Development of the milk sector This project aims to develop the dairy sector and specifically two cooperatives based around Bandung. Next to the development of the organisation also private sector “hubs” (villages) where more than 10 farmers join their cows in one location. The village will provide professional advisory services to these farmers and will act as a milk collection point with a cooling unit and provide advisory services to farmers. Farmers would supply their milk to the collections points where the quality is tested and the milk is cooled. Another activity is professionalisation of the milk collection centers around Pangalengan. 
The following interventions are proposed to enable and catalyse the emergence of the cooperatives and farmer groups:• Develop designated areas (dairy villages) in close cooperation with dairy farmers to develop into professional farmer groups owned dairy farms with 25 to 75 cows• Invest in professional milk sourcing and quality control infrastructure • Provide access to finance for farm infrastructure and dairy herd development• Create robust locally produced feed supply systems through applied research and development• Development of the organisation

As part of a tender procedure of Ministry of Foreign Affairs, a proposal has been drafted for the project together with several partners. Each partner will focus on specific developing areas. Agriterra will mainly support in the field of governance, management information system and policy & procedures. 
To be able to set up professional dairy farm management advisory service firm several steps have to be taken. The management and board of the cooperative have to be developed to make them stronger and capable to manage the developments. This could can be done through capacity building of the management with training, study tour and possibly internships. 
Cooperatives comply with a whole range of characteristics, like providing services to their members, viewing their members as important actors in poverty eradication, having a focus on economic development & grassroots entrepreneurship and democratisation, having a significant and genuine membership base, democratic governance elected by the members, and it is clear at which level the operations take place. They should be legally constituted and follow sound financial management practices.
Focus is on basic aspects such as allocation of decision rights, accountability, the relationship between members and board and the relationship between board and professional management. Focus is on the development of modern leadership with clear expectations what results needs to be performed reached and what behavior is needed to reach attain these results.

For coming year, 2018, the following activities will be carried out: 
KPBS: 
• Strategic plan review (drafted 3 yrs ago)• Supervisory board training• Job description of supervisory board member. • Procedure manual for HRM (activity 8.4)• Leadership training for supervisors and up but also skills for management how to identify the qualities of staff to put them at the right job. • ToT for farmer leaders

KPSBU
How to increase motivation of staff: training for supervisor and head of departments (after April)





* Plan for HRM support in developing staff* Improve cooperative governance* Improved management information system* Financial reporting format understandable for farmers* Blue print for large scale roll out