20 Aug 2018

Kweneng North Horticultural Farmers’ Marketing Cooperative have been advised to explore other avenues through which they can grow their venture.

During a meeting to exchange ideas on how best to run cooperatives held in Metsimotlhabe recently, Kenyan Union of Savings and Credit Co-operatives (KUSCCO)  manager Mr Samon Kibii said the cooperative should start thinking of how they could venture into saving and credit business as was the case in Kenya.

Mr Kibii said they had 18 000 to 23 000 co-operatives with 11 000 of them offering financial services something he said had been able to provide capital for their members through loans instead of seeking help from commercial entities.

“By lending money, you will be encouraging those who are not growing anything but have farms to get back into business as some just need capital,” he said during a meeting that was also graced by the CEDA cooperative department.

He said it was necessary to offer education and training for their members as a way of empowering them.

Mr Kibii emphasised to them the importance of working closely with the Ministry of Agricultural Development and Food Security saying by so doing, they would in a position to easily get help in terms of crop inspection thereby ensuring produce of quality crops.
 

He also advised the members to offer machinery lending services at a lower rate than leaving their tractors and planters to park without being utilised as was the case.

Mr Kibii said government should consider removing taxes on agriculture machinery citing an example of   Kenya government saying it had made it easy for farmers to venture into large-scale businesses.

For his part, head of project and product building at CEDA Mr Tiroyamodimo Kayawe, said they had realised that almost everyone could get funding from CEDA except cooperatives hence they had engaged consultants from KUSCCO to help them.

He said KUSCCO would develop a model to enable them as CEDA to finance cooperatives despite their peculiarities.

“We will be meeting different cooperatives throughout this week and we hope we will tailor make a product specific to them to accord them funding,” he said.

He said CEDA would be ready to help in capacity building to ensure that cooperatives had governance and structures in place required to be eligible for funding.

The chairperson of the Kweneng North Horticultural Farmers’ Marketing Cooperative, Mr Kagiso Nkago said they were aiming at creating a market for their products.

He said the society retained 10 per cent of the profits while the rest was pocketed by farmers.

Mr Nkago said they formed the cooperative as they did not have a market, especially that the retail shops were offering lower rates, denying them the bargaining power citing that retailers bought a box of tomato at P35 and sold it for P60.

He said since the formation of the cooperative in 2015 they were now able to sell at a higher price.

The cooperative has won a tender with the Botswana Defence Force (BDF) and they have hired a truck to deliver their order every week.

Mr Nkago said tomatoes were currently off season thereby giving them an edge to sell to BDF at P75 per box.

Other produce supplied to BDF at a good price include green pepper, lettuce, butternuts, beetroots, carrots and cucumbers.

The cooperative has also managed to get a plot in Lentsweletau where they will build a collection point for their customers. ENDS