Damota Wolayta Farmers Coop Union (DWFCU) Teketel Tadesse General Manager June 2013 Addis Ababa

1. Damota Wolayta Farmers Coop Union (DWFCU) Teketel Tadesse General Manager June 2013 Addis Ababa

2. Introduction • The union was established in Dec 2003 in Wolayta Zone. • Wolayta Zone is located in SNNPR • The administrative center is Wolayta Sodo town.  • Wolayta Zone is one of economically significant areas of the region. • The town is serving as a junction point of four major roads networking to Arba-Minch, Sawula, Shashamane and Hossana -Addis Ababa.

3. Cont . . . • The Union was formed by 26 multipurpose primary cooperatives • Currently, it is affiliated to 64 coops. • The total membership of primary cooperatives is 22,582 (2% female). • All of the member coops are engaged in organic coffee production and marketing .  • Moreover, 27% of the member farmers are well known ginger producers. • Farmers of the area has great contribution to attainment of the Union's development agenda that the union plans to attain.

4. Objective of the Union General Objective: To enhance productivity and promote market value chain for different agricultural products in Wolayta Zone. Specific Objectives :- • Improve the bargaining power of primary cooperatives there by their members; • Procure the agricultural inputs and services at a optimum cost; • Enable members product get better market access; • Promote modern agricultural technologies; • Facilitate credit for agricultural inputs and other important issues; • Access market opportunity for farmers via promoting direct linkage with the international markets.

5. Current Activities of the Union • Facilitates loan for primary cooperatives to be participant in agricultural product market. • Creates market for different agricultural products like Coffee, Ginger, Maize, Haricot bean, Fruits, Taro, Irish Potato, Vegetables and Agro-forestry seeds. • Especially, Wolayta Zone Coffee is recognized and certified as Organic coffee by the Germany company BSC OKO GARANTIE GMBH. • Distributed 8923.26Qt Taro product for farmers within 12 Woredas in cooperation with some NGOs.   • Ginger is SNNPR's most important cash crop in terms of production and Foreign Currency.

6. Conti . . . The union participates in agricultural product market value chain and supplied processed Washed Ginger for the international known spice importning company JAYANTI S.A1000 MT amount in this year 2012/2013. It also collected 1000 MT of maize with quality above 92% from 6720 member households of primary cooperatives supplied for WFP. All the primary cooperatives are working together on the collection of different agricultural products from their members.

7. The Future Prospects of the Union in Agricultural Commercialization. • Establish Apiary/honey processing center in Wolayta zone. • Train beekeepers towards market-orientation production and integration with other agricultural practices such as crop production(maize, wheat) and conservation of natural resources (Agro forestry). • Establish organic honey processing factory for export labeled as Wolayta honey for local & export market. • Provision of inputs and services (concentrate feed, veterinary service, in-calf crossbred heifers, All service, credit/microfinance, milk containers, milk collection center/cooling facility, mini quality control - alcohol test and lactometer), and strengthen/establish fresh milk market linkages with the increasing milk demand in the area.

8. Conti . . . • Strengthening the existing cooperatives, providing technical support and capacity building to dairy producers and intermediate traders in order to improve income of dairy farmers . • Establish fattening farm and supply high quality and disease free fattened cattle using improved production and management systems to supply high quality meat for export, hides, skins to the growing demand of tannery industry.  • Address the appropriate market outlets for the products. • Establishing flour factory in the area. • Value addition in Ginger , Coffee, Fruit and etc.

9. The Roles of the Union in Agricultural Commercialization • Facilitates credit for members in primary cooperatives based on their business plan and Union's capital. • On the loan given the primary cooperatives bought different agricultural products like Coffee, Ginger, Maize and Haircut bean then, supplied back to DWFCU on fair price. • Creating market linkage in all agricultural products at local level and international market mentioned above. • Improve the bargaining power of primary cooperatives there by their members.

10. Conti . . . • Provides capacity building training for different primary cooperatives in order to improve their accounting system, managerial practice and other important activities. • Provides training on the modern technological production techniques, enhance production and productivity so as to increase the well-being of the farmers. • Maximizes the benefit and capacity of primary cooperatives to increase the net income of farmers.

11. Opportunities • DWFCU entered into a Foreign Europe market to Delivery contract that stipulates to supply Ginger (unwashed and washed) at the specified quality standard. • Washed and dry Ginger will be collected by primary cooperatives supplied to DWFCU Ltd and then, processed and supplied to foreign exporter. • The continuous technical support of Zone Administration to encourage the union to participate more in the local and export market. • All structure of the regional government has also great positive contribution on the success of primary cooperatives. • Theoneto five farmers arrangement within which the community participation mechanisms have positive contribution as well.

12. Challenges Even though the union is progressing in good manner there are different challenges that hinder not to achieve all its plan and objectives. These are: Inadequate amount of credit facilities, lack of warehouse for some of primary cooperatives, lack of enough working initial capital for different multipurpose cooperatives, lack of skilled manpower who supports the primary cooperatives in the technical issues, Insufficient coordination at the Primary cooperatives committee level,

13. Conti . . . • Lack of enough knowledge about scientific management • Lack of accountability and transparency in the structure of primary cooperatives. • The unsatisfactory level of primary cooperatives members involvement basically in planning, implementation and decision making activity ,are the main problems that aggravate other challenging factors which hinder the development speed of the DWFCU's each member primary cooperatives in the area.

14. PHOTO GALLAREIS