Mobilize capital for completing construction of dairy processing plant The cooperation of Agriterra with LDMPCUL started on May 2016 with cooperative assessment. Agriterra supported LDMPCUL in developing a strategic plan, and strengthening institutional capacity within the cooperative and financial management. LDMPCUL has developed a 10 years business plan which gives clear overview of consumer demands, sales channels, product diversification, marketing strategies, and capital requirement. The total estimated capital requirement for completion of dairy processing plant is NPR 70 million. Out of which, LDMPCUL received NPR 20 million from government and it is yet to receive NPR 9 million from the government. So far, LDMPCUL generated NPR 16 million from own equity. There is still a remaining capital requirement of NPR 31 million for completion of the processing facility. On top of that, LDMPCUL also needs to generate financial resources for working capital. LDMPUCL should ensure the commitment from primary cooperatives for delivering of enough milk so that the processing facility run in optimum capacity. The proposed action plan for 2018 has been developed based on results achieved in 2017, and discussion with BoD and management team to cope the challenges on generating capital from internal and external sources. The proposed activities are expected to generate NPR 40 million from internal capital and external financing in 2018. The proposed activities also provide guidelines for operation of the dairy processing plant.
                                                                 

The overall objectives of 2018 are to generate capital for the completion of construction of dairy processing plant and develop institution capacity for operation of the plant.
Specific Objective 1 : Generate Internal capitalActivity 1.1 Conduct workshop with BoD and management team on preparing documents for internal capitalizationActivity 1.2 Prepare agreement/ documents to collect capital from membersActivity 1.3 Communicate with member cooperatives (committee / board) about dairy processing plant and investment needs
Specific Objective 2 : General capital from external sources
Activity 2.1: Workshop to share the business plan with financial institutions, concerned government organizations and support organizationActivity 2.2: Submit proposal to five financial institutions and concerned government organizationsSpecific Obective 2: General External Capital
Specific Objective 3: Develop institutional capacity
Activity 3.1 Training on preparing milk processing and quality management manual/guidelinesActivity 3.2 Coach board members, management team and financial staff on financial management Activity 3.3 Mid and final workshop on progress update and develop implementation planActivity 3.4 Submit audit report of 2017/18 and discuss results with Agriterra BAActivity 3.5 Exchange visit to Dumarwana Dairy Producer Cooperative, Bara and Annapurna Dairy Producer Cooperative, ChitwanActivity 3.6 Participate on strategic financial management training

The expected outcome is to generate NPR 40 million from internal capital and external financing in 2018.
The following goals are sets to achieve the expected outcome.
Goal 1: Increased members committed and provided capital to LDMPCULGoal 2: Financial institutions provided required capital to LDMPCULGoal 3: Insitutional capacity development on developing i) Manual on milk processing and quality management developed, ii) strategic financing Plan in line with the specific needs of LDMPCUL and iii) financial management capacity on analysis financial statements and preparing budget.