onions cultivation project - project management

INSTITUTE OF ACCOUNTANCY ARUSHA

In Collaboration With

COVENTRY UNIVERSITY (UK)

COURSE : MBA - ITM

MODULE TITLE : PROJECT MANAGEMENT

MODULE CODE : ARUM28EKM

MODULE FACILITATORS : Mwaitete Cairo (PhD), Mr Casmir F. Kitula

ASSIGNMENT : Individual

DATE GIVEN : 03rd November, 2014

DUE DATE : 5th December, 2014

STUDENT NAME : Julius Noble Ssekazinga

REGISTRATION NUMBER : MBA-ITM/018/T.2014

Onion Cultivation Project - Project management – Julius Noble Ssekazinga

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PROJECT MANAGEMENT - ITM

Onion Cultivation Project In Arumeru

Julius noble Ssekazinga

12/4/2014

The project involve the science and art of producing, improving, marketing and using of onions, in wholesale and retail basing on the preferable grade by the market, the product will be exported and some of its quantity will be sold on the local market


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Executivesummary:The project involve the science and art of producing, improving, marketing and using of

onions, in wholesale and retail basing on the preferable grade by the market, the product will

be exported and some of its quantity will be sold on the local market.

The organization has a 10 acre land where in the first season 6 acres will be cultivated and the

4 acres will be reserved to gain more fertility and the next season the 4 acres will be cultivated

to make an exchange on the other 6 acres to regain fertility.

Project team is comprised mainly by three people Mr Julius the project manager, Mrs Kiwi

assistant project manager and Mr Henry the financial controller of the project, the project

team plans to recruit more project team members in drivers section, security and an

agronomist to manage technical issues.

The initial outlay of the project is 75 million TSHS. Operations expenses will cost 40 million

TSHS. While capital expenses will amount to 35 million TSHS.

Project will comprise of a stock of onion seeds, animal manure, and organic fertilizer. Onions

will be planted on the first month of the project and it will take two other months to reach the

harvest time that will make a total of 3 months to yield the first lot and will probably have to

shift to another plot in order for the previous plot to regain its fertility.

Horticulture plays an important role in improving people’s diets and income-generation for

farmers. Horticulture produce is widely used as source of raw materials for food processing

factories and youths heavily rely on the sub-sector for employment, in Arusha specifically the

organization will be dealing with cultivation of onions as part of horticulture. The region has

high potential for production of temperate and tropical fruits for local and foreign markets.

The average intake of fruits and vegetables in Tanzania is only 40 kg/year per person

compared with an average of 370 kg/year in developed countries. (ministry of agriculture and

food security, 2002)


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Contents Executive summary: ............................................................................................................................ 3

List of abbreviations; ........................................................................................................................... 5

Project donor: ...................................................................................................................................... 5

AVRDC ............................................................................................................................................... 5

SECTION ONE: Project Background ..................................................................................................... 6

Sector Context ..................................................................................................................................... 6

Objectives ........................................................................................................................................ 6

Goal ................................................................................................................................................. 6

Millennium development goals ....................................................................................................... 6

SECTOR POLICIES ........................................................................................................................... 7

SECTION TWO: Project Rationale ........................................................................................................ 8

Problem Analysis ................................................................................................................................ 8

Stakeholders and Target Beneficiaries ............................................................................................ 8

Justification of the Project ................................................................................................................... 8

The Cooperative Development Policy ................................................................................................. 9

SECTION THREE: Project Framework .......................................................................................... 10

Project Impact.................................................................................................................................... 10

Outcomes and Outputs of the Project ................................................................................................ 10

Project Sustainability ......................................................................................................................... 10

Project Risks and Assumptions ......................................................................................................... 11

SECTION FOUR: Implementation and Management Arrangements ................................................... 11

Institutional Framework and Coordination ....................................................................................... 11

Strategy and Methodology ................................................................................................................ 13

Capital Expenditure List ................................................................................................................ 15

Financial Assumption for the Stock List ....................................................................................... 15

Financial Analysis ......................................................................................................................... 16

Financial Assumption for Operation ............................................................................................. 16

Management Salaries: ................................................................................................................... 17

Revenue ......................................................................................................................................... 17

Risk Management .............................................................................................................................. 18

Risk identification: ......................................................................................................................... 18

Risk management plan: ................................................................................................................. 18

Donor Contribution ........................................................................................................................... 18


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Total quality management: ............................................................................................................ 18

SECTION FIVE: Oversight, Monitoring, Management Information and Reporting ........................... 19

Monitoring and Knowledge Sharing ................................................................................................. 19

Communication and Visibility .......................................................................................................... 19

Reporting Schedule ........................................................................................................................... 19

LIST OF APPENDICES ....................................................................................................................... 20

ANNEX 1: LOGICAL FRAMEWORK ....................................................................................... 20

ANNEX 2: TERMS OF REFERENCE ......................................................................................... 22

ANNEX 3: ACTION PLAN ............................................................................................................. 23

References; ............................................................................................................................................ 24

ANNEX 4: Work Plan ........................................................................................................................... 26

List of abbreviations;

AVRDC- Asian vegetables research and development centre.

TFDA- Tanzania food and drugs authority.

Project Location:

Arusha, Arumeru, Tengeru, AVRDC vegetable world.

Project duration:

5 years project starting January 2015 to January 2020.

Project donor:

AVRDC


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SECTION ONE: Project Background

Sector Context Horticulture begun to gain popularity in Tanzania in the 1990’s, as a part of sub-sector of the

economy in agriculture, in Arusha, Tanzania the organic vegetables such as onions are

inadequate; most of the vegetables are cultivated with the use of pesticides which are lowly

demanded in the market challenges which face the organic vegetable industry includes;

storage, drastic climate changes, disease attacks, pricing of the products. (Kalb, 2012)

Domestic consumption of horticulture products such as onions is lowly reported until in the

late 2000’s when the domestic consumption increased which in turn increased the diet of the

population, encouraged the increase of production and creation of employment opportunities.

(ministry of agriculture and food security, 2002)

Generally horticultural production has not been export oriented since the level of farming

practices is inadequate resulting into low exportable yields, poor quality and high unit costs,

thus rendering the produce non-competitive. (Vakis, 1998)

DEVELOPMENT PRIORITIES

Objectives

To establish the prospective of horticulture production, specifically cultivation of

onions in Arusha domestic market and other markets by 2020.

To improve the standard of living of Tanzania citizens through a well-balanced diet

from horticulture products and provision of employment opportunities by 2020.

Goal

Improved economy in Arusha by contribution of horticulture products through development

of effective and integrated field onion chains for domestic and regional market all over the

East Africa.

Millennium development goals

The Tanzania Development Vision (TDV)

The TDV outlines what the society and the economy of Tanzanians would wish to achieve by

the year 2025. The major expectations are a high quality life, peace, stability and unity. It

[predicts Tanzania graduating from least developed to middle income Country by 2025, with

high economic growth of 8 per cent and devoid of abject poverty. The Government is at

reducing the proportion of those living in poverty by 50% by 2010 and eliminating poverty by


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2025. Agriculture that includes horticulture is quoted as having the key role in this endeavour.

(security, 2002)

SECTOR POLICIES The Policy of Decentralization and the Rural Development Policy

The Rural Development Policy sets to address challenges confronting geographical areas in

which primary production takes place and where majority of the population are found. It

therefore addresses a wide range of agricultural, farm and non-farm activities. The policy of

decentralization of responsibilities and resources from the centre to the local democratic

institutions (Regional Administration Act No 19 of 1997) further defined the roles of the

sector ministries including the MAFS and the District Councils. In the case of Horticulture

(Guidelines for MAC-MRALG Interface1999), the roles of the MAC now MAFS include:

Formulation of Horticultural policy

Regulatory function

Importation/selection of planting materials for germplasm conservation,

Dissemination of internal/external market prices

Promotion and coordination of linkages with relevant national and international

institutions with interest in the horticulture industry

Development of legislation for quality control of produce and planting materials

and assessment of socio-economic factors that might influence horticultural

technology uptake and adoption.

The District Councils on the other hand have the following responsibilities:

Collection of production data, area and assessment of potential areas for

expansionPromote the utilization of indigenous fruits, vegetables, spices and flowers

Disseminate post-harvest technologies

Promote establishment of mini orchards of mother trees as a source of planting

materials in seed nurseries

Facilitate formation of production and marketing farmer groups

Establish marketing centres; disseminate horticultural production technologies

Promote private entrepreneurs and rural communities in identifying viable

horticultural activities and address cross-cutting issues that affect the Agriculture.

(security, 2002)


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SECTION TWO: Project Rationale

Problem Analysis The project will help to create new employment opportunities as well as providing households

with a nutritional range of food stuffs which will eradicate the health problems and save the

households health services costs in addition to that the project will increase the livelihood of

the households in Arusha, especially those of Tengeru where as many of them depend on the

Tengeru market which sells fresh horticulture products such as onions the traders will benefit

by getting the product at cheaper price and will not incur a huge transportation cost burden.

StakeholdersandTargetBeneficiaries

Inputs into this project are expected to command results that will affect several important

groups that are involved in decision making at different levels of the project. Beneficiaries of

the project will include the following groups;

i. Donors and Community; the project exists to serve a particular group of people which

are the community. In this project, community has a role of defining the range of

Onion products that are affordable to them. On the other hand, Donors are there to

direct the project in such a way that it yields adequate and timely results on their

investment, thus making them key stakeholders in the project.

ii. Functional Operations team; this is a coordinated team performing their duties in

synchrony in order to achieve a common objective. For this project, duties performed

by the functional management include running day to day operations.

iii. Project Manager; As the individual to whom the project is tasked, he will be

responsible to oversee that all activities are critically performed, project quality and

quantity targets are met, in general, and both Donors and customers are happy.

Justification of the Project Horticulture has a diversity of cops (vegetables, flowers, spices and fruits) that are able to

provide the household a wider selection of food, thus achieving the nutritional needs.

(Ministry of agriculture and food security 2002)

Vegetables harvested as roots and seed provide a rich source of calories, such as onions and

turnips. (Ministry of agriculture and food security 2002)

Horticultural crops such as onions also provide protein, carbohydrates, minerals and

vitamins. (Ministry of agriculture and food security 2002)


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Migration of people from the rural to urban areas has caused rapid increase of population of

very low income in the cities like Arusha urban. This has been accompanied by a

simultaneous rise in the production of vegetables in home gardens creating job opportunities

for youth and women. When compared to other crops horticultural crops produce more

income per unit area especially tomatoes and onions in Arusha rural that is mainly Arumeru

district. (Ministry of agriculture and food security 2002)

Families tend to eat more fruits and vegetables when they are involved in producing them.

This is why it is necessary to guide families to be involved in this production. (Ministry of

agriculture and food security 2002)

In households where the production is in excess of family need, the surplus is sold at the farm

gate. The revenue accrued from such sales is used in purchasing other family needs including

food. (Ministry of agriculture and food security 2002)

TheCooperativeDevelopmentPolicyThis advocates a change from state controlled cooperatives to ones that are more independent

and wholly controlled by members. It aims at empowering farmers to have stronger

negotiating and bargaining powers in their activities. (security, 2002)


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SECTION THREE: Project Framework

Project Impact Project will reduce the level of poverty which sync with MKUKUTA policy; In Tanzania,

agricultural value added grew by 4 per cent a year during the last decade. With the high

annual rate of population growth (nearly 3 per cent in many rural regions, as high as 4 per

cent in others) one can’t expect agriculture to help reduce poverty at this rate of growth as the

value added would be sufficient only to cover the increased population. Consequently, there

won’t be any significant improvement in the incomes of the people. This is one of the reasons

behind the stubbornly high poverty rates in Tanzania. (reducing poverty thruogh kilimo

kwanza, 2009)

Outcomes and Outputs of the Project Creation of employment opportunities by 4% in Arusha region, due to seasonal

employment of casual labourers and security guards by the end of the year 2020.

Improved standard of living and nutrition through, increased consumption of healthy

vegetables such as organic onions, among the house-holds in domestic and regional

borders by 2020.

Increased domestic consumption which will lead to improved dietary status of the

population by at least 15% of more than 600,000 demography of Arusha by 2020.

Project Sustainability The project is determined to end by 2020, and there is a possibility of continuing the project

to 2022 due to available resources such as land, infrastructure capacity such as the irrigation

system and the fence, the transportation facilities are in place for continuity also the

partnership formed with AVRDC is sustainable and will help the project to be on- going even

after termination or end of its time AVRDC can still use it as a training sample as well as

experimentation centre.


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Project Risks and Assumptions

Poor production organization (inadequate supply of seeds as well as inputs, and poor

research and extension services);

Poor marketing system resulting in quality deterioration and huge post-harvest losses;

Inadequate storage, packing technology and processing facilities which in turn create

gluts and severe shortages of these items during off season;

Poor roads, particularly feeder roads and inadequate and inappropriate transport

availability;

Pests and diseases

Floods

Pastoralism

SECTION FOUR: Implementation and Management Arrangements

Institutional Framework and Coordination The company has got a board of directors which will help in insuring the company policies

and advice on how the business should go about.

Mr Kelvin Msata, who is an entrepreneur and a middle man in the onion business, will act as

a business management advisor.

Mrs Sarah Mollel, is a human resource manager and market officer at Arumeru district

council will help with human resource management and marketing advisor.

Mr Paul Kiwia, is an accountant at Tengeru hospital and will deal with advising on

accounting and finance.


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Below is the institutional framework and coordination hierarchy for the project;

Mr Julius who is the project manager; will be dealing with project implementation,

planning, monitoring and financial management and also marketing research.

Mrs Kiwi assistant project manager; will be dealing with helping the project manager

to assure the project runs smooth by monitoring the project and implementing the

daily allocated tasks from the project manager.

Mr Henry; the financial controller will be concerned with managing the cash inflows

and cash outflows of the project, calculating the amount that is to be paid to the bank

& its interest rate when the bank loan is due.

Mr Saluum will be the operations manager; mainly concerned with technical and

supporting of the farm activities and will be arranging for transportation of the

required materials or stock.

Donors

Project Manager

Project Team

Functional Management

Customers / Communities

Project Appraisal and Start-up

Project Development

Project Monitoring and Evaluation

Administration

Agro Technology and Technical

Logistics

Procurement and Supplies

Human Resources

Accounting and Finance


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Strategy and Methodology The organization has 10 acres and the land will be divided into four equal parts each part will

be comprised of 2.5 acres where the 6 acres will be cultivated on the first season that will be

from January 2015 to march 2015 and the other 4 acres will be left for that season to regain

fertility and to be cultivated in the next season.

Onion seeds will be available in different varieties

Cultivation process will be as follows:

Range of seeds from either IRRICO.CO.LTD, KIBO SEED LTD or East Africa Seed

Company will be arranged first.

Clearing of the land and preparing by ploughing, tilting and levelling.

Plantation of seed separately before transplanting them to the plot. For a month

Isolating the land in four different plots and starting the operation in the first plot,

second plot and part (1/2) of the third plot.

Sort rows of small holes in the soil. We will lay a piece of string on the soil as a guide

to make sure we dig the row in a straight line.

Diggings small and deep holes in a position of about 10 centimetres apart and put

compost manure. Each row will be 20-30 centimetres apart.

Transplant the seed and watering.

Pest management, weed removes and crop protection.

Harvesting, pruning and grading.

The remaining 4 acres will be cultivated using the same procedure but will be after a month

of harvesting the six acres that will be on May 2015.

Activities of the project;

AVRDC on behalf of the organization is inviting an internal or local consultant so as to

monitor the project and write a recommendation report by the end of each year one copy to

AVRDC and another to management of the project.

Activities are such as;

To ensure soil fertility of the land before the project begins.

To ensure a source of water and if the irrigation system is well and readily installed.


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To ensure the seeds which are to be purchased are genuine and recommend seed and

soil fertility sync.

To monitor the cultivated beds as project goes on to write a weekly observation report

and recommended action plans.

Study Agriculture Policy, legislations, rules and regulations (e.g. Pesticide

registration and use) to make sure how the project aligns with such policies. (Ministry

of agriculture and food security 2002)

Identifying strengths and weaknesses of the project.

Identification of existing market constraints of horticulture products specifically

onions.

Identifying and recommending on the planting equipment’s upon their quality and

appropriateness.

Identifying and recommending on the limitations of the irrigation system.

Methodology;

The consultant will be inquiring data and information by frequent visits to the project

location, seed dealers, documentary and report reviews from AVRDC library and interviews

with agronomist team which will be helping in monitoring of the project.

Time schedule;

The consultant will visit the project 3 times in a week where it will be a season of plantation,

and even before that the consultant will visit to ensure the procedures of land preparation are

well done and the irrigation system is well installed.

The AVRDC team of agronomists will be working alongside the consultant and the

consultant will be acting as a group leader, when the project begins at January 2015.

The initial report must be drafted within first 3 weeks of the project stating the progress of

the project and necessary recommendations it should be submitted to AVRDC management

and the project manager by February 1st week 2015.


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Capital Expenditure List

10 acres of land which cost, one acre is TSHS 900,000.

Farm house which will cost TSHS 1,300,000.

Fencing will cost TSHS 2,000,000.

Build an office room cost TSHS 1,100,000.

Office refurbishment cost TSHS 550,000.

Office instalments (electronic devices) cost TSHS 1,900,000.

Production equipment’s cost TSHS 500,000.

Motor cycle cost TSHS 1,800,000.

Digging 2 wells which each will cost TSHS 300,000 totals to TSHS 600,000.

Irrigation system and water pumps will cost TSHS 1,300,000

Carrying truck TSHS. 10,000,000.

Financial Assumption for the Stock List

Seeds required is 5 packets per acre, 1 packet is TSHS 30,000.for 1 acre it cost TSHS

150,000.total per seven acres is 35 packets which cost TSHS 5250,000.

Pesticide. Boxfen is TSHS 450,000 for 1 litter which is enough for 1 acre × 6 will be

TSHS 315000.Weed master is TSHS 40,000 for one litter which cover 1 acre ×6 will

be TSHS 280,000. selectron two litters per month cost TSHS 120,000 for 1 acre × 6

give a total of TSHS 840,000.Ribomill cost TSHS 60,000 for 1 kg which cover 1

acre×6 will be TSHS 420,000.

Livestock manure two Lorries every week.1 lorry costs TSHS 20000; cost per two

lorry is TSHS 40,000.Cost per month is TSHS 160,000.

Nitrate base fertilizer is TSHS 65,000 for one sack of 50 kg 1 acre × 6 will be TSHS

455,000.Liquid fertilization 45,000 per sack which required for 1 acre ×6 will cost

TSHS 315,000. Booster for 1 acre is 5 litters which cost TSHS 90,000×6 which is

TSHS 630,000.


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Financial Analysis

The project needs TSHS 75 million as total financing and 60% of this will be provided by a

24 month loan from the bank at 20% interest rate per annum, calculated on the reducing

balance. The other 40% will be provided from owner's equity.

The cash balance at the end of 24 months is TSHS 160 million and the project shows an NPV

with a discount rate of 14.4% per annum of TSHS 64 million and a project IRR of 88.8%.

The total savings realized from the Asset Maintenance and Replacement a/c and the

Contingency a/c is TSHS 30 million.

Financial Assumption for Operation

Payment of house rent for office TSHS 30,000 and store TSHS 20,000, total TSHS

50,000 per month, which is TSHS 600,000 per year.

Fuel for carrying track is TSHS for 100,000 and motorcycle is TSHS 50,000 after

every two weeks. Cost for a month will be TSHS 300,000.

Petroleum for irrigation machine twice a week,1acres need 3 litres of petrol ,6 acres

=18litres, for a week will be 36 litres,1 litters=TSHS 2,200, 36litres=TSHS 79,200×4

weeks(month) = TSHS 316,800.Irrigation time approximately per year is 7 month. So

TSHS 336,000 per month × 7 (number of irrigation per year) = TSHS 2,217,600 total

per year.

Stationary cost TSHS 50,000 per month.

Communication, internet bundles TSHS 100,000 and office call charges TSHS 55,000

total TSHS 155,000 per month which is TSHS 1,860,000 per year.

Electricity cost approximately TSHS 20,000 per month and water cost TSHS 10,000,

total is TSHS 30000 per month.

Harvesting, handling and packaging tools TSHS 200,000 for first portion harvest,

TSHS 150,000 for 2nd portion harvest and TSHS 150,000 for 3rd portion harvest.

Total is TSHS 500,000 for 1 batch, which is TSHS 1,000,000 for two harvesting

batch we expect per year.

Packaging material for some amount of product cost TSHS 250,000 for first plot,

TSHS 200,000 for 2nd plot and 200,000 for last plot.

Land preparation and arrangement, cultivation by tractor, ploughing and levelling per

1 acre is TSHS 120,000,for 3 acres (first plot)=TSHS 360,000,raised bed and border


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rows =TSHS 210,000 for the three acres of land which is total TSHS 570,000.Cost for

the second portion of land TSHS 240,000 for cultivating by tractor, ploughing and

levelling is TSHS 140,000 for raised bed and border rows which provide the total of

TSHS 380,000.The third plot of land has the same cost as the second due to the same

size and follow the same procedure, which is TSHS 380,000.

TFDA certification TSHS 30,000.

Municipal license TSHS 300,000.

Management Salaries:

Project manager will be paid 600,000 TSHS per month.

Assistant project manager will be paid 300,000 TSHS per month.

Operations manager will be paid 350,000 TSHS per month.

Accountant/ financial controller will be paid 400,000 TSHS per month.

Security guard will be paid 70,000 TSHS per month.

Casual labourers (4) each will be paid 5,000 TSHS per day.

Revenue

Revenue will be received in batches, 7.5 acres will be harvested at the same time but each plot which consists of 2.5 acres will generate its batch according to the sales assumptions states here under;

First plot Number of acres

Volume of production per acres

Price unit total price per acre

Total price both

2.5 7000 kg 15000TSHS per kg

1500×7000=10500,000

10500,000×3 =31,500,000

Table: Financial assumption on the revenue for 7.5 cultivated acres


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Risk Management

Riskidentification: Theft.

Destruction from pastoralism.

Disease attack from pests.

Drought, lack of enough rainfall.

Crop distortion after harvesting.

Riskmanagementplan:Theft; will be managed by installing a wire fence across the whole area of the farm which

will cost TSHS 2,000,000. Hiring a security guard whom will be paid TSHS 70,000 per

month, which totals TSHS 840,000 per year.

Destruction from pastoralism; will be managed by the wire fence installed around the farm.

Disease attacks from pests; spying of pesticides which totals amount of TSHS 1,260,000, per

annum.

Drought; will be managed by installing irrigation systems to irrigate across the cultivated

portion on the farm which will cost TSHS 1,300,000.

Crop distortion after harvesting; will be managed by immediate sales & marketing strategies

and preserving the crops in a storage facility.

Total cost per year to manage the risks will be TSHS 5,400,000

Donor Contribution

Total quality management:

Quality management ensures that an organization’s product is consistent in such major

components as quality planning, quality control, quality assurance and quality improvement,

since the project will be conducted at AVRDC; it is a principal international centre for

vegetable research and development in the world, a team of experts from AVRDC will be

donating knowledge to the project by ensuring the total quality management of the project

products.


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SECTION FIVE: Oversight, Monitoring, Management Information and Reporting

Monitoring and Knowledge Sharing For the project to be effectively managed, a team of agronomists from AVRDC will be

gathering, analysing and reporting the information about the crops progress as time goes on

during the plantation season; the weekly reports from the agronomist will be presented to the

project manager in order for him to make decisions on how the project is going and

enhancement of the organization and development learning.

Internal monitoring will be mainly conducted by the assistant project manager who will be

responsible to ensure the project deadlines are met; project budget is followed to make an

analysis of various financial transactions, projects activities and expected outputs are met or

are on the standard set and then submit a weekly report to the project manager.

Communication and Visibility All activities and outputs of the project must be written in a report where by the project

manager must read the report and must be able to verify all the details that were reported and

a monthly meeting must be set between the management and the board of directors to review

the reports and the project status.

All financial transactions must have objective evidence such as receipts and invoices this is to

portray the visibility of the project and this information should be accessed by any

management member and members from board of directors and in the end of one accounting

period the financial controller from the board of directors will audit and advise on how the

financial aspects of the project are on-going.

Reporting Schedule Weekly reports will be written by agronomists from AVRDC on the progress of the crops and

amount of water in the soil and the nutrients if there is any insufficiency or if the water is too

much upon the three months of a season of cultivation the agronomist will check in twice a

week and write the report to the project manager by the end of the week.

Internally the monitoring report will be written by the assistant project manager which will be

reflecting the activities conducted, output if any and accounting for all financial transactions

and during the harvesting period the operations manager will write a report on how the

organization resources were utilized, during the plantation season in the end of every month a

meeting will be set between management and board of directors to discuss and review all

reports.


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LIST OF APPENDICES

ANNEX 1: LOGICAL FRAMEWORK

Narrative summary Verifiable indicators

Means of verification

Important assumptions

Goal: Improved economy in Arusha through contribution of horticulture products, through development of effective and integrated field onion chains for domestic and regional market all over the East Africa.

1.) Gross domestic product.

2.) Per capita income.

Increased per capita income of Arusha region.

Millennium development goals report.

East African community annual report 2020

AVRDC annual report 2020

Poor transportation systems.

Low technology storage facilities.

Market fluctuations.

Price fluctuations.

Inflation.

Purpose: Toimprove the standard of living of Tanzania citizens through a well-balanced diet from horticulture products and provision of employment opportunities by 2020.

1) Life expectancy.

2) Project output.

3) National health statistics.

4) National bureau of statistics.

National bureau of statistics report by 2022.

National health statistics report by 2020

East African community facts and figures report by 2018.

Market constraints.

Pests and diseases attack.

Inflation

Climate changes

Budget constraints

To establish the prospective of horticulture production, specifically cultivation of onions

Arusha region socio-


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in Arusha domestic market and other markets by 2020.

economic profile

Outputs: Creation of employment

opportunity by 4% in Arusha.

Improved standard of living through healthy nutrition.

1) National bureau of statistics.

2) Regional commissioner’s office report 2018.

National bureau of statistics Tanzania in figures 2018 report.

Budget constraints.

Land clashes.

Casual labourers change of attitude.

Activities:

Writing up the project proposal.

Submitting the proposal to AVRDC management.

Securing a loan from the commercial bank.

Negotiating price with the seed providers.

Preparation and fencing of the land.

Training the management team and recruiting of casual labourers.

Obtaining TFDA permit and regional commissioner’s permit.

Monitoring and evaluation.

1) Presence

of a certified project proposal document.

2) AVRDC acceptance for project initiation letter.

3) Availability of a credit account.

4) Pro forma invoice from seed companies.

5) Fencing of cultivated land.

6) Availability of the organization management training certificate.

Project proposal.

Loan

from the bank.

Invoice from Seed Company.

Trained management employee

.TFDA certificate copy of permit and regional commissioner’s office copy of certificate.

Rejection of the proposal draft by the bank or AVRDC.

Bank to provide a loan with a very high interest rate.

Failure to deliver the seeds on time from Seed Company.

Absence of a management member from the training.

Delay from TFDA


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7) TFDA permit.

8) Monitoring and evaluation reports.

and regional commissioner’s office to issue the certificates.

ANNEX 2: TERMS OF REFERENCE

Position Title Number of People

Required Skills Duties & Responsibilities

Project Manager 1 Project management

Asset utilization Project direction

and supervision Quality control Monitoring and

evaluation

Supervising project operations during implementation

Ensure adherence to project implementation policies and regulations

Maximize asset utilization in project management

Regular reporting to project stakeholders

Ensuring satisfaction of all parties to the project

Assistant Project manager and financial controller

2 Project Management

Human Resources Management

Liaison and administration

Finance and accounting management

Ensure that project start-up timeline is specifically adhered to; acquiring sponsors, funding, and related activities

Work in liaison with other specific groups to achieve targets

Functional Management

Depending on handling capability of the department

Skills based on specific department

Involved in ensuring smooth running of daily operations

Report on a daily basis to specific project departments for monitoring and evaluation


23

ANNEX 3: ACTION PLAN Proposed

action

Milestone

task

Responsible

person

Determined

time

Success

indicator

progress

Written

project

proposal

Have the

project well

written and

proof read

Project

manager

September

2014-

October 2014

Accepted

project

proposal by

the bank on

October 2014

Meeting of

the project

manager and

loan officer

being

successful

Securing a

loan from a

commercial

bank

To have a

current

account in

the bank the

loan is

secured

Project

manager

October 2014 Accepted

loan request,

with an

established

bank account

Meeting

between the

branch

manager,

loan bank

officer and

project

manager is

successful

Obtaining the

best seeds

dealer and

negotiating

price with

them

To obtain an

invoice

Financial

controller

and assistant

project

manager

November

2014

An invoice

with

affordable

negotiated

prices

Meeting

between

assistant

project

manager and

seed dealer

Obtaining

TFDA permit

To have a

certified

document

from TFDA

Assistant

project

manager

December

2014

TFDA

certificate

stating that

the farming

can

commence

Meeting

between

assistant

project

manager and

TFDA officer

Commencing

of cultivation

Cultivation

of the land

Assistant

project

January

2015- March

On-going

cultivation

Hiring of

casual


24

activities manager,

operations

manager,

AVRDC

team

members and

casual

labourers

2015 and sowing

of the seeds

labourers

References; policy forums, (2009). reducing poverty through kilimo kwanza. Dar-es-salaam:

Kalb, S. S. (2012). Suggested cultural practice for onions. AVRDC training guide, 1-6.

ministry of agriculture and food security.security, m. o. (2002). study on the development of horticulture in Tanzania. Dar-es-Saalam:

Vakis, N. (1998). Export Development and promotion Horticultural products. World Bank.

Boyhan, G., D. Granberry, & T. Kelley. 2001. Onion production guide, vegetable team production [Bulletin 1198]. Athens: University of Georgia Cooperative Extension Service.

H.H. Ogaz, N. Bowman, & P. Barnes. 1972. Alternative farm organizational structures for the Navajo Indian Irrigation Project: Projected cropping patterns, livestock enterprise, processing

activities, capital requirements, employment, income, and training

needs [Special Report 17]. Las Cruces: New Mexico State

University Agricultural Experiment Station.

Gorman, W.D., T.S. Clevenger, R.R. Lansford, W.H. Trego, J.E.

Williams, E.J. Gregory, J.M. Jordan, & H.H. Ogaz. 1973.

Costs, returns, and capital requirements of selected crops for the Navajo Indian Irrigation Project [Research Report 256]. Las Cruces: New Mexico State University Agricultural Experiment Station


25

ANNEX 4: Work Plan

Work Plan, Monitoring and Description of Project Components and Activities

YEAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

ACTIVITY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Responsibility

Form Coordination

Committee Project

Manager

Open a Project Account Project

Accountant

Recruit Staff Project

Manager

List and Map Project Areas Project

Manager / AVRDC

Purchases Project

Manager /PO

Mobilize Community Project

Manager

Develop Individual Projects Project

Manager /


27

AVRDC

Inventory of the

Community AVRDC

/HRO

Form and Strengthen

existing Structures Project

Manager

Construct Stores PM

Media Campaigns PM/PO

Procure Improved Seeds Project

Manger

Train Communities in

Horticulture Project

Manger

Train Youth and Women in

development skills to tap

Agriculture potential

Project

Manager

Development of Logos and

Emblems Project

Manager

Linkage and Partnerships

with other organization

tourist markets

PM

Monthly Coordination and

meeting

PM/Staff

Key: PM= Project Manager, PA= Project Accountant, PO=Procurement Officer, HRO=Human Resource Officer

onions cultivation project - project management

Small Business & Entrepreneurship

project team members

project management module

cultivation of onions

local market

people mr julius

stock of onion seeds

mba itm module title

mr casmir