Introduction

This project has been developed by the Central Tea Cooperative Federation (CTCF) for Agriterra funding within the framework of Agriterra. CTCF has successfully implemented phase 5 activities under Agriterra funding from January 2016 to December 2016. CTCF has built a platform through Agriterra funding to provide capacity building support to the cooperatives and district federations. CTCF is successful to generate resources by networking and advocating various stakeholders on key issues to address problems faced by the tea farmers. As a result of that many cooperatives are now sustaining their business by engaging in economic activities either through Saving & Credit or establishing mini tea processing units. Sustainability of CTCF is of concern due to its dependency with the donors.

The previous phases of the programs from the year 2007 onwards with funding from Agriterra and SNV were implemented by TEASEC with field level coordination and support by CTCF and other tea stakeholders. The overarching goal is to strengthen producer organisations in tea sector and thus to enable them to contribute to the following impact targets:

1. Overall promotion of orthodox tea sector and improve rural poverty reduction through environmentally and socially sustainable development of the tea industry.
2. Achieve impacts on increasing and improving the livelihoods and employment opportunities contributing to the 10000^[1] small farmers involved in the tea sector.
3. Support in converting all tea gardens into organic.

The vision of CTCF is towards Sustainable tea cooperatives, Prosperous farmers. CTCF is working at central level to improve the situation of the cooperatives. The main goal of CTCF is to assist to develop social, economic and culture of federation and member of tea farmer of member organization by abiding Nepalese prevailing laws, rules within working jurisdiction of federation.  CTCF has formulated and implementing 4 year strategic plan (2015-2018) at the end of 2014 with the support of Agriterra. It is helpful to guide CTCF for upcoming direction. CTCF has currently 95 members from tea cooperatives from Ilam, Panchthar, Dhankuta, Therathum, Jhapa, Udayapur, Bhojpur Lalitpur, Sankuwasava, Taplejung , Ramechap, Solukhumbu and Okheldunga districts including five district cooperative federations, with more than 5721 tea farmers associated through their cooperatives. The tea farmers as members of cooperatives are gradually increasing and it is expected that the number of cooperatives will be more than 100 with more than 6,000 farmers as members by the end of 2016.

The constitution of Nepal 2072 BS has recognized the three pillars for economic development: 1. Government, 2. Private, and 3. Cooperative. So government also little bit focus to development of cooperatives sectors programmes. CTCF will contribute in this sector by providing services to its members in economic, social, education and culture. CTCF is a member of National Cooperative Federation, National Cooperative bank, National Tea and Coffee board and AFA (Asian Farmer Association for Sustainable Rural Development). There are 95 cooperatives from 13 districts associated with CTCF as a member. The figure below explains services delivery channels through CTCF reaching 5721 tea farmers (4,415 male and 1,306 female) through district federations.

 Intervention: Goal & objectives

Goal: Overall goal is to contribute in sustained rural poverty reduction of smallholder tea farmers of Eastern districts of Nepal by increasing their income, and equally empower small farmer based organisation to provide better technical and management services. 

Specific objectives: Key objectives

Entrepreneurship and organizational strengthening of primary cooperatives and its members

1. Support Small Tea Processing Units (STPUs) in access to markets, and enterprise development
2. Lobby and advocacy works on various tea related issues faced by the tea farmers and cooperatives.

• Financial management and monitoring and supervision supports to all tea stakeholders.

Activities

Activity 1. Strengthening the Organization (sustainable growth/development)

• Activity 1.1: Enhance financial sustainability of organization:

Activity 2: Effective and sustainable Services for members contributing to entrepreneurship among members (at coop level, not individual farmers level) income model for CTCF on services to members (this year 12 % of services are cost neutral)

• Activity 2.1: Follow up training on record keeping and ToT benchmarking
• Activity 2.2: Roll out of field level record keeping, continuous coaching to farmers
• Activity 2.3: 3 days Refreshment training on software and account to 15 cooperatives
• Activity 2.4: Support to Business plan review with one year action plan of member cooperatives.
• Activity 2.5 Support to make Business plan of new and young tea cooperatives of member existing districts
• Activity 2.6 Conduct 2 days training on “mycoop” modules (selected topics) in cooperatives and publish handbook of mycoop modules. (Young and advanced coop)
• Activity 2.7 Support cooperatives in preparing proposals
• Activity 2.8: Coaching cooperatives in account keeping
• Activity 2.9: Peer monitoring by cooperatives members and Supervision and monitoring visits by CTCF
• Activity 2.10: Conduct the ranking system of cooperatives and update data and information.

Activity 3: Improved Marketing services (focus on selling made tea) 

• Activity 3.1: Market promotion and business linkages with national and international cooperatives.
• Activity 3.2: Collection of tea sample and will distributing to potential buyers
• Activity 3.3: (Export) Marketing feasibility study on (collective) tea cooperative marketing of tea processing cooperative

Activity 4: Lobby/advocacy services: access to grants/loans, favorable tax conditions for cooperatives and access to auction market

• Activity 4.1: Lobby government to make five year strategy of tea development sector.
• Activity 4.2: FACT 4 Budget
• Activity 4.3: Subsidy and grants on organic certification, organic inputs, crop insurance.
• Activity 4.4: Auction market centre
• Activity 4.5: Lobby to government for tax exemption for tea cooperatives
• Activity 4.6: Translation of Agrodok 48: Entering the Organic export market: A piratical guide for farmers' organizations.
• Activity 4.7: FACT roll out: coaching and monitoring on application of FACT at the districts level
• Activity 4.8: Publication of newsletter 1 time a years

Results achieved in precious project years

Within the project period from January 2016 to December 2016, the following results are achieved. Results are summarized which includes some level of outcomes. 

1. 65 % members paid service fee to CTCF.
2. 3 new tea cooperatives are registered.
3. Additional 3 processing cooperatives are capable to produce quality tea.
4. 235 (including 81 female) members of ten (10) primary cooperatives have received 2 days My.coop training and they are oriented on cooperative principle, management, cooperatives services, input supplies and marketing etc. and help them to manage their cooperative in a proper way.
5. 518 farmers (including 149 females) of 20 Cooperatives members have oriented the systematic format of record keeping by mobilizing Cooperative facilitators and lead farmers developed by the ToT training of Record keeping and 40 % of the participants started to keep record their farm.
6. Business plan of 7 cooperatives have reviewed and analyzed the previous plan and made further strategy with one year action plan.(Total participants 146, including 31 females)
7. 5 cooperatives business plan have prepared and started to new activities like as saving credit and plan new activities like as tea nursery, plantation, establish collection centre and identified related supporting organization.(total participants 96 including 16 females and 21 young)
8. Progress of CTCF, implemented activities has been shared to larger audiences through the newsletter. CTCF has printed 3,000 copies of newsletter and distributed to members and stakeholders.
9. 10 Peer group monitoring by cooperatives and 26 supervisions and monitoring visits by CTCF were conducted and learn more experiences each other cooperatives.
10. Assess of current situation of member cooperatives by ranking system at end of the 2016.
11. Tea samples of 6 processing cooperatives is collected and sent to national and international buyers. 3 international buyers started to buy tea from cooperative in small quantity.
12. MASS international Company started to buy tea from Tinjure tea coop. and financial supported $ 9759.32 for Rain forest certification.
13. Government started to make 5 year strategic plan of tea development sector. Ministry of Commerce, Ministry of Agriculture, Trade and Export Promotion Center (TEPC) and National Tea and Coffee Development Board (NTCDB) are leading jointly to make strategic plan with the support of International Trade Center (ITC). CTCF also member of core team for making strategic plan.
14. CTCF Regular updated of database of tea cooperatives such as green leaf production, sales, net profit, Saving and Credit schemes, loan portfolio, area under tea cultivation, membership in cooperatives etc., It helps CTCF and its members to know the real situation and status of cooperatives. This information can also be used for further project/programme planning and lobby and advocacy.
15. CTCF got 3.3 million amounts from UNNATI by applying FACT approach.
16. 15 cooperative software operators and Managers (13 male and 2 females) have been trained to operate software and solved the operating problems.
17. CTCF and 3 DTCFs (Ilam, Panchthar, Terathum) prepare proposal to ILO on the base of FACT Approach and lobbying by FACT Approaches.
18. Agrodok 48 (Entering the Organic Export Market) translated to Nepali Language and printed 500 copies 14 copies were sold and distributed.
19. 27 cooperative received 36.362 million (32.5 millions form NTCDB and 0.251 million from local government) for plantlet, tea nursery and processing factory.
20. 22 cooperative have been supported to submit proposal to UNNATI for tea processing factory and tea marketing.
21. 6 Cooperative received 10.852 millions soft loan (4.05 million from YSESEF and 6.802 million from NRB)
22. 12 tea cooperative are ready to establish new processing tea factory with the 50% grants amount of UNNATI
23. 3000 copies of Tea Newsletter was published and disseminated to Tea farmer, member cooperatives and stakeholders. They aware about the activities of CTCF and It got knowledge about the tea technical about the pruning of tea and tea machines supplier and companies' details.

No of direct beneficiaries

^[1] 6000  tea farmers are members of one of the existing cooperatives and the remaining 4000 farmers are not associated with the cooperatives