Assessment of Cooperatives in the Poultry Industry - 2013.pdf - Seda

Assessment of Cooperatives in the Poultry Industry - 2013.pdf - Seda Assessment of Cooperatives in the Poultry Industry - 2013.pdf - Seda

23.09.2015 Views

Research Report: Addressing the Needs, Opportunities and Challenges of Cooperatives and Collectively Owned Enterprises in the Poultry and Related Industries benefits, such as enhancing access to larger customers or processors, as well as improved collaboration and sharing of knowledge and resources among cooperatives (as discussed above). The need for clustering has been specifically highlighted by the DPFO for broiler growers. If broiler growers are not clustered near an abattoir, the cooperatives are likely to be limited in their business activities to the selling of live birds only. Thus, when feasibility studies are done, cooperatives that have access to market in an area where there is scope for additional producers should be encouraged. Linked to clustering is the potential for the development of secondary cooperatives. Secondary cooperatives are made up of a number of primary cooperatives. These can be used to perform value added functions that could be shared by primary cooperatives, such as marketing, packaging, labelling, etc. They can also be used to INFO BOX: Example of Key Challenge with Collaboration as a Solution A specific significant concern for cooperatives is the high cost of grain. If a grain storage facility were to be provided to a secondary cooperative in an area with many cooperatives, this would assist in reducing the shock of market fluctuations. Cooperatives may be encouraged to collectively invest and do this themselves or this may even be one of the options for equipment assistance under the conditional equipment lending plan. manage bulk buying activities for inputs. Secondary cooperatives are a beneficial way for cooperatives to work together to improve market access. In the same information sessions, training and networking events described above, cooperatives should be informed of the potential for secondary cooperatives and SEDA should, where viable, assist in the establishment thereof. This may also enhance the leadership structures involved in collaboration, because there will be clear structures in place and not simply verbal agreements between cooperatives. Facilitate partnerships with large producers: The research chapter above illustrated scope for developing broiler farmers to work with large broiler producers. This opportunity could be enhanced through SEDA’s assistance. Large producers could be contacted to determine the specific minimum requirements cooperatives would need to adhere to for such partnerships. SEDA would then be able to encourage and support cooperatives in meeting those requirements before facilitating an introduction between the producer and the cooperative. Where a potentially successful partnership can be forged, the producer would take over the provision of technical support and would also provide feed, day old chicks, and transport for broilers to their abattoir. Encourage product diversification: Interviews with large producers and with industry experts indicated saturation in the broiler market in many instances. Without the necessary clustering or transport or large community 89 | P a g e U r b a n - E c o n : D e v e l o p m e n t E c o n o m i s t s

Research Report: Addressing the Needs, Opportunities and Challenges of Cooperatives and Collectively Owned Enterprises in the Poultry and Related Industries demand, cooperatives do not find sufficient customers for their live broilers. One large producer stated that increased diversity of product offering would enable them to make use of developing farmers. It is thus recommended that SEDA assess different forms of diversification amongst developing farmers. This could include the growth of organic chicken, organic eggs, quail, pheasant, etc. This would enable developing farmers to produce a niche product and supply to that. 5.2.4. Enhancing Information and Communication Many of the cooperatives surveyed had heard of the various government support systems through word of mouth. This indicates fairly good, but informal information dissemination in the communities. Furthermore, many cooperatives reported their desire to receive assistance, but being unsure how to attain it. A large number of cooperatives also reported that they were ‘waiting’ to receive assistance, with little communication from the support agencies on progress and success of the applications. This illustrates potential to improve information provision and communication methods. The following is recommended to assist with these concerns: Clear communication and expectation setting by SEDA: o o Marketing of support and services: To improve the information received by cooperatives and potential cooperative members it is accurate and properly representative of the support offered by SEDA, it may be beneficial to enhance the marketing of support and services. This will encourage less word-of-mouth information dissemination as primary sources of information from SEDA will be directly provided by SEDA itself. Expectation management: In order to properly manage expectations, cooperatives must be made fully aware of the type assistance SEDA can offer; the criteria used to evaluate applications for assistance; and the time frames in which they can expect to receive assistance or receive feedback if they are awaiting information on assistance. Strong lines of feedback should be provided regarding assistance. This can include feedback on financial or support applications. Additionally, verbal transfer of information may lead to inconsistent information. This emphasises the importance of expectation setting. Contact details for SEDA should be provided so that cooperatives have a means of checking up on their applications. A number to which a ‘please call me’ can be sent would make this easier for cooperatives. The scheduling of evaluation and monitoring sessions in advance would enable the cooperative to gain a better understanding of when they will next be receiving feedback on their progress. 90 | P a g e U r b a n - E c o n : D e v e l o p m e n t E c o n o m i s t s

Research Report: Address<strong>in</strong>g <strong>the</strong> Needs, Opportunities and Challenges <strong>of</strong> <strong>Cooperatives</strong><br />

and Collectively Owned Enterprises <strong>in</strong> <strong>the</strong> <strong>Poultry</strong> and Related Industries<br />

demand, cooperatives do not f<strong>in</strong>d sufficient customers for <strong>the</strong>ir live broilers. One large producer<br />

stated that <strong>in</strong>creased diversity <strong>of</strong> product <strong>of</strong>fer<strong>in</strong>g would enable <strong>the</strong>m to make use <strong>of</strong> develop<strong>in</strong>g<br />

farmers. It is thus recommended that SEDA assess different forms <strong>of</strong> diversification amongst<br />

develop<strong>in</strong>g farmers. This could <strong>in</strong>clude <strong>the</strong> growth <strong>of</strong> organic chicken, organic eggs, quail,<br />

pheasant, etc. This would enable develop<strong>in</strong>g farmers to produce a niche product and supply to<br />

that.<br />

5.2.4.<br />

Enhanc<strong>in</strong>g Information and Communication<br />

Many <strong>of</strong> <strong>the</strong> cooperatives surveyed had heard <strong>of</strong> <strong>the</strong> various government support systems through<br />

word <strong>of</strong> mouth. This <strong>in</strong>dicates fairly good, but <strong>in</strong>formal <strong>in</strong>formation dissem<strong>in</strong>ation <strong>in</strong> <strong>the</strong><br />

communities. Fur<strong>the</strong>rmore, many cooperatives reported <strong>the</strong>ir desire to receive assistance, but be<strong>in</strong>g<br />

unsure how to atta<strong>in</strong> it. A large number <strong>of</strong> cooperatives also reported that <strong>the</strong>y were ‘wait<strong>in</strong>g’ to<br />

receive assistance, with little communication from <strong>the</strong> support agencies on progress and success <strong>of</strong><br />

<strong>the</strong> applications. This illustrates potential to improve <strong>in</strong>formation provision and communication<br />

methods.<br />

The follow<strong>in</strong>g is recommended to assist with <strong>the</strong>se concerns:<br />

<br />

Clear communication and expectation sett<strong>in</strong>g by SEDA:<br />

o<br />

o<br />

Market<strong>in</strong>g <strong>of</strong> support and services: To improve <strong>the</strong> <strong>in</strong>formation received by<br />

cooperatives and potential cooperative members it is accurate and properly<br />

representative <strong>of</strong> <strong>the</strong> support <strong>of</strong>fered by SEDA, it may be beneficial to enhance <strong>the</strong><br />

market<strong>in</strong>g <strong>of</strong> support and services. This will encourage less word-<strong>of</strong>-mouth <strong>in</strong>formation<br />

dissem<strong>in</strong>ation as primary sources <strong>of</strong> <strong>in</strong>formation from SEDA will be directly provided by<br />

SEDA itself.<br />

Expectation management: In order to properly manage expectations, cooperatives<br />

must be made fully aware <strong>of</strong> <strong>the</strong> type assistance SEDA can <strong>of</strong>fer; <strong>the</strong> criteria used to<br />

evaluate applications for assistance; and <strong>the</strong> time frames <strong>in</strong> which <strong>the</strong>y can expect to<br />

receive assistance or receive feedback if <strong>the</strong>y are await<strong>in</strong>g <strong>in</strong>formation on assistance.<br />

Strong l<strong>in</strong>es <strong>of</strong> feedback should be provided regard<strong>in</strong>g assistance. This can <strong>in</strong>clude<br />

feedback on f<strong>in</strong>ancial or support applications. Additionally, verbal transfer <strong>of</strong><br />

<strong>in</strong>formation may lead to <strong>in</strong>consistent <strong>in</strong>formation. This emphasises <strong>the</strong> importance <strong>of</strong><br />

expectation sett<strong>in</strong>g. Contact details for SEDA should be provided so that cooperatives<br />

have a means <strong>of</strong> check<strong>in</strong>g up on <strong>the</strong>ir applications. A number to which a ‘please call me’<br />

can be sent would make this easier for cooperatives. The schedul<strong>in</strong>g <strong>of</strong> evaluation and<br />

monitor<strong>in</strong>g sessions <strong>in</strong> advance would enable <strong>the</strong> cooperative to ga<strong>in</strong> a better<br />

understand<strong>in</strong>g <strong>of</strong> when <strong>the</strong>y will next be receiv<strong>in</strong>g feedback on <strong>the</strong>ir progress.<br />

90 | P a g e U r b a n - E c o n : D e v e l o p m e n t E c o n o m i s t s

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