will be implemented in a tripartite partnership with SNV, AGriterra and Dida FCU. SNV will provide assistance to DFCU in terms of monitoring, selection of local capacity builders and organization of training of trainers course on good agricultural practices.

to develop a sound and bancable business plan