May, 2014

Assessment on Marketing and Enterprise

By: Mr. EUNG SENGAnd Mr.CHHONG SOPHAL

Cambodia

Contents:1. Background of the enterprise2. Assessment– Findings– Analysis, conclusion and recommendation

3. Plan of Interventions – Within the project period (Until May 2014)– Beyond project period

4. Initial results of Intervention5. Feedback on the use of assessment tools (suggestion if any for

improvement)

I. Background of Enterprise• Animal feed cooperative “established to support for pig business in Svay

Rieng”. It is advance enterprise.• Start up: 30 May 2009, Register at Provincial Department of Agriculture

- Members: 30 households- Capital: 1person = 5,000 Riels- Animal feed Produce only 100 kg/month

• Present- Member: 217 households- Total capital: 149 million riels equal to 37250$- Animal feed Produce, 500- 900 ton/month- Loan for farmer member - Monthly and annual report on transaction of AC by computer system- Training to member of AC on how to raising and selection pig- Monitoring member who are make loan from AC by inspection committee of AC- Marketing committee are implementing role for connecting farmer product to the market and slaughter house

I. Background of Enterprise (Con’t)• Rice mill Cooperative “established to support for community rice

business in Takeo”. It is growing enterprise.• Start Up

- 2009 : Register at Provincial Department of Agriculture;- Membership: 41 household- Total of Capital = 44,000,000 Riels- Organic rice produced about 350 – 400 ton- Sold to Sahakreas CEDAC about 300 ton

• Present- Produce organic rice about 800 ton- Sold to Sahakreas CEDAC about 400 ton- Total of capital: 130, 000,000 Riels- Membership: 206 households- Price: 1,650 Riels/kg and equal to 412.5$/Ton

Equivalent Score Stage

1.0 to 1.9 Start-Up/ Building Up

2.0 to 2.9 Strengthening/ Developing

3.0 Consolidating

Result of the AssessmentOrganizational Management

Profitability and Solvency

Stability

Market Access

Inclussivity

SUSTAINABILITY

-

2.00

4.00

Animal FedRice mill

ELEMENTS Total Ave Weights (Animal Feed)

Total Ave Weights (Rice mill)

Organizational Management 2.83 1.83

Profitability and Solvency 3.00 2.00

Stability 2.67 2.00

Market Access 3.00 3.00

Inclussivity 2.20 1.40

SUSTAINABILITY 2.33 2.00

Grand Total average 2.67 2.04

Organizational Management – (Animal feed: 2.83, Rice mill: 1.83)

INDICATORS SCORE FINDINGS ANALYSIS AND

RECOMMENDATION

Legal identity to operate and comply with reportorial requirements

3

2

• Animal feed has a committee responsible in ensuring that all legal requirements including reports are complied on a timely basis.• Rice mill has a committee responsible in ensuring that all legal requirements but report are not clear yet

• Animal feed and Rice mill has ensured its legal identity and has to ensure its regular review and renewal.

Planning

3

2

• Animal feed: All leaders are able to articulate the VMGO of the cooperative and their enterprise plan, but some members can not articulate the VMGO.

• Rice mill: Some leader and members are able to articulate the VMGO of the cooperative and their enterprise plan

While the VMGO of Animal feed and rice mill are clearly defined, its leaders & members may need to review & determine reasons for not being able to articulate and provide support needed.

Membership

3

2

• Animal Feed: From the 30 regular members, current membership has now increased to around 217. • Rice mill: From 41 regular member, current membership has now increased to around 206.

Membership has been successful with its leaders and members o openness to welcome associate members to the cooperative. To continue with its plan for expansion in the region.

II. Case studyA. Rice Mill Cooperative (Growing)- TrapaingThom Khang Tboung Cooperative• The cooperative run four kind of business:

1. Rice mill ( Purchase paddy and selling, milling for selling rice )2. Credit ( Saving, and make loan to members), 2.5% of interest 3. Community business (Community store), reduce 3% per month of capital invested in community shop4. Restaurant ( reduce 3% per month of capital for invested to building restaurant )Other activities: forestry community

Rice Mill Cooperative (Con’t)• Start Up

- 2009 : Register at Provincial Department of Agriculture;- Membership: 41 household- Total of Capital = 44,000,000 Riels- Organic rice produced about 350 – 400 ton- Sold to Sahakreas CEDAC about 300 ton

• Present- Produce organic rice about 800 ton- Sold to Sahakreas CEDAC about 400 ton- Total of capital: 130, 000,000 Riels- Membership: 206 households- Price: 1,650 Riels/kg and equal to 412.5$/Ton

SWOT Analysis

• Strength - Implement all objectives (business activities)- Increased members- Increased capital- Participating from authority- Attention of board and committee Consensus

• Weakness - Meeting not regular- Report not regular- Do not reserve fund (20% of income)- Board and Committee do not consensus - Lack of capital to buy rice

SWOT Analysis (Con’t)

• Opportunity- Recognized by the provincial Department of Agriculture- Have market for rice/paddy- Have producer group ( organic)- Preferential export tax- Free tax from net profit of cooperative ( agriculture law)

• Threatens - Competition from middle-man- Registration certificate of land title of cooperatives still late- Can not borrow money from Bank/ Credit Agency, because they need collateral

B. Animal Feed (Advance)- Animal Feed Cooperative in Svay Rieng• The cooperative run five kind of business:

1. Animal feed, for member and non member2. Credit, saving and make loan to members3. Truck for transportation farmer and member of cooperative product4. Sale and buy Chemical fertilizer, to members and non5. Sale and buy pig for supporting to slaughter house at PP

Organization Management • Start up: 30 May 2009, Register at Provincial Department of

Agriculture- Members: 30 households- Capital: 1person = 5,000 Riels- Animal feed Produce only 100 kg/month

• Present- Member: 217 households- Total capital: 149 million riels equal to 37250$- Animal feed Produce, 500- 900 ton/month- Loan for farmer member - BODs regular meeting - Monthly and annual report on transaction of AC by computer system- Training to member of AC on how to raising and selection pig- Monitoring member who are make loan from AC by inspection committee of AC- Marketing committee are implementing role for connecting farmer product to the market and slaughter house

- Supported and training from DAI, ILO, USAID, Would Vision Cambodia

- Supported from 7districts of agriculture in Svay Rieng and two citys

- Supported by Svay Rieng DPA- Supported from all of authority - Have strategic planning clearly- Decision making: Committee and members- Participation from women about 40%- Evident one share per yer 120,000-150,000

Riels perheap 30-37%

SWOT analysis

• Strong

- Chairman of BODs have important role for helping AC- Cooperation all the partner ( NGOs, Company) - Solving all the problems on time

• Weakness - limited loan for farmer to raising pig- A few of BODs have supported monthly allowance - Not yet own office ( have one part of district of agriculture)

• Opportunity- Member increase raising pig, so they need more feed - Have a local market and slaughter house in PP- Have partner to support, especially authority

• Threatens- Limited in AC Management - Decrease pig price, because of import more from neighbor country - Lack of capital for running their business- Some diseases unavailable to treatment - Limited to understanding on AC from members

• Successes point of AC in Svay Rieng - Member need to understanding on AC status and internal regulation, especially respect - Hornets and fair - Solidarity - Networking with community to community and also all of start institutional ( DPA, …) - Finding profit for AC- AC advantage in the big one than the own advantage

Conclusion • After study to both of cooperatives in Cambodia,

we note that management and financing are important for running enterprise business, especially BODs of cooperative are important role for helping their business to sustainable in development, base on it the updating enterprise need human beside for make capacity building to all of them to implementing their role and respected to core value and cooperative principles for become to advance cooperative in the future.

THANKS YOU FOR YOUR ATTENSION