AGROHUBCOOP EXTENSIVE REPORT
INTRODUCTION
We give God the Glory for sustaining and seeing us through many challenges brought about as a result of the global pandemic covid-19. In spite, we thank God we came out strong and it’s my great pleasure to finally present the year 2019, 2020 and first quarter of 2021 report.
I sincerely hope we take out time to read through and send in our responds as this will assist us to take the necessary decisions to better reposition our cooperative.
MEMBERSHIP
Between the years in review, we had six new members and two non-members (Investor). Sadly we equally had four members relinquishing their membership, two of which are executive members, the General Secretary and the Treasurer.
In total, we have left on our database sixty two members.
FINANCIAL STATUS
Sadly, since the Ugu incidence, their has been a very low or no contribution towards new investment and dues respectively. This has a great impact on our cashflow especially with regards to operational costs.
INVESTMENT PROJECTS
As a refresher, after the ugu debacle, the little money realized and the non-refundable #2500 from all members’ registration was added alongside few contributions to kick start the catfish project. Subsequently, the catfish investment was divided into two batches in order to achieve four cycles in a year; each with a 1200 stocking density.
The batch A is tagged (*general*) while batch B is tagged (*specific*). Only 14 Ambassadors participated in the batch B. So far, three cycles have been declared since 2019 before the break out of covid-19. However, due to increase in fish feeds and cost of operations, both batches A & B were combined in 2020 to 1500 juveniles inorder to sustain the investment.
In total, the sum of (#784,766) was raised to run both batches A & B catfish investment which only caters for the direct costs only.
INTRODUCTION OF NEW MODEL AND INVESTMENT
Having realized the financial challenges the cooperative is faced with, we decided to introduce a new model to accommodate both members and non-members specifically as investor(s) while introducing catifish fish feed sales and catfish processing.
Unlike members (Shareholders), the investors are paid fixed interest on their principal capital within a specified period and such investor(s) has no other financial obligations e.g. dues, savings, etc neither do they share in any eventual risks that maybe encountered within the investment period.
Total investment raised from investors amounts to (#800,000) with interest ranges from 11%-24% per annum.
We are happy to state that all those whose investments are due have been paid both their principal and the agreed interest.
Currently, we have just two investors whose investment are yet to expire and both amounts to (#400,000:00)
FARM ACTIVITIES
A number of repairs were made within the year in review such as generator, pumping machine and pond renovation.
RIBY DIGITAL PLATFORM
In the bid to provide accurate members data and made it digitally automated, we partnered with RIBY TECH COMPANY on a quarterly subscription.
CHALLENGES AND PROPOSED SOLUTIONS
Due to the formation or emergence of the cooperative from inception, a number of structures needed to effectively and efficiently manage the cooperative were not properly put in order.
This, in no little measure affected our smooth operations and detailed recording hence the adoption of riby cobanking
Below are few of such challenges and proposed solutions:
1. Membership registration (staggered membership fee): Due to many factors, we have been operating different membership registration fee in order to cover administrative and overhead costs....
In view of this, we are proposing a membership registration of #12,500 having the following breakdown:
#5000(membership fee-non-refundable); #5000(minimum share value); #2500(referral bonus)
2. Membership dues and savings contributions.
Sadly, only one Ambassadors have been saving while just a very few paid their dues into the cooperative as stipulated in the bye laws except just two Ambassadors since inception.
Consequently, we shall be enforcing the dues with effect from January 2020 using the dividends from subsequent investment. Hence, any Ambassador who has less than #5000 shareholding value and has equally not been participating in past projects should note that, we shall henceforth accumulate their dividends to pay up their dues and such maybe advised to relinquish their membership after six months of non compliance.
We therefore encourage members to save with the cooperative as this is the only means to get loan and other financial benefits from the cooperative.
Hence, starting from January 2020, all Ambassadors are expected to pay their monthly dues of #500 and a (non compulsory) minimum monthly savings of #1000.
3. General meetings
In adherence to cooperative general meetings as stipulated in our constitution and Bye-Law, we are aware of our membership different location, hence, we can only encourage Lagos based members to be present at our general physical meetings which come up once in four months while we encourage those outside Lagos to attend our monthly online meetings.
4. Lack of staff
With deep concern, we are yet to engage a full time staff who would help with everyday farm management. Consequently, we shall be looking at the possibility of engaging a full time staff come.
5. Financial obligations
Absurdly, the entire financial obligations of managing the cooperative has not been factored into the cooperative financial obligations, that is, (secretariat, remittance, excos welfare, repairs, logistics and miscellaneous). Young Zoologist Enterprises (a managing partner) has been responsible for such in the last three years.
PROPOSED INVESTMENT
In view of the current hike in raw materials, low working capital and need for expansion, it becomes imperative to expand and explore catfish value chain particularly fish processing. Hence, we are proposing an additional 1500 stocking density capacity for grow outs and 2tons of mélange. Find attached the proposed breakdown.
To achieve the necessary funding needed, we have re-modeled the cooperative such that members can equally have the option of investing as an investor compared to a just being a shareholder. The table below shows the two categories:
MEMBERS
They are shareholders
They are not shareholders
They do not share in any investment risks
They share investment risks
They earn ROI as DIVIDENDS
They earn ROI as FIXED INTEREST
They are decision makers
They have no role in decision making
They have financial obligations such as Dues and shares.
They have no financial obligations but may choose to save with the cooperative. T&C applies.
CONCLUSION
There is no doubt that the role of capital is crucial in sustaining any business hence our appeal to reach out to individuals for investment/partnership as we kick off new projects. The capital will be used to manage and maintain the daily affairs of the cooperative in terms of rent, salaries, bills, advert, websites/social media, automated dashboard and administrative expenses.
Yours Faithfully,
Odekanyin Emmanuel K
President
