GUIDANCE AND PROCEDURES Contents 1. Sesame Seed: Background

GUIDANCE AND PROCEDURES Contents 1. Sesame Seed: Background and Introduction 2. NSSAN Profile 3. Farming Practices 4. Export Procedure 5. Concept of Contract Farming to Boost Production (Farmers/Sponsors) 6. Concept of Sesame Seed Farming using First Bank Financing Scheme to boost Production. 7. Participation of Government and Politicians in boosting Sesame Production (Kebbi State as a Case Study) 8. Investment Profile of Sesame Seed Industry 9. Sesame Seed Farming/Processing & Marketing Projected result frame work. 9. Project Feasibility and Sustainability 10. Farming and Membership Forms 11. Mile Stone from Farming, Processing and Marketing

12. Graphs Indication Production, Local & International Price of Sesame 13. Legibility to participate from this Scheme (Terms/Conditions) BACKGROUND Recent Developments in Nigeria's economy have led to the recognition of the importance of development and marketing of agricultural produce as a major contributing factor to the growth of the national economy. The decline in foreign earnings and the ever-increasing demand for foreign exchange earnings to finance the gap between the demand and supply of foreign exchange must be found. The only viable source for reducing a nations resource dependence on foreign borrowing and for a self-sustaining growth, is through the development of her agricultural product for export to the global marketing. INTRODUCTION Sesame Seed described as a treasure in small capsule is commonly called beniseed and grown especially for export in the middle belt region and extreme northern parts of Nigeria. The seeds are very small in size, each weighing about three milligrams on the average. The size depends on variety and cultural condition. Seed colours vary from white, mixed black to shades. In terms of yield, the output is phenomenal. Over 900kg of the seed can be obtained from one hectare alone, with 52% oil content from the last variety (E8) produced by the National Cereal Research Institute, Badegi, in Niger State. PROFILE NATIONAL SESAME SEED ASSOCIATION OF NIGERIA National Sesame seed Association of Nigeria (NSSAN) was incorporated in Abuja Nigeria with Corporate Affairs Commission as a commodity Association to carry the activities of regularising the operations of sesame seed industries Farming, processing and marketing). Our operational headquarters is situated at the former SDP secretariat along Keffi Nasarawa road Nasarawa/ Toto Nasarawa State. Our management team is consisting of credible and excellent personnels with positives records of performance.

PROGRAM OVERVIEW With international demand of agricultural commodities having increased to markedly in recent years NSSAN intends to introduce programes aimed to help small and medium scales farmers/ entrepreneurs in Nigeria to take advantage of this new lucrative market. Sesame seed is a nontraditional crop, often with a limited domestic market, and our farmers and local businessmen accordingly lack of knowledge, skills and resource to cultivate and sell the commodity. When growing sesame seed for export, farmers face the traditional challenge of establishing commercial links with domestic exporters and international buyers. These difficulties information the intervention of NSSAN. INCREASE PRODUCTION AND QUALITY NSSAN will collaboration with Raw Material Research Institute, National Cereal Research Institute, Sasakawa Global 2000 and State Government Agricultural Development Prorgram Offices to workout how farmers can increase sesame seed production and quality through seed distribution and extension support. We shall work with Agriculture Development Program extension workers to project and identity new production zones, attract new farmers, distribute and sell seeds, and provide information on improved cultivation and harvesting techniques through train the trainers program. TRAINING PRODUCERS AND DISEMINATING MARKET INFORMATION NSSAN will organize annual meeting with farmers in the industry called Pre-Harvest to help sesame seed farmers aggregate their individual harvest into exportable quality and to elect delegate who would represent them at a larger forum of local buyers/ sellers meeting to be organized by NSSAN in collaboration with Nigeria Export Promotion Council. NSSAN and NEPC will use the Pre-Harvest meeting to education producers about market dynamic, negotiation tactics, and current price trends and compete farmers understand how to penetrate t the export market and complete effectively. FORGING MARKET LINKS NSSAN will organize buyer- seller meetings, in major production states to facilitate contrite among the different participants in various commodity markets (especially sesame seeds) and to stimulate competition among buyers of sesame where demand for sesame seed outstrips supply. We shall also organize representatives from buyers to meet with local producer group and negotiate price contract terms, which the commodity has to offer. SURVEY NSSAN will conduct survey on yearly basis in collaboration with the state Agricultural. This is the most important area in the production, which attracts little or no attraction at all from Nigerian Farmers. As a result, they cannot plan and cannot project production and export. DEVELOPMENT OF WEBSITE NSSAN will further pioneer the use of Internal to develop production, processing and marketing of sesame seed. The proposed website www.nigersesame.com would be a business-to-business website linking Nigeria sesame seed farmers, processors and exporters with international

buyers, research institute and financial institutions. The site will be used to disseminate regional market information and pricing trends, as well as providing a substantial library of technical resources. MONITORING AND EVALUATION Our monitoring and evaluation unit will work in conjunction with the state agricultural development program officers FADAMA offices; NSSAN will trade and gather data on all production and export For further information CONTACT: ALH. SHERRIF BALOGUN (National President NSSAN) 08023585207, (email shebagk @ yahoo. Com) OR SAMPSON ENWERE (National Vice President Market and Quality Control) 234-08052731480//08081443238 (email sampsonce @ yahoo. Com) QUICK FACTS ABOUT SESAME SEED FARMING Benefits of Growing Sesame More profitable with limited resources than other crops using the same resources. Offers more return for less cost (less risk) than other crops. Sesame is very drought and insect resistant Sesame suppresses the root-knot nematode and cotton root rot for the following crop. Sesame increases moisture retention and soil tilt, and the following crops have increased yields with reduced production costs. Sesame has negligible economic damage from deer, hogs and birds. Planting time Earliest time is when there is 70F soil temperature. Latest time is 4th of July. Soil requirements Grows best on medium to light, well-drained soils Prefers pH 5-8. Does not tolerate salinity Land preparation Good land preparation is essential for a good stand since seed is small. Have planted with row planters and drills Row spacing from 15 to 40 Variety selection. Planting: -Should be planted in form, moist ground with o.75 to 1.5 loose, mixed wet/dry dirt above. -Almost zero success with watering up -If drought followed by planting rain, make sure that the top moisture has joined the bottom moisture. No root will push through dry dirt. -Needs moisture around seed 3 days (late planting/ warmer) to t days (early planting/cooler). -Do not fill boxes above 6-8 because will grind seed.

Planting rates -Between 2.5 to 4.5 Ibs/ac depending on row spacing and planting conditions. First time growers should strive for 3 to 3.5 Ibs/ac. -Good starting point 25 to 35 seeds per foot. Fertilization -The best sesame yields are on fields that ate fertilized with balanced NPK fertilizers. -Sesame is deep rooted and will scavenge for fertility below most crops roots zones, but that only works once. -If possible apply half at start of flowering. Uses N Primarily during flowering. Dry land under 28 annual rain 25-35 units of N Dry land over 27 annual rain 30-60 units of N Full irrigation (12) 60-80 units of N Semi irrigation (6-8) 40-60 units of N Semi irrigation (2-4) 30-50 units of N Cultivation 3-4 weeks after planting Can throw soil up on stem Irrigation Uses less water than cotton, corn, sorghum, soybeans, or peanuts Sesame is one of the most drought tolerant crops in the world, but will give higher yields with irrigation. A heavy pre-irrigation is the best water the sesame will get. Prefers fast light irrigations. Too much water kills sesame. Sesame cannot survive standing water. First irrigation 28-35 days after planting. Time for next irrigation when plants wilt about 2.00 pm. Last irrigation when flowering is cutting out. Disease and insets Basically, no problems in the growing area with present varieties. Harvest. See Appendix 3. Sesame will dry down 120-150 days without a frost. It will dry down sooner with a frost or freeze. Most combines do an excellent job when set up properly. The operator is more important than the combine.

Mose combines use a platform header but a row crop header can be used. Seed is 50% oil. Needs to be below 6% moisture (equivalent to 12% corn). Can damage seed by filling combine bin above auger. INVESTMENT PROFILE FOR SESAME SEED PRODUCTION (COST OF PRODUCTION PER HECTARE). An average of N44,300 is required for the production of one hectare of sesame seed in Nigeria. Detailed breakdown of the cost of inputs and operations required are as follows: S/N 1. 2. Items/Activities Land Preparation -Plugging -Harrowing Inputs -Seed -Fertilizer (NPK) -Herbicides (fusillade) - Chemicals application Unit Ha Ha Kg Bags Litres Litres Qt y 1 2 4 4 4 1 Unit Cost (N) Total Cost (N)

5,000 4,000 5,000 8,000 Sub-Total N13,000 100 2,000 1,000 1,800 400 8,000 4,000 1,800 Sub-total 3. Field Operations -Planting -Fertilizer Application -Chemicals app. -Supplementary Weeding MD MD MD 2 2 2 4 N14,200 500 300 1,000 500 1,000 600 2,000 2,000

Sub-Total N5,600 500 500 500 10 5,000 3,000 2,500 1,000 Sub-Total N11,500 G/Total N44,300 MD 4. Harvesting Operation -Harvesting/gathering -Threshing -Winnowing -Packaging MD MD MD Bags 10 6 5 10 0 EXPORT PROCEDURE STAMPING FOR SHIPMENT If the consignments meet the recommended quality grade and standard, it would be stamped with the final check tester (FPIS Staff crown stamp) i) The stamping is an outward sign that the produce has passed

through the FPIS quality control measure. CERTIFICATE OF QUALITY, GOOD PACKAGING MATERIAL FUMIGATION AND WEIGH (VOLUME) When the service is satisfied that the sesame seed is of the prescribed quality grade, exportable quality, in the case of sesame seed, a certificate incorporating the quality aspect, good packaging fumigation and weigh, and embursed with the Divisions consignment brought before the FPIS for quality control measures has been certified to be prescribed standard and therefore exportable. SHIPMENT Before conducting quality test analysis on the consignment it must be under inspected for good packaging materials, good sewing, labeling and no evidence of tampering and adulteration. OTHER QUALITY CONSIDERATIONS Standard pack of sesame seed in Nigeria is 50kg that is, 20 bags make on ton. QUALITY STANDARD The two types of sesame seed produced in Nigeria are the brown and white types, which have the same quality standard that is termed as Exportable Quality which means, sesame seeds which contain not more than 2% by weight of stones, literate and other mineral or vegetable extraneous matters and not more than 5% by weight of seed other than sesame indium. STORAGE If lots of sesame seeds pass the arrival check-tests, the consignment is stacked on pallets in a clean, leak proof warehouse, which has been previously approved and registered by the FPIS for that purpose. FUMIGATION BEFORE EXPORT Not later than 75 hours any export of sesame seed is propose, the FPIS pest control unit conduct fumigation using phostoxin, protest or any other approved chemical in order to eliminate any living insect contained in the consignment before the final check-test for export is conducted. CIRCULATION OF CERTIFICATE This certificate is circulated to various organization including NEPC, Nigeria Custom, Nigeria Port Authority, Central Bank of Nigeria (CBN) and Federal Office Statistics (FOS). LOADING FOR EXPORT Before the officer issues the certificate and authorities for loading, he ensures that the containers to be used to load the sesame seeds are clean, and disinfected to prevent re-infestation of the cargo on transit. CONTRACT FARMING One option for creating a role for the private sector in Agriculture Development and boosting production of Sesame Seed in Nigeria What is Contract Farming?

ESSENTIALLY The farmer is contracted to plant the contractors crop on his land. Harvest and deliver to the contractor, a quantum of produce, based upon anticipated yield and contracted average. This is at a pre agreed price Towards these end, the contractor may or may not supply the farmer with selected inputs. Why Contract Farming? To produce the load on the central and state level procurement system To increase private sector investment in agriculture. To bring about a market focus in terms of crop selection by Nigerian farmers. To generate a steady source of income at the individual farmer level. To promote processing and value addition. To generate gainful employment in rural communities, particularly for landless agricultural labour. To flatten as far as possible, any seasonality associated with such employment. To reduce migration from rural to urban areas. To promote rural self-reliance in general by pooling locally available resource and expertise to meet new challenges. A Need to Radically Change the way we look at Our agriculture New markets are necessary Newer marketing strategies New thinking to boost Indian Agriculture - Building Compatibilities - Promoting Investment Technology enhancements should improve the lot of our farmers. Broad based contract farming programs can be one possible solution. Set up the Building Blocks for the Business Land Preparation and Planting, Com merc Crop Monitoring during Growing period ializa Harvesting & Procurement, Transportation Logistics tion Prompt Farmer Payment System Tech The Extension Services Team nolo -Selection and Training farmer education gy programme field trails at farmer fields -Multi-locational & Crop Timing Evaluation of Promising Varieties and Hybrids Multi Locational Trials and Short-listing selection R

Blueprint for agricultural practices after adapting To local conditions, to suit intellectual & financial means of the farmer evaluation of farmers economics model demonstration farming. &D Tran s f er Ac ti v itie s The Advantages of Contract Farming To the Farmer Exposure to World Class Mechanized Agro Technology Obtains an Assured Up Front Price & Market Outlet for his produce No Requirement to Grade Fruit, as mandatory for Fresh Market Sale. Bulk supplies versus small lots as again required by the fresh market. Crop monitoring on a regular basis. Technical advice free of cost at his doorstep. Supplies of - Healthy Disease Free Nursery - Agricultural Implements - Technical Bulletins etc Remunerative Returns The Advantages of Contract Farming To the Company: Uninterrupted and Regular flow of Raw Materials Protection from Fluctuation in Market Pricing Long Term Planning made possible Concept can be extended to other crops Builds Long Term Committeemen Dedicated Supplier Based Generates Goodwill for the Organization In Conclusion Nigerian, given the diverse agro climatic zones, can be a competitive producer of a large number of crops. Need to convert our factor price advantage into sustainable competitive advantage. Contract farming offers one possible solution FIRST BANK CREDIT FACILITY SCHEME 1. LARGE SCALE OPERATORS BACKGROUND First Banks Industrial End-Users Out grower Scheme is a tripartite

arrangement between an industrial of commercial end-user of agricultural commodity (i.e. an industrial consumer or exporter), the farmers or primary producers, and the Bank. It brings together the parties involved in a commodity production, processing, utilization and marketing value chain by financing the production of agricultural commodity or raw materials according to specific industrial or commercial needs. FEATURES * An industrial/commercial end-user provides guaranteed market for farm produce * Working capital for procurement of farm inputs, production and processing is provided under the scheme. * An MOU is executed by the industrial or commercial end-user, the farmers or primary producers, and the Bank. PROJECT OBJECTIVES * Develop the Sesame Seed Production, utilization and marketing value chain. * Compliment governments effort to create employment * Engender national food security * Contribute to rural development BENEFITS * Guaranteed market for farm produce * Eliminate speculation and hoarding * Easy access to credit facilities for farm production and processing operations. * Guaranteed supply of industrial raw materials or commercial goods to end-users. * Ameliorates the working capital constraints of industrialists and commodity merchants by eliminating the need for raw material procurement advances. ELIGIBLE ACTIVITY * Cultivation and processing of Sesame PARTICIPATION * Individual farmers, farmers group, cooperative societies Primary producers who access credit under the scheme would be involved in the cultivation of Sesame. They could apply as individuals or cooperative or informal group. An average of 500 farmers per State cultivating at least 2hc each is targeted at N45,000 per hec. This can be expanded depending on availability of participants and suitable land. Four States are selected in the first instance namely: Bauchi, Yobe, Nassarawa and Benue. * Commodity Association (Sesame), Commodity merchants/Industrial End-Users. These agencies would serve to provide the market for the produce to ensure profitable disposal, at the inception of the transaction

a valid export marketing or industrial utilization proposal would be required by the Bank. REQUIREMENTS List of pre-screened farmers/participants to be submitted to the Bank by Sesame Association. Execution of an MOU by the Sesame Association/Industrial/Commercial end-user, the farmers and the Bank specifying agreed price of produce at harvest. Letter of domicialation of sales proceeds to be issued by Sesame Association for payment of farmers through First Bank. Valid proposal for hauling and handling of produce with proforma invoices for equipment Confirmed letter of Credit from reputable foreign buyer of Sesame. Opening of Account in First Bank by Sesame Association/Industrial or Commercial end-user. LOAN DURATION Production credit (N180m): Maximum tenor of 6months allowing 2 months moratorium. Fixed capital loan (sesame hauling and handling): 36 to 60 months, subject to negotiation. Warehousing security management for procurement of produce and export: 3months tenor. TIME LINES Financing primary production: July/August to November 2008 Financing cleaning and hauling equipment: September 2008 Financing warehousing & export: January to March, 2009 INCENTIVES Primary production can be financed using the Agricultural Development Trust Fund Credit. A Trust Fund provided could be a State, Local Government or Private Sector entity contributing 25% of the working capital needs of the farmers as security. Farmers enjoy facility with CBN cover under this arrangement and are eligible for 40% rebate on the interest on full repayment of the facility. REPOSITIONING SESAME SEED INDUSTRY FOR ECONOMIC FEASIBILITY & SUBSTAINABILITY In this age of market liberation, globalization and expanding agribusiness, there is a danger that small scale farmers will find difficulty in fully participating in the market economy. Consequence of this will be a continuation of the drift of population to urban areas that is being witness almost everywhere. Several attempt by government and development agencies to arrest this have proof abortive, because the appropriate approach to eradicate drift from rural to urban by the poor rural dwellers were not dully applied. In our own part, we believed that the right approached will be partnering with the rural dwellers in the area of farming, processing and marketing of agricultural commodities (sesame seed) by providing the services as following:Reliable and cost effective inputs such as extension advice mechanization services, improved seeds and fertilizers. Guaranteed and profitable markets for their output. Access to credit.

Skills transfer. Introduction of appropriate technology. Well-organized contract cooperative farming does, however provide such linkages and would appear to offer an important way in which smaller producers can farm in a commercial and profitable manner. First Bank Plc Cooperative Farmers Lending Scheme provides the right solution by eradicating poverty at the rural areas. However, this will reduce the flocks of people from rural to the urban. Our prayer is that the Honourble should guaranteed at least 10 groups of cooperative farmers by providing 25% (N1,250,000) of the initial saving on behalf of the Cooperative members. The said deposited amount to prime the transaction will be paid back to your Honourable within a period of six months. The honourable may wish to have the passbooks of the various account with him until the transaction is mature for repayment. The goals of this project are to effectively coordinate farming, processing and marketing of agricultural produce as follows:- (a). WHY SHOULD YOUR HONOURABLE PARTICIPATE (i). To increase private sector investments in agriculture by boosting production. (ii). To bring about a market focus in terms of crop selection by your constituency Farmers. (iii). To generate a steady source of income at the individual farmers level. (iv). To promote processing and value addition. (v). To generate gainful employment in rural communities, particularly for rural women and youths. (vi). To reduce migration of your constituency to another constituency. (vii). To promote rural self-reliance among your people by pooling locally available resources and expertise to meet new challenges. b. ADVANTAGE TO FARMERS (GROUP) (i). Obtain an assured profitable up front price & market outlet for the produce before production. (ii). Ability to supply large quantity of tonnage. (iii). Opportunity to avail crop monitoring on a regular basis and technical advice.

c. ADVANTAGES TO BUYERS (i). Uninterrupted and regular flow of raw materials for export/industrial usage. (ii). Protection from fluctuation in market pricing. (iii). Long term planning made possible. (iv). Concept can be extended to other crops. (v). Dedicated supplier base. Nigeria given the diversified agro-climatic zones can be a competitive production of large number of sesame seed. Thank you. PROPOSED ANALYSIS ON CULTIVATION AND MARKETING OF 110 HECTARES (110 TONS) TO BE MANAGED BY 10 COOPERATIVE GROUPS PAYMENT OF PAYMENT OF PROCEEDS TO PROCEEDS TO FARMERS TO BE FARMERS TO BE DOMICILED BYBY DOMICILED FIRST BANK OF WILLING TO SELL WILLING TO SELL FIRST BANK OF MEMBERSHIP MEMBERSHIP NIGERIA PLC ON AGREED NIGERIA PLC ON

AGREED WITH NSSAN WITH NSSAN FUTURE FUTURE STATE CHAPTER STATE CHAPTER CONTRACT CONTRACT AVAILABILITY OF AVAILABILITY OF LAND NOT LESS LAND NOT LESS THAN TWO THAN TWO HECTARES PER HECTARES PER EACH FARMER EACH FARMER FIRST BANK FIRST BANK COOPERATIVE COOPERATIVE FARMING CREDIT FARMING CREDIT SCHEME SCHEME PAYMENT OF

25% PAYMENT OF 25% INVESTMENT INVESTMENT COST BY COST BY BENEFICIARIES BENEFICIARIES INTO FIRST BANK INTO FIRST BANK ACCOUNT ACCOUNT FORMATION OF WILLING TO SELL FORMATION OF WILLING TO SELL ORGANISED ALL PROCEEDS ORGANISED ALL PROCEEDS COOPERATIVE TO THE COOPERATIVE TO THE (5-10 PEOPLE ATTACHED PAYMENT OF 2% (5-10 PEOPLE ATTACHED

PAYMENT OF 2% EACH) BUYERS OF THE TOTAL EACH) BUYERS OF THE TOTAL INVESTMENT INVESTMENT INSURANCE BYBY INSURANCE BUYER BUYER OPERATIONAL ANALYSIS AND MULTIPLICATION EFFECT FOR TEN COOPERATIVE GROUPS (110 HECTARES = 110 M/TONS) TOTAL TURNOVER = 110TONS X 75,000 = N8,250,000 BANK INTEREST = N225,000 (6%) INSURANCE N100,000 BY BUYER N1,250,000 INVESTMENT COST BY SPONSOR FERTILIZER COST SEED COST TOTAL INVESTMENT N5,000,000 FOR TEN COOPERATIVE GROUPS

LABOUR COST Turnover = N10m Seed Multiplication Farming Community Turnover = N650m Exporters Turnover = N1 billion Turnover = N50m Transporters Turnover = N5m Revenue on Transit Turnover = N25m Cleaning Plant Turnover = N10m Poly Bags Producer SESAME SEED FARMING, PROCESSING & MARKETING ECONOMIC EFFECT ON 10,000 HECTARES OF LAND (10,000/ TONS) Fertilizer Distribution Turnover = N120m Colbat $3 Turnover = N5m SGS Turnover = N5m Forwarders Turnover = N32m Bank Interest Turnover = N10m

Turnover = N28m Admin Expenses Lost of Weight Turnover = N8m NATIONAL SESAME SEED ASSOCIATION KEBBI STATE CHAPTER ADMINISTRATIVE STRUCTURE STATE EXCO Augie LGA Argungu LGA Maiyama LGA Kalgo LGA Bunza LGA Koko Besse LGA Shanga LGA Ngaski LGA Yauri LGA Danko Wasagu LGA Dirin Daji LGA Sakaba LGA Zuru LGA Zuru Zone Arewa LGA Dandi LGA Yauri Zone B/Kebbi LGA

Bagudo LGA Bunza Zone Gwandu LGA Suru LGA Argungu Zone Jega LGA Aliero LGA INTERPRETATION OF THE ABOVE DIAGRAM 1.Faming Community 10,000 hectares 10,000m/tons 2,000 direct beneficiaries Turnover Investment Balance Benefit/farmer Seed Multiplication 50 hectares 50m/tons 50 direct beneficiaries Turnover Investment Balance Benefit/farmer Cleaning Plants 1.10,000m/tons 2.Income Operational Cost = = = = N650m (N65/kg) N450m (N45/kg) N200m N100,000 (N200m:N2,000) (per person) = = = =

N10,000,000 (N200,000x50) N2,500,000 (N5/0,000x50) N7,500,000 N150,000 (N7.5m:50) (per person) = N25,000,000 (N2,500x10,000) Offloading (Casual workers) Inside Operation (Casual workers) Unloading (Casual workers) Management staff wages Maintenance Rent Asset Depreciation Admin Cost Utilities Others Balance Benefit N15,000,000 = = N10,000,000 N200,000 (per person) Export Market Total Production =N10,000m/tons Income (10, 000x100, 000) = N1 billion Operational Cost Product (N6r,000x10,000m/ton) =N650,000,000 Revenue & Escort = 5,000,000 Lost of Weight = 18,000,000 Processing Fee (Cleaning) = 25,000,000 Packaging (Poly bag) = 10,000,000

Transporation Cost (334trucks) = 50,000,000 Forwarding (10,000x500) = 10,000,000 Colbat = 5,000,000 SGS Inspection = 5,000,000 $3 levy (10,000/tonsx$3=$30,000x122) = 3,600,000 Contingencies (Inflation and Uncertainty) = 10,000,000 TOTAL N792,000,000 Balance = N208m Other Expenses Wages (20xN40,000x12mths) = N9,600,000 Traveling (N4,000x30daysx12mths) = 1,400,000 Communication = 720,000 Hotel (N100,000x12) = 1,200,000 Management allowance (4xN200,000x12mths) = 9,600,000 Interest (date N400mx8%/6mths) = 32,000,000 Contingencies = 5,500,000 TOTAL = 60,056,00 Gross Profit = N208,057,000 Others expenses = N60,056,000 = N148,001,000 Extra Income (Export Expansion Grant) N1 billion x10% TOTAL PROFIT =

= N100,000,000 N248,000,000.00 PROJECTED RESULT FRAME WORK (ACTION PLAN) Objective: The main objective is to exploit the full potentials of the sesame seed by boosting the production, processing and organized market network. The project aims to provide the necessary atmosphere for this important economic commodity to be utilized maximally to meet the domestic market demand and the international level demand, both of which have been on the increase. Project Name: Sesame Seed Development and Marketing Project in Nigeria Proposed Beneficiaries: North West a) Kebbi b) Zamfara c) Sokoto d) Katsina e) Niger North East a) Bauchi b) Borno c) Yobe d) Plateau e) Jigawa North Central a) Benue b) Nassarawa c) FCT Abuja d) Taraba Project Timeframe: Anticipated Starting date: Anticipated completion date: 5 Years March, 2008 December, 2013 Funding: First Bank, Nigerian Export Import Bank, FADAMA III, Legislators, Local State & Federal Government. Evaluation Schedule: SECTION 2: Project Summary The Sesame Seed Development and Marketing Project will be implemented in North West a) Kebbi b) Zamfara c) Sokoto d) Katsina e) Niger. North East a) Bauchi b) Borno c) Yobe d) Plateau e) Jigsaw. North Central a) Benue b) Nassarawa

c) FCT Abuja d) Taraba. The goal of this project is reduce poverty by improving income level and food security, through investments made in food cropping. To that end, the project will organize and train farmers as part of its efforts to build capacities of farmers processors and marketers. Project activities will include the establishment of contract farmers, internal and external marketing, as well as the installation of processing plants. The project will be implemented jointly with International Nigeria Limited. Messrs Development Measure We shall involve the Federal Ministry of Commerce, Nigeria Export Promotion Council and Raw Material Research & Development Council. SECTION 3: Problem Identification and Analysis The traditional agricultural system is based on intercropping, involving food and cash crops. Farmers usually grow millet or sorghum in association with peanuts, cowpeas; the cereals are meant for family consumption, while the cash crops marketed to generate income. Sesame Seed is very quickly becoming a substitute for peanuts in a number of communities in the north of Nigeria, with a new role to play; to serve as an important source of income that would be instrumental to improve food security. NSSAN DMI in collaboration with the Federal Ministry of Commerce and Raw Materials Research & Development Council started to reflect on ways to identify crops that might generate income in rural areas was identified, along with such other crops as sorrel (Zoborodo) etc. though Nigeria has a long history of Sesame Seed production, this crop is regarded as marginal. It is hardly referred to in annual agricultural campaign assessments, and is nearly ignored by local agricultural production systems. As a result of new market opportunities (there are both national and foreign buyers farming sesame seed vegetable products) and of

advocacy by projects and NGOs, more areas are now dedicated to sesame production. However, Sesame production in Nigeria is confronted with several constrains: lack of technical assistance to the producers, lack of financial support for the procurement and processing and protection, lack of vegetable producers organizations, and unorganized marketing systems. But despite these constrains, there exist opportunities and potentials that may help to revitalize the sector. One of the advantages is that Sesame Seed production requires neither a high level of technical knowledge, nor many inputs (labour, fertilizer), compared with other cash crops such as peanut and cassava. Sesame Seed also has good production potentials even with the local and primitive technology. Furthermore, at the international market (Asia and Europe), demand is higher than supply. According to a study conducted by Chemonics, Nigeria has both the highly priced Sesame due to the oil contents and its semi-organic. 2. ACCELERATED SESAME SEED DEVELOPMENT CONTRACT FARMING A. PROBLEM IDENTIFICATION AND ANALYSIS The traditional agricultural system is based on inter cropping involving food and cash crops. Farmers usually grow millet or sorghum in association with peanuts, cowpeas or sesame, the cereals are meant for family consumption while the cash crops are marketed to generate income. The food deficit, resulting from the combined effect of poor crop production and low price for cassava (which deprives farmers of much of their purchasing power) on one hand, and lack of alternative strategies on the other hand prompted the farmers to turn to sesame. Initially sesame was grown in association with millet as a way to control striga, a parasitic weed. Sesame plays a critical ecological role and stabilizes production levels. But as demand for sesame has grown farmers have discovered the economic value of sesame, and have consequently increased their production areas. Sesame has quickly become a substitute for peanuts, with a new role to play, serving as an important source of income. In the international market (mostly Arabian, European and Chinese) demand is higher than supply and Nigerian Sesame boast of highly completive variety of sesame with oil content of almost 52%. However, Sesame seed production is confronted with several constraints; lack of technical assistance to production, lack of financial support for the procurement of agricultural inputs, scarcity of sesame seed producers organization and unorganized marketing system. Despite these constraints, their exists opportunities and potentials that may help to revitalize and establish Sesame seed production as a potential and profitable agribusiness. Sesame seed production does not require a high level of technical knowledge and inputs compared to other cash crops as peanut and cassava. Sesame seeds have a good production potentials.

SESAME SEED CONTRACT FARMING STRATEGIES AND APPROACH GOAL The goal of this project is to improve, in a sustainable and accelerated way sesame seed production over a period of three years and alleviate poverty. To achieve the goal, the project will pursue four (4) specific objectives: Intermediate objective #1: Engage 100,000 farmers over the next 3 years to produce 400,000 tons of Sesame seed each year. Intermediate objective #2: Establish a marketing system with an aim to increasing the income level of 100, 000 producers by 50% in year 1, additional 20% in year 2 and another additional increase in income level by year 3, 4th & 5th year. Intermediate objective #3: Sensitize farmers and participating cooperatives on cultural techniques and provide information on the production and sale of Sesame seed and on other subjects of state interest (poverty alleviation, education good governance). Intermediate objective #4: Build capacity for the farmers on contact farming, (Train the farmers). 15,000 farmers, (30,000 each in the 3 northern geographic) to produce 100,000 tons valued at $30m in the first year, 21,000 farmers to produce 42, 00 tons valued at $42m in the second year, 3rd year 30,000 farmers to produce 60,000 tons valued at $60m, 4th year 40,000 to produce 80,000 tons valued at $80m, 5th year 50,000 to produce 100,000 valued at $100m. ACTIVITY 1 - FORMATION OF CO-OPERATIVES The project team will set up a list of Sesame seed producers and form co-operate farmers within these areas. The co-operative and selection of farmers will be based on the following criteria. Land availability Desire to work with the project team Membership in co-operative/NSSAN Past experience in sesame production Readiness to adopt new techniques Output: 15,000 farmers are selected in the first year and an activity plan is developed. ACTIVITY 2 - PROVISION OF AGRICULTURAL INPUTS,

LAND PREPARATION ETC The input that are of importance to the sesame producers are seeds that are high yielding and fertilizers. Through a revolving fund each producer will receive a project support. The project team will provide producers with high yielding cultures; prepare land, field operation and harvesting operations through financial institutions and community efforts. The producer will contribute minimum of 25% of the total investment cost. Five farmers will be selected in each co-operative to multiply seeds. Others will produce increase quantities to make up a stock of local seed of good quality for domestic and international market. Output: A self managed supply and production system is set up ACTIVITY 3 -TRAINING OF PRODUCERS, PRODUCERS AND MARKETERS A series of training session will be organized on the following priority themes: - Management and marketing - Farming techniques and crop production - Storage and conservation techniques etc Five farmers will be selected from each co-operation to attend a higher level training to become technical coaches of their respective cooperatives. Output: 15,000 farmers are trained for each theme in the first year. ACTIVITY 4 - ESTABLISHMENT OF STORAGE FACILITIES Every participating co-operative is encouraged to provide and build a storage facility as primary collection centres. Output: The co-operative have a greater storage capacity, which can be use to support external export house. ACTIVITY 5 - CROP MONITORING AND HARVEST EVALUATION The activity will be conducted by the co-operatives under the supervision of the project team (DMI). Output: A monitoring and self-evaluating system is developed. Activity 3- Training of Producers (Addition) Training activities will start with on-site practical training sessions. These are designed to develop farming skills and input management. The program manager and the extension agent will conduct the training sessions, but specific training sessions will be conducted by the technical services, or to other resource persons. Thus a series of training sessions will be organized, on the following priority themes: Management and marketing Farming techniques and crop protection Storage and conservation techniques etc. Five farmers will be selected from each association to attend a higherlevel training session to become the technical coaches of their respective associations. Output: 420,000 farmers are trained for each theme. Activity 4- Establishment of Storage Facilities (Addition) Every participating state has to be provided with warehouse for storage

facilities for their Sesame production, but plan to build such a facility with the start-up of this Sesame support initiative. From the project, Measure International Nigeria Limited and her Indian partners will construct standard warehouse. The start-up warehouses will be equipped with pallets, heavy duty electronics scale (capable of weighing objects up to 1,000kg) and tarpaulins. Output: The beneficiaries have a greater storage capacity. Activity 5- Organization of Sesame Seed (Addition) The commercial strategies of the producers are reflected in the objectives, stock management system and coordination mechanisms. Thus, marketing pursues the following objectives: -To combat speculation -To improve sale prices -To protect producers against exploitation by traders. In each state, it will be the responsibility of the union and association heads already formed, to collect from the other members. Collected quantities will be packed and stored in a warehouse. Storage duration will depend on the sale outlook. A management committee will be set up to deal with collection, storage, security and sales. The members of the committee will be selected at a general assembly meeting. A coordination structure will be set up in each union; the purpose of such structure is to prevent competition among the associations of each individual union. Its major role is to set sale prices after each production campaign and/or sign contracts with partners. These contracts will specify the following; conditions under which the association will supply the producers with inputs; commitment of the producers to sell their products to the association; procedure for the repayment of loans. Output: A self-managed marketing system is operational. Intermediate objective 7: To built the capacity of the union (MDI/Arphil Investment Ltd to manage the projects.) Activity 1: Information/Awareness raising among

project beneficiaries An information/awareness raising campaign will be conducted in the various Local Govt. Council that are concerned, administrative and traditional authorities, and the technical services, on the details of the project interventions. These information and awareness rising sessions will target the whole population (men and women). Output: content. All actors will have intimate knowledge of program PROJECT FEASIBILITY AND SUSTAINABILITY a) Project Feasibility: This analysis is based on the following assumptions: i) Investment Total project cost is estimated to N1.35 N4.5 billion over a period of one five years. For the purposes of this analysis, only direct farmer investment cost, consultancy, land acquisition, research, equipment expenses and buildings are considered. These costs do not include project monitoring and evaluation costs. ii) Surface area Cultivated in Nigeria Currently is estimated that Nigeria produce 140m tons of Sesame seed. iii) Yield: Investigations in the geographical area reveal that current Sesame yields average 1,000 1,250kgs/hectare in many cases with improved seed. However with ordinary one should expect 400 700kg/hectare. iv) Producer price and production value Current prices range between 0.50 USD and 0.57 USD/kg. Production value is calculated, based on an average price of 0.050 USD/kg. v) Operational expenses and additional revolving fund These expenses will emerge after the take off of this project since it is going to take on a new dimension with the introduction of new technology. vi) Cost effectiveness analysis Aspects of project financing that were examined include operating profits, initial project investments, and self-consumption rate, and show a surplus of more than 42.86 USD after the second year and more than 228.57 USD at the end of the 10 year project cycle. The operation is therefore cost effective and secures financial autonomy that will lay the foundation for sustainability. The study reveals that the project is feasible, from both the technical and financial perspectives. Indeed, from the technical perspective, the following may facilitate implementation; a long history of Sesame collection among the farmers appropriate lands, and farmers associations. All these factors enable the implementation of this project. In the project

financial analysis the internal rate of return of 49.01% confirms the projects technical and financial feasibility. This project has all the necessary conditions for full implementation and will lead to increase incomes for the target population, and thence, to improved food security. b) Project Sustainability Project sustainability should be based on the following: The project intervention method specifically favours a participatory strategy in the selection of villages, target groups, activities, and in organization and management capacity building of the beneficiary population. Empowerment of farmers organization in activity management (input supply systems, Sesame marketing, organization of natural resource management activities, etc) The projects durability will be ensured through the following activities that positively impact project participants: a) Self-funded capacity building: a given amount of money will be deducted from the proceeds of all commercial transactions to be used to fund the producers organizations; b) Availability of food products, as a result of increased Sesame collection and food crop (millet, cotton, peanut etc) production, through inter-cropping. c) Increased income, and therefore higher purchasing power among project beneficiaries, through; - Support to Sesame marketing - Production increase and diversification - Promotion of remunerative sectors d) Re-enforcement of cooperative spirit and self-management capacity, through training sessions, exchange tours, and provision of equipment and materials. NATIONAL SESAME SEED ASSOCIATION OF NIGERIA (KEBBI STATE CHAPTER) REGISTRATION OF COOPERATIVE FARMERS FOR FIRST BANK AGRICULTURAL FINANCE Name of Cooperative/Farmers..... Location/Village:..... Ward:...

Local Government Area:. Zone:. Areas of Farming (Hectares):. OFFICIALS NAME POSITION VILLAGE PHONE NOS. District Heads Signature : Official Remarks FARMER PERFORMANCE RECORD Crop Field technical.. Plot size (hac) .. Soil type... Name.. Fathers Name..... Village Agreement No.. 1. History a) Farmer for past. years. b) In scheme since (Date) c) Previous crop (s) .. Quota (kgs). 2. Nursery a) Seed bed preparation commenced on... b) Seed bed preparation complete on... c) Quantity of farmyard manure applied (kgs).. d) No. of seed beds:.. Size of seed beds:.. e) Variety of seed used:.............................................. f) Quantity of seed per seed bed (grams) g) Total quantity of seed used (grams). h) Seed sown area ...Date of sowing... i) Date of germination:Days of sowing germination: j) Date of weeding: i..... ii....iiiiv k) No. of seedlings per m2 . i) Total No of seedlings:.. m)Total No. of seedling required:.. n) Surplus seedlings... o) Percentage of surplus seedlings:. p) Seed- bed disease and treatment:.....

3. Land Preparation a) Ploughings:... b) Ridges:.. Inputs- Field Operations and Harvesting Operation: 4. Transplanting 5. From. To. No. of days Spacing. Fertilization Date 6. Fertilizer Quantity (kgs) Placement/Position Inter-Cultivations Date 7. Insects-Pests- Disease Date Insects, Pests, Disease Insecticides-Pesticides Applied 8. Production No. of Plants (Originally Planted). No. of Plants Survived. No. of VacanciesPercentage of

vacancies... Estimated Production.kgs Actual Production.kgs Difference...............kgs 9. Irrigation record Irrigation Crop Age (days) Days after Transplanting Actual date of Irrigation Recommended date of Irrigation Time taken of Irrigation Field First Second 10. 11. 12. Harvesting Dates Date.. Initials of Growers... Grading Primary grade..kg Third grade..kg Second gradekg First grade.kg Premium grade..kg Observations and Instructions given Date.. Initial of Growers

1= Unsatisfactory 2= Satisfactory Form Description and criteria Variable Y Yield Quantitative Kg/ha X1 Ha/Farmer Quantitative Ha/farmer X2 Farmer PC Quantitative Ha/ PC Quantitative Ha/PC X3 Ha/PC X4 Nitrogen Quantitative Soil Analysis X5 Phosphorous Quantitative

Soil Analysis X6 Potash Quantitative Soil Analysis X7 Topography Quantitative 3= Flat X8 Management Quantitative 2= Modest 3= Above Average X9 Seed bed Quantitative 2= Modest 3= Above Average X10 Transplanting Quantitative 3= Above Average X11 Harvesting Quantitative

1= Indifferent 2= Modest 3= Above Average X12 Processing Quantitative 1= Indifferent 2= Modest 3= Above Average X13 Rainfall Est. Quantitative 3= Good X14 Rainfall Dev. Quantitative 3= Good COSTING AND PRICING FARM (INPUT) Table B. 2.2: Labour Activity Form Location:__________________Farmers Name:________________________Extension Worker Name:______________________ Name of Enterprise:________________________________________Year_____________ Page Number ____________________ (1) Day (2) (3) (4) Date Operatio

n Input not Labour Family Labour (5).. (a) Number of People (b) Units (c) Total Number of Units Hired Labour 6 (a) Number of People (b) Units (c) Total Number of Units (d) Cost/ Units($) (e) Total Cost ($) Table B. 2.3: Non- Labour Inputs Form Location:______________________Farmer Name:______________________Extension Worker Name:______________________ Name of Enterprise:________________________________________Year_____________ Page Number ____________________ (1) (2)

(3) (4) (5) (6) (7) (8) (9) (10) Day Date Input Input Description Units Number of Units Did You Pay For it? Source if Not Paid For Cost/ Unit ($) Total Cost ($) EXPORTERS REGISTRATION FORM 1. 2. 3. 4. 5. 6.

7. 8. 9. 10. NAME OF ORGANISATION:. LOCATION OF ORGANISATION: PHONE NOFAX:.. EMAIL NO .. WEBSITE:. CONATACT PERSON:..POSITION... BANKER.. C.R.NO..DATENEPC..DATE.. ACCOUNT NOLOCAL CHAMBER NO NUMBER OF EMPLOYER:NO. ACTIVITIES Processor Farmer Middlemen Exporter Broker 11. AREA OF PROCUREMENT Taraba Nassarawa Benue Jigawa Kebbi 12. YEARS OF EXPERIENCE 13. SUPPORT NEEDED FROM NASAN Development procurement zone Procurement Join warehousing joint transportation A CROPPING SCHEDULE FOR SESAME SEED PRODUCTION UNDER CONTRACT FARMING BY MAGNUM ASSOCIATE LIMITED INCOLLABORATION WITH FIRST BANK (EARLY CROP). ACTIVITY TIMING REMARKS Crop planning January-February

Bauchi State Annual farmer registration and forum February-March Bauchi State Field selection February-March Bauchi State Field preparation March-April Magnum/First Bank Farmer-management pre-crop forum March-April Bauchi Sowing of seed beds April-May Magnum/First Bank Pest and disease control June-July Magnum/First Bank Ridging fertilizer application June-July Magnum/First Bank Farmer-management preplanting forum June-July

Bauchi State June-July Magnum/First Bank Farmer-management pre-harvesting forum July-August Bauchi State Harvesting August-September Magnum/First Bank Grading and buying September-October Magnum/First Bank Field residue control September-October Bauchi State Farmer-management End-of-crop forum October-November Bauchi State Transplanting Field cultivation and weed control Irrigation A CROPPING SCHEDULE FOR SESAME SEED PRODUCTION UNDER CONTRACT FARMING BY MAGNUM ASSOCIATE LIMITED IN COLLABORATION WITH FIRST BANK (LATE CROP). ACTIVITY TIMING

REMARKS Crop planning Feb - March Government Annual farmer registration and forum March - April Association Field selection April - May Association Field preparation June - July Investor/First Bank Farmer-management pre-crop forum June-July Government Sowing of seed beds July-August Investor/First Bank Pest and disease control SeptemberOctober Investor/First Bank Ridging fertilizer application SeptemberOctober

Investor/First Bank Farmer-management preplanting forum SeptemberOctober Government SeptemberOctober Investor/First Bank Farmer-management pre-harvesting forum October-November Government Harvesting NovemberDecember Investor/First Bank Grading and buying December-January Investor/First Bank Field residue control January-February Government Farmer-management End-of-crop forum March-April Government Transplanting Field cultivation and weed control Irrigation

COST AND FREIGHT (US DOLLARS) OF NIGERIAN SESAME SEED AUGUST 2007 - MARCH 2008 1600 1400 1200 1000 TOTAL 800 1,450 1,500 1,500 Feb-08 M ar-08 1,250 600 850 900 920 Aug-07 Sep-07 Oct-07 980 400 200 0 Nov-07 Dec-07 J an-08

COST & FREIGHT (US DOLLARS) OF NIGERIAN SESAME SEED AUGUST 2006-MARCCH 2007 1600 1,450 1400 1,500 1,250 1200 1000 800 1,500 980 850 900 920 Series1 600 400 200 0 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 J an-08 Feb-08 M ar-08

MONTHLY OUTPUT OF NIGERIAN SESAME SEEDS (98,000METRIC TONS) FROM AUGUST 2007 TO MARCH 2008 30,000 25,000 20,000 TOTAL 30,000 15,000 20,000 10,000 15,000 5,000 15,000 8,000 5,000 5,000 0 0 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 J an-07 Feb-07 M ar-07 MONTHLY OUTPUT OF NIGERIAN SESAME SEEDS (140 METRIC TONS) FROM AUGUST 2006 TO MARCH 2007 35,000

30,000 30,000 25,000 20,000 20,000 15,000 15,000 15,000 10,000 8,000 5,000 5,000 5,000 0 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 J an-07 Feb-07 0 M ar-07 NIGERIAN SESAME SEEDS PRODUCING STATES AND QUANTITIES (TONS) 30,000 25,000 20,000

30,000 TOTAL 15,000 27,000 10,000 17,000 15,000 12,000 5,000 8,000 3,000 2,500 6,000 4,000 2,000 2,000 0 Taraba J igawa Nasarawa Benue Bornu Kogi Niger FCT Katisna Kebbi

Bauchi Others NIGERIAN SESAME SEEDS PRODUCING STATES AND QUANTITIES (TONS) 35,000 30,000 30,000 27,000 25,000 TOTAL 20,000 17,000 15,000 15,000 12,000 10,000 8,000 6,000 5,000 4,000 3,000 2,500 2,000 2,000 0 Taraba Jigaw a Nasaraw a Benue Bornu Kogi

Niger FCT Katisna Kebbi Bauchi Others NIGERIAN SESAME SEEDS PRODUCING STATES AND QUANTITIES(TONS) AUG 2007-MARCH 2008 TOTAL PRODUCTION OF 98,000 M/TONS 20,000 18,000 16,000 14,000 12,000 TOTAL 20,000 10,000 20,000 8,000 6,000 10,000 10,000 4,000 5,000 5,000 2,000 3,000 2,500 2,000 1,000

2,000 1,000 0 Taraba J igawa Nasarawa Benue Borno Kogi Niger FCT Katisna Kebbi Bauchi Others NIGERIAN SESAME SEEDS PRODUCING STATES AND QUANTITIES (TONS) 25,000 20,000 20,000 20,000 15,000 10,000 5,000 10,000 5,000 10,000

5,000 3,000 2,500 2,000 2,000 1,000 1,000 0 Taraba J igawa Nasarawa Benue Borno Kogi Niger FCT Katisna Kebbi Bauchi Others LOCAL PRICES FOR NIGERIAN SESAME SEED 180,000 160,000 150,000 155,000 140,000 130,000 120,000 105,000

100,000 80,000 78,000 74,000 82,000 85,000 60,000 40,000 20,000 0 LOCAL PRICES FOR NIGERIAN SESAME SEED AUGUST 2007 - MARCH 2008. 160,000 140,000 120,000 100,000 TOTAL 80,000 150,000 155,000 130,000 60,000 105,000 40,000 78,000 74,000 82,000 85,000 10/1/2007 11/1/2007 20,000

0 9/1/2007 12/1/2007 1/1/2008 2/1/2008 3/1/2008 LEGIBILITY TO PARTICIPATE FROM THIS SCHEME (TERMS/CONDITIONS) Formation of State Chapter with registration of N10,000,000 by the State Government to the National body. Formation of members (state NSSAN) into cooperative groups State Chapter undertaking to abide by the Rules and Regulations that will govern any project. State chapter and district head to guarantee individual cooperative groups. Registration of processing fee from individual farmers (N1,000 per persons) State Government to provide office space and equipment with vehicle for the State Chapter with an initial take off grant. TRAINING PACKAGES COOPERATIVE MANAGEMENT MODULE 1 INTRODUCTION AND OBJECTIVES SHARING A well-organized inaugural and introductory session is important for building rapport among the participants and the trainers and reinforcing the goals of the training. What you will learn in this module Making people comfortable with one another Creating a good atmosphere for training Enabling participants to learn about themselves Enabling participants to gain useful information About one another e.g. skills, experience and strengths Sharing objectives Discussing objectives, the session schedule, and methodology and agreeing on these. SESSION PLAN Session 1 Programme inauguration min. Session 2 Introduction of participants

Session 3 Sharing objectives Module 2 30 to 45 45min. to 1 hour 45 min. to 1 hour UNDERSTANDING COOPERATIVE BUSINESS What you will learn in this module Meaning of business and types of business Identifying performance indicators of successful womens cooperative business Understanding a business through the MAIR (Motivation; ability; idea resources) model. Understanding womens cooperative business SESSION PLAN Session 1 Definition & classification of business Session 2 Understanding business 45 mins through the MAIR Model Session 3. Hours Indicators of successful womens Cooperative business Session 4 2 hours Understanding womens cooperative Business 1 hour 30 min. Module 3 GENDER ISSUES IN WOMENS COOPERATIVE BUSINESSES What you will learn in this module Concept of gender About gender issues in Nigerian society, and in cooperatives

About gender issues in a womens group business About the goals of gender equity for womens cooperatives How to plan for initiating change SESSION PLAN Session 1 Understanding the concept of gender 1 hour Session 2 Gender issues in Nigerian Society 1 hour Session 3 Gender issues in womens group business1hour 30min. Module 4 COSTING AND PRICING What you will learn in this module Understand the concept of cost Understand the importance of pricing in business Learn different ways of pricing a product Apply the concepts to decision making SESSION PLAN Session 1 Costing: Concept and Practice Session 2 Pricing: Concept and Practice Module 5 BOOKKEEPING AND FINANCIAL STATEMENTS What you will learn in this module Understand the benefits of bookkeeping Basic books of accounts Basic financial statements (Profit and Loss accounts, Balance Sheet and Cash Flow statements) SESSION PLAN Session 1 Importance of bookkeeping and Basic books of accounts Session 2 Profit and loss accounts, 1 hour 4 hours 30 mins. What you have learnt in this module When proper accounts are not kept It can lead to lack of trust among members, because there is insufficient evidence of cash flow

in and out of the business. What do the group need to do? Income and expenditure should be recorded with evidence for every transaction. There must be withdrawal/deposit receipts of bank transactions. A person should be in charge of cash and record all other transactions. Another person should sign all payments Groups must assign the right person for each job and responsibilities must be clearly designated. Groups should have meetings to review monthly performance. Groups should get their accounts audited at least once a year Why keep Accounts? Bookkeeping and accounts are major tools that help womens group members to plan the best use of resources and monitor group business. Each member should be able to understand what is in the accounts books. They should know what they put in and what they get out of the business. Accounts give an idea of where the money comes from and where it goes. If members understand and track these through proper bookkeeping practices, the flows can be changed to improve the viability the business. Accounting information must be shared at regular group meetings for both awareness-raising and for transparency and joint decision making. Module 6 MARKETING What you will learn in this module What marketing is and its importance in running a business The elements of marketing Evaluating how well the product or service meets the needs of customers Best techniques for pricing a product or service Identifying the best way to distribute the product How to create new ways to promote business Ways of expanding a business Methods of solving specific marketing problems Understanding the different channels of marketing SESSION PLAN Session 1 What is marketing? 1 hour 30 min. Session 2 Elements of marketing 3 hours Session 3 Marketing visit 3 hours Session 4 Marketing channels 1 hour 30 min.

What you have learnt in this module A business exist only if some one is willing to pay for a product i.e. buy it. A product can be sold only if it has a customer. It is necessary to identify the customers before making the products. Therefore, marketing is a critical factor in the success of a business. Marketing strategies can be prepared through an understanding of the 6 Ps. * Product * Place * Promotion * Price * People * Participation Marketing is dynamic so there is a need to analyze, evaluate and plan regularly. Each rural womens cooperative group needs people with marketing skills in order to develop good market linkages. Module 7 SAVINGS, RISK MANAGEMENT AND USE OF PROFITS What you will learn in this module Understand the role and importance of savings Understand different business risks Discuss how some risks may be covered by the group Discuss alternate use of profits of womens groups SESSION PLAN Session 1 Concept of savings Session 2 Concept of risk Management Session 3 Use of profits 1 hour 1 hour 1 hour The three sessions may be combined into two sessions in a short duration training programme. When there is time, groups can be given the case studies to analyze, and they can discuss the implications of the decisions they take on capital formation and risk coverage. What you have learnt in this module Savings and Capital formation Saving makes the group more active and members meet regularly. Savings are the most important source of funds for a group business. Regular savings lead to investment in group business, inculcating an attitude of self-reliance.

Cooperative encourage individual members to save with them. When group members save and rotate money as credit, they are able to increase the capital available for women. Such savings schemes are often started and monitored by local administrative offices. Few womens groups are able to manage a good savings and credit schemes on their own. Womens groups are not recognized as members of cooperatives and, therefore, are not eligible to take loans from cooperatives, which, in turn, have no business interest in the groups. It is important to emphasize the value of group savings as a source of capital and also as insurance against business risks. Savings also enable a group to be recognized by external and mainstream agencies, making it more creditworthy. Risk Management It is necessary to estimate the principal risks in a business. These relate to finance, production, marketing and management. Estimation helps the group to handle these risks when they arise. How risks can be contained How to develop a strategy of low risk and high benefit. Open and joint decision-making is one way in which the group can reduce risks. Awareness and participation of all members in decision-making on the use of resources is the best way to move towards a viable and sustainable business. Module 8 BUSINESS PLANNING What you will learn in this module How planning reduces risks in business management Demonstrating to women how they can plan their business SESSION PLAN Session 1 What is a business plan? Why a business plan and Structure of a business plan 3-4 hours What you have learnt in this module Business planning is the most important tool enabling the group to make a business successful. It is an aid to ensure that no aspect is neglected and the business will make profits. The business plan must start with a statement of the cooperatives objectives and vision. Other elements of the plan include information related to basic, technical, market, financial and personnel sectors, as well as projections for the future. Make a Business plan before starting a business and revise it at least once in six months, or at least once a year. Module 9 LEADERSHIP AND TEAM WORK What you will learn in this module Understand different tasks that have to be done in the groups

Address issues related to overburdening of a leader Emphasize sharing of responsibilities Recognize the dangers of too much dependence on one or two members in the group Understand the pros and cons of volunteers in groups SESSION PLAN Session 1 Concept of leadership and team work 2-4 hr What you have learnt in this module The importance of leadership. Groups must have clarity about the roles and responsibilities that must be assigned. At least two to three members must be involved in marketing, at least two in public relations and accounts, and at least two in assigning production and quality control. A group should have a good balance of paid staff and volunteers to ensure smooth functioning. Groups with goo leadership and teamwork can become prominent members of local society and gain recognition for their work. Module 10 NETWORKING What you will learn in this module Understand the benefits of networking Explore the possibility of networking among groups SESSION PLAN Session 1 Discussion on networking in groups 1 hour 30 mins. What you have learnt in this module Networking is a very useful tool for rural womens cooperative business. Networking among different womens groups helps them in procuring raw material at a lower cost. It also helps to improve marketing of their products. Effective networking through middlemen is needed to reach national and international markets. Networking with designers enables the womens group businesses to update the design and pattern of their products according to customer needs and preferences. Networking and partnerships with industry enables NGOs and government to promote viable business with a long tem perspective. Collaborating and networking with the CPD provides the groups with regular information about opportunities to display their products and contact new customers. Exhibitions also help the women members to keep up-to date with new technology for production and packaging. Module 11 MONITORING AND EVALUATION What you will learn in this module How to improve the business

How to track business performance To evaluate and readjust to new business situations in order to survive and grow To collect and collate information on womens cooperative business to facilitate planning of future support activities. SESSION PLAN Session 1 Evaluating womens cooperative business Session 2 Preparation of action plans Session 3 Information for monitoring and support 2hrs 1 hr 30 min. 2 hours What you have learnt in this module Regular monitoring and evaluation of rural womens cooperative businesses helps to identify the strengths and weaknesses of the group and its business. This helps the group to take its business towards success. Preparing an action plan gives an indication of how each individual participant adapts the training lessons to practice. This helps to spread and replicate training lessons. A coordinated information system helps to build the capacities of rural womens groups. The information collection format provides a tools for maintaining the database on womens cooperative businesses. The CPD can then analyze and consolidate this information to build capacities and to provide business development services to the groups. Module 12 FEEDBACK TO TRAINING What you will learn in this module To assess whether the training was useful to the participants To assess whether it led to significant attitudinal changes among participants. To analyze the training methodology To plan future training programmes SESSION PLAN Session 1 Feedback of training 1 hr 30 min. What you have learnt in this module To collect verbal and written feedback from the trainees/participants both on the content and methodology of the training programme The feedback helps to refine and plan future training programmes. Module 13 SECTOR CASE STUDIES Introduction

This training kit is intended for a rural cooperative group business with a focus on sectors: Sesame farming, cleaning and hulling. Each module of the kit contains case studies which can be adapted for different sectors using the tips given along with the handouts. Case study details Sector Product Rural Cooperative Group NASARAWA MANUAL FARMING S-SUDAN SEED AJAGA LOCAL CLEANING SESAME SEED DOMA MULTIPLICATION KENAN 4 JIGAWA The trainers may adapt or use these additional case studies as alternatives. Types of Cooperatives No of Cooperatives Members SESAME SEED MULTIPLICATORS 200 4,000 SESAME SEED PRODUCERS 20,000

200,000 SESAME SEED PROCESSORS SERVICES PROVIDERS 500 ( MECHANISED AND MANUAL) 20 20,000 1,000 FARM MANAGEMENT TRAINING DAY 1 Introduction to the Training Course 30 Minutes Module 1 Farm Management Unit 1.1 The Farm and its Enterprises Session 1.11.1 what is a farm? 75 minutes 15 minutes Session 1.1.2 understanding farm enterprises BREAK Unit 1.2 farm management as a way to increase profit Session 1.2.1 what is farm management? 120 Minutes As required Training exercise 1 common problems facing farmers LUNCH Training exercise 2 what is farm management As required As required Training exercise 3 Qualities of a successful farmer 15 minutes

Session 1.2.2 why is farm management important? 30 minutes Session 1.2.3 What are farmers objectives? 15 minutes Session 1.2.4 How do farmers decide? 30 minutes Evaluation of Module 1 Total 330 minutes 5 hours DAY 2 Previous day recap 30 minutes Module 1 Farm Resource Assessment Unit 1.2 farm data collection Session 2.1.1 Data and information 45 minutes 45 minutes Session 2.1.2 farm records and accounts BREAK Session Inventory of farm resources 45 minutes Unit 2.2 farm resource appraisal 60 minutes Session 2.2.1 farm assets and liabilities As required Training exercise 4 classification of assets and liabilities LUNCH Session 2.2.2 Assets valuation 60 minutes As required

Training exercise 5 asset valuation 45 minutes Session 2.2.3 farm balance sheet and net worth As required Training exercise 6 Calculating net worth 30 minutes Session 2.2.4 Sources of finance 30 minutes Evaluation of Module 2 Total 390 minutes 6 hours DAY 3 Previous day recap 30 minutes Module 3 Farm business analysis Unit 3.1 Enterprise and farm profitability 150 minutes Session 3.1.1 Enterprise profitability analysis As required Training exercise 7 Enterprise analysis BREAK Session 3.1.2 whole farm income 30 minutes 30 minutes Session 3.1.3 Enterprise and farm efficiency measures LUNCH Unit 3.2 Constraints and potentials 60 minutes As required

Total 300 minutes 5 hours Session 3.2.1 Analysis of constraints and potentials Training exercise 8 Analysis of constraints and potentials DAY 4 Previous day recap 30 minutes Unit 3.3. Comparative analysis 15 minutes Session 3.3.1 Benchmarking 30 minutes Session 3.3.2 Farm performance analysis BREAK 75 minutes Session 3.3.3 farm diagnosis using gross margin As required Training exercise 9 Asset valuation 30 minutes Evaluation of Module 3 LUNCH Session 3.3.4 Planning for a field visit 40 minutes Field visit structure 40 minutes Field data collection 40 minutes Follow-up requirements

As required Team meetings Total 300 minutes 5 hours DAY 5 FIELD VISIT Preliminary analysis of data collected As required As required Team discussions As required Preparation for day 6 recap DAY 6 As required Field visit recap findings, analysis and report LUNCH Module 4 Planning for the market Unit 4.1 making planning decision Previous day recap 30 minutes Unit 4.2. The process of marketing 30 minutes Total ---- minutes 5 -----hours Session 4.2.1. The why and what of marketing DAY 7 Previous day recap 30 minutes 60 minutes Session 4.2.2.- production and marketing problems

As required Training exercise 10 marketing problems and solution BREAK 150 minutes Session 4.2.3 marketing channels, margins and cost LUNCH Session 4.2.4 planning for the market 120 minutes As required Training exercise 11 preparing a marketing strategy 30 minutes Evaluation of module 4 Total 390 minutes 6 hours DAY 8 Previous day 30 minutes Module 5 Enterprise budgeting and farm planning Unit 5.1 farm enterprise and partial budgeting 40 minutes Session 5.1.1 The use of enterprise budgeting in farm planning 60 minutes Session 5.1.2 Break-even budgeting 50 minutes Session 5.1.3 The use of partial budgeting BREAK 60 minutes

Session 5.1.4. preparing a partial budget As required Training exercise 12 partial budgeting LUNCH Unit 5.2 Whole Farm Plan and Budget Session 5.2.1. whole farm planning 60 minutes 60 minutes Session 5.2.2. maximizing farm income using available resources As required Training exercise 13 whole farm budget Total 390 minutes 6 hours DAY 9 Previous day recap 30 minutes Unit 5.3 Labour planning 120 minutes Session 5.3.1. Planning farm labour As required Training exercise 14 preparing a labour profile BREAK Unit 5.4 cash flow Session 5.4.1 The concept of cash flow 30 minutes 60 minutes Session 5.4.2 Application of cash flow LUNCH 60 minutes Session 5.4.2 Application of cash flow,

continue As required Training exercise 15 cash flow 30 minutes Evaluation of module Total 330 minutes 5 hours DAY 10 Previous day recap 30 minutes Module 6 farm investment and risk Unit 6.1 Investment appraisal Session 6.1.1 Investment decisions 50 minutes BREAK 100 minutes Session 6.1.2 simple methods of investment appraisal LUNCH 120 minutes As required Session 6.1.3 Discounted methods of investment appraisal Training exercise 16 NPV and IRR Total 300 minutes 5 hours DAY 11 Previous day recap 30 minutes 45 minutes Session 6.1.4 loan appraisal BREAK

Unit 6.2 Management risk Session 6.2.1 Risk and risk management 45 minutes 45 minutes Session 6.2.2 Sources of risk LUNCH 60 minutes Session 6.2.3 Risk management strategies 90 minutes Session 6.2.3 Dealing with risk As required Training exercise 17 Risk in farming 30 minutes Evaluation of Module 6 Total 345 minutes 5 hours FAREWELL LUNCH Closing programme 30 minutes

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