Realizing Merkeb's business ambitions in wheat processing Merkeb Farmers Cooperative Union Ltd is founded in year 2002 with 19 cooperatives and now is a union of 94 cooperatives working at 12 Weredas with a total number of 173,987 smallholder famers mainly producing mainly Maize, Wheat and Teff. The union purchases Maize, Teff and Oil Crops from its members and sells different inputs (fertilizer and herbicides), consumable items and construction materials on discount for its members. 

Merkeb started with implementing a wheat processing venture. The implementation has reached a rather advanced stage. Buildingsand storages have been built and are almost completed. All equipment has been ordered and construction of the plant has started. Main challenges Merkeb foresees with getting the wheat flour mills operational are (1) lack of insight and understanding of wheat milling (2) lack of skilled plant workers (3) mobilization of work capital for the purchase of raw material (4) organizing and optimizing the supply chain. Agriterra will support Merkeb in achieving its business ambitions providing expert advice in milling, supporting training program and optimizing the supply chain. Furthermore Agriterra seeks to assist Merkeb with the mobilization of work capital for purchasing raw material.

Proposal
An action plan has been developed for one year, outlining activities needed in order (1) to optimize the supply chain in order to guarantee sufficient supply of raw material (2) improve knowledge, skills and understanding in the area of wheat processing at different levels of the union (3) acquire work capital for purchasing raw material (4) improve wheat production in terms of quality and quantity.

Activities outlined in action plan are:
Organization
Union level:
•	Workshop on role and responsibilities of key staff in relation to the wheat factory & business planning
•	Human resource and organizational structure study:
•	Development of 5 year strategic business plan
•	Adapt business plan for working capital for wheat processing ventur
•	Acquisition of working capital for raw material purchasing
•	Separate financial administration and management of factory and union
Cooperative level 
•	Training for board of directors cooperative management of cooperatives on wheat value chain training and analysis, advantages of collective marketing and supply chain management.
•	Quality training Cooperative leaders and employees: training on quality issues: warehouse management, post harvest handling and purchasing and quality requirements of processing unit
•	Bi-annual meeting for 10-15 main wheat supplying PCS – best performers

Production
•	training for model member farmers on wheat production, post harvesting and quality management                                                                                                                    Seed multiplication project for improved wheat seeds
•	Select areas and farmers for seed multiplication
•	Acquire improved seed/basic seed
•	Train selected farmers for seed multiplication
•	Linking with research institutes for acquisition of new varieties of wheat seed
•	Wheat processing study visit in Oromiya
•	Visit of Koopmans Meel – technical advise

Marketing and Sales 
•	Market study and developing marketing strategy - design of logo and packaging material

Main objectives action plan 2012-2013
•	To get the wheat processing venture of Merkeb operational and in the long run profitable
•	To acquire working capital for wheat purchase of Merkeb’ first operational year 
•	To optimize the wheat supply chain