AN INNOVATIVE RURAL EXPERIENCE: MANAGEMENT OF CERTIFIED GROUNDNUT SEEDS PRODUCTION BY COOPERATIVES IN SENEGAL

CAPITALISATION DOCUMENT

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Foreword In Senegal, 65 % of the population live in the rural areas, while ¾ of them are engaged in agriculture. Groundnuts constitute the main source of monetary income for six out of ten producers. It also contributes up to over 30% to food consumption. It finally provides animal feed, for both draught animals and fattening purposes, and has incited the Government, since independence, to take over all the links of the groundnut production chain, from input supply to marketing. Such management translates into its intervention at all levels of production and marketing through its farmers’ supervision structures. During this period, farmers were organized around cooperatives set up and administered by the State, and their role was simply restricted to ensuring production functions. The failure of this interventionist policy and the liquidation of SONAGRAINES, which dealt with the production and distribution of agricultural inputs to farmers, have culminated in losses in groundnut seeds capital, which has declined from 20 000 T in 2000 to 0 T in 2001, a reduction in productivity and revenues, and an increasing poverty in rural areas. Private businessmen as well as their support structures and NGOs later tried to reconstitute groundnut seeds capital that proved fruitless because the key stakeholders and beneficiaries (producers) were not at the centre of the action. The decline in groundnut production and the demand in certified seeds expressed by small producers in sufficient quantity, gave rise to the idea of entrusting the latter with the management of seed production. In 2007, the Government of Senegal obtained financial support from the World Bank and IFAD (PSAOP 2) to fund a pilot action geared towards the production of groundnut seeds by small producers organized into cooperative-type private businesses. The convincing results have encouraged the Ministry of Agriculture to request ASPRODEB (Senegalese Association for the Promotion of Development at the Grassroots), in 2008, within the framework of the COM – STABEX Program, to support producers’ organizations to reconstitute the groundnut seed stock and professionalize family farmers (application of standards of agricultural good practices, traceability, compliance with the seed regulation, etc.). The EU-IFAD Food Facility Project has just consolidated the accomplishments and helps to pursue the establishment of cooperatives in the regions of Thies, Tambacounda, Diourbel, Ziguinchor and Kolda, all of which have a high agricultural potential. As part of the implementation of the said program, ASPRODEB assisted farmers in their structuring, the functioning of established structures and the training of stakeholders for their professionalization in certified groundnut seed production and partnership with technical services and banks. The project’s implementation methodology led to the implementation of activities linked to the identification of seed producers in the intervention areas, in close collaboration with umbrella organizations of producers and technical services of the areas concerned, to the information and sensitizing of producers, in the organization of constituent General Assemblies supervised by administrative and local authorities.

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This approach was meant to trigger the emergence of an autonomous, transparent and professional organization functioning democratically, and respectful of the rules of good governance and capable of encouraging its members to become professional in order to ensure the production of certified groundnut seeds. This capitalization pamphlet presents the amassed knowledge and experiences as well as the methodology used to enable producers to organize themselves, assume responsibility, engage a technical team and establish partnerships with research institutes and financial structures, in a bid to ensure availability of certified groundnut seeds thus contributing to the renewal of a major subsector for the Senegalese Agriculture. The path set out here shows the way forward and proves, if need be, that when the real stakeholders are empowered and take centre stage, the results will follow. Ndiawar DIOP ASPRODEB Chairman

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Table of Contents Foreword .................................................................................................................................... 2 I. Genesis of cooperatives of seed producers ........................................................................ 6 II. Process for the establishment of cooperatives .................................................................. 7 2.1 Definition of a cooperative .......................................................................................... 7 2.2 Case study of the Cooperative of groundnut seed producers of PAOS KOTO ............ 7 III. Functioning of the Cooperative..................................................................................... 11 3.1 Management of the production ................................................................................ 11 3.2 Management of the collection, storage and marketing processes........................... 13 IV. Management of the Cooperative .................................................................................. 14 4.1 Management bodies of the Cooperative .................................................................. 14 4.2 Administrative and Financial Management .............................................................. 14 4.3 Sustainable management of the Cooperative ........................................................... 15 ANNEXES................................................................................................................................... 16 Annex 1 : Organizational structure of a Cooperative ........................................................... 17 Annex 2 : Seed Production Contract .................................................................................... 18

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List of Acronyms and Abbreviations GA ASPRODEB BFEM BA

General Assembly Senegalese Association for the Promotion of Development at the Grassroots Brevet de Fin d’Etudes Moyennes (Junior High school Completion Certificate) Board of Administration

CLCOP

Local Framework for Dialogue among Producers’ Organizations

CNCAS COM STABEX

Caisse Nationale de Crédit Agricole du Sénégal Mutual Obligations Framework – Exports Stabilization

DISEM

Seeds Division

EDF FNRAA GOANA ISRA N1

European Development Fund National Fund for Agricultural and Agro-food research Grand Agricultural Offensive for Food and Abundance Senegalese Institute of Agricultural Research

N2

Level 1 Level 2

OP PSAOP

Organization of Producers

R1

Certified first generation certified seeds and plants

R2 SDDR SRDR

Certified second generation seeds and plants Departmental Rural Development Service Regional Rural Development Service

Agricultural Services Programme and Producers’ Organizations

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I. Genesis of cooperatives of seed producers With the New Agricultural Policy marked by the disengagement of the State, the withdrawal of SONAGRAINES, a structure formerly responsible for supporting farmers’ access to inputs, agricultural materials and marketing, has led to the loss of seed stock (from 20000 tons in 2000 to 0 tons in 2001). This resulted in a decline in productivity and revenue which substantially increased poverty in rural areas. Following the State's disengagement, groundnut seed production was taken over by private businessmen who put farmers on contract to produce certified seeds. Senegalese farmers were supported by State-run structures and a few NGOs to produce «improved seeds». Faced with the numerous difficulties encountered by businessmen to rebuild the seed stock, support structures and NGOs have made unsuccessful attempts to produce seeds. In 2007, the demand for certified seeds in sufficient quantity, as expressed by small producers, brought forward the idea of producing the seeds themselves with the required assistance to ensure a good organization and professionalization. The Food Facility Program funded by the European Union and implemented by IFAD echoes this view. In response to the 2008 food crisis, it was instituted to consolidate the accomplishments of activities undertaken to rebuild the groundnut seed stocks based on the professionalization of smallholders organized into cooperative-type businesses. This document builds on the experience amassed by these cooperatives since their creation. It outlines the process whereby a cooperative of seed producers is established, its methods of operation and management by taking advantage of the lessons drawn from the experiences of managers of these structures in Senegal. It illustrates the different stages of the process with the producers’ experiences and restores their analysis of successes and failures as well as the recommendations made.

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II. Process for the establishment of cooperatives 2.1 Definition of a cooperative It’s about a corporate body grouping people with common economic and social needs and who, in quest for the satisfaction of these needs, come together to run a business in accordance with cooperative policies. In Senegal, cooperatives are governed by the law n° 87-03 of 28 January 1983 and the decree 83-20 of 25 March 1983. What is a cooperative? • An autonomous association of persons; • A pooling of human and economic means; • A jointly owned enterprise; • An enterprise governed by an elected Board of Directors. Missions of the cooperative • Improve the economic conditions of its members who are clients and owners, by providing them with goods and services; • Assist in the financing of activities by lending and putting the profits back into the coffers of the association; • Guarantee the quality (traceability, certification) of seeds; • Guarantee the availability and distribution of seeds. How to become a member? • Volunteer; • Meet the criteria set by the General Assembly; • Purchase one or several shares; • Pay one’s annual subscription; • Comply with the statutes and rules and regulations, • Demonstrate loyalty, honesty and solidarity towards one’s cooperative. Advantages of being a cooperative member • Benefit from technical and financial facilities; • Receive training and technical information; • Have access to inputs and equipment at negotiated prices; • Have access to markets; • Benefit from group solidarity.

2.2 Case study of the Cooperative of groundnut seed producers of PAOS KOTO An old organizational dynamics Paoskoto is a rural community in the agro-ecological zone of the groundnut basin of Senegal. It is located in the Department of Nioro du Rip, some 50 Km from Kaolack. It encompasses some 120 villages, most of which share borders with the Gambia and, like other areas of Senegal, it has been experiencing the emergence of such associations since the advent of the country's independence.

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Unfortunately, these structures have not yielded satisfactory results due to the fact that the management method used by the Government did not make room for farmers’ participation in the decision making process. The rural community of Paoskoto whose farmers are still receptive to innovations, has experienced all forms of organizations of producers like groupings, village sections, the Village Development Committee (CVD) the central purchasing office, etc. Paoskoto was the crucible of State-initiated pilot programmes such as PSAOP, PNIR and PNDL, all of which were geared to rural development. The advent of the PSAOP has led to the creation of the Local Framework for Consultation among Organizations of Producers (CLCOP). This consultation groups OPs active in the rural community, namely groundnuts and animal producers, cooperative unions of forestry workers, economic interest groups, women’s advancement groups, associations and alliances of producers etc. Within this CLCOP, some farmers identified as seed producers will regroup into cooperatives specialized in seed production. A cooperative of groundnut seed producers established in an all-inclusive process

GENERAL ASSEMBLY

Comptrollers

Board of Trustees

Good practices for the establishment of cooperatives Awareness missions intended for producers; Promotion of women and youths ; Refresher training in cooperatives management and good governance ; Motivation of officials ; Clarification of the roles and responsibilities of members of the management bodies. AD HOC COMMITTEES

DIRECTOR

Technician

Observer

Observer

Observer

Observer

Observer

Observer

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An Action Committee to ensure communication and sensitizing aspects The rural community of Paoskoto has been chosen to establish a cooperative owing to all the innovations it has benefited from. The cooperative establishment process started with a sensitizing and communication meeting staged by CLCOP with the support of ASPRODEB, which then hired a Consultant to this end. To this varied public, the Consultant presented the different types of organizations existing in Senegal (GIEs, Association, Cooperatives, etc.), their advantages and drawbacks, the funding mechanisms, etc. and ran a discussion that culminated in the choice of the type of organization that they found most suitable for their context. Consequently, a 7-member Action Committee was set up based on the division of the Rural Community in 6 zones. This division of the 120 villages encompassed by the RC was made following geographic (closeness of villages, expanse and polarization centers), cultural and historical criteria (kinship and seniority links existing amongst villages), etc. Each zone is represented by a member in the Action Committee and the 7th member hails from the most populated zone that boasts two seats. This Action Committee was assigned the mission to: − Inform and sensitize all producers of the locality, leaders of organizations, local and administrative authorities on the purpose and stakes of the cooperative; − Identify potential members; − Write draft statues for the cooperative; − Draft a letter of intent for the establishment of a cooperative addressed to DRDR; − Propose a plan of action and develop a projected statement of income; − Restore the information to ASPRODEB, which is the main partner; and − Organize the constituent General Assembly (set the date, send the notifications, rent the venue, propose an agenda) marking the end of its mandate. Management bodies renowned for their transparent and democratic establishment The constituent General Assembly (GA) of the cooperative of groundnut seed producers of Paoskoto convened on 6th December 2007, gathering all producers of the Rural Community identified by the Action Committee as potential members, representatives of Producers Organizations (POs), GIEs, associations of producers, the local and administrative authorities, representatives of DRDR of SDDR, among others. With this varied public, organizers discussed the different types of organization existing in Senegal (GIEs, associations, cooperatives, limited companies, etc.), their advantages and drawbacks, the funding mechanisms etc., and sensitized on the need to establish a structure managed by producers themselves in a bid to prevent drifts noted in the management of former cooperative entities then established and run by the Government. During this GA, the Action Committee presented its activity report (a process that had culminated in the holding of the GA) before unveiling the draft statutes that were discussed, amended and adopted. A Board of Trustees and an elected Executive Committee Based on the decree 83-20 of 25th March 1983 setting the statutes and by-laws for cooperatives, the constituent GA of Paoskoto gathered some 132 producers to elect a Board of Trustees of 9 members and a control body comprising 3 comptrollers, the role of whom is to check the application of GA decisions.

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Members of the Paoskoto Board, whose mission is to oversee the application of the decisions made during the GA, were elected in camera, along with a 6-member Executive Committee with a Chairman and a Deputy Chair, a Secretary and his assistant and a Treasurer and his deputy. This proposed Executive Committee was then presented to the GA that discussed and validated it. An important presence of women and youths in the cooperative When establishing the management bodies, the initiators focused on a balanced representativeness based on the division of the rural community and also addressed the gender aspect. Thus, out of the 132 members attending the constituent GA of the Paoskoto cooperative, 74 of them were women and 35 youths. Three (3) women are member of the Board of Trustees, while others are present in the Executive Committee, mainly holding the post of Treasurer and Deputy Treasurer. A technical support staff hired based on standard norms At the end of the constituent GA, the new Executive Committee got in contact with ASPRODEB for the recruitment of its technical support staff comprising a Director (holder of a Master’s in agricultural science, economics, company management or relative disciplines), a technician (holder of a college degree in agriculture or a similar domain with a solid experience in the agricultural sector), and 6 observers hailing from the locality. To this end, the Chairman of the Cooperative issued a call for interest and with the support of ASPRODEB, screened the candidacy files, staged interviews with the shortlisted candidates to choose those having the best profile. A work contract was then entered into between the cooperative and the staff in charge of providing the technical support. This is actually paramount in the management of the cooperative, as the technical team is placed under the authority of the Chairman. Contracting with cooperative member producers In a bid to consolidate the commitment of producers, the cooperative has signed a contract with member producers. Through this act, the latter undertake to abide by seeds production specifications, deliver all their yields to the cooperative and pay back the granted loans. As to the cooperative per se, it has undertaken to buy the entire production of smallholders. The advantage of such formalization through a signed contract is that any producer infringing on their undertakings will face sanctions. For example, a producer selling seeds in the parallel market might be ousted from the cooperative or even face prosecution. A steady technical and financial assistance yielding fruitful partnerships To strengthen the gains in the promotion of cooperatives of seed producers, the Senegalese Association for the Promotion of Development at Grassroots (ASPRODEB) has secured substantial support, from the EU - IFAD - ECOWAS Food Facility Program, to help reconstitute the groundnut seed stock. This seed sector revamping operation has made it possible to cover the charges of the technical staff and operating costs. In addition, the cooperative has received logistic means and collective equipment for seed processing and packaging (dockage tester, sewing machine, tarpaulin, weighting machine, etc.).

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The technical support to the rollout of activities was provided by the technical team of ASPRODEB. The monitoring of the fields control, as per the regulation peculiar to groundnut cultivation was performed by the technical officers of DRDR seed management services and Cooperative membership criteria: supervised by DISEM. • • • • •

Residing in the locality ; Having less than 4 has of land ; Having an appropriate equipment and adequate staff ; Being solvent and trustworthy to banks ; Paying a subscription of 10,000 CFA, and yearly contribution worth 2,500 CFA

In a bid to better plan the marketing, a funding convention has been entered into with CNCAS to enable cooperatives to avail themselves of funds to buy and store all the seeds produced, pending the sales thereof to other cooperatives or producers during the course of April-May 2012.

In addition to CLCOP, the cooperative is setting partnership relations with other local organizations such as the Environment Club that has lent a storage shed. As part of the program, the cooperative received pre-basic seeds during the campaign 2010/2011 from ISRA, which is in charge of the research component. This partnership has been strengthened with the presence of the ISRA Station in Nioro, the head of which is regularly kept posted as to the state of progress of activities and the holding of General Assemblies. Moreover, the recently-created Network of cooperatives is willing to be a member of ASPRODEB and benefit from more support concerning the purchase of pooled inputs and the marketing of the agriculture produce.

III.Functioning of the Cooperative The functioning of a cooperative of producers of certified groundnut seeds lies on processes ranging from the management of the production to the marketing, through the collection and storage of the produce. 3.1 Management of the production In a bid to step up the producers’ capacities to produce certified groundnut seeds, some training activities in production techniques have been carried out in partnership with research institutions and State-run technical services.

Good practices of production management − −

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Stage many training/communication sessions ; Increase the quantities and quality of seeds and other inputs allotted to producers ; Distribute the seeds in time ; Renew the agricultural equipment ; Find adequate means in terms of logistics and staff ; Increase the logistic means and the personnel ;

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Ensure the respect of the varieties map.

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Testimony of Babacar CISSE, Chairman of the Nganda Cooperative Members of our cooperative have undergone training sessions that touched on the good agricultural practices for the production of certified groundnut seeds. The latter can be summed up as follows: − − − − − − − −

Preparation of the plot of land; Use of 240 kg of unshelled groundnut or 120 of shelled groundnut; Use of 6 bags of 6-20-10fertilizers and 2 bags of granox antifungal agent; Respect of the 50 cm spacing between the lines; Use of adapted seeding discus depending on the species ; waiting for a rainfall of 25 mm or above before sowing ; Weeding on the 4th day after sowing; Spraying of fertilizers on the 10th day after sowing.

In the beginning of the campaign, I signed a contract with each producer involved in the production of groundnut seeds. Usually, the inputs (seeds and fertilizers) are provided on credit to the producers who undertake to pay back the loans at the end of the campaign. The contract specifies the obligations of each party, notably the member’s obligation to hand over to the cooperative all his production and that of the cooperative to buy at a pre-set price the production of both certified and noncertified seeds. In the choice of the varieties, the cooperative oversees the observance of the varieties map drafted by ISRA according to the agro-ecological zones in Senegal. Our yields vary between 800 kg and 1 ton. Some cases of poor yields related to rainfall hazards and at times to the non respect of the recommended technological package have been noted among some producers belonging to the cooperative. The ‘Cooperative du Fleuve’ gives us basic seeds that we multiply in level 1 (N1) and which are subsequently sold to other seed production cooperatives as part of a partnership under the Network. Before the beginning of each campaign, the Network organizes a meeting to enable each cooperative to present its needs in seeds and negotiate and sign a contract with another one to satisfy the expressed needs. Our cooperative has secured the support of technical services for the following activities : − Statement of cultivation lodged with DISEM; − Monitoring of the emergence rate on the 15th and 40th day after sowing; − Control, monitoring and cleanup of the land by SDDR and DISEM ; − Demarcation of pre-harvest yield square ; − Analysis of the sampling of yield squares; − Determination of the level to be certified by DISEM and regional control by SDDR or DRDR. Access to State-subsidized fertilizers and phytosanitary products is difficult for the cooperative, which secures supplies from private entities, where prices are deemed very high. During the agricultural campaign 2011/2012, the cooperative bumped into a deficit of supplies in seeds, reason why 26 percent of producers belonging to the cooperative did not receive seeds. We have received, as part of the EU-IFAD Food Facility Program, via ASPRODEB (the technical partner), a series of equipment including an electronic weighing machine, a weigh scale , 2 tarpaulins, one sewing machine, 5 bikes, 2GPSs, 1 computer+printer, office furniture and chairs.

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3.2 Management of the collection, storage and marketing processes Testimony of Aly DIAW, Chairman of the seed production cooperative of Kahi The availability of storage sheds is the main problem that we are facing. Some sheds are in a rundown state and need to be rehabilitated. The ones in a good state are often difficult to access and cooperatives have some times to share them with other producers and economic operators that do not produce any seeds. These infrastructure-related constraints expose the yields to attacks of seed weevils, which reduces the rate of certification and subsequently affects the expected production. Since the negotiations with the Government for the provision of metal sheds to cooperatives of seed producers have not been conclusive, the sheds targeted as part of the Food Facility Program have not been rehabilitated. Concerning the marketing of the products during the campaign 2010/2011, the seeds were sold at 225 CFA for the Level 1 (N1) and 200 CFA for the level 2 (N2). From these amounts are deducted the granted loans. The producer receives at the time of delivery a down payment worth 200 CFA per kg for the level N1 plus his certification bonus amounting to 25 CFA per kg, and 175 CFA per kg for the level N2, with a bonus of 25 CFA per kg granted after certification by DISEM services. The collected and certified seeds will be stored and verified regularly until the month of May of the following year. The cooperative makes sure that all good conditions are met to preserve the quality of the stock. For the forthcoming campaign, we intend to sell the N1 stock at 265 CFA/kg to groundnut seeds producers for them to make N2 seed,s and our certified N2 seeds will be sold to producers at 240 CFA/kg. The release of the stocks is at the charge of buyers. The production of ordinary groundnut (non certified) as from the end of the marketing campaign of this year 2012, shall be sold in the form of peanut at the rate of 150 CFA/kg. As far as the marketing is concerned, our cooperative sets its funding needs based on the projected yields. We develop our credit file, along with the Director of the cooperative, based on the projected collection and the needs in operating costs; thus we integrate the marketing costs with the different items of expenditure and a projected statement of income. The assistance from ASPRODEB and the credit fund called ‘Lever Fund’ placed at CNCAS will this year make it possible to mobilize funding. Actually, the Food Facility Program is expected to help us secure a credit three times higher than the guaranty fund. Hitherto, our cooperatives do not on the whole complain about the agricultural bank that trusts us. Some banks often lament the delay in the mobilization of funds in spite of the provision of the capital stock and the lever fund. The respect of the contractual undertakings is an important criterion of success. In fact, the delays noted in the provision of funding prompt the sales of seeds in parallel markets. The latter’s appeal is increased by factors such as the incentive prices proposed, the little requirements of buyers (no grain cleaning, not screening) and the extension of the low-offer period.

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IV.

Management of the Cooperative

4.1 Management bodies of the Cooperative Under the tutelage of the Ministry of Agriculture, the Cooperative is managed in first instance by the General Assembly. The GA is the supreme organ of the Cooperative, but it delegates its power to a 9member Board of Trustees, whose role is to see to the application of the decisions made during the GA. The Board elects among its members the ones due to form the 6-member Executive Committee, with a Chairman and a Deputy Chairman, a Secretary and his assistant, and a Treasurer and his deputy. The gender aspect is also encouraged. On the other hand, there is a control body assigned with the mission to check the application of the decisions made during Gas. Some commissions can be set up if need be. Every year, an ordinary General Assembly is convened to peruse the activities carried out. However, an extraordinary General Assembly can be held if circumstances so demand. The Board convenes once every quarter and the validity of the meetings is dependent on the following: o Notifications sent 21 days in advance; o Verification of the quorum ; o Drafting of minutes along with the attendance list. All the documents shall be archived in the office by the Secretary. The Chairman convenes and presides over all meetings. Cooperatives can improve their organizational structure and, particularly, their secretariat, by pursuing the sensitizing tours and by regularly reporting on their activities.

4.2 Administrative and Financial Management The Board recruits a qualified staff led by a Director. It is responsible for the financial management under the supervision of the Chairman. The Director drafts a business plan featuring all activities. He shall present monthly financial and activity reports to Board members. Each Good practices in terms of marketing: expenditure shall be justified with vouchers (invoices, receipts, discharge, Definition marketing conditions in the orders, etc.) These accounting production contract ; documents are classified as archives in Early start of the marketing campaign ; the office. Contracting and price-setting before the -

production ; Proper knowledge of members due to assure the marketing; Proper estimation of the collection ; Homogenous processing conditions in all cooperatives (NETWORK). Timely mobilization of funding ; Diversification of financial partners.

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The functioning of a cooperative requires some financial means: for the handling of daily operations, yearly contributions are used and completed with the benefits generated by the marketing campaign; for the financing of the monitoring of the production and seed collection and marketing campaigns, a credit is incurred at the bank.

Good practices in terms of administrative and financial management − − − −

Provision of data in time ; Availability of monthly reports ; Proper keeping of administrative and financial documents ; Training of the technical team as to its roles and responsibilities ; Holding of periodic meetings with the Board ; Adequate office equipment and

One of the tools that cooperatives were lacking is a manual of procedures. Such a document is of paramount importance − as it makes it possible, along with the book of specifications for the technical staff, to set all the internal procedures − governing the life of the cooperative. The manual of procedures defines the principles and criteria guaranteeing transparency, democratic management, and specifies the roles and responsibilities of the different bodies (Board and technical staff) likely to ensure a proper running of cooperative affairs.

4.3 Sustainable management of the Cooperative The most important issue is the one relative to the sustainability of cooperatives: are they in dynamics that enable them to reach financial autonomy and assure their own sustainability? The presence of certain factors can hinder such a prospect. These include: −

Dependence on other structures for the acquisition of equipment or the coverage of charges of the technical team;

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Lack of entrepreneurship from managers of cooperatives, which prevents them from anticipating events and defining a real policy of empowerment vis-à-vis classical partners;

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Absence of a consistent policy of the Government in the seed sector, which exposes certified seeds to the competition of imported seeds.

Services expected from the Network, as part of the strengthening of the sustainable management of cooperatives include the following: o Training and monitoring for good agricultural practices ; o Marketing of the production ; o Support for the transparent management of the cooperative.

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ANNEXES

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Annex 1 : Organizational structure of a Cooperative

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Annex 2 : Seed Production Contract

Contract for the rain-fed production of N___ seeds Campaign----------BETWEEN The Cooperative of groundnut seed producers referred to as > of----------------------------Represented by its Chairman, M -----------------------------------------------------------------------------------------ON THE ONE HAND, AND, The adhering producer named ------------------------------------born on -------------------in ---------------------National ID Card N°--------------------------, member of the Cooperative, ON THE OTHER HAND It has been agreed the following: Article 1: SCOPE AND PURPOSE OF THE CONTRACT This Contract fits into the framework of the national program for the revival of the groundnut production sector, as part of which it has been agreed that the COPROSA of ---------------------, its member producers, undertake to produce the groundnut seeds of level N__ during the campaign referenced above. Article 2 : OBLIGATIONS OF THE COOPERATIVE • The Cooperative undertakes to supply seeds and fertilizers in conditions set by mutual agreement with the support of ASPRODEB; • The Cooperative monitors, through its technical team, the production and provides a close support to the producer all along the agricultural campaign, and undertakes to buy the entire production, after the latter is washed, sorted and certified. Article 3: OBLIGATIONS OF THE PRODUCER • The Producer undertakes to cultivate during the raining season two (2) hectares of level N__ of the variety _______, and to use the seeds supplied by the Cooperative; • The Producer shall apply the mineral formula to the prescribed doses ; • The Producer undertakes to deliver his entire production stemming exclusively from the farm concerned. Article 4: SANCTIONS AND PENALTIES In case of violation of any of the dispositions under Article 3 of this Contract, the Producer can be excluded from the Cooperative and shall reimburse all granted advances and shall lose his subscription amount. Article 5: DURATION This Contract is established in two (2) copies (One for the producer, one for the Cooperative) for the duration of the production and marketing campaign.

The Chairman of the Cooperative

The Member Producer

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