Mobilize capital for completing construction of dairy processing plant 2020In 2019  the union completed installation of machineries and equipment of dairy processing plant. The union received loan of Rs. 33 million from National Cooperative Bank. The union needs to generate working capital for the operation of the plant. The union designed and registered brand name “Posilo” for its product. The milk product processing guidelines were prepared in 2019. Until now  the union has collected fresh milk from its member organizations  provided chilling services and delivered to the dairy processing unit. With the operation of the plant in Q1 of 2020  the union will produce yoghurt  butter  ghee  condensed milk and paneer  and do marketing in Kathmandu valley. The union has set goal for sales turnover of Rs.150 million in 2020. The proposed activities on 2020 has been developed as extension of action plan 2020 by discussing with BoD and management team to cope the challenges on generating internal capital  develop capacity on product diversification and support the marketing of the dairy products.2019In 2018  LDMPCUL completed the processing factory building with NPR.30 million grants from government and NPR 16 million from own equity.  There is still capital requirement of NPR 31 million for completion of the processing facility. LDMPCUL also needs to generate financial resources for working capital. There was little progress to generate internal capital from members. Only 5 primary cooperative members out of 54 have shown committed to put share of each NPR.0 1 million. The proposed activities on 2019 has been developed as extension of action plan 2018 by discussing with BoD and management team to cope the challenges on generating capital from internal and external sources and prepare for marketing of dairy products. LDMPCUL has set target to access external loan of NPR.30 million and increase equity for working capital. In 2019  LDMPCUL has planned to complete installation of equipment and machinery  and start operation of dairy processing factory.2018The 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. 2019In 2019  LDMPCUL has set goal to  complete installation of equipment and machinery  and start operation of dairy processing factory.Sub Goal 1: Increased members committed and provided capital to LDMPCULSub Goal 2: Financial institutions provided NPR 30 million capital to LDMPCULSub Goal 3: Prepared for branding and marketing of dairy products2018The 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.  2020The union has set goal to operate the dairy processing plant in Q1 of 2020 and produce yoghurt  butter  ghee  condensed milk and paneer. The union will do marketing of dairy product in Kathmandu valley. The union has set goal for sales turnover of Rs.150 million in 2020. 2020The union has objective to produce yoghurt  butter  ghee  condensed milk and paneer  and  marketing in Kathmandu valley.Sub Objective 1 : Prepare documents for operationalize the dairy processing plantActivity 1.1 Review and revise 3 years dairy business planActivity 1.2 Develop operational and cleaning manual of dairy processing plantActivity 1.3 Develop market policy and brochureSub Objective 2 : Promote dairy marketingActivity 2.1 Conduct promotional campaign of the dairy productsSub Objective 3 : Develop capacity on product diversificationActivity 3.1 Training on yoghurt productionActivity 3.2 Training on paneer productionSub Objective 4 : Strengthen institutional capacity on governance and financial managementActivity 4.1 Meeting on increasing internal capital among BoD membersActivity 4.2 Exchange visit to Kamdhenu Dairy Producer Cooperative  SunsariActivity 4.3 Mid and final workshop on progress update and develop implementation planActivity 4.4 Submit audit report of 2019/202019The overall objectives of 2019 are to generate capital for the completion of construction of dairy processing plant and develop branding and marketing plan.Specific Objective 1 : Generate Internal capital  Activity 1.1 Communicate with member cooperatives (committee / board) about dairy processing plant and investment needsSpecific Objective 2 : Access NPR 30 million loan from external sourcesActivity 2.1: Submit proposal to five financial institutions and concerned government organizations Specific Objective 3: Develop branding and marketing planActivity 3.1 : Workshop on Branding and Marketing of dairy products2018The 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 needsSpecific Objective 2 : General capital from external sourcesActivity 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 CapitalSpecific Objective 3: Develop institutional capacityActivity 3.1 Training on preparing milk processing and quality management manual/guidelinesActivity 3.2 Coach board members  management team and financial staff on financial managementActivity 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