Improved farmer negotiating skills enhances profitability
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Authors
Katsande, Innocent
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Type
Language
en
Keywords
Agriculture
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Abstract
Tayambuka farmers group have been trained on a wide range of skills contributing towards the development of their enterprises. They have drawn huge benefits from financial literacy also covering contract negotiating which has led them to where they are today.
Description
In 2016, a group of 24 farmers from Mutasa district came together to form Tayambuka farmers group. The group was to work together focused on expanding their enterprise in beef, poultry and fish farming through leveraging on each other’s knowledge and experience.
The formation of the group was a direct result of the capacity building efforts of the INSPIRE project implemented by Practical Action and Sustainable Agriculture Technology.
Since established, the group has enjoyed its successes, implementing income generating projects in the beef, poultry and aquaculture value chains. The group has managed to work effectively with two financial institutions (Steward bank and Virl Microfinance) to finance their activities.
Unlike most smallholder farmers who shy away from the mere mention of a microcredit facility, Tayambuka group have used their negative experiences as lessons and stepping stones to making more sound business decisions and fostering healthier relationships with established private sector companies. “We used to be short-changed every time we negotiated with private companies, but now because of the training we received on financial literacy, we are able to make better business arrangements that leave us empowered and able to deliver and grow our enterprise to another level,” said Choice Murinda.
“When Molus Meats (a local poultry business) first approached us proposing an out-grower scheme, the model failed because of a number of unfavourable conditions on our side. We were not being profitable due to the cost involved and how the agreement had been structured,” said Choice.
“However, when Molus approached us for the second time after we had been trained, we were able to negotiate for a better business deal that worked for us. I can safely say now we are well equipped to represent ourselves in the work we do,” said Choice Murinda.
Choice Murinda is the Chairperson of Tayambuka farmers group and as a group they have so far been trained on a wide range of skills contributing towards the development of their enterprises. They have drawn huge benefits from financial literacy also covering contract negotiating which has led them to where they are today.