Action plan 2011: Towards a farmer owned oilseed semi - refinery plant Agriterra supported ADMAS (Wolkite) Farmers Cooperative Union in 2010 together with SNV and FORMIN Finland on training 600 farmers with the objective of increasing oilseed production quantities and quality (project 09afc-5527). AFCU presented that project to Agriterra in the framework of its business aspirations to establish an oilseed refinery plant. A draft of the business plan for this plant was shared with Agriterra and the contents and potential of the plan provided Agriterra with sufficient reasons to organise a company assessment to AFCU in March 2011. 

During this mission both the management capacity and the potential business plan were analysed and gaps were identified. Overcoming these gaps requires technical expertise and finance and therefore an action plan has been developed for 2011 which will serve as a roadmap for AFCU to develop a bankable and realistic business plan for the oilseed refinery plant. 

Targets 2011
The targets of this plan are as follows:
- AFCU will improve its financial management according to the recommendations that were made as part of the company assessment mission.
- AFCU will increase its support base which becomes visible in an increase in share capital by 15%.
- AFCU will contract and train its production coordinator. 
- 50 trainers will be trained to improve production and supply of oilseeds.
- 1.200 farmers will be trained. 
- 225 best performing farmers will produce selected seeds of Niger, lin and sesame. This production will be sold back to AFCU for distribution for further distribution. 
- 1.800 farmers will produce at least 540 tons of oilseeds that will be bought by AFCU against a premium price (partly financed by own capital and partly by a loan from a commercial bank).
- The primary societies will ensure quality standards.
- AFCU will either store this produce for processing by the refinery plant, or in case the construction of the plant delays AFCU will find market for the seeds and sell for a better price than was paid to the farmers.
- AFCU will contract a marketing officer and with the help of external experts they will develop marketing plans for domestic and export markets for seeds and refined oil.
- AFCU will contract mechanical, electrical, hydraulic and civil engineers for the actual drawings and design of the plant and the sourcing of the machinery and equipments required.
- AFCU will acquire the land for the plant from the local government.

Targets 2012
- 7 Union board members trained on business management.
- 210 Board members (PCS) are trained about the business idea: new semi-refinery, market strategy and their role/responsibility. 
- About the business idea: new refinery, market strategy and their role/responsibility and about the emerging new business and content of business plan.  
- Membership increase from 62 to 70 primary cooperatives.
- Increase in share capital by 15%.
- 150 trainers trained.
- 200 farmers trained.
- 20% Production performance increase.
- 2.5 Quintals of niger 2.5 linseed and 1 quintal sesame distributed to 133 farmers on credit.
- 4 Quintals produced by 53 farmers using 1/4 hectare each.
- 100 quintals bought by the union  as credit return.
- 10 farmers 5 locations each farmer 1/4 of a hector with four plots.
- 3187 farmers of 62 PCS produce 0,5 hectare each resulting in 1594. hectares times 6 quintals is 11,158 quintals of production (1115.8 tons).
- 11,158 quintals purchased for 11,158,000 birr (1000 birr per quintal), 11,158,000 advance payment of which 2.750.000 financed by AFCU,8,408,000 on credit.  
- 11,158 .000 birr loan.
- Business plan focusing on (1) semi-refinery and in turn (2) refinery.
- Information gathered about how to become an exporter.
- Two (potential) new clients indentified.
- 11,158 quintals sold (min. price 1.050 bir/quintal) or stored.

Proposed activity plan 2011:

1. Organisation
1.1 Training  project coordinator
1.2 Follow up on recommendations financial management healthcheck
1.3 Execute external audit 2009/2010 including Agriterra funding and expenses
1.4 Increase membership participation

2. Production and supply
1.1 Contract training/ production and supply coordinator
1.2 Training of trainers
1.3 Training of farmers
1.4 Establish realistic average costprice per quintal of oilseed
2.1 Supply selected breeder seeds (niger, lin, sesame)
2.2 Produce selected seeds
2.3 Purchase and Distribute selected seeds
3.1 Farmers produce oilseeds and PCS ensure quality standards
3.2 Buying and storing oilseeds
3.3 Acquire loan for working capital

3. Processing
1.1 Drawings, designs, sourcing for processing plant
1.2 Acquire land for plant
1.3 Exchange visit to oilseed refinery plant in e.g. India/ Kenya and Dida FCU
1.4 Develop realistic and bankable business plan for oilseed refinery plant. 

4. Marketing and sales
1.1 Develop marketing plan for domestic market
1.2 Develop marketing plan for export market
1.3 Contract marketing officer
1.4 Sales or storage of oilseeds

Activity plan 2012
Organization
1.1 Contract training/ production and supply coordinator
1.2 Training of coordinator
1.3 Training  of the manager in business management
1.4 Training of accountant
1.5 Training of board members
1.5 Training of primary cooperative board members
1.6 Training of staffs
1.7 Execute external audit 2010/11 including Agriterra funding and expenses
1.8 Exchange visit  to (semi) -refinery found in Assosa and possible areas
1.9 Increase membership participation
1.10 Increase share capital

Production
2.1  Training of trainers
2.2 Refresher training
2.3 Training of farmers
2.4 Establish realistic average costprice per quintal of oilseed
2.5 Monitor farmer performance by registering baseline and actual production figures after training
2.6 Supply selected breeder seeds (niger, lin, sesame)
2.7 Produce selected seeds
2.8 Purchase and Distribute selected seeds
2.9 local field trials 
2.10  Farmers produce oilseeds and PCS ensure quality standards
2.11 Buying and storing oilseeds
2.12 Motivating farmers to supply their product in credit basis
2.13 Acquire loan to enhance working capital (part of business plan)
2.14  Insurance of stocks and assets investigation

Processing
3.1 Drawings, designs, sourcing for processing plant
"3.2 Develop realistic and bankable business plan for 
-semi refinery (first phase)
-oilseed refinery plant (second phase): intake at least 12,000 tons, production 4500 tons oil and 6800 tons cake (animal feed)"
3.3 Business plan and action plan monitoring
3.4 Obtain input from oilseed technologist: development of process and technical specifications, identification of venders, obtaining and evaluation of quotations and assist management and finalization of venders 
3.5  Investigate dispesed oil expelling units at PCS

Marketing & sales
4.1 Develop marketing plan for domestic market
4.2  Develop marketing plan for export market
4.3 Hiring marketing officer
4.4 Asses options for directly engaging in export market + identify two possible clients to sell oilseeds to (processors / exporters) 
4.5 Sales or storage of oilseeds

Overall goal is to make AFCU bankable and to develop a business plan

Targets 2012
•	7 union board members trained on business management
•	210 board members (PCS) trained about the business idea: new semi -refinery, market strategy and their role/responsibility. 
•	about the business idea: new refinery, market strategy and their role/responsibility and about the emerging new business and content of business plan 
•	membership increase from 62 to 70 primary cooperatives
•	Increase share capital by 15%
•	150 trainers trained
•	200  farmers trained
•	20% production performance increase
•	2.5 quintals of niger 2.5 linseed and 1 quintal sesame distributed to 133 farmers on credit
•	4 quintals produced by 53 farmers using 1/4 hectare each
•	100 quintals bought by the union  as credit return
•	10 farmers 5 locations each farmer 1/4 of a hector with four plots
•	3187 farmers of 62 PCS produce 0,5 hectare each resulting in 1594 hectares times 6 quintals is 11,158 quintals of production (1115.8 tons)
•	11,158 quintals purchased for 11,158,000 birr (1000 birr per quintal), 11,158,000 advance payment of which 2.750.000 financed by AFCU,8,408,000 on credit 
•	11,158 .000 birr loan
•	Business plan focusing on (1) semi-refinery and in turn (2) refinery
•	Information gathered about how to become an exporter
•	Two (potential) new clients indentified
•	11,158 quintals sold (min. price 1.050 bir/quintal) or stored