Project Agribusiness Research Report Formation of the Formers Enterprise Groups (FEG) Funded By ASF

Conducted & Written By Naushad Kazi

Sindh Agricultural and Forestry Workers Coordinating Organization

Project Title Funded By Project Tenure Verifying Object Conducted Date

AGRI BUSINESS ASF 10th Oct 012 to 9th Oct 014 Formation of FEGS

29th May 013

Monitoring Period Visited FEGs
10th Oct 012 to 29thMay 013

a. Sultanabad b. Jan Muhammad Brohi c. Shah Latif

Monitoring Location District concern Focal Person

District Matiari

Mr. Muhammad Juman

Table of Contents

S# 1

Description Project Introduction & Background

Page No 4

2 3 4 5 6 7 8 9 10 11

Project Rationale Research Hypotheses Research& Monitoring Objectives Methodology Analysis Monitoring Observations Dissemination of the Significant Findings Recommendations& Suggestions Appendix-1 Appendix-2

4 5 5 5 7 17 17 18 19 21

1. Project Introduction & Background

Farmer Enterprise Group (FEG) is the basic entrepreneurship unit formed by the Agribusiness Support Fund. ASF provides support in creating Agribusiness Enterprises by organizing small farmers and building their capacity in enterprise development to operate on commercially viable and sustainable basis. ASF supports formation / creation of FEGs through eligible partner organizations including RSPs and other NGOs having experience in the context. ASF, through its Implementing Partners (IPs) mobilizes horticulture and Dairy and livestock farmers and organizes them as groups/clusters and apex bodies (associations).The overall output of the intervention would be sustainable units of FEGs formed and engaged in collaborative agribusiness activities including production, post-harvest processing, value addition and marketing. Furthermore , provision of costsharing grants to these FEGs will enable them to employ best agriculture practices and post-harvest technologies to produce higher value crops and livestock, overcome scale disadvantages and gain market power, including identification of market opportunities and collective bargaining for input and output markets. This manual will facilitate the process of FEG formation on how the Implementing Partners can help farmer communities (men and women) to organize and work together to create employment and increase their income.

2. Project Rationale
In order to overcome scale disadvantages it is vital to organize smallholder farmers into groups to engage in collaborative activity including production, post-harvest processing, value addition and marketing. Collective action by FEGs will enable the members to benefit in the following areas: a. Employ best agriculture practices and post-harvest technologies to produce higher value crops and livestock; b. Overcome scale disadvantages and gain market power, including features such as identification of market opportunities and collective negotiating for input and output markets; c. Add value to primary production through rural processing, grading, packaging, branding, storage and marketing arrangements; d. Develop long-term equitable relationships with agribusiness enterprises including traders, processors and retailers. 4

3. Research Hypotheses
The following hypothesis to be tested in the study: Null Hypotheses Alternate Hypotheses = H0 = H1

a. The FEG members fully briefed about all pros and cons while formation of the FEGs by the concern official b. The FEG formation enabled the local formers to get more benefits from their available natural resources

4. Research& Monitoring Objectives

a. To monitor and evaluate quality of the FEGs formation in district Matiari; b. To assess performance of\ the FEGs and behold their level of available knowledge regarding the subject; c. To evaluate and assess satisfaction level of the FEGs members regarding efforts of the implementing partner (Safwco)in district Matiari; d. To monitor the project staff behavior/attitude with the members of the FEGS; e. To document, provide feedback on and disseminate results and lessons learned.

5. Methodology
a. Inductive Approach:
While the visit, the qualitative approach was also adopted to analyze for further assurance. Hence, Mr. Naushad Kazi interviewed with the following designated officials of the FEGS.
No 1 2 3 Name of Interviewee Mr. Ghullam Raza Mr. Mashoque Mr. Manthar Area Matiari Matiari Matiari Name of FEG Sultanabad Jan Muhammad Brohi Shah Latif Type of Value Chain Vegetable Banana Banana Designation Manager Assistant Manage Book Keeper

b. Adopted Deductive Approach, Population & Sampling:

The FEGs are formed around 42 in district Matiari, so the research population was consisted of the members of such FEGs; further the pattern of random sampling adopted and sample size decided 7% of the described FEGs. The details of randomly selected FEGs are given as under: Sultanabad Jan Muhammad Brohi Shah Latif FEG members 15 FEG members 15 FEG members 15

Each visited FEG has 15 members, so the questionnaire served to 45 members of the FEG. Further, the sample size decided 07% of the population. Hence, while the visit the dichotomous questionnaires were distributed to the 45 FEGs members. Populations Bifurcation

Total FEGS formed (Matiari)

FEGs Members (Matiari)

Sample Size

Sample Size %

42

630

45

7%

c. Pilot Testing:
For this purpose, meticulously the designed questionnaire served to 7 people who have expertise and meet the criteria... Later their candid opinion, a few changes made and further such questionnaire served to the decided people of our sample size.

6. Analysis
a. Qualitative /Discussion:
First and foremost, when Mr. Naushad Kazi (Manager MER) met with the concern official Mr. Juman, he welcomed and briefed the MERs official Mr. Naushad Kazi (Manager MER) about his targets and achievement, such detail is given as below: Field Officials Allocated Target Analysis Targets VS Achievement
No Name of Official Name of value chain Banana Off season Vegetables. High value crops Targets 15 10 25 Achievements 13 5 18 % Against achievement 86.66 50%

Mr. Muhammad Juman

72%

Thereafter, he discussed his plan for scheduled meetings with the FEGs; the detail is already described... In this regard, Mr. Kazi accompanied by Mr. Juman went to visit the FEGs. The following record and its availability at the FEGs checked while the meetings, except FEG Sultanabad, as such members met outside their village at central point which is close to the agricultural land, so just the members could meet at the point. FEG Jan Muhammad Brohi

No

FEGs Monitoring Indicators Attendance Sheet of the first introductory meeting with the FEGs Proceeding Register FEGs Member Registration Form Group formation Form

FEG Sultanabad

FEG Shah Latif

1 2 3 4

Moreover, Mr. Kazi interviewed with three designated officials of the FEGs. Such detail is described as below: Detail of Yearly Cultivated Crops/Vegetables at FEG Sultanabad Per acre Rate Total Name of Crops/ Locally cultivation per Expected Vegetable called quantity MAND income (MAND) Lady's finger Bheendi 30 1200 36,000.00 Cucumber Toori 60 1600 96,000.00 A species of cucumber Meho 40 1200 48,000.00 Pumpkin Kado 35 1200 42,000.00 Cucumber Wango 40 700 28,000.00 Spinach Palak 20 1600 32,000.00 Gohaar 25 1600 40,000.00 Meethi 30 1200 36,000.00 Coriander Seeds Dhania 25 1000 25,000.00 Peppermint Phodano 25 1200 30,000.00

Name of Crops/ Vegetable Onion Chilles Tomatto Carrot

Locally called Pyaz Mirch Tomato Gajar

Per acre cultivation quantity (MAND) 175 150 150 100

Rate per MAND 1200 800 1600 1200

Total Expected income 210,000.00 120,000.00 240,000.00 120,000.00

Crops/Vegetable Per Acre Cultivation's Cost/Expenditures

Name of Crops/ Vegetable Onion Lady's finger Cucumber Spinach Coriander Seeds

Locally called Pyaz Bheendi Toori Palak Dhania Meethi

Cultivation Cost Per Acre 60,000.00 45,000.00 30,000.00 25,000.00 25,000.00 25,000.00

Banana Cultivation/ Income and Cost Per Acre Cultivation Quantity (K.G) 20,000 Per Acre Cultivation Cost Per Acre paid by Contractor

Bana na

Net Saving Per Acre

80,000.00

150,000.00

70,000.00

b. Quantitative Analysis:
The data analysis is a technique of research for making the valid and replicable references through data to their study contexts. (Saunders et al 2009) For purpose to prove the given hypothesis, the deductive approach is also adopted, so the required data has been collected through a questionnaire which designed to measure the research gap. Further, the questions were slightly repeated with little variation for proving the validity and reliability. Such data is organized in the form of tables and graphs in order to give a clear picture of the evidence gathered through a questionnaire and presented with the help of excel program.

Analysis of the Questionnaire Responses

No 1 2 3 Description Total number of research population Total number of served questionnaires (Sample Size) Number of Responded Questionnaires & Availability Frequency 630 45 36 % 100 07 80

Respondents Profile
Demographic Description Male Female Total Respondents 36 Marital Status Married 28 Single 8 80 Frequency %

Questionnaire Analysis
No
1 2 3 4 5

Dichotomous Questions
Do you feel the behavior of the project staff is appropriate and treats the beneficiaries in a dignified manner? Have you any mechanism for complaints if you face any problem to managing FEG's day to day activities? Are you fully briefed about the significance of the FEG before its formation? Do you think that the project would enable you to raise your income Are you briefed that what kind of benefits you could get after becoming members of the FEG Do you think that the project is designed to meet your all relevant expectations? Do you think that the project would be able to meet your needs? Did you get any training for developing your skills to manage the FEG activities and providing opportunities to learn more about your profession? If yes then write names of the training, please. Do you maintain the FEG record regularly? Do you convene the FEG's members weekly meeting? Do you convene the FEG's members fortnightly meeting? Do you convene the FEG's members monthly meeting?

Yes
36 13 36 35 36 32 30

No
23 0 01 0 04 06

6 7

27 21 34

36 09 36 15 02

9 10 11 12

10

c. Graphic Analysis:

Do you feel the behavior of the project staff is appropriate and treats the beneficiaries in a dignified manner?
40 30 20 10 0 Yes Graph.1 0 No 36

Have you any mechanism for complaints if you face any problem to managing FEG's day to day activities?
25 20 15 10 5 0 Yes Graph.2 No 13 23

11

Are you fully briefed about significance of the FEG before its formation?
40 35 30 25 20 15 10 5 0 36

0 Yes No

Graph.3

Do you think that the project would enable you to raise your income
40 35 30 25 20 15 10 5 0 35

1 Yes No

Graph.4

12

Are you briefed that what kind of benefits you could get after becoming members of the FEG
40 35 30 25 20 15 10 5 0

36

0
Yes No

Graph.5

Do you think that the project is designed to meet your all relevant expectations?
35
30 25 20 15 10 5 0 Yes Graph.6 No 4 32

13

Do you think that the project would be able to meet your needs?
35
30 25 20 15 10 5 0

30

Yes Graph.7

No

Did you get any training for developing your skills to manage the FEG activities and providing opportunities to learn more about your profession?
40 30 20 10 0 0 Yes Graph.8 No 36

14

Do you maintain the FEG record regularly?

30 25 20 15 10 5 0 Yes Graph.9 No 9 27

Do you convene the FEG's members weekly meeting?

40 35 30 25 20 15 10 5 0

36

0 Yes No

Graph.10

15

Do you convene the FEG's members fortnightly meeting?

25 20 15 10 15 21

5
0 Yes Graph.11 No

Do you convene the FEG's members monthly meeting?

40 35 30 25 20 15 10 5 0 34

2 Yes No

Graph.12

Note: The Researchers both alternate hypotheses (H1) statistically proved and null hypotheses strongly rejected.

16

7.

Monitoring Observations

a. Mr. Juman (SO) was given the target to form 10 vegetable FEGs but he just could achieve 50% of such targeted FEGs. b. While interviews, we found that the FEG members know very well about their crops cultivation and they had also other relevant information. c. The office record was found available at FEGs Shah Latif and Jan Myhammad Brohi; FEG members of Sultanabad met outside the village close to their agricultural land. So, the official couldnt see the record at their end.

8. Dissemination of the Significant Findings

100% respondents were agreed that the project deployed staffs attitude and behavior is good and treats the beneficiaries in a dignified manner; listens their queries carefully and advice them accordingly. 36% respondents werent agreed and replied no but 64% agreed that they know how they could register their complaints. 100% respondents agreed that they were fully briefed about significance of the FEG before its formation. 97% respondents agreed that the project implementation would enable them to raise their income. 100% respondents answered that yet they didnt receive any skills developing trainings. 75% respondents answered that they dont maintain the FEGs record regularly. 58% FEG members convene fortnightly meetings. 94% FEGs members convene monthly meetings

17

9. Recommendations& Suggestions
a. It is observed and found while the analysis that the FEGs dont convene frequently meetings, merely they arrange monthly meetings. So, it is suggested that the concern project official should mobilize and convince them to conduct minimum fortnightly meetings. b. During analysis, it is found that yet the skills developing training opportunities arent provided them by the project staff, so such types of the trainings should be given them without further delay for achieving better results.

18

Appendix- 1
FEG Profile/ FEG: Sultanabad (Vegetable)
No Name FEG formation date Value chain Designation CNIC no. Contact detail Total cultiva ted area Acres under vegeta ble

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Mr. Ghullam Raza Hussain Bux Ashique Hussain Badal Ayaz Ali Mehboob Tanveer Irfan Ali Asif Ali Nazar Mohammad Allah Warayo Naveed Ali Riaz Hussain Haji Khan Nisar Hussain

22/4/013 22/4/013 22/4/013 22/4/013 22/4/013 22/4/013 22/4/013 22/4/013 22/4/013 22/4/013 22/4/013 22/4/013 22/4/013 22/4/013 22/4/013

vegetable vegetable vegetable vegetable vegetable vegetable vegetable vegetable vegetable vegetable vegetable vegetable vegetable vegetable vegetable

Manager Assist. Manager Book keeper Member Member Member Member Member Member Member Member Member Member Member Member

41801-0606995-3 41305-8839410-1 41305-4465648-7 41801-0600922-7 41801-0603919-9 41801-0601370-3 41801-0625202-5 41801-0618091-9 41801-0581571-7 41801-0620081-9 41801-0617933-5 41301-99836311 41305-1001764-9 41305-7821784-7 41801-0629872-7

0305-3818896 0301-2210282 0300-3039136 0300-3004510 0308-3108093 0300-2852119 0300-2193182 0301-3563306 0306-3081922 0324-3611788 0305-8193985 0301-3563303 0301-3910124 0311-3273013 0306-3588391

5 5 5 4 3 2 2 3 4 3 2 2 5 2 5

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

FEG Profile/ FEG: Jan Muhammad Brohi (Banana)

No Name FEG formation date Value chain Designation CNIC no. Contact detail Total cultiva ted area Acres under vegeta ble

1 2 3 4 5 6 7 8 9

Bhagio Khan Mashooque Bahadur Ali Nillo Mazar Khan Baloch Khan Shahbaz Khan Shah Muhammad Mir Muhammad

25/2/013 25/2/013 25/2/013 25/2/013 25/2/013 25/2/013 25/2/013 25/2/013 25/2/013

Banana Banana Banana Banana Banana Banana Banana Banana Banana

Manager Assist. Manager Book keeper Member Member Member Member Member Member

41305-0546772-9 41305-4030305-5 41305-0544358-3 41305-0127415-5 41305-0546767-3 41305-0546625-5 41305-0546869-9 41305-0546627-5 41305-0544360-1

0308-3412443 0306-3451958 0301-3283475 0308-3412458 0301-2599518 0300-3097774 0301-6395393 0307-3353369 0305-2905574

5 5 5 4 4 5 5 6 6

2 2 2 2 2 3 3 3 3

19

10 11 12 13 14 15

Mushtaque Yar Muhammad M. Ibrahim Sikiladho Karo Ghullam Hussain

25/2/013 25/2/013 25/2/013 25/2/013 25/2/013 25/2/013

Banana Banana Banana Banana Banana Banana

Member Member Member Member Member Member

45393-319583 41305-0535660-5 41301-91858099 41301-4960168-1 41301-8507177-5 41301-2424250-7

0307-3040491 0302-3207953 0302-3970292 0305-3445951 0300-3001959 0308-8935028

3 4 3 3 3 3

1 2 1 1 1 1

FEG Profile/ FEG: Shah Latif (Banana)

No Name FEG formation date Value chain Designation CNIC no. Contact detail Total cultiva ted area Acres under vegetable

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Abdul Sattar Mumtaz Ali Manthar Ali Akbar Ghullam Hyder Amjad Ali Peer Dino Jamshaid Ali Gulab Karim Dino Amanullah Lal Muhammad Nasarullah Abdul Jabbar Khamiso

21/2/013 21/2/013 21/2/013 21/2/013 21/2/013 21/2/013 21/2/013 21/2/013 21/2/013 21/2/013 21/2/013 21/2/013 21/2/013 21/2/013 21/2/013

Banana Banana Banana Banana Banana Banana Banana Banana Banana Banana Banana Banana Banana Banana Banana

Manager Assist. Manager Book keeper Member Member Member Member Member Member Member Member Member Member Member Member

41305-9263264-5 41305-2783647-3 41305-5973579-7 41305-8918686-5 41305-2127123-5 41801-062931441301-4067329-5 41801-0592727-9 41305-8023862-7 41305-3688699-5 41801-0583602-1 41305-0540070-9 41801-0618089-5 41305-4379170-3 41305-1986058-5

0300-3444724 0300-2479708 0306-3019883 0300-3063851 0301-3563303 0300-3060854 0305-3818896

12 10 8 7 8 10 4.5 4 3 12 8 12 10 10 11

8 6 6 5 5 4 3 2 2 6 4 4 5 4 3

0303-2730397
0301-3525165 0302-3905281 0313-3105955 0305-3707544

3053088125
0300-3062107 0346-3842285

20

Appendix- 2
Dichotomous Questionnaire No
1 2 3 4 5

Questions
Do you feel the behavior of the project staff is appropriate and it treats the beneficiaries in a dignified manner? Have you any mechanism for complaints if you face any problem to managing FEG's day to day activities? Are you fully briefed about the significance of the FEG before its formation? Do you think that the project would enable you to raise your income Are you briefed that what kind of benefits you could get after becoming members of the FEG Do you think that the project would be able to meet your expectations? Do you think that the project would be able to meet your needs? Did you get any training for developing your skills to manage the FEG activities and providing opportunities to learn more about your profession? If yes then write names of the training, please. Do you maintain the FEG record regularly? Do you convene the FEG's members weekly meeting? Do you convene the FEG's members fortnightly meeting? Do you convene the FEG's members monthly meeting?

Options
Yes Yes Yes Yes Yes Yes Yes No No No No No No No

6 7

Yes Yes Yes Yes Yes

No No No No No

9 10 11 12

21