Increase intake and milling of maize Company assessment of Ng'arua Millers Cooperative Society was conducted in period of 5 to 13 October 2013. The analysis during the company assessment gave a different perspective as the situation during the scoping:

“The assessment of the cooperative happened in a completely different setting from the scoping mission and hence gave contrasting faces of the cooperative. During the scoping mission in June 2013 there was plenty of maize but no market for the flour, while during the company assessment in October 2013 the cooperative lacked maize; in fact Ng’arua mill is faced with an unreliable supply of maize.

The cooperative is situated in a maize producing area hence plenty of raw materials, but its members are unwilling to supply the cooperative on credit, they want to be paid cash for their deliveries. Therefore the cooperative has to have sufficient working capital which has been lacking from the very beginning. Also they cannot go to the bank for a loan because of the cooperative’s high gearing ratios and lack of collateral.

Ng'arua is required to finalise audit reports before Agriterra can even consider to start up a partnership.”

Most important criteria, the audit 2013, to consider starting up a partnership, was only finalised mid-2014. 

Other recent developments:

Main important meeting was AGM on 7 July 2014 when members said they were very annoyed, therefor did not deliver any maize to the mill anymore. They removed the whole Board and then elected 9 founders of the cooperative to take over. Only the first chairman and 2 more Board members came back, so 6 new Board members (1 lady, she became Treasurer) and a completely new Supervisory Board of 3, with a lady chairing there.
 
At 17 July the newly elected Board amongst themselves choose the 1st chairman of Ng’arua to become the 3rd chairman again. The other reelected Board member became Secretary. So 2 experienced Board members into the Executive. Everybody in the Board feels “enough is enough”, now we do it right, we work as a team and bring this cooperative that we founded into proper operation.  
Staff is reorganized and the former farmer/manager during the upstart of the mill was brought back in + 3 technicians who helped building the mill. Today the mill was running much more organized and more professional than during our previous visits. These people seem to know better what they are doing. The accountant/manager Justine (now on leave and doing exams) is no longer general manager, but back to mainly accounting and sales. 
 
Taken everything into account: willingness to change, unity in governance, improved management, high debt, good marketing, farmers/members supplying again & on cooperative terms, Wilfred and I would like to propose to give Ng’arua a contract for the remaining part of 2014 to support them turn around.

Action plan will kick start with 2 workshops to update new Board and staff, bring back strength in marketing and have farmers meetings to bring in their maize. Also the financial software and the controls need to be improved, to get in control. Once the financials of 2014 are updated, we can talk to the bank for refinancing, if needed.

- Increase intake and milling of maize
- Get in financial control and improve information flow to Management and Board
-Rebuild market position
-Grow Sales & Profits