ASF-USAID Research Report by Naushad Kazi

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    Project Agribusiness

    Research Report

    Formation of the Formers Enterpr ise Groups

    (FEG)

    Funded By ASF

    Conducted & WrittenBy Naushad Kazi

    Sindh Agr icul tural and Forestry Workers

    Coordinating Organization

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    Project Titl e AGRI BUSINESS

    Funded By ASF

    Project Tenur e 10thOct 012 to 9

    thOct 014

    Verif ying Object Formation of FEGS

    Conducted Date

    29thMay 013

    Monitoring

    Period

    10thOct 012 to 29

    thMay 013

    Visited FEGs a. Sultanabadb. Jan Muhammad Brohi

    c. Shah LatifMonitoring

    Location Distri ct M atiari

    Distr ict concern

    Focal Person Mr. Muhammad Juman

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    Table of Contents

    S# Descri ption Page No

    1 Project Introduction & Background 4

    2 Project Rationale 4

    3 Research Hypotheses 5

    4 Research& Monitoring Objectives 5

    5 Methodology 5

    6 Analysis 7

    7 Monitoring Observations 17

    8 Dissemination of the Significant Findings 17

    9 Recommendations& Suggestions 18

    10 Appendix-1 19

    11 Appendix-2 21

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    1.Project Introduction & BackgroundFarmer Enterprise Group (FEG) is the basic entrepreneurship unit formed by the Agribusiness Support

    Fund. ASF provides support in creating Agribusiness Enterprises by organizing small farmers and

    building their capacity in enterprise development to operate on commercially viable and sustainable

    basis. ASF supports formation / creation of FEGs through eligible partner organizations including

    RSPs and other NGOs having experience in the context.

    ASF, through its Implementing Partners (IPs) mobilizes horticulture and Dairy and livestock farmers and

    organizes them as groups/clusters and apex bodies (associations).The overall output of the intervention

    would be sustainable units of FEGs formed and engaged in collaborative agribusiness activities including

    production, post-harvest processing, value addition and marketing. Furthermore , provision of cost-

    sharing grants to these FEGs will enable them to employ best agriculture practices and post-harvest

    technologies to produce higher value crops and livestock, overcome scale disadvantages and gain market

    power, including identification of market opportunities and collective bargaining for input and output

    markets.

    This manual will facilitate the process of FEG formation on how the Implementing Partners can help

    farmer communities (men and women) to organize and work together to create employment and increase

    their income.

    2.Project RationaleIn order to overcome scale disadvantages it is vital to organize smallholder farmers into groups to

    engage in collaborative activity including production, post-harvest processing, value addition and

    marketing. Collective action by FEGs will enable the members to benefit in the following areas:

    a.Employ best agriculture practices and post-harvest technologies to produce higher value crops andlivestock;

    b.Overcome scale disadvantages and gain market power, including features such as identification ofmarket opportunities and collective negotiating for input and output markets;

    c.Add value to primary production through rural processing, grading, packaging, branding, storage andmarketing arrangements;

    d.Develop long-term equitable relationships with agribusiness enterprises including traders, processorsand retailers.

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    3.Research H ypothesesThe following hypothesis to be tested in the study:

    Null Hypotheses = H0 Alternate Hypotheses = H1

    a. The FEG members fully briefed about all pros and cons while formation of the FEGs by the concernofficial

    b. The FEG formation enabled the local formers to get more benefits from their available naturalresources

    4.Research& Monitoring Objectivesa.To monitor and evaluate quality of the FEGs formation in distri ct Matiari;b.To assess performance of\ the FEGs and behold their level of available knowledge regarding the

    subject;

    c.To evaluate and assess satisfaction level of the FEGs members regarding efforts of the implementingpartner (Safwco)in district Matiari;

    d.To monitor the project staff behavior/attitude with the members of the FEGS;e.To document, provide feedback on and disseminate results and lessons learned.

    5.Methodologya. I nductive Approach:While the visit, the qualitative approach was also adopted to analyze for further assurance. Hence, Mr.

    Naushad Kazi interviewed with the following designated officials of the FEGS.

    No Name of I nterviewee AreaName of

    FEG

    Type of

    Value ChainDesignation

    1 Mr. Ghullam Raza Matiari Sultanabad Vegetable Manager

    2 Mr. Mashoque Matiari

    Jan

    Muhammad

    Brohi

    BananaAssistant

    Manage

    3 Mr. Manthar Matiari Shah Latif BananaBook

    Keeper

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    b.Adopted Deductive Approach, Population & Sampling:The FEGs are formed around 42 in district Matiari, so the research population was consisted of the

    members of such FEGs; further the pattern of random sampling adopted andsample size decided 7% of

    the described FEGs. The details of randomly selected FEGs are given as under:

    Sultanabad FEG members 15 Jan Muhammad Brohi FEG members 15 Shah Latif FEG members 15

    Each visited FEG has 15 members, so the questionnaire served to 45 members of the FEG. Further, the

    sample size decided 07% of the population. Hence, while the visit the dichotomousquestionnaires were

    distributed to the 45 FEGs members.

    Populations Bifurcation

    Total

    FEGSformed(Matiari)

    FEGsMembers(Matiari)

    SampleSize

    SampleSize %

    42 630 45 7%

    c.Pil ot Testing:For this purpose, meticulously the designed questionnaire served to 7 people who have expertise and

    meet the criteria... Later their candid opinion, a few changes made and further such questionnaire served

    to the decided people of our sample size.

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    6.Analysisa.Qual itative /Di scussion:

    First and foremost, when Mr. Naushad Kazi (Manager MER) met with the concern official Mr. Juman, he

    welcomed and briefed the MERs official Mr. Naushad Kazi (Manager MER) about his targets and

    achievement, such detail is given as below:

    Fi eld Offi cials Al located Target Analysis

    Targets VS Achievement

    No Name of Off icialName of

    value chainTargets Achievements

    %

    Against

    achievement

    1 Mr. Muhammad Juman

    Banana 15 13 86.66

    Off season

    Vegetables.

    High value

    crops

    10 550%

    25 18 72%

    Thereafter, he discussed his plan for scheduled meetings with the FEGs; the detail is already described...

    In this regard, Mr. Kazi accompanied by Mr. Juman went to visit the FEGs. The following record and its

    availability at the FEGs checked while the meetings, except FEG Sultanabad, as such members met

    outside their village at central point which is close to the agricultural land, so just the members could

    meet at the point.

    No FEGs Monitoring I ndicatorsFEG

    Sultanabad

    FEG

    Jan

    Muhammad

    Brohi

    FEG

    Shah Latif

    1

    Attendance Sheet of the firstintroductory meeting with the

    FEGs-

    2 Proceeding Register

    - 3 FEGs Member Registration Form - 4 Group formation Form

    -

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    Moreover, Mr. Kazi interviewed with three designated officials of the FEGs. Such detail is described as

    below:Detail of Yearly Cult ivated Crops/Vegetables at FEG Sultanabad

    Name of Crops/Vegetable

    Locallycalled

    Per acre

    cultivationquantity

    (MAND)

    Rate

    per

    MAND

    Total

    Expected

    income

    Lady's finger Bheendi 30 1200 36,000.00

    Cucumber Toori 60 1600 96,000.00

    A species of cucumber Meho 40 1200 48,000.00

    Pumpkin Kado 35 1200 42,000.00

    Cucumber Wango 40 700 28,000.00

    Spinach Palak 20 1600 32,000.00

    Gohaar 25 1600 40,000.00

    Meethi 30 1200 36,000.00

    Coriander Seeds Dhania 25 1000 25,000.00

    Peppermint Phodano 25 1200 30,000.00

    Name of Crops/

    Vegetable

    Locally

    called

    Per acre

    cultivation

    quantity

    (MAND)

    Rate

    per

    MAND

    Total

    Expected

    income

    Onion Pyaz 175 1200 210,000.00

    Chilles Mirch 150 800 120,000.00

    Tomatto Tomato 150 1600 240,000.00

    Carrot Gajar 100 1200 120,000.00

    Crops/Vegetable Per Acre Cul tivation' s

    Cost/Expenditures

    Name of Crops/

    Vegetable

    Locally

    called

    Cultivation

    Cost

    Per Acre

    Onion Pyaz 60,000.00

    Lady's finger Bheendi 45,000.00

    Cucumber Toori 30,000.00

    Spinach Palak 25,000.00

    Coriander Seeds Dhania 25,000.00

    Meethi 25,000.00

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    Banana Cul tivation/ I ncome and Cost

    Bana

    na

    Per Acre

    Cultivation

    Quantity

    (K.G)

    Per Acre

    CultivationCost

    Per Acre

    paid byContractor

    Net Saving

    Per Acre

    20,000 80,000.00 150,000.00 70,000.00

    b.Quanti tative Analysis:The data analysis is a technique of research for making the valid and replicable references through data

    to their study contexts. (Saunders et al2009)

    For purpose to prove the given hypothesis, the deductive approach is also adopted, so the required data

    has been collected through a questionnaire which designed to measure the research gap. Further, the

    questions were slightly repeated with little variation for proving the validity and reliability. Such data is

    organized in the form of tables and graphs in order to give a clear picture of the evidence gathered

    through a questionnaire and presented with the help of excel program.

    Respondents Prof il e

    Demographic

    Description

    Total

    Respondents

    Marital Status Frequency

    %

    Married SingleMale 36 28 8 80

    Female - - - -

    Analysis of the Questionnai re Responses

    No Description Frequency %

    1 Total number of research population 630 100

    2

    Total number of served

    questionnaires (Sample Size) 45 0 7

    3

    Number of Responded Questionnaires

    & Availability 36 80

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    Questionnaire Analysis

    No Di chotomous Questions Yes No

    1 Do you feel the behavior of the project staff is appropriate andtreats the beneficiaries in a dignified manner?

    36 -

    2Have you any mechanism for complaints if you face any

    problem to managing FEG's day to day activities?13 23

    3Are you fully briefed about the significance of the FEG before

    its formation?36 0

    4Do you think that the project would enable you to raise your

    income35 01

    5Are you briefed that what kind of benefits you could get after

    becoming members of the FEG36 0

    6

    Do you think that the project is designed to meet your all

    relevant expectations?32 04

    7Do you think that the project would be able to meet yourneeds?

    30 06

    8

    Did you get any training for developing your skills to manage

    the FEG activities and providing opportunities to learn more

    about your profession? If yes then write names of the training,

    please.

    - 36

    9 Do you maintain the FEG record regularly? 27 09

    10 Do you convene the FEG's membersweekly meeting? - 36

    11 Do you convene the FEG's membersfortnightly meeting? 21 15

    12 Do you convene the FEG's membersmonthly meeting? 34 02

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    c.Graphic Analysis:

    Graph.1

    Graph.2

    36

    0

    0

    10

    20

    30

    40

    Yes No

    Do you feel the behavior of the project staff is

    appropriate and treats the beneficiar ies in adignif ied manner?

    13

    23

    0

    5

    10

    15

    20

    25

    Yes No

    Have you any mechanism for complaints if

    you face any problem to managing FEG' s

    day to day activit ies?

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    Graph.3

    Graph.4

    36

    00

    5

    10

    15

    20

    25

    30

    35

    40

    Yes No

    Are you ful ly br iefed about signif icance of

    the FEG before its formation?

    35

    1

    0

    5

    10

    15

    20

    25

    30

    35

    40

    Yes No

    Do you think that the project would enable

    you to raise your income

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    Graph.5

    Graph.6

    36

    00

    5

    10

    15

    20

    25

    30

    35

    40

    Yes No

    Are you briefed that what kind of benef its

    you could get af ter becoming members of

    the FEG

    32

    4

    0

    5

    10

    15

    20

    25

    30

    35

    Yes No

    Do you thi nk that the project is designed

    to meet your all relevant expectations?

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    Graph.7

    Graph.8

    30

    6

    0

    5

    10

    15

    20

    25

    30

    35

    Yes No

    Do you th ink that the project would be

    able to meet your needs?

    0

    36

    0

    10

    20

    30

    40

    Yes No

    Did you get any training for developing

    your ski l ls to manage the FEG activi ties

    and providing opportunities to learn more

    about your profession?

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    Graph.9

    Graph.10

    27

    9

    0

    5

    10

    15

    20

    25

    30

    Yes No

    Do you maintain the FEG record regularly?

    0

    36

    0

    5

    10

    15

    20

    25

    30

    35

    40

    Yes No

    Do you convene the FEG's members

    weekl y meeting?

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    Graph.11

    Graph.12

    Note:The Researchers both alternate hypotheses (H1) statisticall y proved and nul l hypotheses

    strongly r ejected.

    21

    15

    0

    5

    10

    15

    20

    25

    Yes No

    Do you convene the FEG's members

    fortn ightly meeting?

    34

    2

    0

    5

    10

    15

    20

    25

    3035

    40

    Yes No

    Do you convene the FEG's members

    month ly meeting?

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    7.Monitoring Observationsa.Mr. Juman (SO) was given the target to form 10 vegetable FEGs but he just could achieve 50% of

    such targeted FEGs.b.While interviews, we found that the FEG members know very well about their crops cultivation and

    they had also other relevant information.

    c.The office record was found available at FEGs Shah Latif and Jan Myhammad Brohi; FEG membersof Sultanabad met outside the village close to their agricultural land. So, the official couldnt see the

    record at their end.

    8. Dissemination of the Signif icant F indings

    100% respondents were agreed that the project deployed staffs attitude and behavior is good andtreats the beneficiaries in a dignified manner; listens their queries carefully and advice them

    accordingly.

    36% respondents werentagreed and replied no but 64% agreed that they know how they couldregister their complaints.

    100% respondents agreed that they were fully briefed about significance of the FEG before itsformation.

    97% respondents agreed that the project implementation would enable them to raise their income. 100% respondents answered that yet they didnt receive any skills developing trainings. 75% respondents answered that they dont maintain the FEGs record regularly. 58% FEG members convene fortnightly meetings. 94%FEGs members convene monthly meetings

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    9.Recommendations& Suggestionsa.It is observed and found while the analysis thatthe FEGs dont convene frequently meetings, merely

    they arrange monthly meetings. So, it is suggested that the concern project official should mobilize andconvince them to conduct minimum fortnightly meetings.

    b.During analysis, it is found that yet the skills developing training opportunities arent provided themby the project staff, so such types of the trainings should be given them without further delay for

    achieving better results.

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    Appendix-1

    FEG Profile/ FEG: Sultanabad (Vegetable)

    No Name

    FEG

    formation

    date

    Value

    chainDesignation CNIC no. Contact detail

    Total

    cultiva

    ted

    area

    Acres

    under

    vegeta

    ble

    1

    Mr. Ghullam

    Raza 22/4/013 vegetable Manager 41801-0606995-3 0305-38188965 1

    2 Hussain Bux 22/4/013 vegetable

    Assist.

    Manager 41305-8839410-1 0301-22102825 1

    3

    Ashique

    Hussain 22/4/013 vegetable Book keeper 41305-4465648-7 0300-30391365 1

    4 Badal 22/4/013 vegetable Member 41801-0600922-7 0300-3004510 4 1

    5 Ayaz Ali 22/4/013 vegetable Member 41801-0603919-9 0308-3108093 3 1

    6 Mehboob 22/4/013 vegetable Member 41801-0601370-3 0300-2852119 2 1

    7 Tanveer 22/4/013 vegetable Member 41801-0625202-5 0300-2193182 2 1

    8 Irfan Ali 22/4/013 vegetable Member 41801-0618091-9 0301-3563306 3 1

    9 Asif Ali 22/4/013 vegetable Member 41801-0581571-7 0306-3081922 4 1

    10

    Nazar

    Mohammad 22/4/013 vegetable Member 41801-0620081-9 0324-36117883 1

    11

    Allah

    Warayo 22/4/013 vegetable Member 41801-0617933-5 0305-81939852 1

    12 Naveed Ali 22/4/013 vegetable Member 41301-99836311 0301-3563303 2 1

    13 Riaz Hussain 22/4/013 vegetable Member 41305-1001764-9 0301-3910124 5 1

    14 Haji Khan 22/4/013 vegetable Member 41305-7821784-7 0311-3273013 2 1

    15

    Nisar

    Hussain 22/4/013 vegetable Member 41801-0629872-7 0306-35883915 1

    FEG Profile/ FEG: Jan Muhammad Brohi (Banana)

    No Name

    FEG

    formation

    date

    Value

    chainDesignation CNIC no. Contact detail

    Total

    cultiva

    ted

    area

    Acres

    under

    vegeta

    ble

    1 Bhagio Khan 25/2/013 Banana Manager 41305-0546772-9 0308-3412443 5 2

    2 Mashooque 25/2/013 Banana

    Assist.

    Manager 41305-4030305-5 0306-34519585 2

    3 Bahadur Ali 25/2/013 Banana

    Book

    keeper 41305-0544358-3 0301-32834755 2

    4 Nillo 25/2/013 Banana Member 41305-0127415-5 0308-3412458 4 2

    5 Mazar Khan 25/2/013 Banana Member 41305-0546767-3 0301-2599518 4 2

    6 Baloch Khan 25/2/013 Banana Member 41305-0546625-5 0300-3097774 5 3

    7 Shahbaz Khan 25/2/013 Banana Member 41305-0546869-9 0301-6395393 5 3

    8

    Shah

    Muhammad 25/2/013 Banana Member 41305-0546627-5 0307-33533696 3

    9

    Mir

    Muhammad 25/2/013 Banana Member 41305-0544360-1 0305-29055746 3

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    10 Mushtaque 25/2/013 Banana Member 45393-319583 0307-3040491 3 1

    11

    Yar

    Muhammad 25/2/013 Banana Member 41305-0535660-5 0302-32079534 2

    12 M. Ibrahim 25/2/013 Banana Member 41301-91858099 0302-3970292 3 1

    13 Sikiladho 25/2/013 Banana Member 41301-4960168-1 0305-3445951 3 1

    14 Karo 25/2/013 Banana Member 41301-8507177-5 0300-3001959 3 1

    15

    Ghullam

    Hussain 25/2/013 Banana Member 41301-2424250-7 0308-89350283 1

    FEG Profile/ FEG: Shah Latif (Banana)

    No Name

    FEG

    formation

    date

    Value

    chainDesignation CNIC no. Contact detail

    Total

    cultiva

    ted

    area

    Acres

    under

    vegetable

    1 Abdul Sattar 21/2/013 Banana Manager 41305-9263264-5 0300-3444724 12 8

    2 Mumtaz Ali 21/2/013 BananaAssist.

    Manager 41305-2783647-3 0300-247970810 6

    3 Manthar 21/2/013 BananaBook

    keeper 41305-5973579-7 0306-30198838 6

    4 Ali Akbar 21/2/013 Banana Member 41305-8918686-5 0300-3063851 7 5

    5 Ghullam Hyder 21/2/013 Banana Member 41305-2127123-5 0301-3563303 8 5

    6 Amjad Ali 21/2/013 Banana Member 41801-0629314- 0300-3060854 10 4

    7 Peer Dino 21/2/013 Banana Member 41301-4067329-5 0305-3818896 4.5 3

    8 Jamshaid Ali 21/2/013 Banana Member 41801-0592727-9 0303-2730397 4 2

    9 Gulab 21/2/013 Banana Member 41305-8023862-7 0301-3525165 3 2

    10 Karim Dino 21/2/013 Banana Member 41305-3688699-5 0302-3905281 12 6

    11 Amanullah 21/2/013 Banana Member 41801-0583602-1 0313-3105955 8 4

    12 Lal Muhammad 21/2/013 Banana Member 41305-0540070-9 0305-3707544 12 4

    13 Nasarullah 21/2/013 Banana Member 41801-0618089-5 3053088125 10 5

    14 Abdul Jabbar 21/2/013 Banana Member 41305-4379170-3 0300-3062107 10 4

    15 Khamiso 21/2/013 Banana Member 41305-1986058-5 0346-3842285 11 3

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    Appendix-2

    Dichotomous Questionnaire

    No Questions Options

    1 Do you feel the behavior of the project staff is appropriate andit treats the beneficiaries in a dignified manner?

    Yes No

    2 Have you any mechanism for complaints if you face any

    problem to managing FEG's day to day activities?Yes No

    3 Are you fully briefed about the significance of the FEG before

    its formation?Yes No

    4 Do you think that the project would enable you to raise your

    incomeYes No

    5 Are you briefed that what kind of benefits you could get after

    becoming members of the FEGYes No

    6

    Do you think that the project would be able to meet your

    expectations?Yes No

    7Do you think that the project would be able to meet your

    needs?Yes No

    8

    Did you get any training for developing your skills to manage

    the FEG activities and providing opportunities to learn more

    about your profession? If yes then write names of the training,

    please.

    Yes No

    9 Do you maintain the FEG record regularly? Yes No

    10 Do you convene the FEG's membersweekly meeting? Yes No

    11 Do you convene the FEG's membersfortnightly meeting? Yes No

    12 Do you convene the FEG's membersmonthly meeting? Yes No