Meki Fruits & Vegetables Producer Cooperatives Union

Organizational O v e r v i e w

April , 2016 MekiBatu Fruits & Vegetables Producer Cooperatives Union Establishment • Established on May 11, 2002

• Head office located in township at 135km on the road to Hawassa and 60km south of Mojo town south in East Shoa Zone, woreda of region, MekiBatu Fruits & Vegetables Producer Cooperatives Union Vision To see betterment in members living condition and a union with a good competing capacity in the free market economy.

Mission To contribute to improvement in production, productivity and marketability of members products. MekiBatu Fruits & Vegetables Producer Cooperatives Union Major Functions • To consolidate and sell members’ produce to local and foreign market • To supply appropriate agricultural inputs for producers at fair price, on time and required amount. • To facilitate better access to credit service • To collect and distributing market information to producers • Provision of technical and advisory support for producers • To provide mechanization and maintenance services • To provide Training & education  To participate in cooperatives Social service MekiBatu Fruits & Vegetables Producer Cooperatives 13 year’s Organizational development: 2002 to 2016 Union

At establishment Parameter As at December 2016 Growth On May 2002 Membership geographic 2 woredas (Dugda & 6 Woredas in 2 Zones 3 folds coverage ATJK ) in East - 4 woredas (Dugda ,, ATJK & Adama) Shewa zone in ; - 2 Woredas (Ziway-Dugda & Dodota) in Number of member 12 150 12.5 folds primary cooperatives Household head members 527 (461 male & 66 8360(male 6837 & 1523 female) 15 folds of total female) 14 Folds for Men 24.4 Folds for Women Family members of 2635 (330 female 53,154 (male 26,406 &26,748 21folds member household heads &2305 male) Female ) (20.2; 80; 11.6) folds Size of irrigated land 400ha Above 4,002 ha 10 folds owned by members, Hectare Capital, Birr 500,000 birr 61,000,000mil (120 fold) Fixed Assets • Buildings: – At Head quarter compound with Offices, Training hall, Garage, Input store, Pesticide store, – One Building block with Bed Services and 35 shops rented out – 3 packhouses located in Meki, Adamitulu and XX Coops near Adamitulu. • Fuel Station  Machineries  2 trucks 8 tons each (dry cargo & cold)  3 dry cargo 5 ton trucks  1 Double cabin light vehicle  1 station wagon light vehicle  2 Tractors  1 truck with trailor of 40ton Investment in Shares: ETB 18,622,300

 Oromia cooperative bank 3,982,300  Oromia Agri. Coop. federation 800,000  Oromia insurance Company 50,000  Oromia mine Prod. & market Feder. 240,000  Chukala Agro-industry PLC 550,000  Fuel station& mixed 13,000,000 Total ETB 18,622,300 Major Members’ Produces .. Fresh Fruits and Vegetables . .-Tomato . Onion .Pepper . Potato . Cabbage . Green beans . Papaya . Water melon . others like egg plant 2. Seeds • Beans (G/beans& H/beans) • Onion • maize Potential of union  The various vegetables products are produced in the area 2-3 times through out the years  High potential of water for irrigation ( lake Denbal (ziway) in production area;  The union has adequate logistics for transportation and human resources for facilitation;  The union uses modern finance management system (Peachtree accounting)  Also has 3 pack house where the products are sorted , graded and packed;  The union has well infrastructure for communication such as telecommunication , and broadband ;  The board members have commitment to facilitates marketing activities in primary cooperatives;  The union also has a good experience in supplying products not only local but also for foreign market  Availability of well organized 150 vegetables producers coop on more than 4000 ha of land ( high supply ) ;  Availability of seeds for production; Produces supplied for market by the union for last 3 years ( 2013-2015)

years onion tomato pepper cabbage G/beans pappaya Total

2013 121196 118679 6210 11311 4754 12097 274247

2014 134013 128215 9497 20024 6119 14371 312239

2015 153376 131811 11743 24209 9198 21569 351906 total 408585 378705 27450 55544 20071 48037 938392 Produces supplied for market by the union for last three years (2013 to 2015 years ) in graph 1000000 900000 800000 700000 onion tomato 600000 pepper 500000 cabbage 400000 G/beans 300000 pappaya 200000 Total 100000 0 2013 2014 2015 total Inputs distributed by the union for members and non members for last three years (2013-2015 years) in graph 30000 28303

25000

20000 maize seed 15000 12500 beans onion seed 10000 7803 8000

5000 1056 276 43 580 20 200 31 94 0 2013 2014 2015 total Performance of the union The union local target markets for outputs were :  Addis Ababa ( 5 retail shops and consumer coops.)  Adama (2 retail shops)  Eastern part( Dire Dawa ,Haramaya(haramaya uni.) and Jijiga ) The major customers of union were :  Consumer cooperatives in Addis( gulalle union ,luna ,meslamiya ,  Employees ( oromia biroo),Haramaya university ,Eat fruit company &Ethiopian airlines ( semi processed ) The union supplied green bean foreign market in 2013 and 2014 for the Netherland through ethio.veg.  In 2013 the union supplied 1794 quintal green beans (fasoliya) whereas in 2014 supplied 240 quintal.  200 (178men &22 women ) farmers participated in production  To obtain euro GAP certification the union started the process (in filling pack house infrastructure ,and 19 toilets were constructed at pc filed  Distributing update market intelligence information for members  Feasibility study is undertaken to plant Agro-processing Cont… Input market  Provide credit service for members (for seed multiplication and export product)  Mechanization services/tractor and maize harvester/  Motor pump purchasing and giving maintain ace services for members /pc/  Multiplied onion and Maize seed on farmers field and supplying for members and non members with fair price  Supplied inputs /pesticides, seed and fertilizers /for members and non members with fair price participation in social services through  constructing schools, and health station ,  supporting orphans students in giving education materials and purchasing uniform  Constructed office for district 2CPO and 12 PC  Also played a great role in green economy revolution through conserving and planting tree plant at closed area Outcome of union  Create temporary job opportunity for 370 person (221 women and 49 men ) while the produce and harvesting / harvesting ,grading ,loading and unloading /  increased income of members resulted ensure food security so their livelihoods improved  stabilizing market seeds( maize ,haricot bean and onion )and vegetables  credit and saving culture is developed among members  Members adopted technology ( using improved seed, fertilizer , agro chemicals and IPM ) as result productivity increased  Members accessed for agricultural mechanized services has high contribution for transforming agriculture into industry  bargaining power of producers enhanced due to occurrence of alternatives market option /export market/  Enable to brought hard currency at national level Challenges in horticulture sector

 Market price fluctuation  Limitation of trust and risk taking of consumer cooperatives administrative committee  Limitation of the sustainability of the local marketing ( only the orders come to producers during holiday from consumers coop )  Limitation market information dissemination  Limitation of the transparency between producers and consumers cooperatives  High involvement of the middle men as whole which contributes increase transaction cost on consumers and reduce the benefit of the small holder producers  Limitation of the diversification Challenges continue------ Limitation Post harvest management  Absence of value addition  high application of the chemicals  Over application of fertilizers resulted high salt accumulation in soil  Unwise utilization of water for irrigation  High flooding of same commodity in market  Lack of improved seed ( veg.,crops)  Weak value chain actors ( union ,research and government lines)  fail of Motor pump  Climate changes also affects in casing water shortage due to lake of adequate annually rain fall  Absence of the well coordinated plan both from the supply and demand sides at all levels  Absence of warehouse in consumer cooperatives to stay product for short time Forward Direction  Establish and Strengthen direct linkage between producers and consumer cooperatives;  Establish the system that helps to develop trust;  Distributes market information for consumers and produces cooperatives to develop transparency between them;  Develop common plan (both demand and supply sides)  Diversified products in market and production ,and markets  Constructing cold storage where the products stayed  Improve communication  Establish sustainable marketing between producers and consumer cooperatives  Trained producers to improve agriculture practice Flow of Vegetable and Fruit Supply Chain Analysis Supplied EAL

Final consumers consumption

preparation Ethiopian airlines At PH •Grading •Processing Union •Cleaning •Packing

Produces onion, Primary tomato ,papaya cooperatives ,eggplant ,water melon Products prepared in pack house for Ethiopian airlines

Peeled Tomato onion

cabbage

W/melon Bazaar on horti Expo- 2015 at millennium hall Green beans grading in packhouse BH Maize (certified seed) Maize seeds packaging Galtoomaa !

Thank you!!